3 Reasons Why Alphabet Is (and Always Will Be) a Growth Stock Worth Owning

Despite critics suggesting Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) lags in generative AI and could be due for a pullback if the market turns sour, investors in GOOG stock need not fret. Alphabet is aggressively advancing in gen-AI with global product innovations. Given the persistent rise of generative AI, adding Alphabet shares to your portfolio today could be wise for potential gains in 2023.

Alphabet has solidified its global gen-AI leadership by expanding its Search Generative Experience (SGE) to over 120 countries and adding support for four new languages. The move follows successful launches in India and Japan, demonstrating Alphabet’s commitment to product enhancement and market dominance.

Here are three more excellent reasons why Alphabet should be in your portfolio now.

The Numbers Don’t Lie

For Google Cloud, the user utilizes Google Workspace, a paid version of Google Drive offering collaboration, conferencing, and additional features at a reasonable price, especially beneficial for freelancers. Google Services significantly drives Alphabet’s performance, boasting a 34.2% operating margin in 2022, outpacing Apple by 440 basis points. While Alphabet’s GAAP trailing 12-month P/E ratio and other conventional metrics are elevated compared to sector averages, their true value extends beyond these ratios.

Excluding YouTube ads, Other Bets, and hedging gains, Alphabet’s Google business made up 89% of its 2022 revenue, reaching $282.8 billion. If YouTube ads are included, the percentage rises to nearly 99%, or $279.8 billion. Google is further divided into Google Services (91% of revenue) and Google Cloud (9%). The user utilizes various Google Services like Chrome, Maps, search engine, YouTube, Gmail, and Google Drive.

Excellent Player in AI

Alphabet’s value and GOOG stock’s momentum hinge on the company’s anticipated future growth and leadership in artificial intelligence. In 2023, Alphabet, a key AI technology developer, is actively exploring an acquisition of Character.AI, a generative AI startup known for enabling users to interact with virtual celebrities and create their chatbots. This move aligns with Alphabet’s strategy to enhance its generative AI capabilities, potentially integrating Character.AI’s features into Google and YouTube.

Alphabet’s Bard generative AI chatbot, which faced challenges during its initial rollout, is making a comeback. Alphabet is now extending Bard’s reach to a younger audience with a dedicated version for teenagers. This iteration allows teens to seek advice on various topics, from class president speeches to university choices and sports exploration.

Bard for Teenagers aims to assist with math problems while incorporating safety features to prevent unsafe content. Targeting a younger demographic, this version could bolster Alphabet’s position in the AI space, challenging competitors in the evolving landscape of generative AI applications.

Promising Growth in the Coming Years

Alphabet, currently undervalued, experienced a notable turnaround in its ad business during Q3 2023, rebounding from 2022 declines caused by inflation-related cost-cutting. The company surpassed analyst expectations with an 11% year-over-year revenue increase, driven by robust growth in Google Search and YouTube segments.

Additionally, Alphabet’s resurgence in ad revenue is complemented by a significant upcoming venture into AI, with the imminent launch of Gemini, a large language model set to rival OpenAI’s GPT-4. This move positions Alphabet for substantial business enhancements and earnings growth.

Bet on GOOG Now

While Alphabet offers exposure to the generative AI market, Microsoft has a higher grade due to being a first mover. Alphabet’s global expansion of gen-AI, particularly in the search engine market, positions GOOG stock for potential growth in the remaining months of 2023 and throughout 2024. Investors are urged to consider this upward trajectory amid skeptics’ concerns.

I currently rate GOOG stock a buy, and while near-term headwinds could persist, I think this stock is worth accumulating, particularly on dips moving forward.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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Rivian Is a Clunker. No Need to Test-Drive RIVN Stock Now.

Don’t make a move with RIVN stock until you’ve learned the strange details about Rivian’s “phantom bonds”

Source: Roschetzky Photography / Shutterstock.com

If you’re going to invest in an electric vehicle manufacturer in 2023 and 2024, you need to be selective. EV demand is slowing, and Rivian Automotive (NASDAQ:RIVN) isn’t necessarily the best pick of the bunch. The best grade we can assign to RIVN stock is a “D” and prospective buyers should spend extra time on their due diligence.

Doing your research on Rivian Automotive will, unfortunately, involve learning about a highly unusual type of debt. It’s complicated, but we’ll provide the basic facts in a moment. When all is said and done, you may agree that holding Rivian stock for the long term is a risky proposition.

RIVN Stock Traders Learn About ‘Phantom Bonds’

If you weren’t specifically interested in Rivian Automotive, then you probably would never have to learn about “phantom bonds.” Yet, here you are and if you want to be fully informed about Rivian, then get ready for a strange news item.

