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This week in Trumponomics
Economists think the worst damage of the 2020 coronavirus recession has already occurred. But we’re nowhere near the end. President Trump insisted this week that “we are not closing our country” again if the virus resurges. Yahoo Finance’s Rick Newman joins Jen Rogers to discuss and give this week’s Trump-o-meter reading. from Yahoo Finance https://ift.tt/3gfMkNH
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University of California votes to stop using SAT and ACT exams
The University of California announced that within the next five years, the SAT and ACT standardized tests would be phased out from its admissions requirements. The Final Round panel discuss the impact this will have on the college admissions process and on the education industry. from Yahoo Finance https://ift.tt/36pdcWU
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Carnival Is Hitting All the Branches of the Ugly Tree
To no one's surprise, cruise liners like Carnival (NYSE:CCL, NYSE:CUK), Royal Caribbean Cruises (NYSE:RCL) and Norwegian Cruise Line (NYSE:NCLH) have been especially hurt by the novel coronavirus. At this point, they're all interchangeable. However, Carnival is notable for its now notorious Diamond Princess ship, which became the face of the all-too-familiar quarantining protocol. As a result, CCL stock finds itself down more than 72% year-to-date.Source: Ruth Peterkin / Shutterstock.com However, that kind of loss inevitably invites speculators and those who are rookies to the markets. Sure, CCL stock looks like it's on a discount. While the environment looks awful today, we recognize the need for vacations – especially from such stresses as shelter-in-place orders. Therefore, many are reasoning that Carnival and the broader cruise ship industry will make a recovery.Giving fuel to this narrative is that Carnival announced earlier this month that it plans to resume service on Aug. 1. This is a week after the end of the Centers for Disease Control and Prevention's no-sail order for the industry. Since early April, CCL stock has been steadily creeping higher as positive sentiment trickles in.InvestorPlace – Stock Market News, Stock Advice & Trading TipsOf course, the CDC isn't happy about Carnival's intent. The agency is on record stating that traveling aboard cruise liners "exacerbates the global spread of Covid-19." But they might not need to be so vocal. It's the people who decide with their wallet what they want to do and it's not clear they'll return to the open waters. * 7 Excellent Penny Stocks Ready to Roar Recently, the Washington Post noted that 58% of American adults are concerned about going back to work, fearful that they might inadvertently infect their households. Imagine the sentiment for a non-essential function like going on a cruise? Economic Realities Work Against CCL StockFor those that think this industry offers untapped recovery potential, I would reconsider the thesis. Unlike other disasters that we've faced in this country, this is a crisis that has impacted in some significant way every American. Indeed, much of the world has suffered acutely from the pandemic.Therefore, I don't believe in the quick recovery narrative that you would find associated with, for instance, tragic accidents. That airplanes crash or that boats sink is an accepted risk that consumers take, particularly because these incidents are rare.But now, consumers have tuned into a new risk, that of an infectious disease spreading aboard. Actually, the risk isn't new but the concept of governments taking extreme quarantining measures is. That's not something that consumers will easily get over, which clouds the bull case for CCL stock.Beyond that, I also have concerns whether would-be travelers are able to go cruising. Much talk has been made of the latest jobless claims report, where 2.4 million have filed for unemployment benefits. Over a nine-week period, nearly 39 million Americans filed for aid. Click to EnlargeSource: Chart by Josh Enomoto Several media pundits have pointed out a silver lining in the otherwise stark data. Since jobless claims hit a peak around late March/early April, the number of people making claims has declined significantly. However, I don't see that as good news.When the crisis first became serious, virtually all non-essential services (i.e. restaurants, sporting events, movie theaters, etc.) shut down. That left millions of service industry workers out of a job, explaining the massive spike in claims.Now, as states reopen, we should see these early impacted workers get their jobs back. Logically, this suggests that the recent jobless claims are coming from higher-paid occupations. These are the type of folks that would go cruising. Black Eye on the Industry Won't Be IgnoredIf the discussion above wasn't enough to dissuade you from CCL stock, here are two interesting nuggets that I discovered: * Millennials love ESG stocks, or stocks of companies that rank highly for environmental, social and corporate governance principles. So much so that this group has outperformed during this crisis relative to non-ESG names. * Millennials love CCL stock, especially at these deflated prices. That's according to Robinhood, whose investing app is very popular among the younger demographic.This is a glaring contradiction. As of May 14, the U.S. Coast Guard that almost 60,000 cruise liner crew members are stuck at sea in U.S. waters. Of course, this includes many from Carnival's payroll.To be fair, Carnival plants to repatriate tens of thousands of their crew members throughout the world through various means. As well, bureaucratic roadblocks have utterly failed those who have been stranded. It's not accurate to heap all the blame on the cruise ship operators.Nevertheless, it's an ugly black eye for the industry because the buck has to stop somewhere. And terrible tragedies of desperation have occurred among those forcibly quarantined.Therefore, I expect that this news will filter down to the millennials who love CCL stock so much. It's too much of a paradox to see travelers enjoying their vacation while thousands have been sentenced to glitzy, floating prisons.A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Carnival Is Hitting All the Branches of the Ugly Tree appeared first on InvestorPlace.
