There are many sources that provide the dividend payout ratio. Although, knowing what’s behind it can give you a leg up. It’s also easy to calculate.

To start, we’ll walk through the payout ratio formula. I’ll explain each piece to the equation and how it’s useful, along with an example. Going one step further, I’ll show you why some sources show different payout ratios for the same company.

Continue reading below to find out more. And here’s a useful YouTube video on the topic as well…

Dividend Payout Ratio Formula

Here’s the dividend payout ratio formula…

Payout Ratio = Dividends Paid ÷ Net Income

Net income is the total income for the company. And dividends paid are the total dividends that a company pays to shareholders. For mega cap companies, these numbers can easily come in above a billion dollars.

It’s also good to note that most dividend stocks pay quarterly… but you’ll normally see the payout ratio calculated based on annual numbers. This is to help minimize seasonal fluctuations. Some quarters might be more profitable than others.

Another way to calculate the ratio is by using numbers on a per share basis. It’s easy to find the dividend per share online, as well as earnings per share (EPS). Here’s how that formula looks…

Payout Ratio = Dividend Per Share ÷ EPS

Assuming a simple shareholder structure, this should give you the same dividend payout ratio. To see how both of these formulas work, let’s put some numbers to them…

Payout Ratio Example

Let’s say a company pays $2 billion in dividends for the year and has a net income of $5 billion. Plugging this into the formula would give a 40% dividend payout ratio…

40% =  $2 Billion ÷ $5 Billion

Using this same example, let’s look at it on a per share basis. And to do this, we’ll need one more piece of information…

Let’s assume the company has 10 billion shares outstanding. This then gives us a dividend per share of $0.20 and EPS of $0.50. I got these numbers by dividing $2 billion and $5 billion by the 10 billion shares.

Here’s the dividend payout ratio formula with these per share numbers…

40% = $0.20 ÷ $0.50

I hope this example gives a clear understanding of how to calculate the ratio. For the next step, let’s look at how this info can help you make better investing decisions.

What’s a Good Payout Ratio?

You can use the payout ratio formula to determine dividend safety. For example, 40% might indicate the company has room to pay shareholders more. Although, it’s important to consider some of the earnings might need to go to other efforts. There are costs to maintain and grow the business.

Nonetheless, if the payout ratio is above 100%, that means the company is paying out more than it’s earning. And that usually can’t continue for long. Paying more than a company earns each year is not sustainable.

In the short-run, companies might have extra cash saved up that they pay out. This is one reason you might see payout ratios above 100%. There are also some weird accounting rules which I’ll touch on below.

Overall, paying dividends can be a great way to reward shareholders. And some companies have a long history of paying more each year. In these cases, we can look at how the dividend payout ratio changes over time. If it’s climbing and outpacing earnings growth, that means the dividend might not be as safe going forward. And it all really depends on the future earnings growth of the company.

Dividend Payout Ratio Based on Free Cash Flow

As you’ve seen with the dividend payout ratio formula, using net income or earnings is most common. Although, there are many different accounting rules to determine a company’s earnings. Even non-cash transactions can factor into earnings. So, it’s not always the most reliable or useful.

Sometimes you’ll see free cash flow used instead. This can give a better idea of actual cash coming into the business. So, it’s good to be aware of the different accounting techniques. And if you’re familiar with REITs, they’re required to pay out at least 90% of certain cashflows to maintain their tax situation. This is why you’ll often see higher dividend yields for REITs.

Overall, there’s a lot of variability and the core concept is useful to know. You can determine which payout ratios are most useful for your investment approach.

Dividend Calculator and Investment Opportunities

Dividend stocks can be a great source of income. And the dividend payout ratio formula can help you determine their safety. Many of the world’s best investors turn to dividend investing and that income helps them expand their portfolios.

To see how dividend investments can grow, check out this free dividend calculator. It also shows you the power of reinvesting your dividends. With this approach, your income climbs each year at a higher amount.

If you’d like help tracking down some of the best dividend stocks, sign up for Wealth Retirement as well. It’s a free e-letter that’s packed with investing tips and tricks. You’ll hear directly from Marc Lichtenfeld. He literally wrote the book on getting rich with dividends and has helped hundreds of thousands of readers.

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There’s plenty of pent-up demand for getting friends and family together. And with that comes more consumer spending. We’re seeing increases in categories such as food and drinks. This increased demand, along with some shortages, is pushing up prices.

Inflation has already spiked above 6%. And the classic Thanksgiving feast will cost 14% more than it did last year. That’s according to the Farm Bureau. This inflation impacts both savers and investors…

If you’re holding cash, this isn’t great to see. Your purchasing power is dropping at a faster rate. Although, by investing in the companies below, you can hedge against inflation.