Recently, Bloomberg, Reuters and OilPrice.com reported that Rivian Automotive “structured out” $15 billion worth of debt in what’s known as “phantom bonds.” Evidently, this type of debt is legal and can be used to get a property tax break in Georgia.

A Form 8-K filing from Rivian specifies that the “minimum annual scheduled” payments “start at $1.5 million and gradually increase to $20.4 million by 2047,” and are “subject to further increases.” Hence, it sounds like there’s real money, not “phantom” money, at stake here.

Now, we’re not suggesting that issuing “phantom bonds” is shady, or that Rivian Automotive itself is shady. Rivian is reportedly facing a lawsuit alleging that the company defrauded its shareholders, but that’s a different story entirely.

It’s highly unusual, however, that the issuance of these “phantom bonds” isn’t mentioned anywhere on Rivian’s investor relations main page or news page. Certainly, prospective investors should keep tabs on this story for future updates.

Big Red Flags for Rivian Stock

Besides learning about “phantom bonds,” Rivian stock traders will also need to consider some red flags. At the end of the day, you might simply decide that the stress of investing in Rivian Automotive just isn’t worth it.

Rivian Automotive is a consistently unprofitable company. Investors may have been willing to overlook this problem in 2020 and 2021, when credit was cheap and easily available. Nowadays, however, credit conditions are much tighter and that’s a problem for income-negative businesses.

Prospective investors have to contend with Rivian Automotive’s dwindling capital position. Alarmingly, Rivian’s position of cash and cash equivalents dropped from $11.568 billion as of Dec. 31, 2022, to $7.941 billion as of Sept. 30, 2023.

Besides, Rivian Automotive seems like a reluctant latecomer to the EV price war. Sure, the company reportedly plans to release a vehicle with a starting price of around $40,000. Don’t get too excited, though. Customers won’t be able to purchase these more affordable Rivian EVs until 2026.

RIVN Stock: Don’t Wait Around for Phantom Profits

Frankly, it will be challenging for Rivian Automotive to succeed when interest rates are high and the EV market is so competitive. Ask yourself: Do I really want to take the trouble to learn about Rivian’s “phantom bonds”? Plus, am I happy with Rivian Automotive’s balance sheet?

Perhaps, it’s wise just to monitor Rivian Automotive from the sidelines. For now, the best grade we can assign to RIVN stock is a “D.” We’re not currently recommending it to investors, so feel free to look around for stocks with more favorable risk-to-reward profiles.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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Watch CNBC’s lookback at Charlie Munger’s life and relationship with Warren Buffett

Charlie Munger wasn’t just the vice chairman of Berkshire Hathaway: His partnership with billionaire Warren Buffett made him half of an iconic duo in the investing world.

Watch the special lookback at Munger’s life by CNBC’s Becky Quick above.

“I would say that every time I’m with Charlie, I’ve got at least some new slant on an idea that causes me to rethink certain things,” Buffett once told Quick in an interview. “And we’ve had absolutely… so much fun with the partnership over the years.”

Munger, who died Tuesday at age 99, had helped broaden the Oracle of Omaha’s focus on the search for high-quality, undervalued names – a hallmark of their value investing style.

See CNBC’s full obituary of Charlie Munger here.

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7 Monthly Dividend Stocks to Buy and Hold for Steady Returns

One of the best ways to protect your portfolio, and generate consistent income is with monthly dividend stocks. In fact, with inflation starting to slowly cool off, some of the top beneficiaries, with respectable yields are real estate investment trusts (REITs). Even better, REITs tend to pay higher dividends than your average equity.

Even analysts at Wedbush are bullish on REITs these days. In fact, Richard Anderson says a number of REITs are still offering inexpensive entry prices after recent pullbacks. Two, the analyst noted that “US REITs tend to outperform after a round of higher interest rates. The combination of higher rates in a more stable environment is beneficial for these stocks,” as quoted by TipRanks.com. All of which should serve as a powerful catalyst for the following monthly dividend stocks.

That being said, let’s take a look at seven of the top, high-yielding REITs you may want to strongly consider buying and holding for the long term.

Realty Income (O)

Source: Shutterstock

With a current yield of 5.76%, Realty Income (NYSE:O) – or The Monthly Dividend Company – just declared a dividend of 25 cents. That’s payable on Dec. 15 to shareholders on record as of Nov. 30.

Granted, the real estate investment trust (REIT) dipped in the second half of the year, but you may want to use that weakness as an opportunity with O, one of the most reliable monthly dividend stocks.

For one, with inflation starting to show some signs of cooling off, its tenants should start to see improving discretionary spending. Two, Realty Income has been around for more than 50 years and managed to survive and still thrive. Three, with 13,100 properties, it’s still seeing strong demand, with an occupancy rate of 99%. 

