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Yahoo
12 minutes ago
- Yahoo
2 Elite S&P 500 Dividend Stocks to Buy Now and Hold Forever
Constellation Brands sells some of the most popular imported beers, but the stock can be bought for a song right now. Home Depot still commands a small share of the home improvement market, making it an excellent dividend growth stock. 10 stocks we like better than Constellation Brands › It's nice to have cash deposited automatically deposited into your investment account on a regular basis. The S&P 500 (SNPINDEX: ^GSPC) includes some of the largest and best businesses in the world, and many of these companies can make solid income investments. Here are two S&P 500 companies that are offering much higher yields than the index's 1.21% average. Imported beer makes up nearly a fifth of all beer consumed in the U.S., according to the Beer Institute, and Constellation Brands (NYSE: STZ) is the top seller and importer of three of the top imported beers in the U.S.: Modelo, Pacifico, and Corona. Recent sales weakness due to macroeconomic issues has sent the stock down, but the company generates plenty of earnings to support growing dividends. Constellation Brands is paying out close to a third of its adjusted earnings in dividends. Its quarterly payment is $1.02, which increased this year by $0.01. This puts the stock's forward dividend yield at an attractive 2.37%. Top beverage makers like Constellation Brands can make great income investments. While sales can soften when consumer spending trends weaken, these companies are selling an affordable product that people consume throughout the year. This leads to stable sales, earnings, and dividends. Constellation has been paying a growing dividend since 2015. Beer makes up the far majority of the company' business, but it also generates a small amount of sales from wine and spirits. However, management has sold off some wine assets recently to improve the performance of that side of the business. Management is aiming to save more than $200 million annually in costs by fiscal 2028. This spells more earnings and dividend increases for shareholders. While the stock was falling this year, Constellation's beer business remained the top market share gainer in the first quarter, with six of the top 15 dollar share-gaining beer brands in the U.S. This makes the recent dip in the share price a good buying opportunity. The lower share price has brought the forward price-to-earnings multiple down to a cheap 13.6 at the time of writing. Management is still guiding for full-year adjusted earnings per share between $12.60 to $12.90. Investors not only get the benefit of the above-average dividend yield but could see a nice return on the stock over the next five years. Home Depot (NYSE: HD) is the world's largest home improvement retailer with 2,350 stores across the U.S., Puerto Rico, the U.S. Virgin Islands, Guam, Canada, and Mexico. Like Constellation Brands, Home Depot has experienced soft sales over the past year. However, the stock has held up quite well and could surge to new highs if interest rates come down. The stock is currently offering an attractive forward yield of 2.48%. Tariffs on imported goods raised concerns about the potential for higher inflation, but so far, inflation has been relatively muted. The longer this continues, the greater the chance the Federal Reserve will lower interest rates, which would make financing home projects more affordable and benefit Home Depot. The long-term trend of growing household net worth is a secular tailwind that has made Home Depot a solid growth stock, on top of its growing dividend. A $10,000 investment in the stock 20 years ago would be worth $107,000 today, or $176,000 including dividend reinvestment. Home Depot has paid 38 consecutive years of dividend payments, which are well covered by earnings. The company paid 61% of earnings in dividends to shareholders over the past year. It raised its quarterly dividend earlier this year by 2% to $2.30. Home Depot generates $162 billion in annual sales but is going after a $1 trillion addressable market in home improvement. It has a solid competitive position in an important segment of the economy that should lead to many more years of growing dividend payments. Before you buy stock in Constellation Brands, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Constellation Brands wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool recommends Constellation Brands. The Motley Fool has a disclosure policy. 2 Elite S&P 500 Dividend Stocks to Buy Now and Hold Forever was originally published by The Motley Fool
Yahoo
28 minutes ago
- Yahoo
Cathie Wood's Tesla Bet Pays Off Again. But How Long Can It Last?
