Latest news with #LeeSamaha
Yahoo
09-07-2025
- Business
- Yahoo
Looking to Generate Passive Income? Consider These 3 Rock-Solid Dividend King Stocks
Emerson Electric has restructured its business to focus on long-term growth opportunities. Kenvue is a good choice for investors mainly focused on capital preservation and passive income. American States Water is a water utility stock that has paid dividends since its founding in 1931. 10 stocks we like better than Emerson Electric › Investing in the stock market over a long-term time horizon can be an excellent way to compound your savings. However, the path toward unlocking significant gains can be marked by numerous ups and downs. Risk-averse investors or those nearing retirement may prefer dividend stocks over growth stocks, as they offer passive income regardless of the broader market's performance. But dividends aren't guaranteed. In fact, some companies will cut their dividends if profits fall, or irregularly raise their dividends even when the company is expanding. Dividend Kings are in a league of their own when it comes to dividend reliability. These are companies that have raised their dividends every year for at least 50 consecutive years. Given this impressive track record, Dividend Kings are a good starting point for investors seeking to enhance their passive income. Here's why Emerson Electric (NYSE: EMR), Kenvue (NYSE: KVUE), and American States Water (NYSE: AWR) stand out as three particularly compelling Dividend Kings to buy now. Lee Samaha (Emerson Electric): Dividend Kings, such as Emerson Electric, have a proud record of increasing dividends for over 55 years, for many reasons. One of them is a demonstrable ability to sustain and grow the earnings necessary to increase dividends over time. As such, when you buy a Dividend King, you are not just buying a dividend-paying stock; you are buying a stock with a proven track record of growth. The interesting thing about Emerson Electric is that it's a significantly different company from what it was just a few years ago, but its growth prospects are arguably even stronger. The company has been restructured to focus on long-term growth opportunities arising from process and industrial automation, industrial software, and adjacent markets, such as automated test & measurement. Management believes it has a game plan that will result in 4% to 7% revenue growth throughout the economic cycle, with an increase in margins (notably from selling more software-defined automation) driving double-digit earnings growth over time and free cash flow margins in the 15% to 18% range. Those are impressive numbers, and ones that support significant dividend growth in the coming years. Given that Emerson's three-month trailing orders are currently growing in the mid-single-digit range in an economy plagued by uncertainty, its longer-term growth aspirations look achievable, and this Dividend King's dividend looks set to grow for a long time yet. Daniel Foelber (Kenvue): Kenvue spun off from Johnson & Johnson in 2023, taking with it well-known consumer health and hygiene brands ranging from Neutrogena to Aveeno, Tylenol, Listerine, Band-Aid, and more. With such a dominant slate of brands and a smaller, more focused company, Kenvue seemed like a coiled spring for steady growth. However, that has not been the case. As you can see in the following chart, Kenvue's stock price is down since the spinoff despite the S&P 500 rocketing higher during that period. Revenue and margin growth have been nonexistent as Kenvue has struggled to offset inflation pressures with price hikes and higher sales volume. Despite the poor results, Kenvue does have some noteworthy qualities that could be attractive to income investors. The company is technically a Dividend King -- having inherited Johnson & Johnson's 61-year streak and then hiking its payout by 2.5% last July. Kenvue is likely to modestly boost its dividend later this month to keep the streak alive. The stock has a high yield at 3.9%, which is significantly higher than well-known Dividend Kings like Coca-Cola or Procter & Gamble. And finally, Kenvue sports a reasonable valuation -- with a forward price-to-earnings ratio of 18.4. Kenvue isn't the kind of company that will "wow" investors with a breakneck growth rate and innovation. However, it has a strong portfolio of brands that should support modest dividend growth over time. Scott Levine (American States Water): Water utility stocks like American States Water are rarely the source of sizzling headlines, but sometimes boring can be beautiful. For those looking to fortify their portfolios with a solid -- albeit unexciting -- dividend stock, American States