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How to Land a Great Deal in Boeing Stock While It’s Still Cheap
Now the experts are brave talking Boeing (NYSE:BA) stock up. Yesterday RBC rated it with an "outperform" rating and a $164 price target. Meanwhile, when the true opportunity presented itself during the novel coronavirus crash they were all silent about it. Below $90, BA stock was a blind and emphatic buy. Most of Wall Street missed it. Chasing headlines is rarely a smart thing to do. With that in mind, here are some key things you need to know about Boeing stock moving forward.Source: VDB Photos / Shutterstock.com I did my share of looking at charts during the March Covid-19 crash and wrote about my conclusion then. Boeing stock rallied almost 100% thereafter, so the gift was indeed fantastic. Moreover, the stock took a few more whacks from silly headlines, and those dips were also opportunities to buy. The most recent was a week ago and that entry point is now 30% higher. Clearly, this stock is back to its old ways of buy-the-dip mode. But that is not the same as saying that it is out of the woods completely.The headlines are still coming and from all angles. Boeing stock will fall on bad news from all travel-related stocks. Its clients are airlines and they are still suffering from hiccups in travel and entertainment sectors. Not to mention that the company is still under political pressure over its 737 Max model. But for now, I am a buyer of the dips and eventually this stock is headed to $220 per share maybe in 2020. I know this sounds like a pipe dream, but let's line up a few facts to support it.InvestorPlace – Stock Market News, Stock Advice & Trading Tips Boeing Stock Fundamentals are Still Rock SolidOn its worst day, the Boeing sales pipeline is beyond reproach. It is one of only two major jet manufacturers on the planet. They are both booked solid for years. The global quarantine did cause a lot of cancellations but that problem for them started last year. The grounding of the Max was a major disruption in the order flow. Covid-19 merely made the problem worse. My thesis is that the authorities will let the 737 Max fly again and that is a headline that will cause a leg higher in BA stock. * 7 Dow Jones Stocks to Buy With Fortress-Like Balance Sheets Fear is at an all-time high over the global business outlook but specifically for travel. The debate over the future of U.S. airlines is hot. Don't take my word for it, you heard it from high profile and controversial statements from billionaire investor Chamath Palihapitiya, and more recently even Boeing CEO David Calhoun suggested the likelihood of a major U.S. Airline folding. Clearly Wall Street is on edge over investing in travel stocks. BA stock sits in the line of fire and suffers in sympathy. If its clients, the airlines, go out of business, Boeing is not going to be selling a lot of planes to them.To be fair it is hard to judge the stock metrics using price-to-earnings ratios. Its top line has been hostage for two years, so I have to assume that the sales pipeline speaks better truth than actual revenue accounting. They can't book the sale without delivery so they need the Max to be free for that. Once that headline hits, I bet the burst higher will be wild and sustainable. Shorts will be carried out on stretchers. Chart Patterns Support a Big Rally for Boeing StockSource: Charts by TradingView I am a strong believer in the technicals because charts don't lie. This is why there is the adage that "price is truth." In this case, the long-term weekly chart suggests a bounce to $225 per share, and the chance to over-shoot by $25.This was an important zone of a giant burst in July 2017 and traders will be eager to trade around it once more. Also there is a big gap left open from the fast collapse on the way down this march. As far-fetched as it seems, I bet that machines will want to go through those zones sooner rather than later.Even if investors don't believe in technicals, the bounces off the lows confirm that the downside is limited. So owning the shares for the potential mega spike has a very favorable risk to reward ratio. There are more nuances on the chart that also support this, like the recent price range. It has been tightening into a point which usually indicates that a big move is imminent. Since they are buying the dips, then the upside breakout is the more likely scenario.The bottom line is that the world has no choice but to stick with Boeing. And the investors also voted with confidence as they lined up to lend the company money. The company raised $25 billion so it now has the cash hoard it needs to come out of this crisis swinging. They could have sold $75 billion that day so there is ample liquidity to support operations. I would not bet against Boeing stock for long.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room for free here. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post How to Land a Great Deal in Boeing Stock While It's Still Cheap appeared first on InvestorPlace.
