Main financial assets discussed:
- Schwab U.S. Dividend Equity ETF (SCHD)
- iShares Treasury Floating Rate Bond ETF (TFLO)
Top 3 key points:
1. SCHD's universe of stocks is now overvalued and has slow growth prospects, making it a risky investment.
2. Retirees can now get safe 5% yields in short-term U.S. Treasuries, which is a better alternative given the high prices of SCHD's stocks.
3. TFLO offers a higher yield and lower price risk compared to SCHD, making it a safer alternative.
Recommended actions:
- **Sell** SCHD due to its overvaluation, slow growth prospects, and price risk.
- Consider **buying** TFLO as a safer alternative with a higher yield and lower price risk.
Main financial assets discussed in the article:
1. Bank of America (BAC)
2. Network-1 Technologies (NTIP)
3. Archer-Daniels-Midland (ADM)
4. Qualcomm (QCOM)
5. Kraft Heinz (KHC)
6. Meta Platforms (META)
7. Vanguard S&P 500 ETF (VOO)
8. Schwab U.S. Dividend Equity ETF (SCHD)
Top 3 key points:
1. The article emphasizes the importance of having a diverse set of mental models and valuation considerations when making investment decisions.
2. The author provides analysis and recommendations for various stocks based on different valuation models, such as the Graham Number, PEG ratio, and owner earnings model.
3. The author also suggests overweighting favorite ETFs, such as VOO and SCHD, to reduce downside risks and ensure exposure to broad-based market gains.
Recommended actions:
1. **Buy** Bank of America (BAC) as it is considered a stable and well-run bank with a diverse client base.
2. **Buy** Network-1 Technologies (NTIP) as it is trading close to net current asset value and has potential upside.
3. **Buy** Archer-Daniels-Midland (ADM) as it is undervalued and has strong earnings growth potential.
4. **Buy** Qualcomm (QCOM) as it has a high cumulative score of return on invested capital plus earnings yield.
5. **Buy** Kraft Heinz (KHC) as it is undervalued and has potential for debt reduction and fighting inflation.
6. **Hold** Meta Platforms (META) as it is still within range of having moderate upside despite a recent run-up.
7. **Buy** Vanguard S&P 500 ETF (VOO) and Schwab U.S. Dividend Equity ETF (SCHD) to reduce downside risks and ensure exposure to broad-based market gains.
American Electric Power's stock performance has been affected by short-term interest rates rather than the company's performance, making it a good buying opportunity with a 4.2% yield, according to Jim Cramer. Similarly, Verizon's stock performance is not of concern as long as it maintains its 8% yield and boosts dividends. On the other hand, Churchill Downs, known for its gambling focus, suggests buying DraftKings instead.
Verizon, Medtronic, Hasbro, Dell, and Walmart are highlighted as attractive dividend stocks by Wall Street analysts, offering investors potential income and long-term returns.
Verizon Communications, Cisco Systems, and AbbVie are three cheap stocks that pay dividends, making them attractive options for investors looking to maximize potential returns. Verizon's robust telecom business and projected growth, Cisco's profitability and recent acquisition, and AbbVie's undervalued position and promising assets make them potentially lucrative investments.
