In the past 90 years, dividends have accounted for about 40% of the total stock market return. The combination of a rising stock price and a regular dividend can work wonders for long-term returns. Dividends from high-quality stocks can also be a reliable source of income during economic downturns. Fortunately, there are plenty of dividend stocks out there that don’t…
On Sept. 12, the European Central Bank announced that, for the second time in three months, it was cutting its key interest rate. While the move was not altogether unexpected, it did reinforce the belief that the U.S. Federal Reserve would soon embark on a similar program of rate cuts. World financial markets now widely expect the Fed to announce…
The artificial intelligence (AI) industry continues to heat up, with OpenAI – creator of ChatGPT – squarely at the center once again. After earning $13 billion in backing from Microsoft Corp. (ticker: MSFT) since 2019, other notable tech giants are now eyeing their own investments in the AI firm. Notably, according to the Wall Street Journal, Apple Inc. (AAPL) and Nvidia…
Generating passive income can help investors cover everyday expenses and achieve their retirement goals. Accumulating assets like stocks and real estate can lead to gains, but some funds aim to reward investors with steady cash distributions. These funds have relatively high yields and can be a reliable source of income. Income funds tend to be less volatile than funds that focus…
Federal Reserve Chairman Jerome Powell did Friday what everyone expected, acknowledging in a speech in Jackson Hole, Wyoming, that the time to cut interest rates from their two-decade high is now. “The time has come for policy to adjust,” Powell said. “The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data,…
Artificial intelligence has grabbed headlines recently, but a different sort of sector of the U.S. economy is in full growth mode: franchising. Perhaps unsurprisingly, investors are turning to franchising as a stock market alternative. Franchise investors are attracted to brand-name businesses with a proven business model, which allows them to stack cash more quickly. Whether you become an actual owner…
After a long slump, renewable energy stocks have begun to stage a comeback as inflation is starting to ease and interest rates are poised for a Federal Reserve cut in September. It’s important to look at the big picture when considering renewable energy stocks. Undeniably, the renewable energy sector has vast potential, and it’s expected to keep growing. Overall, solar and wind power generation…
The stock market tacked on 26% across all of last year, and as the S&P 500 has tacked on 13.2% from January through late July, it appears Wall Street could rival those gains again in 2024. Thanks to this sustained optimism, “risk-on” stocks have been at the top of the heap in the current bull market environment. These investments tend…
Investor enthusiasm for artificial intelligence stocks has propelled markets to new all-time highs in 2024. Unfortunately, the spectacular surge in a handful of leading AI technology stocks has also raised concerns among skeptics that the market could be overheating. AI technology could be one of the most transformative advances in economic history. While its true impact is only beginning to make a…
The long climb back to relevance continues for initial public offerings in the U.S. in 2024, as investors warm up to new publicly traded companies and IPOs are able to back that sentiment up with sturdier returns. So, where do IPOs go from here in the second half of 2024? Sustained high borrowing costs and suspense over a chaotic U.S.…