The Thanksgiving stocks below are large food and drink companies. They should be able to pass on inflation costs to customers thanks to their large brands. This pricing power is great for investors.

Without further ado, let’s dive into these holiday investing opportunities…

Thanksgiving Stocks to Invest in Food Inflation

• Flowers Foods (NYSE: FLO)
• Molson Coors Beverage (NYSE: TAP)
• Starbucks (Nasdaq: SBUX)
• Campbell Soup Company (NYSE: CPB)

These Thanksgiving stocks should see a little sales boost from Thanksgiving week. Although, it’s just a drop in the bucket compared to their total sales. Nonetheless, this week could be a good indicator for their future growth.

Let’s look at some highlights from each company. You’ll see why they made the cut…

Flowers Foods

Flowers Foods sells bakery foods and many staples for Thanksgiving meals. The company has 46 bakeries in 18 states. You can find its foods under brands such as Dave’s Killer Bread, Canyon Bakehouse, Nature’s Own, Tastykake and Wonder Bread.

In fiscal year 2021, Flowers Foods brought in close to $4.4 billion in sales. That’s up 6.4% over the previous year and it’s great growth for the food industry. With some good numbers in the rear view mirror and continued growth, investors have bid up the stock price. As a result, it doesn’t look as cheap as it used to… but the recent momentum is positive.

Another big benefit to Flowers Foods is the dividend. It comes in close to a 3% yield and that more than doubles the S&P 500’s dividend yield. Thanks to steady cashflows from food sales, Flowers Foods keeps rewarding investors with more income.

Molson Coors Beverage

For the next of the best Thanksgiving stocks is Molson Coors. You might know this company for its Coors and Molson beers. Although, that’s only scratching the surface. Founded back in 1873, it’s become one of the largest brewers in the U.S.

Molson Coors provides other beers such as Miller, Miller Lite, Crispin Cider and Blue Moon. There are close to 100 different brands and there’s a good chance you’ll see of few of these at your Thanksgiving events.

Unlike Flower Foods, Molson Coors stock is well off its highs. The pandemic hit the company hard, but over the past few quarters, it’s been moving in a better direction. As social outings like Thanksgiving pick back up, Molson Coors should benefit.

To find more stocks in this industry, check out these top beer stocks. Molson Coors is just one of the top beer companies available to investors. You can also gain more international exposure with those companies.

Starbucks

For another one of the best Thanksgiving stocks, Starbucks makes the list. As families travel and schedules change, they seek out coffee for some extra energy. After a big meal, a cup of coffee can help you stay awake as well.

Since its start in 1971, Starbucks has expanded to more than 32,000 stores in 83 countries. This reach gives the company stable cashflows and it continues to grow. For the holiday season, Starbucks offers special drinks to attract more customers. Customers know what to expect and this keeps them coming back for more.

The pandemic disrupted many restaurants and Starbucks stock took a hit… but it’s rebounded faster than some other restaurant stocks. That’s largely thanks to its improved online and drive-thru services. Starbucks is leveraging technology to help keep customers around and expand its business.

To find even more caffeine investing opportunities, check out these coffee stocks.

Campbell Soup Company

Turkey, stuffing and soup are classics for any Thanksgiving meal. And this makes Campbell Soup Company another one of the best holiday food stocks to consider.

Many people know this company for its iconic soups like Campbell’s tomato soup. Although, it’s picked up many products and brands over the years. Under the larger business, you’ll find Pepperidge Farm, Pace, Prego, V8 and many more.

Following Starbucks on this list, shares of Campbell haven’t done nearly as well. It’s down over the past year and even the past five years. However, the company still remains profitable and continues to reward shareholders with dividends.

With a lower share price today, its yield comes in well above 3%. It might be a better value investing opportunity.

Investing Beyond Thanksgiving Stocks

As mentioned, Thanksgiving week will just be a small fraction of these companies’ sales. But it might help indicate performance and sales going forward. Keep an eye out for updates from these companies. As more people travel, consumer trends will change and investors should be prepared.

The Thanksgiving stocks above can also help investors hedge against rising food costs. No matter what happens in the economy, people need to eat. And thanks to these large food and drink brands, sales should continue to climb.

If you’re looking for more investing opportunities, sign up for Profit Trends below. It’s a free e-letter that’s packed with insight. You’ll hear directly from investing experts who cover seasonal trends, as well as some of the best technologies to invest in today.

The post 4 Thanksgiving Stocks With Food Inflation at the Table appeared first on Investment U.

Below, you’ll find the key differences. Going one step further, I’ve also compared mutual funds with ETFs. Some big trends are pushing investors into one over the other.

As you build out your portfolio, you might also want to check out this investment calculator. It’s a free tool that shows how big your investments might grow. Will it take you five, 10 or 20 years to reach financial freedom?