And, it has some of the most reliable tenants on the market, including Dollar General (NYSE:DG), Walgreen’s (NASDAQ:WBA), Dollar Tree (NASDAQ:DLTR), FedEx (NYSE:FDX), BJ’s (NYSE:BJ), CVS (NYSE:CVS), Walmart (NYSE:WMT), and Lowe’s (NYSE:LOW) to name just a few.

AGNC Investment Corp. (AGNC)

tiny house figures atop letter blocks spelling out REIT, representing reits to buy. stock predictions. best REITs

Source: Shutterstock

Another one of the top monthly dividend stocks to consider is AGNC Investment Corp. (NASDAQ:AGNC), a REIT that invests in residential mortgage-backed securities, where principal and interest payments are guaranteed by the U.S. government or a U.S. government agency. Plus, the REIT carries a yield of about 16.4% and just declared a cash dividend of 12 cents per share

Analysts like the REIT here, too. Bank of America, for example, just raised its price target on AGNC to $8.75 from $7.50. Barclays’ analysts also initiated coverage of the REIT with an “equal weight” rating, with an $8 price target. 

Even better, as noted by Motley Fool contributor Sean Williams, billionaires have been investing heavily in AGNC, as well. That includes Steven Cohen of Point72 Asset Management, who picked up 991,743 shares; Israel Englander of Millennium Management, who picked up 941,022 shares; and Ray Dalio of Bridgewater Associates, who picked up 129,160 shares.

Agree Realty (ADC)

Agree Realty Corporation (ADC) logo visible on display screen.

Source: Pavel Kapysh / Shutterstock.com

There’s also Agree Realty (NYSE:ADC) – another one of the top monthly dividend stocks to consider. With a current yield of 5.16%, the REIT has seen better days, too. But again, use weakness as an opportunity – especially with inflation starting to cool off. Plus, not only did ADC just increase its dividend for the 13th consecutive year to 24 cents, CEO Joey Agree bought 4,000 shares on Oct. 2 for about $215,400. 

At the moment, ADC has 43 million sq. feet of space, and 2,084 properties that it leases to reliable, investment grade tenants. In fact, some of its biggest clients include Walmart, Tractor Supply  (NASDAQ:TSCO), Best Buy (NYSE:BBY), CVS, Dollar General, Hobby Lobby, Sherwin-Williams (NYSE:SHW), Home Depot (NYSE:HD), and BJ’s Wholesale to name a few.

Earnings haven’t been too shabby either. Third quarter adjusted funds from operations (FFO) of $1 beat analyst expectations by a penny. It was also up from 96 cents year over year. Revenue of $136.8 million was also above estimates for $135 million. 

Wells Fargo initiated coverage of ADC with an overweight rating, with a $70 price target. The firm noted the ADC REIT “seeks to cultivate a recession-resistant Net Lease portfolio tenanted by e-commerce resistant operators,” and is the firm’s Top Pick in Net Lease REITs, as noted by TipRanks.com.

Main Street Capital (MAIN)

Image of a man holding a key chain with a key and house attached to the key ring over a office desk in the background

Source: Shutterstock

With a yield of 6.85%, Main Street Capital (NYSE:MAIN) is a private equity firm that provides financing to small and midsize companies that can’t often secure funding from traditional institutions. And while that can expose it to clients with less than perfect credit, MAIN still carries a solid yield for shareholders. In fact, it just boosted its monthly dividend to 24 cents. 

That’s payable Jan. 12 to shareholders of record, as of Jan. 4. It’s payable on Feb. 15 to shareholders of record, as of Feb. 7. Plus, not only has MAIN increased its dividend for the last 12 years, it pays out 90% of its free cash flow to shareholders.

STAG Industrial (STAG)

a businessperson holds an imaginary blueprint of a house

Source: Shutterstock

Next up, STAG Industrial  (NYSE:STAG), which leases industrial properties, like warehouses and distribution centers to e-commerce companies, for example, and has benefited from consumers shifting to online shopping. It also carries a yield of 4.09%, and just announced it’s paying a dividend of 12 cents to shareholders on Dec. 15 to shareholders of record, as of Nov. 30; and on Jan. 16, 2024 to shareholders of record, as of Dec. 29.

While the REIT was forced to pause its acquisition of industrial properties thanks to sky-high interest rates, it’s again ramping up its efforts. In the third quarter, for example, the REIT acquired about a dozen properties for over $204 million, as noted by Motley Fool contributor Matthew DiLallo. It bought another three for about $67.4 million in October, as well.

