10 Tips to Help You Stay Cozy in Your Apartment this Winter

Enjoy cozy vibes in your apartment all winter long with these 10 tips.

With temperatures dropping quickly and the shortest days of the year approaching fast, many apartment renters are looking for ways to stay cozy and ride out the long winter in complete comfort.

Here are 10 simple tips that are sure to help you stay cozy in your apartment until spring returns.

1. Avoid the overheads

Overhead lights are great when you’re staying up late to get some extra work done or trying to find something small you dropped on the ground. What they’re not great for is setting a cozy mood. With the sun setting earlier than any other time throughout the year, you end up spending a solid portion of the winter months basking in unnatural light, regardless of how much natural light your apartment receives in the middle of a sunny day.

Make the most of these early sunsets and treat yourself to some warm and cozy mood lighting. Whether that takes the form of an ultra-modern floor lamp, a hand-me-down lava lamp from your pop’s college days or a Michael Scott-style St. Pauli Girl neon sign, all that matters is that it puts your mind at ease and amplifies your cozy vibe.

2. Light a candle…or five

candles to stay cozy in your apartment

candles to stay cozy in your apartment

For hundreds of years, fire has been the most effective way for people of all walks of life to find coziness in the toughest conditions. From our cave-dwelling ancestors sharing stories around the warm embrace of a communal fire to you and your cousins sitting at the base of the fireplace while grandpa relives the glory days aloud, fires have always been a go-to for cultivating coziness.

Given the fact that many apartments are not equipped with a fireplace, you’re going to have to get a bit creative here. Luckily for you, candles are in vogue and that means every Walmart, Target and CVS boasts an entire section of seasonally scented candles perfect for mellowing out your apartment and inviting those cozy feelings in.

Pro tip: Create your own makeshift fireplace by getting a set of five or so scentless candles. Place them together in a safe spot in your apartment, turn off the lights and stay cozy around your new “fireplace.”

3. Invest in sweats

When you’re getting down to business, you put on a suit. When your business is staying cozy in the winter, you put on a sweatsuit. As temperatures drop and the sun only shows its smiling face for a few precious hours a day, comfort takes the top priority over style. This is especially true if you’re part of the still-growing population of people spending their nine-to-five working from home. Stay home, stay suited and stay cozy.

4. Slide into a quality pair of slippers

Person with slippers staying cozy in apartment

Person with slippers staying cozy in apartment

If you’re already committed to spending a majority of your winter rocking a sweatsuit, slippers are the next logical step (pun very much intended). Less rigid than shoes, more comfortable than your coziest pair of socks, a quality pair of slippers is the final piece you need to achieve total head-to-toe comfort and maximize your overall coziness as winter rages on outside your windows.

5. Organize your closet

Now that you’ve got a cozy sweatsuit and quality slippers, it’s time to trim the fat in your closet by tossing the things you don’t wear.

Buckle up, this step to staying cozy is a three-parter.

Part 1: Remove summer clothes you didn’t wear this year

Go through your closet and set aside all of the warm-weather items you didn’t touch throughout this past spring and summer. Put those clothes in a garbage bag or cardboard box and set them aside for a few months.

Part 2: Remove winter clothes you didn’t wear last year

Go through your closet and set aside all of the cold-weather items you didn’t wear throughout the fall and haven’t touched a month or so into the winter. Add those clothes to your warm-weather collection from a few months ago.

Part 3: Donate these clothes

Donate those clothes and enjoy the cozy feeling that comes with helping those in need in your community. And, as an added bonus, you’re creating more space in your closet for the fashion trends of the future.

6. Get creative

arts and craft supplies

arts and craft supplies

The lighting is right and your sweats are plush. Now that you’re equipped with the things you need to stay cozy, it’s time to take the next step and do some activities that invoke that highly sought-after feeling of pure coziness.

One great way to leverage your creativity to create a more cozy environment is to fill your walls and shelves with your own creations. You don’t have to be a Picasso to display your own artistic creations throughout your apartment. Even if you’re not the most creative person, the whole point here is to pass the time, ignite your imagination and create a more cozy environment in your apartment through your own artistic endeavors.

Whether you’re painting something simple like a heart, learning the ancient art of origami or hopping in on a new trend like creating your own macrame wall hanging, the important thing is that you’re enjoying yourself and engaging your imagination to fend off the boredom that often accompanies cold winter days.

Pro tip: You don’t have to spend money to learn a new skill. Look at YouTube for simple tutorials designed to help you perfect your craft without asking you to spend a dime.

7. Embrace your inner iron chef

They call it comfort food for a reason: it provides comfort. Whether that dish takes the form of a hearty hot soup, an extra cheesy casserole or a downright delicious batch of fresh-baked chocolate chip cookies, comfort food is undoubtedly one of the keys to cultivating a cozy atmosphere all winter long.

For those living in smaller apartments, an added bonus to upping your kitchen productivity throughout the winter is that you get a little residual heat from your stovetop or oven circulating around the apartment.

8. Work out with your bodyweight

person doing yoga

person doing yoga

Even if you’re living in a 400-square-foot studio, you still have enough room for some bodyweight workouts. While this may seem like a counterproductive activity to staying cozy in your home, bodyweight workouts offer a few advantages that contribute to an overall cozy vibe.

Working out is one of the most reliable ways to activate your endorphins and improve your overall mood. So, if you find yourself feeling bogged down by a cold gray day, take 15 minutes or so to work through some pushups, squats and situps. You can do these three simple workouts in minimal space with no equipment required.

These workouts can act as a palette cleanser for your mood and provide you with a fresh mental start even if you’re at the beginning of a long day.

9. Find your emotional support show

All due respect to 1950’s Hollywood, but the golden age of TV is happening right now. With specialized streaming services opening doors to all types of entertainment, there has never been a better time than now to cozy up on your couch for a full day of pure binging bliss.

If you’re looking for something that will put you in a cozy mood the second it shows up on the screen, here are a couple of qualifiers you should keep in mind before you dive into a new show.

  • Find something that’s easy to follow. This kind of show will allow you to work on your creative endeavors, prep your favorite dish or knock out a quick bodyweight workout circuit without losing track of the narrative.
  • Find something with at least three seasons. You can feel the effects of winter well before and long after the official start and end dates of the season. Because of this, it’s important to pick a show with some staying power that has the ability to last you to the spring.

It doesn’t matter if you’re a Netflix fanatic, a Hulu loyalist or dedicated to Disney+, you’re sure to find something that will have you feeling cozy every time take a seat on the couch and pick up the remote.

10. Hit the books

books to stay cozy in your apartment

books to stay cozy in your apartment

There’s something primally pleasurable about cracking open a book and transporting your mind to an entirely new world. When temperatures drop, this joy rises even more. While it’s difficult to put down the remote and pick up a new book, taking some time to read is a truly effective way to keep your mind off the cold and keep the cozy vibes rolling. Don’t know what to read? Here are three book recommendations that pair perfectly with a winter day.

  • “My Year of Rest and Relaxation:” Ever wonder what it would be like to hibernate for a whole year? Author Otessa Moshfegh explores this idea in a wildly entertaining novel that is currently in development to become a movie starring Margot Robbie.
  • “Out There – The Wildest Stories from Outside Magazine:” It’s hard not to feel cozy when you’re sitting in a temperature-controlled apartment reading about some of the most harrowing adventures ever documented in the freezing wilderness. Simple as that.
  • “The Little Book of Hygge:” Defined as “the art of creating coziness,” Hygge is something that is only achieved through concentrated efforts. Written by Meik Wiking, the CEO of the Happiness Research Institute in Copenhagen, this book is the definitive guide to cultivating coziness from arguably the most qualified person on the planet to do so.

Not interested in the titles above? Take a trip to your local bookstore and ask around for recommendations or look around for an online book club that matches your style.

Start prepping and stay cozy all winter long

It doesn’t matter if you’re using light to set the mood, putting your kitchen to the test or escaping your surroundings through a great show or book, coziness is within reach no matter who you are, where you live and what your interests are.