Stocks vs. Mutual Funds Key Differences

• Individual stocks tend to have higher risk
• Individual stocks don’t have portfolio management fees
• Mutual funds are diversified
• Mutual funds can include bonds and other assets

You can invest in both stocks and mutual funds. They’re publicly traded assets. To buy them, the process is similar as well. Most brokerages give you easy access to these securities.

The big difference is that mutual funds are usually a collection of individual stocks. If you buy just one stock, that business might fail. But instead, if you buy a basket of stocks with a mutual fund, that lowers risk…

If one company goes belly up, the others in the fund might help you stay in the green. As the saying goes, you don’t want to put all of your eggs in one basket.

You can also always create your own basket of stocks by buying them individually. You might buy 25 companies and set up your own portfolio. However, that takes time and can also require more maintenance each year.

Mutual fund managers can do that work for you. But once again, with that come some additional management fees. So, there’s a big tradeoff when looking at stocks vs. mutual funds. And over the past few decades, mutual funds have lost some of their luster. ETFs have started replacing mutual funds…

Mutual Funds vs. ETFs

Although investors have been pooling together assets for centuries, there have been some big advancements along the way. And the first modern mutual funds date back to the 1920s.

Back then, these funds came with high management fees. But over the past few decades, the internet and other innovations have made mutual funds cheaper. They’re also much more accessible for retail investors.

This has all been great for mutual fund investors. And now ETFs have taken it a step further. They’re often even cheaper and better than mutual funds. You can find extremely low-cost index funds. For example, the Vanguard 500 Index Fund ETF (NYSEARCA: VOO) has an expense ratio of just 0.03%.

As a result, more ETFs have popped up and new investments are flowing in. On the flip side, we’ve seen billions of outflows from mutual funds. Last year, we saw close to $300 billion of net outflows from mutual funds.

With that in mind, mutual funds still hold more assets than ETFs. And there are a few cases where mutual funds might make more sense. But the big trends are clear…

Investors are shifting toward ETFs for their higher efficiency. So the question is no longer should I invest in stocks vs. mutual funds. Most investors are looking at stocks vs. ETFs…

Should You Buy Stocks or ETFs?

Since ETFs are very similar to mutual funds, the key differences above are the same for stocks and ETFs, so I won’t rehash them here. Instead, it’s important to gain a better understanding of diversification.

Understanding and managing risk is what sets apart novice investors from the intelligent investors. As mentioned, if you buy just one stock, the company might go bankrupt. You could lose your entire investment. But buying a basket of stocks helps minimize company-specific risk.

If one company falters, the others might help your portfolio stay in the green. A good rule of thumb is to have at least 25 different positions in your portfolio. And most funds have well over that.

If you have 25 different equally weighted positions, that’s 4% of you portfolio in each position. So, if one goes down in flames, that’s only a 4% total loss. That’s not too bad to stomach. And if you set a 25% stop loss, you’d risk only 1% of your total portfolio.

Of course, you can always invest all or a large portion of your savings into one company. But if it doesn’t work out, that can put you in a tough situation. And it’s good to keep in mind that the world’s best investors can’t consistently predict which way investments will move.

Final Thoughts on Stocks vs. Funds

Although it takes a little more effort to set up your own portfolio, you can learn some great lessons. That’s why I gravitate toward that path.

By setting up your own portfolio, you can gain insight into different industries and companies. That knowledge can then help you out in other areas of life.

On top of that, picking your own stocks can help you avoid fund management fees. If you go with an actively managed mutual fund, it might cost as high as 2% a year. That might seem small, but those fees really chip away at your long-term wealth potential.

Understanding these concepts can have a huge impact on your investment portfolio. And I hope I’ve helped answer your questions about stocks vs. mutual funds (or more so ETFs).

If you’d like to learn more and find some of the top investing opportunities, sign up for Liberty Through Wealth. It’s a free e-letter that’s packed with investing tips and tricks. Whether you’re a beginner or advanced investor, there’s something for everyone.

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On top of that, free trading and stimulus checks have pushed new investors into the stock market. These new investors have helped change the demand side of the equation. Many of them have teamed up online to influence market movements.

As a result, the stocks below have bounced around. Most are hitting new highs, while others are hitting new lows. And each stock has a unique story behind it. So let’s dig into the details to try to determine their volatility going forward.

Finding better ways to predict future price swings is what sets more experienced traders apart from novice invesotrs. Using recent stock volatility as a guide, we can find trading patterns that are likely to continue…

Most Volatile Stocks to Trade in 2021

• GameStop (NYSE: GME)
• Nikola (Nasdaq: NKLA)
• Wayfair (NYSE: W)
• Caesars Entertainment (Nasdaq: CZR)

These stocks have had rapid price changes. It’s easy to see when looking at their year-to-date charts. And when looking at beta values and other historical volatility measures, these are some of the most volatile stocks in 2021.