Water and its forward-yielding 2.4% dividend is an excellent option. It has paid dividends since its founding in 1931, and for the past seven decades, it has consistently hiked its dividend -- and that streak isn't likely to end anytime soon. Serving over 264,000 regulated water utility customers in California, American States Water also provides water service to 12 military bases under 50-year contracts. Between these two businesses, the company generates steady revenue and highly predictable profits. With the resulting insight into future cash flows, management is consequently able to responsibly budget for future capital expenditures, such as infrastructure upgrades and dividends. Over the past 10 years, American States Water has consistently generated ample operational cash flow to source its dividend payments. And that's not the only indication that the dividend is secure. The company has averaged a conservative 56.4% payout ratio from 2015 through 2024. With a 70-year streak of returning an increasing amount of capital to shareholders and a resilient business model, American States Water should shine brightly on the radars of investors looking for stalwart dividend stocks. Before you buy stock in Emerson Electric, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Emerson Electric 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 $695,481!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $969,935!* Now, it's worth noting Stock Advisor's total average return is 1,053% — a market-crushing outperformance compared to 179% 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 Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Emerson Electric and Kenvue. The Motley Fool recommends Johnson & Johnson and recommends the following options: long January 2026 $13 calls on Kenvue. The Motley Fool has a disclosure policy. Looking to Generate Passive Income? Consider These 3 Rock-Solid Dividend King Stocks was originally published by The Motley Fool
Yahoo
08-07-2025
- Business
- Yahoo
Here's Why Shares in Recursion Pharmaceuticals Surged Today
Recursion Pharmaceuticals is now the sole owner of a drug in its pipeline. The deal de-risks the company's pipeline by removing uncertainty; however, there's still a long way to go before REV102 is commercialized. 10 stocks we like better than Recursion Pharmaceuticals › Shares in biotech company Recursion Pharmaceuticals (NASDAQ: RXRX) surged by more than 12% by 11 a.m. ET today. The move is due to a de-risking event in its drug discovery pipeline. The de-risking event relates to the acquisition of the 50% interest in an ENPP1 inhibitor program (REV102) that it didn't own from Rallybio (NASDAQ: RLYB). REV102 is being developed to treat hypophosphatasia (HPP) -- a rare and debilitating genetic disorder that affects bone development. According to Recursion, "HPP is a devastating genetic disorder affecting over 7,800 diagnosed patients across the U.S. and major European countries." It targets an enzyme, ENPP1, whose inhibition is believed to help treat HPP. Until today, Recursion and Rallybio have had a joint venture to develop ENPP1 inhibitors, which have resulted in REV102, still in the preclinical stage of development. The deal is good news for both companies. Focusing on Rallybio, the company will receive: Some much-needed cash in the form of $7.5 million in up-front equity An equity payment of $12.5 million if REV102 undertakes additional preclinical trials A $5 million milestone payment after initiation of dosing in a phase 1 study Low-single-digit royalties on future sales of REV102 Meanwhile, Recursion gains full ownership of REV102 and can now develop the drug without worrying about Rallybio's consideration of the matter. The agreement helps de-risk the development of REV102 and removes uncertainty around it in connection with Rallybio's financial condition. That's a plus and adds value to Recursion's pipeline, even if REV102 is in a very early stage of development. Before you buy stock in Recursion Pharmaceuticals, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Recursion Pharmaceuticals 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 $695,481!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $969,935!* Now, it's worth noting Stock Advisor's total average return is 1,053% — a market-crushing outperformance compared to 179% 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 Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Here's Why Shares in Recursion Pharmaceuticals Surged Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-06-2025
- Business
- Yahoo
If I Could Buy Only 1 Warren Buffett Stock Over the Next 10 Years, Pool Corp. Would Be It. Here's the Key Reason.
