Toronto Developers Stay Afloat Borrowing Against Unsold Condos
Real estate lender Nav Deo has been taking a lot of calls from Toronto developers that suggest things are getting desperate.
In the worst market for new condos in 35 years, more builders are seeking to borrow against unsold units in their own properties. Deo said so-called inventory loans make up 60% of his financing requests now, compared with almost none last year. If a developer needs the money to start a new project, he's happy to oblige. But most are looking for help to pay other debts, and he turns those down.
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14 minutes ago
- Yahoo
Chevron Stock's 4.6% Dividend Yield and 1.67% One Month Short Put Yield Make CVX a Buy
Chevron Corp (CVX) stock boasts a handsome 4.6% yield, significantly higher than its historical average. As this article will show, CVX stock could be worth between 11% to 20% more. Moreover, selling short put options expiring in just over one month can provide investors a 1.67% monthly yield at out-of-the-money strike prices. The Saturday Spread: Using Markov Chains to Help Extract Profits From DPZ, AKAM and DOCU Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! With CVX's closing price on July 3 of $148.37, CVX is still well off its recent highs in mid-April. But it could still have room to rise further. This article will show how to play this. I discussed CVX stock's average yield in my last article on June 16 ("Chevron Stock Looks Cheap Based on Its Average Yield - Shorting Puts Works"). For example, with its annual dividend per share (DPS) of $6.84 (i.e., $1.71 quarterly x 4), the yield is 4.61%. But this is higher than its 5-year average. As a result, CVX is worth between $165 and $181. Let's see why. Over the next 12 months (NTM), an investor can likely expect Chevron will raise its quarterly dividend rate. Let's estimate that the next rate will be $1.78 per share, +4% YoY. That means the NTM DPS rate will be $6.98 per share, and so today's NTM yield is actually over 4.7%: $6.98 / $148.37 = 0.04704 = 4.704% (NTM Yield) That is well over its 5-year average yield: Yahoo! Finance.……4.36% Seeking Alpha …….4.21% Morningstar ……….4.17% Average 5-yr Yield 4.25% As a result, we can project CVX stock's value should it revert to its historical mean, using the NTM dividend per share (DPS): $6.98 NTM DPS / 0.0425 = $164.24 target price That is almost 11% higher than the July 3 closing price: $164.24/$148.37 = 1.1069 -1 = +10.7% upside This also coincides with analysts' target prices. Analysts surveyed by Yahoo! Finance (25) have an average price target of $163.23 per share, or +10% higher than today. Similarly, Barchart's mean price target is $161.73, and says the average from 15 analysts is $164.79 (close to my price target). However, which covers recent analyst write-ups, shows that 21 analysts have an average of $181.20 per share. That is +22% higher than today. The bottom line is that the median of these surveys is $164.01, very close to my dividend-yield-based target of $164.24. As a result, there seems to be +10-11% potential upside in CVX stock, and potentially up to 22% more. But there is no guarantee this will occur over the next 12 months. Therefore, one way to play this is to set a lower potential buy-in price. Investors can do this by selling short out-of-the-money (OTM) put options in a near-term expiry period (usually one month is ideal). The upside here is that investors can make a good one-month yield with this play. My last article on June 16 pointed out that the $140 strike price put option expiring July 18 had a midpoint premium of $2.07, a one-month yield of 1.48% ($2.07/$140.00). This strike price was 3.3% below the trading price (i.e., out-of-the-money or OTM). Today, the price is just 39 cents, so the short-put investor has made most of the yield. They can roll this over (i.e., 'Buy to Open') and do a new trade further out. For example, look at the August 8 expiration period, which is just over one month away. 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Therefore, the net yield has been 2.88%: $409/$14,200 = 0.0288 = 2.88% This is over 53 days between June 16 and August 8 (and potentially shorter if the investor covers before then). Let's assume that most of the yield is made over the next 21 days. The investment period would be 40 days. So the annualized expected return (ER) is as follows: 365/40 = 11 periods x 2.88% = 31.68% That is a very high expected return, assuming that the investor can repeat this play every 40 days. The point is that these out-of-the-money puts are a very attractive way to play CVX stock. Moreover, the investor's breakeven point, should CVX stock fall 3% to the $144.00 strike price, makes this a good investment: $144.00-$2.41 = $141.59 $164.24 / $141.59 = 1.16 -1 = +16% The bottom line is that by shorting puts expiring in one month, the short-put CVX investor can make a potential +16% upside. Even if CVX doesn't fall, the short-put yield is 1.67% for slightly over one month. 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Yahoo
15 minutes ago
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Accuray Incorporated (NASDAQ:ARAY) is a favorite amongst institutional investors who own 60%