Source: rent.com

When Actively Managed Funds Are Worth It

It’s hard to beat the market and the index funds that track them.

The numbers don’t lie: Only one-fourth of all actively managed funds in the U.S. topped the average of their index fund counterparts over the 10-year period that ended in June, according to the latest Active/Passive Barometer report by Morningstar.

But in certain pockets of the market, active managers do a better job of beating their benchmarks. Studies show that active funds that invest in small and midsize companies, foreign shares and intermediate-term bonds, for instance, have had more success beating their benchmarks than funds in other market segments, according to Morningstar.

“Areas of the market that are less picked over are more target rich for active fund managers,” says Ben Johnson, director of global ETF research at Morningstar. Why’s that? “There’s less opportunity if you’re coming up with the 12 millionth investment thesis for Apple.”

Indeed, it can be difficult for active managers to stand out in highly trafficked market corners, such as large-company stocks. Most of these firms are as closely followed as your favorite sports team or Netflix TV series. More than 50 analysts track Amazon.com’s (AMZN) every move, for example. That goes some way to explain why only 17% of all U.S. large-company funds outpaced the S&P 500 over the 10-year period ending in June, according to data from S&P Dow Jones Indices.

Herewith, a guide to where it pays to go active and some funds to consider.

The best portfolios will use index funds for heavily trampled parts of the market and put active funds to work for those asset classes in which an active manager has a better shot of beating the index. “A blend of the two is a good way to go,” says Steve Azoury, a chartered financial consultant and founder of Azoury Financial. (Unless otherwise noted, returns and data are through Nov. 5.)

Find Stocks That are Flying Under the Radar

In general, the smaller the company, the less likely it is to be followed by the Wall Street research machine.

“It’s almost like deep-sea diving,” says Morningstar’s Johnson. The smaller the company’s market value, “the murkier it gets and the fewer predators there are.”

That’s a good environment for active fund managers. It boosts a manager’s odds of identifying a good opportunity ahead of rivals, says Craigh Cepukenas, a comanager for Artisan Small Cap (ARTSX, expense ratio 1.21%) and Artisan Mid Cap (ARTMX, 1.18%) funds. The strategy at both funds is to discover disruptive companies that are driving change, then hold them even after they’ve become larger companies. “We let our winners run,” says Cepukenas.

The Artisan funds also favor under-the-radar companies. Only six Wall Street analysts cover Valmont Industries (VMI), for example. The maker of metal products, such as poles used for traffic lights, is a top-20 holding in Artisan Small Cap. Some of the fund’s other low-profile holdings, such as digital health company OptimizeRx (OPRX) and Advanced Drainage Systems (WMS), a water management company, have even fewer analysts following them.

Active funds are all about exploiting what Wall Street dubs market “inefficiencies,” which occur when securities’ market prices vary from their true fair value, says Brian Price, head of investment management for Commonwealth Financial Network.

That’s what makes active midsize stock funds appealing: Midsize companies often fall through the cracks. They “lack the excitement of small companies and the name recognition of large names,” says Artisan’s Cepukenas.

In particular, actively managed funds that focus on fast-growing midsize U.S. companies tend to shine brightest against their index fund rivals. Alger Mid Cap Growth (AMGAX, 1.30%) ranks among those index beaters. It has topped its benchmark, the Russell Mid Cap Growth index, and its category peers over the past one-, three-, five- and 10-year periods. The fund typically charges a 5.25% load, but you can buy shares for no fee at Fidelity and Charles Schwab.

Look Overseas to International Stocks

International stock pickers have an edge over their benchmarks in part because they have “boots on the ground” in the countries where they invest, says Dan Genter, CEO and chief investment officer of RNC Genter Capital Management. That allows them to better understand what drives local economies and ferret out companies with growth potential before the competition does.

The managers at Wasatch Emerging Markets Select (WAESX, 1.51%) and Wasatch Emerging Markets Small Cap (WAEMX, 1.95%), for instance, aren’t afraid to look beyond their foreign-stock benchmarks to find undiscovered opportunities. 

When the managers travel abroad, local brokers who help them set up company meetings often say, “Nobody ever visits this company. Why do you care?” says Ajay Krishnan, a comanager for both funds. But that’s precisely the draw. Both Wasatch funds have outpaced their benchmarks over the past one, three and five years.

Among foreign-stock funds, those that favor bargain-priced shares have tended to fare best against their index fund counterparts, according to Morningstar.

Some foreign large value funds to consider include Causeway International Value (CIVVX, 1.10%), a fund that zeroes in on good companies going through a rough patch. Oakmark International (OAKIX, 1.04%) is a Morningstar gold-rated fund that seeks stocks trading 30% below their business value using what Morningstar analyst Andrew Daniels calls “old-fashioned detective work.”

Being Choosy With Bonds

Active bond fund managers can be nimbler than their index fund counterparts – weeding out or avoiding low-quality issues that might make up sizable parts of many bond indexes or giving more weight to more-opportunistic segments of the market.

The Bloomberg U.S. Aggregate Bond index, for example, currently has a large weighting (45.1%) in U.S. Treasuries but smaller helpings of higher-yielding bonds, such as mortgage-backed securities and corporate-issued debt. In recent years, any intermediate-term bond fund managers willing to tilt their portfolio toward higher-yielding bond sectors, such as corporate debt rated triple-B or lower, or asset-backed securities with higher yields, could improve their chances of outpacing the Agg, says Commonwealth Financial Network’s Price.

That’s partly why Fidelity Total Bond ETF (FBND, 0.36%) has topped the Agg index over the past one, three and five years. The fund currently holds more than 10% of its assets in high-yield debt (credit rated double-B to triple-C), which helped boost returns; by contrast, the Agg doesn’t hold any high-yield debt.

Baird Aggregate Bond (BAGSX, 0.55%) stays in investment-grade territory (debt rated triple-A to triple-B) but lately has gained an edge by loading up on more corporate debt than the Agg, particularly in financials. The fund beat the index over the past one, three and five years.

Source: kiplinger.com

Stock Market Today: Stocks End Mixed After Data Dump

Investors had plenty to think about ahead of the Thanksgiving holiday, chewing through a huge helping of economic data.

Kicking things off were weekly jobless claims – released a day early due to tomorrow’s holiday – which plunged to 199,000 in the week ended Nov. 20, well below last week’s 270,000 and economists’ forecast for 260,000 claims. What’s more, this was the lowest level for initial unemployment applications since 1969.

Also in focus were October’s personal income and spending data, which came in above estimates (up 0.5% and 1.3%, respectively, from September), and an upwardly revised reading on third-quarter gross domestic product (to 2.1% versus an initial estimate of 2.0%).

However, it wasn’t all roses. The University of Michigan’s consumer sentiment index arrived at its lowest level in 10 years in November and the core personal consumption expenditures (PCE) index – a key inflation measure used by the Federal Reserve – rose 4.1% year-over-year in October, the quickest annual pace since 1991.

Plus, the release of the minutes from the latest Fed meeting showed several members of the committee said the central bank “should be prepared to adjust the pace of asset purchases” and/or raise interest rates sooner than anticipated if inflation continues to run hot.

“In terms of the Fed’s economic outlook, it’s clear that inflation has accelerated more than anyone expected it to, and the breadth of rising prices has increased substantially,” writes Bob Miller, BlackRock’s Head of Americas Fundamental Fixed Income.

“While the bar for an acceleration in the tapering of asset purchases is high, it is not insurmountable and looks reasonably likely to be cleared should we see another solid payroll report and inflation data release in December,” he adds. “Accelerating the asset purchase tapering would potentially end purchases in March 2022 and would then open the door for the Committee to consider lift off from the zero policy rate sometime in the second quarter of the year.”

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At the close, the S&P 500 Index was up 0.2% at 4,701 and the Nasdaq Composite had gained 0.4% at 15,845. The Dow Jones Industrial Average wasn’t as resilient, falling 0.03% to 35,804.