Earnings have also been solid. In the third quarter, the REIT’s core FFO per share of 59 cents beat expectations for 57 cents. Revenues of $179.3 million were also better than estimates calling for $175 million. Better, according to Bank of America analysts, “Industrial real estate appears to have reached an inflection point and is poised to bounce up next year as the sector normalizes in the wake of the pandemic,” as noted by Seeking Alpha.

Apple Hospitality REIT (APLE)

Woman standing in hotel room with luggage looking at the view. Hotel stocks.

Source: Boyloso / Shutterstock

With a yield of 5.86%, Apple Hospitality REIT (NYSE:APLE) currently owns about 224 hotels in 87 markets throughout 37 U.S. states. And while it did have a painful start to the year, it’s been on the run since bottoming out in late March. 

Helping, some of its top tenants include hotel chains such as Marriott International (NASDAQ:MAR) and Hyatt Hotels (NYSE:H) – most of which are benefiting as more people go on vacation. APLE also just declared a monthly cash distribution of 8 cents per common share – payable on Dec. 15 to shareholders of record as of Nov. 30. 

Global X Super Dividend ETF (SDIV)

Or, take a look at the Global X Super Dividend ETF (NYSEARCA:SDIV). With a 12.67% yield and an expense ratio of 0.58%, the ETF pays out a monthly dividend. It holds 103 stocks spread across mortgage REITs, financials, energy, materials, utilities, industrials, and consumer discretionary. 

Some of its top holdings include Omega Healthcare (NYSE:OHI), Starwood Properties (NYSE:STWD), Arbor Realty Trust (NYSE:ABR), Annaly Capital (NYSE:NLY), Chimera Investment (NYSE:CIM), and Medical Properties (NYSE:MPW) to name just a few.

On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

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If You Can Only Buy One Semiconductor Stock in December, It Better Be One of These 3 Names

We all rely on technology to carry out everyday functions, like communicating, workin, and driving. However, have you ever wondered what powers our technology today? It turns out, all of the power lies within a tiny little device, called a semiconductor. These power the things we rely on daily. As a result, there’s definitely a semiconductor stock out there with your name on it.

These little devices are absolutely essential to our lives and society. Without these devices, our world as we know it would grind to a halt. This is especially true with new advances in artificial intelligence. We now need more efficient and cheaper semiconductors. The industry for semiconductors has boomed in the last couple of decades.

With such a heavy reliance on these products, it’s unsurprising that the semiconductor industry still has the opportunity to provide some of the best investments that we can make. In this article, we will detail three of the best companies in the semiconductor industry. These are surefire bets for investing this December.

NXP Semiconductors N.V. (NXPI)

NXP Semiconductors N.V. (NASDAQ:NXPI) produces components of computer chips that go into numerous different markets. These include the automobile, industrial and communication infrastructure markets. With corporations like Sony and even the United States government using NXP products, this company is definitely in good hands. They are expected continue to be a market leader and a solid semiconductor stock. In fact, 25 Yahoo Finance analysts predict the stock to trade within a range of $150 to $260.This is with an average price of $221.

The company just recently released the AW693. This is a product that establishes high connectivity within new cars, allowing for the newest to have even better Wi-Fi and Bluetooth connections than ever before. This new release along with NXPI’s EdgeLock security system provides unmatched safety and connectivity to the newest cars using these products. This aids in NXP’s growth into the automotive division.

Looking at its financials, we see that its NXPI is currently undervalued. With the semiconductor industry having a P/E ratio of 37.66 times in Q3, NXP’s P/E ratio of only 18.55 times positions it at a relative discount. NXP boasts an outstanding EPS growth, averaging out to be ~56% in the past two years. With practical new releases, a discounted P/E ratio, and a booming EPS, investing in NXP right now would be a safe and rewarding bet.

Qualcomm Incorporated (QCOM)

Qualcomm Incorporated (NASDAQ:QCOM) is a global semiconductor corporation. It provides wireless solutions to drive the evolution of the telecommunications industry and the capabilities of mobile devices. The company is currently trading at $127.50, with Yahoo Finance analysts projecting a one-year price range of $100-$160. This is with an average target price of $138.11.

QCOM saw a significant surge in its price following strong financial results fueled by a strong 34% return on equity. This greatly outperformed the industry average of 15.51%. This demonstrates an effective financial management and the continuation of strong profit margins for QCOM.  With future ROE expected to increase to approximately 36%, this company should no doubt be on the radar for any investors in the tech sector.

Cristiano Amon, the company’s president and CEO, expressed confidence in the company’s strategy and execution. This was with regard to its position in on-device generative AI and mobile computing. With expectations for AI to continue driving growth in the tech industry, QCOM will no doubt find its niche as a leader in the telecommunications sector. Qualcomm Incorporated is a great semiconductor stock, and you should highly consider investing.