Due to this recent volatility, investors are expecting more in the future. They’re extrapolating past trends… and as a result, option premiums are high. So if you decide to use options, always consider the risk. You might also want to keep your positions small or use some hedging strategies.

Without further ado, let’s look at where these stock prices have been, and where they might be moving next…

GameStop Stock Hits a High Score

GameStop has been one of the most volatile stocks this year. Robinhood went so far as to block the stock from trading. Back in January, it hit a 52-week high of $483. The following month, it dropped down to $40. And more recently, GameStop’s stock is hovering not far below $200.

It was a popular short squeeze fueled by Reddit traders. Short interest has dropped and big news coverage has slowed down. It’s still at the top of many minds, though. And some online forums continue to hype up GameStop stock.

With a hard-to-justify valuation, its long-term potential doesn’t look great. Many analysts have compared it to Blockbuster. The company is struggling to pivot as the industry moves further into digital games.

With this big headwind and much uncertainty, volatility will likely remain high. I doubt we’ll see GameStop stock climb above its previous high anytime soon, if at all.

Nikola Shares Drive Lower

Nikola hit a 52-week high of $93.99 back in June of last year. And since, Nikola stock has bounced down to $9.37. That’s a huge 90% drop, and things don’t look much better going forward. This steep decline makes Nikola one of the most volatile stocks around.

Fueling this volatility was a report from Hindenburg Research. It was packed with evidence indicating Nikola was a fraud built on dozens of lies. This included recorded phone calls, text messages, private emails and behind-the-scenes photographs.

Traders and investors took notice and have sent Nikola shares on a wild ride. The founder even resigned from his position as chairman. That was after the SEC and Department of Justice started investigating some of the fraud claims.

Nikola has had some positive press since… followed by a few short-lived rebounds. I’m still wary of its long-term potential, though, considering the points Hindenburg Research brought up. Where there’s smoke, there’s usually a fire.

Why Wayfair Is One of the Most Volatile Stocks

Wayfair stock hit a low of less than $30 back in March of 2020. Since, it’s rebounded and hit new highs of up to $369. More recently though, it’s pulled back to less than $300, and these big swings make it easily one of the most volatile stocks.

Overall, investors in this company have been on a bumpy ride. And although Wayfair took an initial hit during the start of the pandemic, it’s well positioned for two big trends…

Wayfair sells furniture and home goods as an e-commerce company. With more people staying home, we’ve seen an uptick in online shopping. On top of that, housing demand and home improvement projects have skyrocketed.

Even with that said, Wayfair’s current valuation seems a bit lofty. It doesn’t have much of a moat. So, long term, it will likely revert back toward the lower mean. And in the short term, the continued volatility should provide some great trading opportunities.

Caesars Entertainment Is a Big Bet

Investors beat down shares of Caesars Entertainment back in March of 2020. The selling pressure pushed shares to less than $10. But since, they have been heading higher, with a lot of volatility along the way. Shares recently hit a 52-week high of $106.20. And there might be more room to run.

Caesars is the largest casino-entertainment company in the U.S. It has many brands including Caesars Palace, Horseshoe, Eldorado and Silver Legacy. With the lockdowns and the decrease in travel, Caesars’ business took a hit.

With the U.S. starting to reopen, though, business is coming back. In addition, Caesars is pushing into sports betting. It closed a $3.7 billion deal to buy bookmaker William Hill. More states are legalizing sports betting, and this is opening up the door for more revenue.

Caesars stock has had a great run-up, largely based on these moves. It has a lot of potential volatility, though. Going forward, Caesars will likely continue to see some big price swings.

More Volatile Investment Opportunities

The stocks above have given investors a wild ride. And it doesn’t appear to be ending anytime soon. As the most volatile stocks continue to bounce up and down, you can trade the short-term swings. If you’re looking for even small volatile stocks, check out these cheap Robinhood penny stocks.

As the market moves, new opportunities are always showing up. It’s challenging to stay on top of all the data and news. That’s why you might want to consider signing up for Liberty Through Wealth. It’s a free e-letter where expert Alexander Green shares some of his best investing insight each and every week.

The post 4 Most Volatile Stocks in 2021 to Buy or Sell appeared first on Investment U.

The list of hot stocks below should do well for many years to come. Of course, not all of them will outperform. But based on the highlights below, you’ll see the potential is huge. Buying into a few of them could boost your portfolio’s returns.

Also, to see how your portfolio can grow, check out this investment calculator. It’s free and can help you determine the best steps to reaching your financial goals. Now, without further ado, here are the top trending stocks…

Hot Stocks to Buy Right Now

To diversify, I’ve picked these newsworthy companies from a variety of different industries. They’re all tech stocks that are working on cutting-edge innovations. Some are further along than others. None of them is resting on its laurels, though.