As a reminder, the U.S. stock market will be closed tomorrow for Thanksgiving and trading will end early on Black Friday.

stock price chart 112421stock price chart 112421

Other news in the stock market today:

  • The small-cap Russell 2000 gained 0.2% to 2,331.
  • U.S. crude futures slipped 0.1% to end at $78.39 per barrel.
  • Gold futures eked out a marginal gain to settle at $1,784.30 an ounce.
  • Bitcoin retreated 0.7% to $57,453.50. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m. each trading day.)
  • Gap (GPS) took it in the chin after earnings, with shares sliding 24.1%. In its third quarter, the clothing retailer reported adjusted earnings of 27 cents per share on $3.94 billion in revenue, well below the 50 cents a share and $4.43 billion in sales analysts were expecting. GPS also lowered its full-year forecast, citing rising freight costs and supply-chain disruptions due to factory closures in Vietnam. “In the third quarter, the Athleta and Gap brands continued to be the bright spots for GPS, as the brands have grown 48% and 8%, respectfully, compared to fiscal 2020,” says CFRA Research analyst Zachary Warring, who maintained his Hold rating on the stock while lowering his price target by $8 to $22. “The company reiterated its plan to open between 30 and 40 Old Navy stores and 20-30 Athleta stores in 2021 while closing 75 Gap and Banana Republic stores. We need to see how sales and margins hold up in fiscal 2023 to get more bullish on shares of GPS.”
  • Supply-chain issues were also a noted in Nordstrom’s (JWN) quarterly update. “While many retailers are dealing with macro-related supply chain disruptions, Rack [the retailer’s off-price chain] faces a unique challenge as off-price procurement of the same top brands we carry at Nordstrom is particularly difficult in an environment with production constraints and lower levels of clearance product,” said CEO Erik Nordstrom in the earnings call. While Rack contributed to roughly 50% of total sales in 2019, he added, it’s only brought in 42% of sales for the year-to-date. Overall, the company reported earnings of 39 cents a share and revenue of $3.6 billion in its third quarter, missing analysts’ estimates for earnings of 57 cents per share and revenue of $3.5 billion. The stock plunged 29% today.

The Pricing Power Advantage

Some of the best stocks to buy now are those that are able to navigate higher inflation.

Pricing power should be an important theme for investors when assessing relative returns of stocks, says a group of analysts at global research firm UBS, especially given the current environment of “surging shipping costs, rising raw materials, supply chain issues and accelerating wage growth.”

The team has been studying the share performance of companies with pricing power for some time. They found that shares of firms that can raise prices without consumers balking and taking their business elsewhere and that have solid margin momentum tend to outperform those without by around 20%, on average, over 12 months once inflation rises above 3% on an annualized basis.

So, if you’re looking for ways to protect your portfolio against rising inflation, consider this list of the stocks with a pricing power advantage, according to UBS. Each of these names has a high-conviction Buy rating from the research firm and ranks in the top third of its sector for pricing power, margin momentum and input cost exposure.

Source: kiplinger.com

James Glassman’s 10 Stock Market Picks for 2022

Last December, after beating the S&P 500 index five years in a row, I wrote, “This kind of streak isn’t supposed to happen, and readers should be warned that there’s no guarantee it will continue.”

Well, it’s over. My annual selections for 2021 performed just fine, with an average return of 17.4%, but the S&P did much better, gaining 35.8%. (Returns and data throughout the story are through Nov. 5.)

Since 1993, I have offered a list of 10 stocks for the year ahead. Nine are culled from the choices of experts I trust, and I include one of my own. For 2021, I’m happy to say, my pick was the biggest winner: ONEOK (OKE), the 115-year-old natural gas pipeline company, which benefited from the rise in petroleum prices and was up 139.9%.

I’ll get to my choice for 2022 at the end. Let’s start with one from the Value Line Investment Survey, a font of succinct research that has a strong forecasting record as well. My strategy is to pick from stocks that Value Line rates tops (“1”) for both timeliness and safety. That list right now is short: nine companies, including obvious ones like Apple (AAPL) and Visa (V).

The outlier is T. Rowe Price Group (TROW), the Baltimore-based asset manager, whose earnings have risen each year since 2009 despite the growing popularity of low-cost index funds. Value Line notes that “shares have staged a dramatic advance over the past year. However, our projections suggest … worthwhile appreciation potential for the next 3 to 5 years.”

Parnassus Endeavor (PARWX), a socially responsible fund – one that invests with an eye toward environmental, social and governance (ESG) measures, has returned a sparkling annual average of 18.3% over the past 10 years. In 2021, Jerome Dodson stepped back from managing Endeavor and other Parnassus funds, but he’s still a guiding force at the firm he founded 35 years ago. My picks from the portfolio for 2019 and 2020 were microchip companies that scored average gains of nearly 100%.

For 2022, I like PepsiCo (PEP), which Billy Hwan, the fund’s new solo manager, acquired for the first time in July. In addition to its soft drinks, the company has such respected brands as Lay’s, Quaker and Gatorade. Revenues have risen consistently, and PepsiCo may be able to benefit from general inflation with aggressive price increases.

Another big winner in 2021 came from Dan Abramowitz, of Hillson Financial Management in Rockville, Maryland, who is my go-to expert in smaller companies. His choice was IEC Electronics, which was purchased by Creation Technologies in October for 53% more than the stock’s price when I put it on the list, noting, “IEC is also a potential takeover target.” 

For 2022, Dan recommends DXC Technology (DXC), a midsize in­formation technology company based in the suburbs of Washington, D.C. It is in the midst of a turnaround, Dan writes, “yet we are still in the early innings here.” Profits are improving, but the stock “is valued at under 10 times current fiscal year earnings.”

A few months ago, I recommended AB Small Cap Growth (QUASX), a fund that has notched a sensational 29.8% annualized return over the past five years. The fund has been adding to holdings of Louisiana-based LHC Group (LHCG), a provider of post-acute care, including home health and hospice services, in more than 700 locations. The stock appears well priced after setbacks from hurricanes and because healthcare workers were forced to quarantine due to COVID-19. As the population ages, healthcare is a growth industry.

Fidelity Advisor Growth Opportunities (FAGAX) is red-hot, ranking in the top 3% of funds in its category for five-year returns. The problem is that it carries a whopping 1.82% expense ratio and is sold mostly through advisers. Still, you can scan its port­folio for ideas. Most of the fund’s holdings are tech stocks, but the only new purchase for 2021 among its top 25 holdings was Freeport-McMoRan (FCX), the minerals (copper, gold, silver) and oil and gas producer. The stock has doubled over the past year, but its price-earnings ratio, based on analysts’ consensus projections for 2022, is just 11.

A disappointment in 2021 was Upland Software (UPLD), down 47%. It was the choice of Terry Tillman, a software analyst with Truist Securities whose previous selections on my annual list had beaten the S&P 500 index for an incredible nine years in a row. Tillman recently initiated coverage on Engage­Smart (ESMT) with a Buy rating. The firm, which helps healthcare professionals manage their practices, went public only in September, but it already has a market value of $5 billion, and Tillman sees the price going much higher.

It has not been a good year for China’s big companies, which China’s government apparently thinks have become big enough to threaten the Communist Party. As a result, my 2021 list’s worst performer was Alibaba Group Holding (BABA), the e-commerce giant, with shares falling by nearly half.

Still, if you have a stomach for risk, Chinese stocks present remarkable value these days. Matthews China (MCHFX), my favorite Asian stock fund, has held on to Tencent Holdings (TCEHY), which is down by about 40% from its February peak. Tencent, with a market cap of $576 billion, operates worldwide and offers social media, music, mobile games, payment services and more.

