Share to Twitter Share to Linkedin Insiders may sell their shares for a variety of reasons. Usually, because they need the cash. But execs who know “what’s up” with their company better than anyone only buy with one purpose in mind. They believe their stock price is going higher. Or, if it’s a dividend stock, at least it is not going down anytime soon! We’re going to highlight dividends up to 15.8% (yes, that’s no typo) with recent insider buying. This is especially notable these days because: Vanilla investors are worried this is 2008, Part Deux. Inflation is still running hot. And stocks have been going down for 15 months and counting. Our buyers today? True dividend believers. Let’s start with Elizabeth and Brian, who saw their firm’s fat 15.8% yield—and threw down their own money. FS KKR Capital (FSK) Dividend Yield: 15.8% Recent Noteworthy Buys: Director Elizabeth Sandler: 2,500 shares ($49,100) on 3/9/23 … [Read more...] about Buy With The Board: 3 Massive Yields With Insider Buying
Downside of high yield savings account
Q&A: Does Secure 2.0 Go Far Enough To Really Expand Retirement Savings?
Share to Twitter Share to Linkedin The Saving Problem Secure 2.0 Aimed to Solve Secure 2.0 is a pension reform package passed at the end of last year with provisions to lower taxes on retirement savings for high earners and to expand coverage and retirement savings. At least, that was a hope. My colleague and I, Siavash Radpour, Research Director at the Schwartz Center for Economic Policy Analysis at The New School, unpacked the provisions to investigate how well Secure 2.0 will do to help those without an employer plan or significant levels of retirement savings. The sorry truth is that most, over 63 million workers , have no retirement plan that will supplement their Social Security. And the average holdings for the worker with a retirement account is about $100,000. What is the Savers Credit/Match in Secure 2.0 and how does it affect American workers’ retirement security? Before SECURE 2.0, the Savers’ Credit credited a low earners’ tax bill … [Read more...] about Q&A: Does Secure 2.0 Go Far Enough To Really Expand Retirement Savings?
Prepaid College Savings Plan Under Fire In Maryland: Should You Be Worried?
Share to Twitter Share to Linkedin Prepaid college savings plans have long been an alternative to a 529 plans when it comes to saving for college. What is a prepaid college tuition plan ? Generally speaking, these plans let parents lock in college tuition at today's prices with the goal of funding school ahead of time. The idea behind these plans is letting families purchase college units or credits with a lump sump payment, or through regular payments, at which point the plan administrator invests the money on their behalf. With the money stashed away and invested, the goal of these accounts is growing the underlying funds to keep up with rising tuition costs until the child reaches college age. At that point, the funds are transferred to the school to cover tuition costs and other eligible higher education expenses. While that all sounds good and well, something is going wrong in the prepaid college tuition industry — at least in the state of … [Read more...] about Prepaid College Savings Plan Under Fire In Maryland: Should You Be Worried?
Make Your Own Bank Run On These Blue-Chip Yields
Share to Twitter Share to Linkedin Is it time for us contrarians to “buy the dip” in bank stocks? We’re drowning in big bank-scare headlines. Silicon Valley Bank (SIVB VB ) knuckled under in days, Signature Bank (SBNY) wasn’t too far behind, and across the pond, Credit Suisse (CS) needed a buyout bailout from rival UBS (UBS) . The next bank run, however, won’t be with the big boys . Too big to fail, baby . Here, we’ll find not only government help but also secure yields of up to 5.1%—trading at a discount, no less. Why the big guys? Well let me show you. Last week, my software firm received this email from one of our vendors: “Brett, Just wanted to give you our new banking details. We’re out of SVB; we’re moving to JPM.” JPM for the win. And they’re not the only big bank benefiting. CNN recently reported that Bank of America BAC (BAC) , Wells Fargo WFC (WFC) and Citigroup C (C) “have all experienced a … [Read more...] about Make Your Own Bank Run On These Blue-Chip Yields
Stocks gain, US treasury yields rise as banking fear eases
HONG KONG – Global stocks and U.S. bond yields rose on Tuesday, as a U.S. regulator-backed deal by First Citizens BancShares to buy failed Silicon Valley Bank soothed wider worries about problems in the sector. MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.3 percent by early morning Hong Kong time. U.S. stock futures, the S&P 500 e-minis, were up 0.21 percent. Australian shares jumped more than 1 percent, as lithium and commodity stocks rallied sharply after battery metals explorer Liontown Resources rejected a $3.7 -billion buyout bid from Albemarle Corp. Top U.S. banking regulators said on Monday that they planned to tell Congress that the overall financial system remains on solid footing after recent bank failures, but will comprehensively review their policies in a bid to prevent future collapses. Silicon Valley Bank deal offers beleaguered banking investors relief The concerns, however, haven’t completely gone away as Federal Reserve … [Read more...] about Stocks gain, US treasury yields rise as banking fear eases
Global bank woes spark default jitters at savings banks