Let’s take a closer look at why these hot stocks made the list…

Hot Trends and Stock Highlights

Tesla’s Stock Is Lofty but Has Huge Potential

Tesla doesn’t need an introduction and there’s a fierce debate online over its sky-high valuation. There’s no doubt that it’s an innovative company, though. Elon Musk has a long track record of proving naysayers wrong.

Tesla is one of the hottest stocks in the electric vehicle (EV) space. But it’s much more than just a car company. It’s making strides in solar power generation, battery storage, autonomous driving and many other areas. In the years ahead, it has many potential cash cows lined up for investors.

For more investing opportunities, here’s a list of some of the top EV stocks to watch.

QuantumScape Is Risky but Forward-Looking

QuantumScape is in its early stages, but its battery innovation looks promising. It’s one of the riskiest opportunities on this list. It has some big investors and partners backing it, though. Bill Gates is invested in the company, and some big automakers are taking notice.

QuantumScape recently announced that it met Volkswagen’s technical milestone. This is clearing the way for another $100 million investment. The company still has some manufacturing barriers to overcome. But if all goes well, that will lead to some big profits down the road.

Nvidia’s Stock Is Benefiting From the Artificial Intelligence Boom

Nvidia is another one of the top hot stocks today with long-term potential. Many customers know it for its advanced graphics chips. Nvidia’s graphics processing units help power much more than video games, though…

Nvidia is a leader in high-performance computing for virtual reality and artificial intelligence (AI). Its technology also helps power many of the world’s fastest supercomputers. And as the demand for computing grows, Nvidia will remain a top trending stock.

Many semiconductor stocks have huge potential. And you can click on that link to find some of the top opportunities.

Intuitive Surgical Improves Medical Outcomes

Intuitive Surgical is a leading healthcare robotics company. One of its first robotic surgical systems is called “da Vinci.” Surgeons have used its technologies in 67 countries to perform more than 8.5 million procedures.

The healthcare industry is growing as a result of our aging population. Intuitive Surgical is well positioned and continuing to innovate. Last year, the company announced a $100 million venture capital fund. That’s to help invest in the future leaders of minimally invasive care.

Pfizer Is One of the Hottest Stocks in Biotech

Pfizer is another healthcare focused company. It has a strong pipeline of drugs that continues to make it one of the top hot stocks to watch. This company has also strengthened its brand by delivering a successful COVID-19 vaccine.

One reason Pfizer stands out is its diversified portfolio. It has more than five different products that bring in $1 billion or more in revenue. And in the coming years, this list of billion dollar products will likely grow. Pfizer has more than 90 drugs in its pipeline.

Alibaba Group Is a Leading Tech Stock in China

China’s economy is growing faster than the USA’s, and e-commerce is booming. Alibaba is China’s largest online commerce company. It has hundreds of millions of users and millions of businesses that use its platforms.

To keep its lead, Alibaba has been investing heavily in new technologies. It has expanded its payment processing and has a large cloud computing segment. On top of that, it’s exploring a wide range of machine learning and AI technologies. So if you’re looking for some international exposure, this is a great stock to consider.

IBM Is Revamping its Playbook to Become a Hot Stock

IBM is one of the oldest companies on this list. It’s been slow to adapt to some newer technologies. With a recent change in management, though, it looks to be refocusing its efforts.

A few years back it bought Red Hat for $34 billion. That was a steep price tag, but it’s strengthened IBM’s overall cloud services. This should help push profits higher this decade. And in the even longer term, IBM’s quantum efforts might pay off handsomely as well.

Picking Hot Stocks and New Opportunities

The trending stocks above have some great short-term potential. And hopefully they’ll reward shareholders for many decades to come.

Buying into these hot stocks gives investors exposure to many new technologies. Whether you’re looking for healthcare innovation or driving automation, this list is a good place to start. And as always, make sure you do your own investment research and due diligence.

There are many investing opportunities to consider today…

The post 7 Hot Stocks to Profit on Huge Trends in 2022 appeared first on Investment U.

With the best dividend ETFs, the income increases over time. The companies in each fund continue to add more value to shareholders. And when buying a basket of stocks via an ETF, you benefit from instant diversification, which helps minimize some risk.

If one company stalls or even goes bankrupt, the others should help minimize the loss. And as already mentioned, the monthly dividend income should climb over the years. That’s barring a few short-term setbacks like individual company missteps and recessions.

Overall, investing in the stock market has been one of the best ways to generate long-term wealth and income. That’s why I’ve done a deep dive into thousands of investing opportunities over the last decade.