Taiwan Semiconductors (TSM)

Taiwan Semiconductors (NYSE:TSM) is a company known for having over 54% share of the global semiconductor market. With 12,698 different products and historical servicing to more than 500 companies in 2022 alone, it’s not surprising to see that Yahoo Finance analysts protect a one-year price of $113.36

Similar to Qualcomm Incorporated (NASDAQ:QCOM) Taiwan Semiconductors will no doubt benefit from the increased demand for semiconductors. Already, it has made developments to create Semiconductor fabricators in America. There are also plans to make an $11 billion fabricator in Germany to keep pace with high demand.

With a P/E ratio of 17.59 times, TSM sits at a relative discount to its five-year average of 22.68 times and sector median of 19.53 times. Its recent spike in its EPS value and relative stability of its P/E Ratio signals that its share price has been growing almost proportionally with its earnings. If you haven’t already, I suggest looking at TSM for a potential buy this December. With fast-paced trends and continued demand for semiconductors, this company only has room to grow. This one is easily a top semiconductor stock.

On the date of publication, Ian Hartana and Vayun Chugh did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chandler Capital is the work of Ian Hartana and Vayun Chugh.

Ian Hartana and Vayun Chugh are both self-taught investors whose work has been featured in Seeking Alpha. Their research primarily revolves around GARP stocks with a long-term investment perspective encompassing diverse sectors such as technology, energy, and healthcare.

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3 Underwhelming AI Stocks to Sell in December

Source: shutterstock.com/Allies Interactive

Even though AI stocks have done incredibly well in 2023, there remain shares best left alone. Whether you sell in December or earlier, it’s probably best to get rid of these shares quickly.

Some of these stocks have been among the most heavily promoted and strongest-performing firms in 2023. I would argue that all three have failed to meet expectations. 

The allure of finding smaller-name AI stocks is clear: Unearthing hidden gems is a lucrative endeavor. Two of the names on this list qualify as smaller AI names. However, I would vehemently discourage investors from considering either of them at this point.

Upstart Holdings (UPST)

Upstart Holdings (NASDAQ:UPST) is among the most dangerous AI stocks available to investors. The company has applied artificial intelligence (AI) to its lending platforms and has gained a lot of attention in doing so. Much of that attention was also negative, judging by the fact that nearly 42% of its float is sold short at present. Thus, a lot of investors are betting that Upstart Holdings will continue to decline.

The reason I’m among their ranks is that I plainly don’t believe in the promises of applying AI to the lending process. It’s a fool’s errand to think an algorithm can accurately assess the multifactorial decision process required. It’s analogous to the situation that happened with home-buying algorithms not long ago. They were touted as a solution that was better than a human-centered approach. However, they couldn’t foresee the increase in rates with any degree of accuracy. As a result, they ended up losing vast sums of money.

AI remains underdeveloped for application to the field of lending. Upstart Holdings’ revenues fell 14% during the most recent period, and its losses were greater than expected. That’s a perfect example of why investors should continue to be skeptical of the company and its promise.

C3.ai (AI)

C3.ai (NYSE:AI) is an enterprise software firm that leverages AI. It was identified as being a leader in that regard. In turn, its stock took off in 2023 on the massive promise of AI applications in the enterprise landscape.

Share prices quadrupled from $11 to $44 in the span of a few months, peaking by early August. Prices have fallen below $30 at present. Like Upstart Holdings, C3.ai is also subject to weak investor sentiment as measured by short selling. Nearly 30% of its float is sold short at the moment.

The reason so many investors are skeptical is because the company continues to disappoint. It posted results in September that heavily contributed to overall skepticism. The company had predicted non-GAAP profitability by the end of the current fiscal year. However, CEO Thomas Siebel recanted that promise upon releasing earnings in early September.

The stock is one of the prime examples of why investors have grown skeptical of AI. Until the company can live up to its profitability promises, it is not worth your money.

Veritone (VERI)

Veritone (NASDAQ:VERI) is the kind of company that promises to be everything to everyone. In the process, it fails to be anything to anyone. It is a generative AI company that believes its services and products apply to all. The company’s mission statement is a dead giveaway. It is littered with words like empowered, democratization and more vibrant opportunities for users of AI everywhere. 

It is long on words and short on results. In the third quarter, revenues fell by 6% to $35.1 million. Software revenues make up the bulk of its business accounting for $20.4 million of its revenues during the period. However, software revenues fell by 29% that quarter, which should be particularly troublesome to investors.

That isn’t to say the company hasn’t shown improvement — it has. There have been some bright spots, including strong bookings figures. But overall, the company doesn’t do enough to detract from the negatives. Most importantly, the company’s net loss increased from $4.9 million to $20.9 million year-over-year.