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Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future. Let's take a closer look to see what the different types of shareholders can tell us about Accuray. See our latest analysis for Accuray Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. We can see that Accuray does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. 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While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our most recent data indicates that insiders own some shares in Accuray Incorporated. As individuals, the insiders collectively own US$5.4m worth of the US$146m company. 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NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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Yahoo
31 minutes ago
- Yahoo
4 Moves That Can Make or Break Your Financial Security, According to Experts
If you were asked to imagine your personal finances as a house (go with it, like it's a meditation exercise), you'd probably want to picture a sturdy foundation. An inviting porch, where influential people, like bank representatives who offer credit, will want to sit for a while. Walkways that make it easy for your friends and family to find side rooms you've reserved for them. Certainly, you wouldn't want it to be a house of cards, capable of being brought down by a single financial shock. Read Next: Check Out: That's the goal of financial security: building something sturdy and lasting. And while it may seem complicated, it's easier than you imagine — especially when you strengthen your financial structure by following these four tried-and-true, expert-approved approaches. There's not a lot of love between Dave Ramsey and Tori Dunlap — these financial experts disagree about everything from the right time to start investing to how you should vote. So, when they align on a piece of advice, you know it's worth considering. Creating an emergency fund is the very first step in Ramsey's famous 'baby steps' toward financial stability. Writing for Ramsey Solutions, Rachel Cruze spells out the need for an emergency fund, and how it differs from your existing budget, quite clearly: 'A budget helps you plan for regular expenses each month — like groceries, gas, insurance, etc. But what about those big expenses you can't plan for? With an emergency fund, you're ready for just about anything that may come your way.' Likewise, Dunlap suggests making an emergency fund your number one priority, going even further in her advice to suggest that you set yours up in a high-yield savings account. Typically, Dunlap has recommended saving between three to six months of essential expenses — however, with the state of inflation and overall economic volatility, she now recommends bulking that amount up to nine months. For You: Investing may seem like the domain of people who have a more comprehensive financial education than you do, but it doesn't have to be. Not when experts like Vivian Tu, aka YourRichBFF, are here to demystify the process of learning to invest. Calling herself 'your favorite Wall Street girlie,' Tu's years of expertise in the market have helped her hone a relatively simple way of getting everyday people involved in investing. As reported by GOBankingRates, Tu recommends searching for the best robo-advisors in 2025 — as in, digital platforms that can help you understand your needs and risk tolerance while offering suggestions on potential investments. And you can always run the online advisor's advice by a flesh-and-blood financial planner, making tweaks as needed. Life insurance offers financial security in a pretty obvious way: It ensures that your family members will be able to maintain their standard of living if you were to pass away. With a robust policy, you can cover outstanding debts, like mortgages, credit card balances and car loans, sparing your family from having to take on that financial hardship while freshly grieving for you. However, experts like Suze Orman don't want you to assume that the basic life insurance you get through your company is going to be enough to cover you. Far from it. 'Workplace life insurance pays out a very small death benefit that is typically equal to one or maybe two years of your salary. That is not nearly enough,' she wrote. 'To fully protect your loved ones and make sure they never have financial hardship, my advice is to consider a term life insurance policy that is at least 20 times (25 times is even better) the annual income that you need to be replaced.' While Orman points out that whole life plans are typically more expensive than term policies, there are certain times when purchasing a whole life plan might make more sense for you and your family. As U.S. News & World Report explains: 'Unlike term life insurance, whole life has a cash value that builds over time on a tax-deferred basis. The cash value can be used as a savings vehicle for retirement, and you can borrow against or withdraw it.' Just be aware that any amount of the loan that isn't repaid in full upon your death will be deducted from the death benefit. At the end of the day, the best advisor to help you build the frame of your financial house is the one who can offer personalized advice suited to your goals and your needs. Searching for a financial advisor you can trust — and working with them to create and continuously review your plan — is one of the best ways to ensure long-term financial From GOBankingRates 5 Steps to Take if You Want To Create Generational Wealth 4 Things Your Neighbor Who Retired Early Won't Tell You About Their Financial Plan 4 Things You Should Do if You Want To Retire Early I'm a Certified Financial Planner: 3 Wealth-Transfer Tips I Tell My High-Income Clients This article originally appeared on 4 Moves That Can Make or Break Your Financial Security, According to Experts Sign in to access your portfolio