Below you’ll find a list of some of the best ETFs that pay monthly dividends. I’ve also highlighted some key considerations for each fund…

Best Monthly Dividend ETFs

5. Global X SuperDividend ETF (NYSE: SDIV)

Dividend Yield: 12.87%
Expense Ratio: 0.58%
Number of Holdings: 112

This fund just barely makes the list. It has one of the highest expense ratios… but it also has a higher yield. If you’re looking for higher yield at the expense of potentially lower capital gains down the road, this could be a good fund.

One highlight with this ETF is global diversification. Only about a quarter of its assets are in the U.S. The next four largest country holdings are China, Hong Kong, Britain and Brazil. So if you want some global exposure in your portfolio, this could be a good investment.

The Global X SuperDividend ETF also has a high weighting in real estate. It comes in close to 37% of the total weighting, followed by financials and materials. Each of those sector weightings comes in at 13.5% and 9.5%, respectively.

4. Invesco High Yield Equity Dividend Achievers (Nasdaq: PEY)

Dividend Yield: 3.83%
Expense Ratio: 0.53%
Number of Holdings: 51

This Invesco monthly dividend ETF tracks the Nasdaq U.S. Dividend Achievers 50 Index. It’s also one of the oldest funds on this list. It dates back to 2004 and has consistently rewarded investors.

In 2010, this monthly dividend ETF paid a total of $0.35 in dividends. Now, total dividends for the year had climbed to $0.83. That’s some big dividend growth over 12 years, and it far outpaces inflation.

When it comes to holdings and sector allocation, about a quarter of the companies are in the financials sector. That’s followed by utilities and consumer defensive with 24% and 14.5%, respectively. A total of 51 holdings isn’t the highest on this list, but it still provides decent exposure and diversification, making it one of the best monthly dividend ETFs.

3. WisdomTree U.S. High Dividend Fund (NYSE: DHS)

Dividend Yield: 3.21%
Expense Ratio: 0.38%
Number of Holdings: 314

WisdomTree offers a wide range of funds, and this monthly dividend ETF has low fees. It has a track record going back to 2006, and overall it’s been a great monthly dividend ETF to own. Although it wasn’t always paying monthly dividends.

This fund switched over to monthly dividends in 2012. Its first full year of paying monthly dividends was 2013 and total dividends came in at $1.76 that year. Over the years, the payout has climbed and is projected to be $2.38 in 2022. That’s some great income growth.

This high dividend fund got off to a slow start in 2022, which makes sense with ongoing market volatility. However, it has seen modest growth since then and is currently up about 0.2% so far this year.

2. Invesco S&P 500 High Dividend Low Volatility ETF (NYSE: SPHD)

Dividend Yield: 3.65%
Expense Ratio: 0.3%
Number of Holdings: 51

Just like the other Invesco ETF on this list, this one also has 51 holdings. Although it’s focused on minimizing volatility. It doesn’t have as high of sector concentrations.

Utilities is the highest weighting, and it comes in at 19%. The financial sector is also much smaller at 6%. That’s in contrast to the other Invesco ETF on this list, which has close to a 25% financial weighting.

This diversification and targeting also helps to lower volatility. On top of that, this monthly dividend ETF is a bit newer with an inception date of 2012. These differences have helped keep the expense ratio lower, making it a top monthly dividend ETF for investors looking to maximize their gains.

1. SPDR Dow Jones Industrial Average ETF Trust (NYSE: DIA)

Dividend Yield: 1.85%
Expense Ratio: 0.16%
Number of Holdings: 30

This fund is one of the oldest ETFs still around having been launched in 1998. It is one of a few funds that tracks the Dow Jones Industrial Average. It is has the fewest holdings on the list and high sector concentrations.

Healthcare and financials are the largest, with weightings of 22% and 20% respectively. The next highest is tech, coming in at 17%. This fund also ignores some sectors such utilities and real estate entirely.

Although it has the lowest dividend yield, it pays the highest annual dividend, which is projected to be $5.20 this year. It also has the advantage of offering by far the lowest expense ratio of the group. Just like any fund, this one has advantages and disadvantages, but its high dividends, low expense ratio and long history make it a solid choice for a monthly dividend ETF.

Living Off Monthly Dividends

ETFs that pay monthly dividends are a great way to pay living expenses. The recurring income can help provide some peace of mind.

As mentioned, you can also set up a similar portfolio by manually buying stocks, like these top monthly dividend stocks. However, the timing of income can be all over the place when buying them individually. Also, there’s not as much diversification benefit.

Either path you choose can still be rewarding. It just comes down to personal preference. And generating higher income from investing is a goal many people can meet. In the words of dividend expert Marc Lichtenfeld…

There are lots of ways to invest your hard-earned money. But you’ll soon see why investing in dividend stocks is a conservative way to generate significant amounts of wealth and income. This isn’t theory. It’s been proven over decades of market history.