On the date of publication, Alex Sirois did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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Munger in final interview describes how he and Buffett turned Berkshire Hathaway into such a success

Today, Berkshire Hathaway is massive conglomerate worth north of $785 billion with businesses and investments all around the world. This exceeded Charlie Munger’s wildest dreams.

“I did not think we’d ever have … so many hundreds of billions in Berkshire,” Munger, the former vice chairman of Berkshire, said in his final interview with CNBC’s Becky Quick just a few weeks before passing away at the age of 99. “I did not anticipate … we would ever get to $100 billion, much less several hundred billion.”

“It was an amazing occurrence,” said Munger in bits of the interview aired by CNBC on Tuesday evening.

Among Berkshire’s biggest investments in public companies are Apple and American Express. The company also counts freight rail operator BNSF, insurance giant Geico and See’s Candies.

Munger attributed the success of he and Buffett, 93, to two reasons. “We got a little less crazy than most people. That really helped us. In addition, we were given much longer time to run than most people, because something kept us alive in our 90s. That gave us a long track from our fiddling start all the way to the 90s.”

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Berkshire Hathaway, long term

He also noted both he and Buffett became wiser as they got older.

“We got into better and better companies, and we understood more of the bad things that can happen, and how easily they can creep in,” he said.

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The 7 Biggest Dividend Stocks in Warren Buffett’s Portfolio

Warren Buffett makes billions of dollars in his sleep simply by buying dividend stocks

Warren Buffett has a well-known love affair with stocks that pay dividends. Over half the stocks in Berkshire Hathaway‘s (NYSE:BRK-A) NYSE:BRK-B) portfolio pays dividends. Even after completely selling off stalwart blue-chip dividend payers like Johnson & Johnson (NYSE:JNJ) and Procter & Gamble (NYSE:PG), Buffett is on track to rake in around $6 billion in dividend checks this year. This article explores the rest of those Warren Buffet dividend stocks.

Yet the Oracle of Omaha is miserly when it comes to paying dividends himself. Berkshire Hathaway certainly has the means to pay for one. At the end of last quarter, there was a record $157 billion in cash in the bank, but Buffett still refused. He prefers to invest Berkshire’s retained earnings himself rather than allow shareholders to do so.

Almost all of Berkshire Hathaway’s income will come from just seven Warren Buffett dividend stocks. They will pay out more than $5 billion, or over 80% of the total.

What follows are Warren Buffet dividend stocks he collects most of his income from.

American Express (AXP)

Source: Teerasak Ladnongkhun/Shutterstock.com

There are few companies with the cachet of American Express (NYSE:AXP). It’s one of the reasons Buffett owns the stock and has for decades. He told Bloomberg last year, “You can’t create another American Express.” 

Yet it’s been over 20 years since he’s purchased any more of the stock. He’s happy to collect about $363 million a year from the credit card company whose dividend yields 1.5% annually. Buffett owns 151 million shares today. It’s a testament to the preferred stock he bought in the early 1990s and converted to common stock over time.

American Express benefits from targeting higher net-worth individuals than other credit card companies. Because the wealthy naturally tend to weather economic storms better than others, they keep spending even in environments not ideally suited to credit card usage. It makes American Express a stock to consider for when times get tough.

Kraft Heinz (KHC)

Retail workers checking produce at a grocery store.

Source: ESB Professional / Shutterstock.com

Packaged goods company Kraft Heinz (NYSE:KHC) not only pays Buffett one of the largest sums of dividend cash, but it’s also one of his biggest holdings. His 325 million shares deliver almost $524 million in payments on a dividend-yielding a lucrative 4.6% annually. This makes it one of those notable Warren Buffet dividend stocks.

Yet it’s a stock he regrets buying. Sort of. Buffett helped private equity firm 3G Capital finagle a takeover of H.J. Heinz 10 years ago and then maneuvered the ketchup maker into acquiring Kraft Foods. It was not a good deal.

Buffett says he paid about $100 billion in tangible assets, using only $7 billion worth. Although he thinks the combined company is still an overall good business, he admits, “We overpaid for Kraft.”

Kraft Heinz stock was 14% lower in 2023 compared to a 19% gain by the S&P 500. Although the dividend payments partially salved the botched deal, Buffett would undoubtedly like to go back in time and undo the merger.

Chevron (CVX)

Chevron (CVX) sing with

Source: Sundry Photography / Shutterstock.com

Integrated oil and gas giant Chevron (NYSE:CVX) is a stock Buffett continues to sell. He shed about 12 million shares in the third quarter, on top of the 10 million he dumped in the second. Yet even with the new share count, Berkshire Hathaway will receive over $650 million in dividend payments.