Last year, I turned for the first time to Schwab Global Real Estate (SWASX) and was pleased with the 21% return from its choice, Singapore-based UOL Group (UOLGY), with an office, residential and hotel portfolio. The fund’s third-largest holding is Public Storage (PSTG), owner of 2,500 facilities in 38 states. Is there a better business? Every year, I get an e-mail notice telling me my storage-unit rental has risen in price, and what am I going to do about it? Moving my stuff out is a horrifying thought. I have always wanted to own this stock. It is expensive, but waiting may make it more so.

Over the years, the assets of Berkshire Hathaway (BRK.B), Warren Buffett’s holding company, have become more and more diversified. At last report, the company owned 40 publicly traded stocks. Berkshire Hathaway’s largest holding by far is Apple, at about $135 billion. Guess what’s second? Bank of America (BAC), at $49 billion. I am a longtime fan and shareholder of BofA as well, and it looks especially good at a time when interest rates are rising.

My contrarian bias paid off last year when I shook off my disastrous 2019 choice of Diamond Offshore Drilling (it went bankrupt) and scored a double with ONEOK. Searching for value again, I have arrived at Starbucks (SBUX), which took a big (and to my mind, unwarranted) hit over the summer when the company warned of a slower recovery in China. So I’m taking advantage of skittish investors and recommending Starbucks, one of the world’s best-run companies, growing steadily with 33,000 outlets worldwide.

I’ll end with my usual warnings. These 10 stocks vary by size and industry, but they are not meant to compose a diversified portfolio. I expect they will beat the market in the coming 12 months, but I do not advise holding stocks for less than five years. Buy and hold works! Finally, these are my recommendations, but consider them suggestions for your own study and decision-making. No guarantees.

James Glassman stock picks for 2022James Glassman stock picks for 2022

Source: kiplinger.com

12 Best Monthly Dividend Stocks and Funds to Buy for 2022

For all the changes we’ve experienced in recent years, some things remain regrettably the same. We all have bills to pay, and those bills generally come monthly. Whether it’s your mortgage, your car payment or even your regular phone and utility bills, you’re generally expected to pay every month.

While we’re in our working years, that’s not necessarily a problem, as paychecks generally come every two weeks. And even for those in retirement, Social Security and (if you’re lucky enough to have one) pension payments also come on a regular monthly schedule. But unfortunately, it doesn’t work that way in our investment portfolios. 

That’s where monthly dividend stocks come into play.

Dividend-paying stocks generally pay quarterly, and most bonds pay semiannually, or twice per year. This has a way of making portfolio income lumpy, as dividend and interest payments often come in clusters.

Well, monthly dividend stocks can help smooth out that income stream and better align your inflows with your outflows.

“We’d never recommend buying a stock purely because it has a monthly dividend,” says Rachel Klinger, president of McCann Wealth Strategies, an investment adviser based in State College, Pennsylvania. “But monthly dividend stocks can be a nice addition to a portfolio and can add a little regularity to an investor’s income stream.”

Today, we’re going to look at 12 of the best monthly dividend stocks and funds to buy as we get ready to start 2022. You’ll see some similarities across the selections as monthly dividend stocks tend to be concentrated in a small handful of sectors such as real estate investment trusts (REITs), closed-end funds (CEFs) and business development companies (BDCs). These sectors tend to be more income-focused than growth-focused and sport yields that are vastly higher than the market average.

But in a market where the yield on the S&P 500 is currently 1.25%, that’s certainly welcome. 

The list isn’t particularly diversified, so it doesn’t make a complete portfolio. In other words, you don’t want to overload your portfolio with monthly dividend stocks. But they do allow exposure to a handful of niche sectors that add some income stability, so take a look and see if any of these monthly payers align with your investment style.

Data is as of Nov. 21. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price. Fund discount/premium to NAV and expense ratio provided by CEF Connect.

1 of 12

Realty Income

7-11 store7-11 store
  • Market value: $40.1 billion
  • Dividend yield: 4.2%

Perhaps no stock in history has been more associated with monthly dividends than conservative triple-net retail REIT Realty Income (O, $70.91). The company went so far as to trademark the “The Monthly Dividend Company” as its official nickname.

Realty Income is a stock, of course, and its share price can be just as volatile as any other stock. But it’s still as close to a bond as you’re going to get in the stock market. It has stable recurring rental cash flows from its empire of more than 7,000 properties spread across roughly 650 tenants.

Realty Income focuses on high-traffic retail properties that are generally recession-proof and, perhaps more importantly, “Amazon.com-proof.” Perhaps no business is completely free of risk of competition from Amazon.com (AMZN) and other e-commerce titans, but Realty Income comes close. 

Its largest tenants include 7-Eleven, Walgreens Boots Alliance (WBA), FedEx (FDX) and Home Depot (HD), among others. The portfolio had relatively high exposure to gyms and movie theaters, which made the pandemic painful. But as the world gets closer to normal with every passing day, Realty Income’s COVID-19 risk gets reduced that much more.

At current prices, Realty Income yields about 4.2%. While that’s not a monster yield, remember that the 10-year Treasury yields only 1.6%. 

It’s not the raw yield we’re looking for here, but rather income consistency and growth. As of this writing, Realty Income has made 616 consecutive monthly dividend payments and has raised its dividend for 96 consecutive quarters – making it a proud member of the S&P 500 Dividend Aristocrats. Since going public in 1994, Realty Income has grown its dividend at a compound annual growth rate of 4.5%, well ahead of inflation.

2 of 12

Stag Industrial

warehousewarehouse
  • Market value: $7.6 billion
  • Dividend yield: 3.4%

Realty Income was pretty darn close to “Amazon.com-proof.” But fellow monthly payer STAG Industrial (STAG, $42.77) proactively benefits from the rise of internet commerce.

STAG invests in logistics and light industrial properties. You know those gritty warehouse properties you might see near the airport with 18-wheelers constantly coming and going? That’s exactly the kind of property that STAG buys and holds.

It’s a foregone conclusion that e-commerce is growing by leaps and bounds, and STAG is positioned to profit from it. Approximately 40% of STAG’s portfolio handles e-commerce fulfillment or other activity, and Amazon.com is its largest tenant.

E-commerce spiked during the pandemic for obvious reasons. As stores have reopened, the effects of that spike have dissipated somewhat, but the trend here is clear. We’re making a larger percentage of our purchases online.

Yet there’s still plenty of room for growth. As crazy as this might sound, only about 15% of retail sales are made online, according to Statista. Furthermore, the logistical space is highly fragmented, and Stag’s management estimates the value of their market to be around $1 trillion. In other words, it’s unlikely STAG will be running out of opportunities any time soon.

STAG isn’t sexy. But it’s one of the best monthly dividend stocks to buy in 2022, with a long road of growth in front of it. And its 3.4% yield is competitive in this market.

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Gladstone Commercial

industrial parkindustrial park
  • Market value: $838.2 million
  • Dividend yield: 6.7%

For another gritty industrial play, consider the shares of Gladstone Commercial (GOOD, $22.49). Gladstone Commercial, like STAG, has a large portfolio of logistical and light industrial properties. Approximately 48% of its rental revenues come from industrial properties with another 48% coming from office properties. The remaining 4% is split between retail properties, at 3%, and medical offices at 1%.

It’s a diversified portfolio that has had little difficulty navigating the crazy volatility of the past few years. As of Sept. 30, 2021, the REIT had a portfolio of 127 properties spread across 27 states and leased to 109 distinct tenants. In management’s own words, “We have grown our portfolio 18% per year in a consistent, disciplined manner since our IPO in 2003. Our occupancy stands at 97.7% and has never dipped below 95.0%.”

That’s not a bad run.

Gladstone Commercial has also been one of the most consistent monthly dividend stocks, paying one uninterrupted since January 2005. GOOD currently yields an attractive 6.7%.

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EPR Properties

movie theater and tub of popcornmovie theater and tub of popcorn
  • Market value: $3.7 billion
  • Dividend yield: 6.1%

The COVID-19 pandemic was rough on a lot of landlords. But few were as uniquely battered as EPR Properties (EPR, $49.21). EPR owns a diverse and eclectic portfolio of movie theaters, amusement parks, ski parks, “eat and play” properties like Topgolf, and a host of others.