People walk past Silicon Valley Bank headquarters in California on March 10. [AP] Savings banks are facing the risk of loan defaults, as the collapse of global banks could further rattle the property market. The Financial Supervisory Service convened a meeting with representatives from savings banks and the Korea Federation of Savings Banks (FSB) on March 16 to review real estate project financing (PF) loan defaults. Real estate PF loans of savings banks totaled to 10.7 trillion won ($8.18 billion) in the third quarter last year, up 3.8 trillion won from 6.9 trillion at the end of 2020. Project financing is the long-term financing of an infrastructure and industrial projects based on the projected cash flow of the project rather than the balance sheet of the borrower. According to the Bank of Korea, PF loans accounted for 29.4 percent of all loans from savings banks in the third quarter last year. Commercial banks had 7.9 percent of their loans in PF, credit finance companies … [Read more...] about Global bank woes spark default jitters at savings banks
Biden Says US Banks Are ‘In Pretty Good Shape,’ Americans’ Savings Are ‘Secure’
President Joe Biden claimed Friday that American banks were “in pretty good shape” and that depositors’ funds were “secure” despite the collapses of two major regional banks in March and growing concerns of a widespread banking crisis. “Look, I think we’ve done a pretty damn good job,” Biden said during a joint press conference with Canadian Prime Minister Justin Trudeau when asked about frustration on Wall Street over uncertainty about whether the Biden administration had “contained” the banking crisis. “People’s savings are secure, and even those beyond the $250,000, the FDIC has guaranteed them, and American taxpayers are not going to have to pay a penny. The banks are in pretty good shape.” (RELATED: ‘We’ve Got Some Cleanup To Do’: Former FDIC Chair Says There Will ‘Probably’ Be More Bank Failures) Biden also noted that this wasn’t the first time Wall Street had been in “consternation.” Federal regulators shut down Silicon Valley Bank (SVB) March 10 after its stock … [Read more...] about Biden Says US Banks Are ‘In Pretty Good Shape,’ Americans’ Savings Are ‘Secure’
Holcim PH profit down on high fuel, energy costs
MANILA -Industry giant Holcim Philippines maintained robust revenues last year despite softer demand while profits fell lower amid surging inflation. In a statement, the company said revenues for the year were down 1.3 percent to P26.59 billion, which the company said was lifted by a sales rebound that materialized in the latter part of the year. “In the face of extraordinary challenges, our company and people displayed tremendous resilience that enabled us to deliver positive financial performance and contribute to building progress in the country,” Holcim Philippines CEO Horia Adrian said in the statement. Core profit, which removes one-off items, was down 36 percent to P1.64 billion in 2022. Holcim said bottom line was hit by an “extraordinary surge in fuel and energy costs, which ballooned by 60 percent from the previous year.” Fuel and energy accounted for 64 percent of the company’s production inputs. The company blunted the impact on margins by raising prices and … [Read more...] about Holcim PH profit down on high fuel, energy costs
The Bank Mess Is Hiding Safe (And Cheap!) 6.6%+ Payouts
Share to Twitter Share to Linkedin We’re going to ride this Silicon Valley Bank (SIVB) fiasco to big dividend payouts—I’m talking yields up to 12.6%!—and quick upside, too. I’ll walk you through exactly what we’re going to do below. Then I’ll name two unloved (for now!) dividends we’ll target. We’re Not Dropping a Quarter Into GameStop II One thing we’re not going to do is sell anything short—even though, as Bloomberg recently told us, the “shorts” cleaned up on SVB. All in, they pocketed $2 billion as “tech bros’” fav bank froze, then crashed. We contrarian dividend players tip our hats to these daring degenerates. They rolled the dice and things broke their way. Here’s the thing, though: big short-seller losses are far more common than wins. Because for every SVB there are two (or more!) tales like GameStop (GME) —a stock that needs no intro. You remember the story: Hedge funds were massively short GME (more than 100% of … [Read more...] about The Bank Mess Is Hiding Safe (And Cheap!) 6.6%+ Payouts
Thank Silicon Valley Bank For These Cheap 8.1%-Paying Funds
Share to Twitter Share to Linkedin The Silicon Valley Bank (SIVB VB ) mess has demonstrated exactly why we need to invest in closed-end funds (CEFs) : these funds yield 8.1% on average, giving us an income stream that can get us through market volatility, like we’re seeing now. In fact, the SIVB failure shows one of the often-underappreciated aspects of CEFs: when you hold a diversified portfolio of these funds, you’re getting exposure to thousands of stocks, bonds, REITs and many other asset classes. So even if you have an SIVB hidden in there somewhere, it will have little—and likely no—impact on your overall returns. (And subscribers to my CEF Insider service don’t need to worry—none of our funds have exposure to SIVB, and none have exposure to regional banks suffering from the contagion.) Meantime, you get a steady, high and often monthly dividend rolling in to keep your bills paid. But even so, you no doubt have questions about … [Read more...] about Thank Silicon Valley Bank For These Cheap 8.1%-Paying Funds