Buffett still has a total of 110 million shares, which, with a dividend of $0.86 a share yielding 4.2%, provides plenty of cabbage. It’s a stock he may ultimately regret selling down.

Chevron just announced a massive acquisition: It will acquire industry peer Hess (NYSE:HES) for $53 billion in an all-stock deal. The market didn’t like the deal, though, sending the stock careening 10% lower on the news. Shares are off about 20% year to date.

Yet industry consolidation is ramping up. Exxon Mobil (NYSE:XOM) said it was buying Plains Natural Resource (NYSE:PXD) for $43 billion. Fossil fuel demand rises unabated, and Hess gives Chevron assets in Guyana. That’s proving to be a rich area for oil and will surely pay dividends in time.

Coca-Cola (KO)

Coca-Cola Consolidated sign outside of their building. COKE Stock.

Source: Jonathan Weiss / Shutterstock

Coca-Cola (NYSE:KO) is another example of Buffett buying a consumer-facing company. Like American Express, the beverage titan has unparalleled brand recognition and loyalty. According to Brand Finance, Coca-Cola is the world’s most valuable and strongest non-alcoholic drinks brand, valued at $35.3 billion. That’s nearly twice the value of steel cage death match rival PepsiCo (NASDAQ:PEP) at $18.3 billion.

It’s also the stock Buffett has owned the longest. He had been a Pepsi investor (and soda drinker), but switched to Coke in the 1980s and never looked back. He famously drinks several Cherry Cokes a day.

Buffett’s 400 million shares of Coca-Cola stock brings in nearly three-quarters of a billion in dividend income a year. The payout yields 3.1% annually. The stake is equivalent to a 9.3% ownership interest in the beverage company. That would be a big position for you or me, but it actually represents one of Buffett’s smaller holdings.

Apple (AAPL)

Close-up of Apple (AAPL) retail store Logo in Honolulu at the Ala Moana Center. Advertising the latest generation of the ipad, iphones, and ipods with a Retina display.

Source: Eric Broder Van Dyke / Shutterstock.com

It’s not a surprise Apple (NASDAQ:AAPL) is so high on the list of Buffett’s biggest dividend stocks. His affinity for tech stocks allowed it to become his largest position, totaling almost 49% of Berkshire Hathaway’s portfolio. Even though Apple’s dividend yields a relatively paltry sum of just 0.5% annually, Buffett makes up for it by owning over 915 million shares.

Moreover, Apple is growing its dividend payment. Over the past decade, the payout has increased by nearly 9% annually. The dividend should continue growing in the future, too. Apple’s payout ratio, or the profits it pays out as dividends, is just 15%. That means not only is the dividend safe, but there is ample room for additional growth. Apple can easily afford to pay and raise the dividend with $60 billion available in cash, equivalents, and short-term investments.

Apple manages to defy expert opinions its stock will crash and burn. Even as product sales slow, services surge. Services revenue surged 16% last quarter, achieving a record across the App Store, advertising, AppleCare, iCloud, payment services, and video. It’s a stock you should always buy on the dip because it seems to pull through in the end.

Occidental Petroleum (OXY)

Occidental Petroleum (OXY) Company logo seen displayed on smart phone

Source: IgorGolovniov / Shutterstock.com

Another oil stock, Occidental Petroleum (NYSE:OXY), is tricky to place on this list because the 228 million shares Buffett owns result in only $163 million in dividend payments. Yet Berkshire Hathaway also bought $10 billion worth of preferred stock to help Occidental acquire Anadarko Petroleum in 2019. The preferred stock yields 8%, giving Buffett around another $800 million in income. All in all, it’s one of those important Warren Buffet dividend stocks.

However, Occidental has been repurchasing the preferred stock. It bought back $342 million worth of preferred in the third quarter, bringing the total repurchased this year to $1.5 billion. The conditions on the shares, though, require Occidental to pay Berkshire any accrued and unpaid dividends when redemptions are made. Figuring out exactly how much Buffett will make this year will have to wait.

Buffett doesn’t seem to mind. After taking a breather from his buying spree of Occidental stock in the second quarter, Buffett resumed being a buyer of shares in the third, picking up another 4 million shares.

Bank of America (BAC)

bank of America stock BAC stock

Source: Shutterstock

Simply by being the one stock Buffett owns the most of, Bank of America (NYSE:BAC) is also the one that cleanly delivers the most dividend income. The billion-plus shares in Berkshire Hathaway’s portfolio generate $990 million in dividends. The $0.96 per share payout yields 3.2% annually.