EPR specializes in experiences over things … which is just about the worst way to be positioned at a time when social distancing was the norm. Essentially every property EPR owned was closed for at least a time, and crowds still haven’t returned to pre-COVID levels across much of the portfolio.

But the key here is that the worst is long behind EPR Properties, and the more normal life becomes, the better the outlook for EPR’s tenants.

EPR was a consistent dividend payer and raiser pre-pandemic. But with its tenants facing an existential crisis, the REIT cut its dividend in 2020. With business conditions massively improving in 2021, EPR reinstated its monthly dividend in July, and the shares now yield an attractive 6.1%. If you believe in life after COVID, EPR is one of the best monthly dividend stocks to play it.

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LTC Properties

senior living propertysenior living property
  • Market value: $1.3 billion
  • Dividend yield: 6.7%

For one final “traditional” REIT, consider the shares of LTC Properties (LTC, $34.24).

LTC faces some short-term headwinds due to the lingering effects of the pandemic, but its longer-term outlook is bright. LTC is a REIT with a portfolio roughly split equally between senior living properties and skilled nursing facilities.

Needless to say, COVID-19 was hard on this sector. Nursing homes were particularly susceptible to outbreaks, and nursing home residents were at particularly high risk given their age. 

Senior living properties are different in that the tenants are generally younger and live independently without medical care. But a lot of would-be tenants were reluctant to move out of their homes and into a more densely populated building during a raging pandemic. And many still are.

These lingering effects won’t disappear tomorrow. But ultimately, senior living facilities offer an attractive, active lifestyle for many seniors, and that hasn’t fundamentally changed. And home care might be a viable option for many seniors in need of skilled nursing. Ultimately there comes a point where there are few alternatives to the care of a nursing home.

Importantly, the longer-term demographic trends here are all but unstoppable. The peak of the Baby Boomer generation are in their early-to-mid-60s today, far too young to need long-term care. But over the course of the next two decades, demand will continue to build as more and more boomers age into the proper age bracket for these services.

At 6.7%, LTC is one of the higher-yielding monthly dividend stocks on this list.

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AGNC Investment

couple going over financials with mortgage brokercouple going over financials with mortgage broker
  • Market value: $8.4 billion
  • Dividend yield: 9.0%

AGNC Investment (AGNC, $15.98) is a REIT, strictly speaking, but it’s very different from the likes of Realty Income, STAG or any of the others covered on this list of monthly dividend stocks. Rather than own properties, AGNC owns a portfolio of mortgage securities. This gives it the same tax benefits of a REIT – no federal income taxes so long as the company distributes at least 90% of its net income as dividends – but a very different return profile.

Mortgage REITs (mREITs) are designed to be income vehicles with capital gains not really much of a priority. As such, they tend to be monster yielders. Case in point: AGNC yields 9%.

Say “AGNC” out loud. It sounds a lot like “agency,” right?

There’s a reason for that. AGNC invests exclusively in agency mortgage-backed securities, meaning bonds and other securities issued by Fannie Mae, Freddie Mac, Ginnie Mae or the Federal Home Loan Banks. This makes it one of the safest plays in this space.

And here’s a nice kicker: AGNC almost always trades at a premium to book value, which makes sense. You and I lack the capacity to replicate what AGNC does in house and lack access to financing on the same terms. Those benefits have value, which show up in a premium share price. Yet today, AGNC trades at a 9% discount to book value. That’s a fantastic price for the stock in this space.

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Dynex Capital

little house on chartlittle house on chart
  • Market value: $640.6 million
  • Dividend yield: 8.9%

Along the same lines, let’s take a look at Dynex Capital (DX, $17.47). Like AGNC, Dynex is a mortgage REIT, though its portfolio is a little more diverse. Approximately 85% of its portfolio is invested in agency residential mortgage-backed securities – bonds made out of the mortgages of ordinary Americans – but it also has exposure to commercial mortgage-backed securities and a small allocation to non-agency securities.

It’s important to remember that the mortgage REIT sector was eviscerated by the COVID-19 bear market. When the world first went under lockdown, it wasn’t immediately clear that millions of Americans would be able to continue paying their mortgages, which led investors to sell first and ask questions later. In the bloodbath that followed, many mortgage REITs took catastrophic losses and some failed altogether.

Dynex is one of the survivors. And frankly, any mortgage REIT that could survive the upheaval of 2020 is one that can likely survive the apocalypse. Your risk of ruin should be very modest here.

Dynex trades at a slight discount to book value and sports a juicy 8.9% yield. We could see some volatility in the space if the Fed ever gets around to raising rates, but for now this looks like one of the best monthly dividend stocks to buy if you’re looking to really pick up some yield.

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Broadmark Realty

real estate contract with keys and penreal estate contract with keys and pen
  • Market value: $1.3 billion
  • Dividend yield: 8.6%

Broadmark Realty (BRMK, $9.75) isn’t a “mortgage REIT,” per se, as it doesn’t own mortgages or mortgage-backed securities. But it does something awfully similar. Broadmark manages a portfolio of deed of trust loans for the purpose of funding development or investment in real estate.

This is a little different than AGNC or Dynex. These mortgage REITs primarily trade standardized mortgage-backed securities. Broadmark instead deals with the less-liquid world of construction loans.

Still, BRMK runs a conservative book. The weighted average loan-to-value of its portfolio is a very modest 60%. In other words, Broadmark would lend no more than $60,000 for a property valued at $100,000. This gives the company a wide margin of error in the event of a default by a borrower.

At current prices, Broadmark yields an attractive 8.6%. The company initiated its monthly dividend in late 2019 and sailed through the pandemic with no major issues.  

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Main Street Capital

person doing business on computerperson doing business on computer
  • Market value: $3.2 billion
  • Dividend yield: 5.5%

We know that the pandemic hit Main Street a lot harder than Wall Street. It is what it is.

But what about business development companies. This is where the proverbial Main Street means the proverbial Wall Street. BDCs provide debt and equity capital mostly to middle-market companies. These are entities that have gotten a little big to get financing from bank loans and retained earnings but aren’t quite big enough yet to warrant a stock or bond IPO. BDCs exist to bridge that gap.

The appropriately named Main Street Capital (MAIN, $46.61) is a best-in-class BDC based in Houston, Texas. The last two years were not particularly easy for Main Street’s portfolio companies, as many smaller firms were less able to navigate the lockdowns. But the company persevered, and its share price recently climbed above its pre-pandemic highs.

Main Street has a conservative monthly dividend model in that it pays a relatively modest monthly dividend, but then uses any excess earnings to issue special dividends twice per year. This keeps Main Street out of trouble and prevents it from suffering the embarrassment of a dividend cut in years where earnings might be temporarily depressed.

As far as monthly dividend stocks go, Main Street’s regular payout works out to a respectable 5.6%, and this does not include the special dividends.

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Prospect Capital

man signing contractman signing contract
  • Market value: $3.5 billion
  • Dividend yield: 8.0%

For another high-yielding, monthly-paying BDC, consider the shares of Prospect Capital (PSEC, $8.97).

Like most BDCs, Prospect Capital provides debt and equity financing to middle-market companies. The company has been publicly traded since 2004, so it’s proven to be a survivor in what has been a wildly volatile two decades.

Prospect Capital is objectively cheap, as it trades at just 89% of book value. Book value itself can be somewhat subjective, of course. But the 11% gives us a good degree of wiggle room. It’s safe to say the company, even under conservative assumptions, is selling for less than the value of its underlying portfolio. It also yields a very healthy 8.0%.

As a general rule, insider buying is a good sign. When the management team is using their own money to buy shares, that shows a commitment to the company and an alignment of interests. Well, over the course of the past two years, the management team bought more than 29 million PSEC shares combined. These weren’t stock options or executive stock grants. These are shares that the insiders bought themselves in their brokerage accounts.

That’s commitment.