Investing in dividend-paying companies and funds is a powerful strategy (check out our free dividend calculator). And with lower barriers of entry to the stock market, anyone can get a piece of the action. Technology has helped lower trading costs, as well as certain fees associated with these funds. So you can get started even with a small amount of savings.

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There are some great IPOs set or rumored for 2022. I’ve also included some big ones from the past year. That way, if you’re ready to invest in a company today, you don’t have to wait.

Overall, many of the companies below have great growth potential. And there’s even a chance some of them will join the ranks of the tech giants…

Humble Beginnings to Tech Giants

Technology is taking over the market and this bodes well for new tech stocks. The five largest companies in the S&P 500 – Apple, Microsoft, Amazon, Google and Tesla – are all technology companies. And there are many other tech giants not far behind them.

All these companies come from humble beginnings. Many of them started in garages and took some time to go public. And since going public, they’ve soared well past their IPO values. For example, Google went public in 2004 in a deal that valued the company around $23 billion. Jumping forward to today, Google’s market cap has climbed above $1.5 trillion.

The newest company in the top five, Tesla, went public in 2010. At the time of its IPO, Tesla’s market cap was around $2 billion. Since its public debut, the company has climbed to almost $760 billion.

The stage is set, and some new tech IPOs might join these giants. The growth potential is huge. And many investors are trying to find the next big tech stocks. So let’s dive into the current and upcoming opportunities…

Top Tech IPOs in 2022

Here’s a list of tech companies that have already gone public this year…

• Credo Technology Group (Nasdaq: CRDO)
• HeartCore Enterprises (Nasdaq: HTCR)

Upcoming Tech IPOs

Starlink has no filings or official announcements to go public yet. However, Elon Musk announced Starlink plans to go public in the future. However, the company may need some more time to balance out its cash flows.

Mobileye is on its way to making its public debut. The company recently announced it confidentially filed paperwork with the SEC to IPO. Mobileye plans to list on the public exchange after the SEC completes its review process.

Reddit is going public soon. The company has already confidentially filed paperwork with the SEC. So, investors should prepare for Reddit stock to debut any day now.

Chime is planning to go public in 2022. The company has announced intentions to debut on the public market. However, the company announced it’s delaying its IPO until later this year due to market volatility. The Chime IPO will likely come in late 2022.

Lacework has not released any official information about its plan to IPO. However, the company is working toward going public. Lacework recently announced that it’s exploring different ways to make its public debut.

Discord has not announced any information about its plans to go public. However, the company recently amped up its board of directors. This announcement has investors speculating that the Discord IPO could happen in 2022.

Instacart has no filings or official announcements to go public that I’m aware of. However, sources have reported that Instacart is talking with Goldman Sachs to underwrite an offering estimated to come in 2022.

Stripe is another big fintech company to watch. There isn’t a set date for a Stripe IPO, and it might not IPO at all. Even though 2022 is setting up to be a big year for tech IPOs. If there’s enough investor interest, we might see it on public exchanges this year.

ThoughtSpot hasn’t announced plans to go public, but it appears to be moving in that direction. The company recently completed its transition to the cloud. Furthermore, Thoughtspot recently landed a $4.2 billion valuation that might lead to it listing shares publically.

Databricks hasn’t confirmed it’s going public. There’s a strong case that may change in 2022, though. Databricks is growing quickly and could benefit from listing on a public exchange.

Technology Companies that Went Public Last Year

• Samsara (NYSE: IOT)
• Rivian (Nasdaq: RIVN)
• HashiCorp (Nasdaq: HCP)
• Braze (Nasdaq: BRZE)
• Backblaze (Nasdaq: BLZE)
• Udemy (Nasdaq: UDMY)
• GlobalFoundries (Nasdaq: GFS)
• Informatica (NYSE: INFA)
• Expensify (Nasdaq: EXFY)
• Gitlab (Nasdaq: GTLB)
• Amplitude (Nasdaq: AMPL)
• Toast (NYSE: TOST)
• Freshworks (Nasdaq: FRSH)
• Thoughtworks (Nasdaq: TWKS)
• Couchbase (Nasdaq: BASE)
• SentinelOne (NYSE: S)
• Confluent (Nasdaq: CFLT)
• Sprinklr (NYSE: CXM)
• Monday.com (Nasdaq: MNDY)
• UiPath (NYSE: PATH)
• Coinbase (Nasdaq: COIN)
• Coursera (NYSE: COUR)

For a larger list of the top IPOs in 2021, click on that link. You’ll find descriptions for each company listed on that page, along with access to their prospectus filings.

Tech Stock Potential and Opportunities

Many of the companies above will continue to hit new highs over the coming years. Some might even join the ranks of the tech giants. But some will inevitably flounder and fade away.

That’s why it’s good to diversify. By owning a basket of these companies, you’ll increase your chances of investing in some of the big winners.