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7 Inexpensive, High-Dividend ETFs to Buy
[Editor's note: "7 Inexpensive, High-Dividend ETFs to Buy" was previously published in January 2020. It has since been updated to include the most relevant information available.]The universe of exchange-traded funds (ETFs) is awash in low-fee products, and the space is growing as issuers reduce their fees to lure investors.Income-seeking investors do not have to pay up to access high-dividend ETFs. In fact, numerous high-dividend ETFs can be inexpensive, which is an important point for income investors looking to keep more of those dividends and a higher share of their invested capital.InvestorPlace – Stock Market News, Stock Advice & Trading TipsHigh-dividend ETFs are often embraced by long-term investors and over the long-term, lower fees can mean better outcomes for investors. * 7 Excellent Penny Stocks Ready to Roar Over the past several years, data confirm that when it comes to adding new assets, the best ETFs are usually those with annual fees of 0.20% or less. Plenty of high-dividend ETFs fit into that category, making it a cost-effective method for thrifty investors to access broad baskets of dividend stocks.Here are some high-dividend ETFs, with very low fees, for income-minded investors to consider. iShares Core High Dividend ETF (HDV)Source: Shutterstock Expense Ratio: 0.08%, or $8 annually per $10,000 investmentMany high dividend ETFs weight components by yield, a strategy that has some drawbacks. Those disadvantages include vulnerability to rising interest rates and the potential for exposure to financially challenged companies that may have trouble maintaining and growing dividends.The iShares Core High Dividend ETF (NYSEARCA:HDV) has a dividend yield of 3.53%, which is consistent with the S&P 500 and 10-year Treasuries. However, this high-dividend ETF follows the Morningstar Dividend Yield Focus Index, which screens companies for financial health, giving the fund a quality look.With an annual fee of just 0.08%, HDV is one of the cheaper high dividend ETFs on the market today. That low fee coupled with its sector allocations make HDV ideal for conservative investors.The healthcare, consumer staples, telecom and utilities sectors, four of HDV's top five sector weights, can all be considered defensive groups. SPDR Portfolio S&P 500 High Dividend ETF (SPYD)Source: Shutterstock Expense Ratio: 0.07%The SPDR Portfolio S&P 500 High Dividend ETF (NYSEARCA:SPYD) is one of the least expensive dividend ETFs on the market, high dividend or otherwise.The ETF tracks the S&P 500 High Dividend Index, the high-dividend offshoot of the traditional S&P 500.SPYD's yield requirement gives this high-dividend ETF a focused roster, but the 12-month dividend yield of 3.14% makes this high-dividend ETF appealing for income investors relative to standard broad market funds. * 10 Lithium Stocks to Buy Despite the Market's Irrationality SPYD relies heavily on high-income sectors that have shown historical vulnerability to rising interest rates. The real estate and utilities sectors combine for about 30% of this high dividend ETF's weight. Invesco Dow Jones Industrial Average Dividend ETF (DJD)Source: Shutterstock Expense Ratio: 0.07%The Invesco Dow Jones Industrial Average Dividend ETF (NYSEARCA:DJD) is a yield-weighted approach to the venerable Dow Jones Industrial Average. What this high-dividend ETF does is weigh the 30 Dow stocks by their trailing 12-month dividend, not price, as the traditional Dow does.DJD's yield focus makes IBM(NYSE:IBM) the high dividend ETF's largest holding. DJD's largest sector weight is technology, and the fund devotes just 7.8% of its assets to consumer goods.While DJD appears to be a high-dividend ETF, the fund offers significant dividend growth potential because many of the Dow's 30 member firms have payout-increase streaks that can be measured in decades. Invesco S&P 500 Quality ETF (SPHQ)Source: Shutterstock Expense Ratio: 0.15%With a distribution rate of just 1.5%, the Invesco S&P 500 Quality ETF (NYSEARCA:SPHQ) does not scream "high dividend ETF." SPHQ's underlying index, the S&P 500 Quality Index, does not even emphasize dividends.Rather, that benchmark focuses on firms "that have the highest quality score, which is calculated based on three fundamental measures, return on equity, accruals ratio and financial leverage ratio," according to Invesco.While SPHQ is not explicitly a high -dividend fund, reliable, growing dividends are often a hallmark of companies meeting the standards of the quality factor. * 7 Financial Stocks with Dependable Dividends With a combined weight of nearly 45% to the technology and health care, SPHQ has the feel of a growth ETF, but that means this fund also pairs well with more traditional high-dividend ETFs, such as some of the funds highlighted above. Vanguard High Dividend Yield ETF (VYM)Source: Shutterstock Expense Ratio: 0.06%Home to $26.8 billion in total net assets, the Vanguard High Dividend Yield ETF (NYSEARCA:VYM) is one of the largest dividend ETFs of any variety. It is not unreasonable to believe that VYM's name frames the fund as a high-dividend ETF, but a yield of 2.83% is not alarmingly high.More importantly, VYM is not overly dependent on rate-sensitive sectors. This high-dividend ETF features no real estate exposure and the bond-esque telecom and utilities sectors combine for just 14.5% of VYM's weight.Nearly a quarter of the fund's holdings hail from the industrial and healthcare sectors. Financials, a sector that has been a major driver of S&P 500 dividend growth over the past year, is this high dividend ETF's largest sector exposure at 18.5%. JPMorgan U.S. Dividend ETF (JDIV)Source: Shutterstock Expense Ratio: 0.12%The JPMorgan U.S. Dividend ETF (NYSEARCA:JDIV) is one of the youngest funds on this list, having debuted in late 2017, but it fits the bill as a cost-effective, high-dividend ETF.JDIV "utilizes a rules-based approach that adjusts sector weights based on volatility and yield and selects the highest yielding stocks," according to the issuer. * 7 A-Rated Gold Stocks to Buy For Your Portfolio Hedge With a 12-month yield of 3.26%, JDIV has high-dividend ETF credentials. JDIV's annual fee of 0.12% is quite low. Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF)Source: Shutterstock Expense Ratio: 0.20%The Xtrackers MSCI EAFE High Dividend Yield Equity ETF (NYSEARCA:HDEF) targets the MSCI EAFE High Dividend Yield Index, a benchmark that is a high-dividend derivative of the widely followed MSCI EAFE Index.While HDEF is a credible name among international high dividend ETFs, the laggard status of European stocks has hindered HDEF in recent years.On the more positive side of the ledger is ex-U.S. dividend growth and valuation opportunities across developed markets, two traits that speak to long-term opportunity with HDEF.As of this writing, Todd Shriber did not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Stocks to Buy Under $10 * These 10 Stocks to Buy Make the Perfect 'Retirement' Portfolio * 5 Streaming Stocks to Buy for Huge Upside Over the Next Decade The post 7 Inexpensive, High-Dividend ETFs to Buy appeared first on InvestorPlace.
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Top brokers name 3 ASX dividend shares to buy

When it comes to dividend shares there are countless options for investors to choose from on the ASX. Which certainly is fortunate with rates going down to record lows.
But with so many to choose from, it can be hard to decide which ones to buy.
To narrow things down I have picked out three dividend shares that brokers think investors should buy:
Aventus Group (ASX: AVN)
According to a note out of Goldman Sachs, its analysts have upgraded this retail property company’s shares to a buy rating with a $2.46 price target. The broker believes Aventus is well positioned to prosper as Australia gradually re-opens. This is due to its large format retail portfolio being weighted towards everyday needs and homewares, electrical, furniture, bedding and hardware. Everyday needs account for 38% of rental income, whereas the others make up the balance. In light of this, it has forecast Aventus paying a ~17.3 cents per unit distribution in FY 2021. This equates to a forward ~8.7% distribution yield.
Rio Tinto Limited (ASX: RIO)
Analysts at Morgans have retained their add rating and lifted the price target on this mining giant’s shares to $105.00. According to the note, the broker believes iron ore prices could surge higher from here due to supply disruptions. It doesn’t believe this is being reflected in its share price. In addition to this, the broker believes Rio Tinto will return significant funds back to shareholders again through dividends. So much so, it estimates that its shares are offering a fully franked ~9% FY 2021 dividend yield at present.
Service Stream Limited (ASX: SSM)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating but trimmed the price target on this essential network services company’s shares to $2.88. According to the note, the broker wasn’t overly surprised that Service Stream’s guidance for FY 2020 fell short of its estimates. It believes these delays were caused by clients not wanting to disrupt connections in both utility and telecommunications while people work from home. Macquarie expects this to be a temporary headwind and remains upbeat on the future. It is forecasting a fully franked dividend of 8.4 cents per share in FY 2021. This means a yield of almost 4.2%.
And here is a fourth buy-rated dividend share which continues to grow even during the pandemic…
NEW: Expert names top dividend stock for 2020 (free report)
When our resident dividend expert Edward Vesely has a stock tip, it can pay to listen. After all, he’s the investing genius that runs Motley Fool Dividend Investor, the newsletter service that has picked huge winners like Dicker Data (+92%), SDI Limited (+53%) and National Storage (+35%).*
Edward has just named what he believes is the number one ASX dividend stock to buy for 2020.
This fully franked “under the radar” company is currently trading more than 24% below its all-time high and paying a 6.7% grossed-up dividend.
The name of this dividend dynamo and the full investment case is revealed in this brand new free report.
But you will have to hurry — history has shown it can pay dividends to get in early to some of Edward’s stock picks, and this dividend stock is already on the move.
More reading
- ASX 200 drops 1% on Friday
- The latest ASX small caps broker picks to buy today
- Why this ASX infrastructure company could help protect your portfolio in a downturn
- ASX 200 drops 0.4%, Chinese threat to Australian iron
- Why the share price of this top dividend share just sank 6%
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended AVENTUS RE UNIT and Service Stream Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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