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Ecofin Sustainable and Social Impact Term Fund

Ecofin logoEcofin logo
  • Assets under management: $269.7 million
  • Distribution Rate: 6.0%*
  • Discount/premium to NAV: -14.3%
  • Expense ratio: 2.28%**

There’s something to be said for orphan stocks. There are certain stocks or funds that simply don’t have a “normal” go-to buying clientele.

As a case in point, consider the Ecofin Sustainable and Social Impact Term Fund (TEAF, $15.00). This is a fund that straddles the divide between traditional energy infrastructure like pipelines and green energy projects like solar panels. It also invests in “social impact” sectors like education and senior living. Approximately 68% of the portfolio is dedicated to sustainable infrastructure with energy infrastructure and social impact investments making up 13% and 19%, respectively.

But this isn’t the only way the fund is eclectic. It’s also a unique mixture of public and private investments. 52% is invested in publicly traded stocks with the remaining 48% invested in private, non-traded companies.

Is it any wonder that Wall Street has no idea what to do with this thing?

This lack of obvious buying clientele helps to explain why the fund trades at a large discount to net asset value of 15%.

That’s okay. We can buy this orphan stock, enjoy its 6% yield, and wait for that discount to NAV to close. And close it will. The fund is scheduled to liquidate in about 10 years, meaning the assets will be sold off and cash will be distributed to investors. Buying and holding this position at a deep discount would seem like a no-brainer of a strategy. 

Learn more about TEAF at the Ecofin provider site.

* Distribution rate is an annualized reflection of the most recent payout and is a standard measure for CEFs. Distributions can be a combination of dividends, interest income, realized capital gains and return of capital.

** Includes 1.50% in management fees, 0.28% in other expenses and 0.50% in interest expenses.

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BlackRock Municipal 2030 Target Term

BlackRock logoBlackRock logo
  • Assets under management: $1.9 billion 
  • Distribution rate: 2.9%
  • Discount/premium to NAV: -4.6%
  • Expense ratio: 1.01%**

We’ll wrap this up with another term fund, the BlackRock Municipal 2030 Target Term Fund (BTT, $25.49).

As its name suggests, the fund is designed to be liquidated in 2030, roughly eight years from now. A lot can happen in eight years, of course. But buying a portfolio of safe municipal bonds trading at a more than 4% discount to book value would seem like a smart move.

The biggest selling point of muni bonds is, of course, the tax-free income. The bond interest isn’t subject to federal income taxes. And while city, state and local bonds aren’t “risk free” – only the U.S. government can make that claim – defaults and financial distress in this space is rare. So, you’re getting a safe, tax-free payout. That’s not too shabby.

As of Oct. 29, 2021, BTT’s portfolio was spread across 633 holdings with its largest holding accounting for about 3.4%.

BTT sports a dividend yield of 2.9%. That’s not “high yield” by any stretch of the imagination. But remember, the payout is tax free, and if you’re in the 37% tax bracket, your tax-equivalent yield is a much more palatable 4.6%.

Learn more about BTT at the BlackRock provider site.

** Includes 0.40% in management fees, 0.61% in interest and other expenses

Source: kiplinger.com

Food Delivery Advice from an Uber Eats Driver Who Made Bank

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The Salem, Oregon, resident made thousands of dollars in June 2020 delivering food for Uber Eats, an app for gig work that proved especially popular during the pandemic.
The very premise of Lyon’s challenge is a goal. It gave him something to focus on and the motivation he needed to make it through grueling 12-hour days.
What you earn from Uber Eats is heavily determined by your market — the city or metropolitan area you deliver in.
“Make sure you look approachable,” Lyon said.

Uber Eats Tips and Tricks From a Driver Who Made $8,357 in One Month

Of the hundreds of orders Lyon completed in June, he got some pretty weird requests from customers. One person asked if he could deliver a pack of cigarettes along with the food order. Lyon told the guy that he didn’t have the money on him to buy the cigarettes on his own, thinking it would end there.
Results may vary in your market. The key is to adapt to your locale. “My days were long,” he said. “I would do all that stuff to kind of break it up and have fun.”

1. Set Goals. Even Tiny Ones Help

Lyon vowed not to fall into that temptation. He carried only in cash, and that was strictly for gas. If he had downtime, he’d listen to podcasts or practice Spanish — while positioning himself for his next order.
Many factors went into his paycheck but none more than his sheer determination. He drove 12 hours — the maximum Uber Eats allows — for 30 days without a single day off.
“When you’re starting, accept every single order and then find your own trends in your own area,” he said.
Lyon drove primarily in Salem, Oregon. If you were to do the same challenge in a different city, you may make more or less than he did. A perfect example of this played out over TikTok. About halfway through June, another Uber Eats driver posed a challenge to Lyon: Who could make more money in a day?
A bigger city doesn’t always equate to better profits though, Lyon noted. Heavy traffic is likelier and could slow you down. You may have to pay to park to make the delivery.

Pro Tip
Some Uber Eats drivers pass on smaller orders in hopes to land larger ones. But that can backfire for inexperienced drivers. Lyon said he put that strategy to the test and found, on average, he was making an order no matter how selective he was being.

2. Take a Great Profile Pic

And to cut down on costs, his own food was homemade.
“I knew I needed to do at least 20 trips to get around that 0-a-day mark,” he said. “So that was always my goal. Anything after that was icing on the cake.”
When the paychecks from your side hustle start rolling in, it’s easy to think all that money is profit. However, quite a bit of it actually goes toward expenses and taxes. It’s one of the biggest pains of being a 1099 worker.
Before we get started, let’s be clear: What Lyon earned is not typical. Far from it.
Uber Eats gives drivers a referral code that they can share with other people to get them to start delivering, too. Once the new driver completes a certain amount of deliveries, the recruiter earns money. But the amount fluctuates depending on the market. Sometimes it’s 0 per 50 trips. Other times, it’s per 50 trips.

This is the main photo used for Sam Lyon's Uber Eats account.
For his Uber Eats profile, Lyon used a selfie taken in his car — then realized he couldn’t change the picture once it was uploaded. Photo courtesy of Sam Lyon

3. Manage Expectations Based on Your Market

Referral bonuses are “definitely not worth the time,” according to Lyon.
Sam Lyon pushed his earning potential in the gig economy to its limits.
And if you’re keeping track of expenses like gas and car depreciation, you can factor that into the amount you’re withholding for Uncle Sam. Lyon’s system was pretty simple. He had a fixed amount for gas, a day. That totaled 9. He had one oil change (), and also factored in his car’s depreciation (0) based on the miles he drove.
“If I was delivering to a suburb, my downtime would be spent driving the extra mile or two to be parked next to a McDonalds, an Applebees, a Red Robin.”
They both delivered food for 12 straight hours. The difference was that the other driver lived 45 miles north in Portland, Oregon. That turned out to be a crucial factor— the challenger made 3 to Lyon’s 8.
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Downtime between orders trips up many new delivery drivers. You’re delivering food all day, after all. You might be tempted to go through the drive-thru for yourself. But idle spending can eat into your earnings.

Need a banking service that’s built for freelancers, helping you save for taxes and keep track of your expenses? Check out Lili. (It’s free!)

4. Learn From the Trends in Your Area

And that’s coming from someone who had hundreds of thousands of followers on TikTok.
“In pending invites, I would make ,320,” Lyon said as he read off of the stats in his driver profile. “In successful invites, I made “You know what? Why not? I’ll do it. I picked up the money and got him the cigarettes. When I got back, he paid me the change as well. And I made a quick [tip],” he said.
“You can stop by here. I’ll put the money downstairs and you can come grab it,” the customer responded.
“See what kind of restaurants you like and which ones you want to avoid, he said”
Lyon is a big proponent of the quantity-over-quality approach to accepting orders.
The first picture you choose is the one you’re stuck with. Uber policy allows drivers to change their picture only if something happens that alters their appearance since the original photo. In that situation, you’d have to contact customer support.
He challenged himself to make as much money as possible in that one month. To do so, he drove 12 hours a day for 30 days straight.