As always, make sure to research before you invest. IPOs can be volatile for the first few months and share prices are constantly changing.

Furthermore, if IPO investing interests you, check out our top recent IPOs and our IPO calendar. We update it daily to give you the latest news on upcoming and filed IPOs.

The post Top Tech IPOs of 2022 | List of Recent and Upcoming Tech Stocks appeared first on Investment U.

We’ve been researching this industry since it was listed on the Nasdaq. And there are more investing opportunities than ever before. The stocks listed below provide direct exposure to the cannabis industry.

Top 6 Marijuana Penny Stocks

• Cannabix Technologies (OTC: BLOZF)
• Medical Marijuana Inc. (OTC: MJNA)
• Namaste Technologies (OTC: NXTTF)
• Terra Tech (OTC: TRTC)
• CannaGrow Holdings (OTC: CGRW)
• Choom Holdings (OTC: CHOOF)

The stocks on this list trade over the counter (OTC). They’re on less regulated exchanges than the New York Stock Exchange or the Nasdaq. As a result, information flow and trading volume is often lower for these companies.

For these reasons, there’s more risk with penny stocks… but there’s also a higher chance of share mispricing. This creates greater opportunities for investors who do their due diligence.

To get started, let’s take a closer look at the companies behind these marijuana penny stocks. There are lots of irons in the fire…

Marijuana Company Highlights

Cannabix Technologies is a Vancouver-based technology company. It’s developing tools to detect THC in breath for use by law enforcement and in the workplace. In January 2021, Cannabix announced that it had gained a U.S. patent entitled “Cannabis Drug Detection Device.”

As marijuana use becomes more common, demand for testing of recent marijuana use should climb. And Cannabix is gaining momentum with its breathalyzer technologies. This makes it one of the most exciting penny marijuana stocks to watch.

Medical Marijuana Inc. holds the title as the first publicly traded cannabis company in the U.S. It’s a holding company with subsidiaries that make and sell different hemp-based products. The company was also the first to deliver prescription CBD products to treat epilepsy, Alzheimer’s disease, Parkinson’s disease, chronic pain and migraines.

Another reason Medical Marijuana Inc. made the cut is that it was the first to bring medical cannabis products abroad to Mexico. The company is expanding into many countries. It’s definitely a great penny marijuana stock to consider for international exposure.

Also, if you’re interested in larger marijuana companies, check out that link. You’ll find 10 of the top investment opportunities in the sector. They’re more established companies but still have plenty of upside potential.

Namaste Technologies is based out of Toronto and has offices around the world. It has one of the world’s leading online platforms for cannabis education and products. It also has an impressive management lineup. The CEO alone has close to 20 years of software development experience.

Last year, Namaste also announced that it would acquire the remaining 49% of CannMart Labs. This will help the company produce in-house branded Cannabis 2.0 products. CannMart has one of the only few facilities in Canada with BHO extraction, a leading extraction technology.

Terra Tech is a cannabis-focused agriculture company. It’s a leader in the industry that’s cultivating and crossbreeding strains to treat different ailments. This marijuana company is also vertically integrated, which can help lower costs and lead to higher profits.

On the dispensary side, Terra Tech focuses on providing high-quality products. Consistency in each patient’s experience is also a goal. These high standards help make Terra Tech a marijuana penny stock that’s primed for growth.

CannaGrow Holdings operates in Colorado’s legal cannabis industry. It designs and builds grow facilities. The company also offers full staffing services, led by a team of botanists, horticulturalists and industry pros.

CannaGrow’s launch project, Colorado Buffalo Ranch Facility I, in Colorado’s Huerfano County, has exceeded expectations. Within the first month, the company planted clones and seeds to reach its limit of 1,500 plants. Since then, there hasn’t been much press on the company… but if the right update comes out, that could send its stock soaring.

Choom Holdings is focused on building a recreational cannabis business across Canada. To do this, the company is curating an assortment of products and brands. Choom has hired the design team behind some of the most recognized stores in Canada.

In 2020, Choom announced the acquisition of Phivida. This move is helping Choom improve its digital growth strategy. It’s collecting more data and using it to make better decisions for customer experience and sales.

Penny Stock Risk and Opportunities

As mentioned, penny stocks don’t have as much information available as larger public companies. There are also fewer analysts that track these companies and the trading volume is lower…

As a result, we often see larger price swings. So investing in marijuana penny stocks can be a double-edged sword. They have the potential for big gains, but also for big losses.

To minimize the downside risk, diversification lends a hand. If you invest in multiple marijuana penny stocks, it can help reduce big swings. And if that’s a route you’re interested in, check out these top marijuana ETFs. If high risk is what you’re looking for, though, feel free to make some big bets.

The post 6 Marijuana Penny Stocks to Watch in 2022 appeared first on Investment U.