Buffett has stood by Bank of America stock over the past year, too. He likes the management team and wouldn’t sell shares even when he was clearing out Berkshire of all other bank stocks it owned. Still, despite the stock being down 10% year to date, Buffett hasn’t been a buyer either.

Although it doesn’t look like Bank of America is at risk of going under as a number of regional banks did at the start of 2023, it is hurt more than its peers in today’s high-interest rate environment. Bank of America purchased long-term, low-yield assets during the pandemic, and those are weighing on its performance.

It ought to come out just fine, but it could be causing Buffett’s reticence today considering the financial market turmoil.

On the date of publication, Rich Duprey held a LONG position in CVX, JNJ, KO, PG, and XOM stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.

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The 3 Best Wearable Tech Stocks to Keep an Eye On

Recently, Americans have been notably pessimistic. Gallup reported “overwhelmingly high” levels of pessimism in mid-October, a sentiment echoed by the University of Michigan. However, the public’s perceptions do not entirely align with the reality of the financial, economic and monetary landscape. As the final month of 2023 approaches, the year is proving to be robust with contributing factors to this positive outlook being the the resilience of the stock market. Furthermore, the growth trajectory is particularly promising for sectors like wearable technology. This is spelling great things or wearable tech stocks.

As technological innovations continue to drive consumer demand, stocks in the wearable technology industry are expected to flourish, reflecting the evolving preferences and lifestyles of consumers in the digital age. These three wearable tech stocks are set to do just that.

Garmin Limited (GRMN)

Garmin Limited (NYSE:GRMN) is a technological instruments company, specializing in GPS navigation and wearable technology across a wide array of industries. Yahoo! Finance has four analysts predicting a one-year price range on GRMN to be between $100.00 and $135.00, with a mean of $118.50.

GRMN boasts strong financials. The company reports $1.28 million in revenue in Q3 2023, a 12% one-year CAGR. GRMN demonstrates its profitability through its 20.1% gross profit margin and shows signs of being undervalued with a 1.41 EPS, which grew 13.7% YoY. Management has improved operational and company margins, as seen through cash from operations and free cash flow which grew 131.9% and 136.3% respectively.

Garmin shows growth potential through an acquisition and headquarters expansion, positioning the company for growth. Garmin has completed its acquisition of JL Audio, a private design and manufacturing company of audio solutions. The company will be able to upgrade its navigation and wearable technology ecosystem by integrating bespoke JL audio solutions. Garmin is planning on expanding its Canada headquarters, adding a 22,000-square-foot floor. Management expects the expansion to double its workforce, helping it further develop its new product line: biosensors for cyclists.

Garmin is the wearable technology stock that investors don’t want to miss out on because of its strong financials, an acquisition that improves its ecosystem of instruments and more mentioned above.

Qualcomm (QCOM)

Qualcomm Inc (NASDAQ:QCOM) is a global semiconductor and telecommunications equipment giant, making waves in the industry. Here’s a concise guide on why Qualcomm is a savvy choice for your investment portfolio.

Despite a challenging smartphone market, Q2 2023 revenue of $9.28 billion exceeded estimates by $150 million, showcasing Qualcomm’s resilience. While down 17% YoY, the company’s commitment to diversification and a strong revenue forecast indicate a promising future.

Qualcomm’s stronghold lies in its extensive patent portfolio, particularly in 5G. With a minimal variable cost, the company boasts a 70% operating margin, positioning it as a leader in wireless communication technologies.

With a price-to-earnings ratio of 13.35, Qualcomm appears undervalued compared to industry competitors. Forecasted revenue and earnings growth, along with a strong return on equity forecast at 71.14%, make Qualcomm a promising buy.

Qualcomm Inc is not just a semiconductor company; it’s a strategic investment with a promising future. With strong financials, a significant role in the 5G revolution, and a commitment to societal impact, Qualcomm stands out as a smart addition to your investment portfolio.

GoPro, Inc. (GPRO)

GoPro, Inc. (NASDAQ:GPRO) has faced a tumultuous journey, marked by a year-to-date decline. However, recent sentiments suggest a potential turnaround.

GoPro’s hardware business, centered on a niche market of sports enthusiasts, has struggled amid economic downturns. With declining topline and shipment figures, the company’s inability to expand beyond its small customer base is evident, causing the stock to plummet from its 2014 peak of $82.

Amid these challenges, GoPro’s subscription business stands out as a positive omen. With two million subscribers contributing $100 million in annual recurring revenue, the model has positively impacted the company’s bottom line. While skepticism looms over the sustainability of the subscription model, this is pure falsehood as GoPro, 

GoPro’s subscription model is a stronghold. The sustainability of the model and the churn rate are both extremely strong. In the current environment, investors may find more certainty in other companies however, this is a strong opportunity with a high probability of success.

On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.

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