5. Occupy Your Downtime

Lyon went for it.
Source: thepennyhoarder.com
His specific challenge may not be replicable (or even advisable) in every circumstance. But if you’re a current or aspiring delivery-app gig worker, you can apply Lyon’s tips for Uber Eats drivers to maximize your own profits.
“Depending on what city you’re in, there are a lot of moped Uber drivers, there are a lot of bike Uber drivers. You can’t really compete [in a car] in those urban, downtown areas,” he said.
Adam Hardy is a former staff writer at The Penny Hoarder. 

6. Don’t Waste Time With Referral Bonuses

“Suburbs are just front porch and then you’re gone.”
In an interview with The Penny Hoarder, Lyon broke down his earnings and what he learned from his 30-day challenge. He also offered some Uber Eats driver tips that other gig workers can use.

“I think goal setting was huge for my success,” Lyon said. “Setting markers in what you want to achieve are extremely important.”
It breaks down like this: His total earnings were ,357. His expenses account for ,148, and he set aside an estimated 30% of the difference for taxes, about ,100. That brought his actual profits to roughly ,100.
“I would go home and spend 30 minutes to an hour preparing food and eating before going back on the road,” he said. “I did not have any fast food during that 30 days.”

A man checks his phone in his car.
Lyon encourages indulging customers’ odd requests, as it can lead to a big tip. Photo courtsey of Sam Lyon

7. Indulge Odd Requests. They Could Lead to Big Tips

Before you start your gig, have a professional or financial goal in mind. That can keep you on track — and keep you from burning out.
“I would definitely keep in mind you will have to pay those taxes later. It’s not automatically coming out of what you earned,” Lyon said. “Personally, I set aside 30% of what I make. That way, I have a little bit of wiggle room.”
“It started off as a beautiful day. The birds were chirping. The sun was shining,” Lyon said in a video. “The perfect day for two gladiators to enter the arena.”
When you’re making your Uber Eats driver profile, don’t blast through it thinking you can go back and change it later — especially the photo step.
Keep your side hustle in check. Here’s how to create an exit plan so that you can enter the gig economy, meet your goals and get out.
Setting aside 30% might seem steep, but it’s usually an overestimate. Lyon, like most taxpayers, would rather have a refund come tax time than a hefty tax bill.

8. Track Your Expenses

Ready to stop worrying about money?
In the end, Lyon made ,357 and documented his journey on the video-sharing site TikTok, where he goes by the moniker SabbiLyon. Each day, he recorded a short video to log his progress — amassing more than 200,000 followers and millions of views along the way. Lyon entertained just about every odd request he got. They usually led to big tips.
Once you get a sense of those trends, you can then experiment to try to maximize your pay.
In the time it would take him to land a big order, he says he could have been delivering three smaller orders.
After a week or so of driving, he was able to see how much money was possible to make given his parameters. So he aimed for a specific target: ,000 by the end of June.To reach that, he would try to make at least 20 deliveries a day. He didn’t worry much about the pay of each delivery because they ended up averaging about an order. <!–

–>




The app shows you potential earnings based on the amount you would have earned if all the people you invited completed their first 50 trips.

Best Buy Headlines Busy Week of Retail Earnings

This week will be a short but busy one on Wall Street.

U.S. stock markets are closed Thursday for the Thanksgiving holiday and trading will end early on Friday. However, there’s still plenty of action packed into the three days leading up to the holiday, with Best Buy (BBY, $136.81) among several retail companies set to report earnings.

According to the earnings calendar, the big box retailer will unveil its third-quarter report ahead of Tuesday’s open. Shares have been racing higher since early October – up roughly 30% to trade in record-high territory – and a positive reaction to earnings could keep the wind at the consumer stock’s back.

Analysts, on average, are looking for Best Buy to report an 8.3% year-over-year decline in earnings to $1.89 per share. Revenue is also expected to take a step back, with the $11.53 billion expected down 2.3% from what the company reported a year ago.  

Still, UBS analyst Michael Lasser (Neutral) feels Best Buy is “well positioned to report another set of solid results in the third quarter, even as it faces steep compares.”

He also believes Best Buy “continued to execute on a favorable industry backdrop in the third quarter” and that “strong vendor relationships” have been critical to the company navigating global supply chain disruptions.

However, “The key for BBY’s investment case is how will it perform into 2022 when spending is likely to shift away from the consumer electronics category,” Lasser says. “Its strategies can likely cushion the impact.” Among these strategies is the company’s recently launched Totaltech around-the-clock tech support membership program, which he believes “offers good near-term potential.”

Argus Research analyst Chris Graja (Hold) admits the company is facing some major challenges – COVID-19 disruptions, strong competition, and product innovation that is consolidating music, gaming and computing into lower-margin devices like smartphones and tablets, for instance – but it has also positioned itself well for the long term. 

“Best Buy’s online capabilities and curbside service are helping the company through the COVID-19 crisis,” Graja writes in a note. “We see this as a validation of the company’s investments in its e-commerce infrastructure and management’s ability to adapt.”

Oppenheimer analyst Brian Nagel agrees. 

“BBY performed well through the coronavirus crisis and capitalized upon stepped-up demand for consumer electronics and home office-type products, as workers and students adapted quickly to hybrid or fully at-home models,” he says. 

Nagel currently has a Perform (Hold) rating on BBY, but adds that he is “optimistic that as pandemic pressures continue to subside that a more-efficient and potentially more-profitable Best Buy model should emerge.”

Mantle Ridge Stake Grabs Attention Ahead of Dollar Tree Earnings

Dollar Tree (DLTR, $134.24) made headlines recently on reports activist investor Mantle Ridge took a stake in the discount retailer. The news was well-received on Wall Street, with DLTR stock surging more than 14% in reaction.

According to the Wall Street Journal – which first reported the story – Mantle Ridge is planning to push for pricing strategy changes at DLTR’s Family Dollar chain.

“This investor has a history of being deeply involved in situations where companies have been transformed through operational improvements,” says UBS analyst Michael Lasser (Buy). “The bottom line is that this development should mean that DLTR will now be held more accountable for producing consistent results. In this case, the upside potential for the shares is significant.”

Deutsche Bank analyst Krisztina Katai (Buy) agrees. She recently lifted her price target on DLTR to $146 from $96, saying “the added element of a new large shareholder with a clear focus on unlocking meaningful value by closing the profitability gap between Family Dollar and Dollar General (DG) should lead to a more patient investor base with a longer-term focus.” 

She adds that this now creates “one of the most compelling retail stories with an exciting narrative change underway.”

But what about DLTR’s third-quarter earnings report, due out ahead of the Nov. 23 open? Analysts, on average, are expecting earnings to arrive at 96 cents per share, down 30.9% on a year-over-year (YoY) basis. Revenues, meanwhile, are projected to rise 3.7% to $6.41 billion.

Deere Earnings Expectations Lowered After UAW Strike

Deere (DE, $348.84), which is famous for its tractors and riding lawn mowers, will report fiscal fourth-quarter earnings ahead of Wednesday’s open. 

“Similar to peers and consistent with retail trends, we believe DE results will reflect continued strong end-market demand, handicapped by production constraints as supply chain and labor dynamics worsened late in the quarter,” says Oppenheimer analyst Kristen Owen.

One part of the labor dynamics she refers to is month-long strike by thousands of Deere workers that began in mid-October after the company failed to reach an agreement with the United Auto Workers (UAW). The dispute was resolved on Nov. 17, when UAW members approved a new six-year contract that includes a 10% pay increase and $8,500 bonus, according to press reports.

However, the impact of the strike prompted Owen to lower her estimates for fiscal fourth-quarter earnings per share to $3.89 from $4.02 and revenue to $11.1 billion from $11.6 billion.  