Tesla is part of the Magnificent Seven. The stock has richly rewarded long-term investors. The company faces significant challenges, however. These 10 stocks could mint the next wave of millionaires › Cathie Wood, CEO of Ark Invest, oversees numerous exchange-traded funds (ETFs), including a family of funds that invest in technology stocks. These funds have had some success in the past, with the Ark Innovation ETF (NYSEMKT: ARKK), the largest one under the company's umbrella, returning nearly 60% over the past year through June 30. That's nearly four times the Nasdaq Composite's 15.7% return during that time. But the fund isn't necessarily for the faint of heart, given its concentration in the tech sector. It seeks to invest in companies at the forefront of "disruptive innovation. One of the Ark Innovation ETF's biggest winners has been Tesla (NASDAQ: TSLA). As of July 2, the fund owned about 2.1 million shares of the electric vehicle (EV) maker. That stake, worth over $630 million, represented 9.6% of the fund's assets, making it the ETF's biggest position. But can Tesla continue to rocket upwards, or is it due for a crash landing? Tesla, one of the "Magnificent Seven" group of technology stocks, has produced strong returns for shareholders. In 2024, the stock gained 62.5%, easily besting the S&P 500's total return of 25% and the Nasdaq Composite's total return of 29.6%. Tesla's automotive business produces most of the company's revenue. In 2024, this fell 6% to $77.1 billion due in part to lower EV prices. Including services (e.g., used vehicles, maintenance services, supercharging, and insurance), the top line from that segment dropped 3% to $87.6 billion. Its other major revenue source is the energy generation and storage segment, which was a bright spot. That business includes selling, leasing, and financing solar energy generation and storage products, and it saw a 67% increase in revenue to $10.1 billion. However, it made up only about 10% of Tesla's total revenue. Arguably, Elon Musk's relationship with Donald Trump, both during the campaign and his presidency, likely contributed to the stock price growth last year. But Musk and Trump have had a falling out, and it's difficult to analyze a company's long-term prospects based on personal relationships with politicians. The stock has lost 21.9% this year through July 2, badly lagging the S&P 500, which has gained 6.8%. Additionally, portions of the Republicans' recently passed tax and spending bill would seem to hurt Tesla's prospects. The new law eliminates the federal tax credits for electric vehicles and solar energy systems, which makes those products more expensive for consumers. Tesla was already facing challenges, including China-based EV giant BYD (OTC: BYDD.F) (OTC: BYDDY), which has been slashing its prices. The fierce competition has negatively affected Tesla's results. Tesla will report its second-quarter results at the end of the month, but its first-quarter automotive revenue dropped by 20% to $14 billion. That results in a total top-line drop of 9%, and its operating income under generally accepted accounting principles (GAAP) fell by 66% to $399 million. Management has already published its second-quarter vehicle delivery numbers, which showed that its sales remain under pressure. It delivered about 384,000 cars in Q2, compared to over 422,000 in the prior-year period. Management has been investing in new technologies and products, like the fully autonomous Cybercab, which is scheduled to go into production next year. There's a potentially large market for such vehicles, and for the robotaxi service Tesla intends to build, but it's one fraught with challenges. The race to autonomous driving has seen a number of false starts from other companies. It's hard to bet against a Musk-run company given the success he's had in his various ventures. However, given the challenges Tesla faces and its high valuation -- it trades today at a price-to-sales ratio of 11.6 and a price-to-earnings ratio of 173 -- I'd stay away from the stock. And for investors in the Ark Innovation ETF, I wouldn't expect the EV stock to be the biggest positive driver of the fund's future returns. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $413,238!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,540!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $699,558!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of July 7, 2025 Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends BYD Company. The Motley Fool has a disclosure policy. Cathie Wood's Tesla Bet Pays Off Again. But How Long Can It Last? was originally published by The Motley Fool
Business Insider
29 minutes ago
- Business Insider
Elon Musk loses $15 billion in net worth after Tesla stock sinks
Tesla CEO Elon Musk formally launched his new political organization over the weekend — the " America Party" — and on Monday morning the markets reacted. Tesla shares fell nearly 7% and shed roughly $21 per share as of market closing at 4 p.m. ET. The launching of his political party was just another move in Musk's very public feud with President Donald Trump, whom the SpaceX CEO donated at least $277 million to support during the 2024 presidential campaign. As a result, the world's richest man's net worth is $15 billion less than it was on Sunday, according to the Bloomberg Billionaires Index, though he still leads in wealth. The sell-off came on a dampened day for markets due to the prospect of more tariffs and deepened an already brutal stretch for Tesla investors. Tesla stocks are down 31% since Trump's inauguration in January, while the S&P 500 gained around 4% over the same period. Tesla has also posted back-to-back quarterly declines in vehicle deliveries in 2025, marking the EV maker's worst performance since 2022. Tesla and Musk did not immediately respond to requests for comments. Recent notes from analysts show investors disapprove of Musk's latest political moves across the board. " Elon Musk diving deeper into politics and now trying to take on the Beltway establishment is exactly the opposite direction that Tesla investors/shareholders want him to take," Wedbush Securities analyst and Tesla Bull Dan Ives wrote in a note on Sunday. William Blair analysts Jed Dorsheimer and Mark Shooter wrote in a note on Monday that " investors are growing tired of the distraction" and that shareholders would "prefer this effort to be channeled towards the robotaxi rollout." William Blair also downgraded Tesla from "buy" to "hold" based on regulatory headwinds from Trump's "Big Beautiful Bill," which would eliminate tax credits for electric vehicles. According to Silver Bulletin's composite average of public opinion polls, the share of Americans with an unfavorable view of Musk has now risen to 55% from 45% at the end of 2024, and the trend is present across party lines. Philip Bell, political strategist and CEO of Tower K Group, told Business Insider on Monday that as a Tesla investor himself, he doesn't think it would be disastrous for Tesla if Musk leaves the company entirely to pursue politics. "I think it could be beneficial to Tesla because you'll have that belief of founder risk finally go away," said Bell, "And number two, the DNA that he has infused in Tesla will allow it to succeed for quite some time — there are a lot of people there who are able to innovate and obviously able to do the nuts and bolts of putting cars together."