Nevertheless, “we remain constructive on DE shares as we see secular tailwinds persisting and unaccounted-for upside in construction” due in part to the recent passage of the infrastructure spending bill in D.C. Owen has an Outperform rating on Deere, which is the equivalent of a Buy.

The pros, on average, are looking for $10.49 billion in revenues (+21.1% YoY) and earnings of $3.95 per share, which is 65.3% higher than the year-ago figure.

Source: kiplinger.com

Stock Market Today: Nasdaq Sets New Highs in Polarized Session

One major market index closed out the week at a fresh all-time high, but that was only part of the story on a Friday that saw COVID-19 creep back into Wall Street’s spotlight.

Several cyclical sectors, energy (-3.9%) and financials (-1.1%) foremost among them, strongly sold off today in reaction to an escalating wave of coronavirus cases.

“A number of countries [have reimposed] restrictions, with a number putting in place specific restrictions for those still unvaccinated,” says Deutsche Bank analyst Jonathan Jayarajan. “Austria has gone further still, imposing a full national lockdown starting on Monday, and announcing compulsory vaccinations from Feb. 1.” Health officials are considering new measures in Germany, too.

Oil and gas companies such as Exxon Mobil (XOM, -4.6%) and Occidental Petroleum (OXY, -5.0%) were hit particularly hard, with COVID concerns bringing U.S. crude oil prices down 3.7% to a six-week low of $76.11 per barrel.

The Dow Jones Industrial Average slumped 0.8% to 35,601, while the S&P 500 suffered a more modest pullback of 0.1% to 4,697.

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The Nasdaq Composite, however, closed Friday with a 0.4% gain to a record 16,057, driven in part by mega-caps Tesla (TSLA, +3.7%) and Nvidia (NVDA, +4.1%). The former surged after Wedbush analyst Dan Ives raised his price target by 27% to $1,400 per share, while the latter continued to rise in the wake of Wednesday’s Street-beating Q3 earnings report.

stock chart for 111921stock chart for 111921

Other news in the stock market today:

  • The small-cap Russell 2000 slipped again, shedding 0.9% to 2,343.
  • Gold futures slipped 0.5% to finish at $1,851.60 an ounce.
  • The CBOE Volatility Index (VIX) headed 2.3% higher to 17.99.
  • Bitcoin lost a little ground, declining 0.2% to $57,858.19. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m. each trading day.)
  • Farfetch (FTCH) slumped 13.9% after earnings. In its third quarter, the U.K.-based online luxury retailer reported a narrower-than-expected adjusted loss of 14 cents per share, but revenue of $582.6 million fell short of the consensus estimate. The company also reported lower-than-anticipated gross merchandise volume (GMV) for its digital platform business and cut its current-quarter and full-year GMV forecasts for the unit. Still, Credit Suisse analyst Stephen Ju maintained an Outperform (Buy) rating on the stock. “Management noted inventory levels remain healthy and demand has been improving throughout the fourth quarter,” Ju says. “In addition, contribution margins should improve to 30%-35% in Q4 (vs 27% in Q3) as demand generation expense moderates and shipping costs are passed to the consumer.”
  • Foot Locker (FL) this morning reported third-quarter adjusted earnings of $1.93 per share and revenue of $2.19 billion, more than the $1.37 per share and $2.15 billion analysts were expecting. However, FL stock fell 12.0% today after Andrew Page, chief financial officer for the athletic apparel retailer, said in today’s earnings call that the company expects “global supply chain constraints, including factory shutdowns and port congestion to continue to be a headwind through the fourth quarter and into 2022.” CFRA Research analyst Zachary Warring maintained his Hold rating on the stock in the wake of earnings. “In a retail environment where many companies are experiencing massive top-line growth, FL continues to struggle,” he wrote in a note. “We see plenty of better opportunities in the space and expect FL sales to remain flat to down over the long-term.”

The 30 Best Stocks of the Past 30 Years

“You could invest in ‘the next Apple’ or ‘the next Tesla.'” Chances are, if you read enough financial media, you’ve been exposed to this phrase at least once, if not a few hundred times.

The reason is obvious: It creates a mental connection to stocks that have delivered mindblowing returns since coming public, minting numerous millionaires along the way.

But tech superstars aren’t the only path to riches.

Hendrik Bessembinder, a finance professor at the W.P. Carey School of Business at Arizona State University, has produced a study showing that the top-performing 2.4% of firms account for all of the $75.7 trillion in net global stock market wealth created between January 1990 and December 2020 – and those outperforming stocks come from a wide spectrum of industries.

In our “30 Best Stocks of the Past 30 Years,” we look at the 30 stocks from around the globe that Bessembinder identified as having generated the most wealth for shareholders. While a number of technology dynamos are on the list, so too are several less flashy companies that used both market returns and consistent dividends to richly reward investors over time.

Kyle Woodley was long NVDA and TSLA as of this writing.

Source: kiplinger.com

What Our Dream Job Winner Learned from a Month of No Spending

Robert Bruce

Updated November 16, 2021

This is a photo of the Dream Job Winner Brittany Cantu. The quote says,

Brittany Cantu saved $621 during the Dream Job challenge. Photo courtesy of Brittany Cantu

Brittany Cantu was in shock when she found out she was chosen for The Penny Hoarder’s “Dream Job” challenge in October.

To earn her $5,000 paycheck, Cantu had to kick one of her most persistent spending habits and save money for 30 days — all in an effort to find new and healthier ways to manage her money.

Cantu was up for the job: She saved an impressive $621 simply by not buying stuff online during the course of the month.

As a registered nurse, wife, and mother of three, Cantu stays busy. In her free time, she had built a habit of online spending.

“I definitely have a shopping problem,” she said. “I use a deal website that gives me deals at places like Target and Amazon. It’s easy to overspend because my 10-month-old son doesn’t like to nap by himself so I get really bored when he’s sleeping on me.”

Her growing kids also factored into her online buying habit. “The kids grow out of their clothes constantly, so kids’ clothes is a huge item that we usually need to buy,” she said. And, shoes, don’t forget about the shoes. “Shoes are a big one for me. I have way too many shoes. I just like shoes.”

She was excited about the challenge because of the progress her family wanted to make toward their financial goals. “We want to buy a house in the next year or two, so it really helped us to get going on that a little quicker,” she said.

Not only will her newfound habit of spending less help toward that goal, but her $5,000 paycheck will as well. “We’ll probably use that toward a down payment,” she added.

She said the month-long experience helped her be more content with what her family already has — and actually provided an opportunity to make even more cash by selling some of that stuff.

I definitely felt like I built more of a habit of saving, rather than spending.

“I still browsed a little bit to see if there was anything I really needed, but honestly we have everything we need,” she said. “So I started going through some old stuff that we have and getting rid of it and making money that way too.”

She sold $200 worth of stuff during the month. Add that to the $621 she saved and that’s an $821 turnaround. Pretty impressive!

Did she find the challenge to stop online spending difficult?

“It definitely feels rewarding when you buy stuff and you get packages every other day. It was kind of hard the first week or two because I had such a habit of spending,” she said. “But it got easier as I went. I was actually surprised that it got much easier. I definitely felt like I built more of a habit of saving, rather than spending.”

She says she only gave in once because of a deal she couldn’t pass up. “I saw a sale on snow boots, and the kids definitely needed snow boots this year.”

The key, Cantu learned, is to remember how small purchases add up over time.

“Most of my purchases were around $30. That doesn’t seem like a lot, but when you keep buying that $30 stuff it becomes hundreds to thousands of dollars,” she said. “At the end of the month, I’m thinking, ‘Where did this money go?’ And then we don’t even use these things that we’re buying that often. So it’s definitely a habit you can break.”

She had a great experience meeting The Penny Hoarder Dream Job challenge, and she’s learned a lot over the course of the month.

“I was happy to be picked and challenged, and I think I really needed it. It was eye opening.”

What spending habit could you give up for a month to make progress toward your financial goals?

Robert Bruce is a Senior Writer for The Penny Hoarder.

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Source: thepennyhoarder.com