Pool Corp. is the dominant player in its industry and continues to consolidate it. It's precisely the kind of boring investment that tends to generate stellar returns while no one is looking. 10 stocks we like better than Pool › Warren Buffett is not known for buying the most exciting businesses out there, but he is known for making some of the best investments. It's a thought to bear in mind when considering investing in Pool Corp. (NASDAQ: POOL), one of Berkshire Hathaway's holdings. Here's why. The case for buying Pool Corp. is simple. The company holds a dominant market share in a highly fragmented yet growing market. Remember that, even if new pool construction growth is slowing, the installed base of pools is still growing, creating opportunities for Pool Corp. In fact, almost two-thirds of its sales come through the maintenance and repair of existing swimming pools, with items such as chemicals, equipment, parts, and supplies used to maintain pumps, heaters, and filters. These factors come together to create a business with relatively high profit margins (for a distributor) and consistently high return on invested capital (ROIC). It implies that every new sales center it invests in, or smaller distributor it acquires to build scale, tends to generate a good return. Observant readers will note that Pool's margins and ROIC declined in 2022, but this is due to a natural correction from the artificial boom in stay-at-home spending created by the pandemic lockdowns. About 15% of its sales in 2024 came from new swimming pool construction, and the slowdown in this area has impacted Pool Corp.'s sales growth. Still, as noted above, the installed base is growing, and so should Pool Corp.'s revenue from maintenance and repair. As such, when the new pool construction market inevitably bottoms, Pool Corp. should get back on its long-term growth path. Before you buy stock in Pool, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Pool 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 $676,023!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,692!* Now, it's worth noting Stock Advisor's total average return is 793% — a market-crushing outperformance compared to 173% 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 June 23, 2025 Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy. If I Could Buy Only 1 Warren Buffett Stock Over the Next 10 Years, Pool Corp. Would Be It. Here's the Key Reason. was originally published by The Motley Fool
Yahoo
14-06-2025
- Business
- Yahoo
2 Stocks Down 23% and 26% to Buy Right Now
If investors can see past the downturn in energy prices, Chevron stock is a great opportunity. Exponential AI demand growth is driving this company's end-market growth. 10 stocks we like better than Chevron › With the first half of 2025 nearly over, many investors are taking time to reevaluate their portfolios and take advantage of quality stocks that can be bought at a discount. It certainly requires some confidence to buy shares of a company when they're down, but it's opportunities like these that offer the potential for outsize returns. Two contributors, for example, recognize that oil supermajor Chevron (NYSE: CVX) and data center equipment provider Vertiv (NYSE: VRT) are two worthy considerations for investors to click the buy buttons on right now since they're stocks are trading down 23% and 26%, respectively, from recent all-time highs. (Chevron): While the 23% decline in Chevron stock from its all-time high in January 2023 may be disconcerting, the truth is that the stock's fall isn't wholly unexpected. There's a strong correlation between the movements of energy prices and those of energy stocks, so when investors pair Chevron stock's plunge with the 22% dip in the price of oil benchmark West Texas Intermediate during the same time period, the performance in Chevron's stock becomes much more understandable. Whether you're on the prowl for a reliable dividend stock or a steady energy stock or something in between, Chevron fits the bill. For 38 consecutive years, the company has hiked its dividend -- a notable achievement for any company but especially one whose business revolves around commodities along with their cyclical prices. Lest investors fear that the company is sacrificing its financial health to placate shareholders, a peek at Chevron's average payout ratio over the past five years should allay their concerns: It's a conservative 68.4%. Unlike some companies that solely focus on exploration and production, or those with midstream businesses, or downstream operations, Chevron operates throughout the energy value chain. This provides it with the ability to benefit from greater efficiencies than companies with more concentrated operations, as well as mitigating the risks associated with a slowing in the business of any one link in the energy value chain. For those looking to put some pep in their passive income streams, now seems like a great time to gas up on Chevron stock. Lee Samaha (Vertiv): Data center equipment provider and Nvidia partner Vertiv's stock trades down about 26% from its all-time high. It has recovered significantly recently, but despite a strong run, it's still an overall dip worth buying into. That reasoning relies on assuming that we are in the early innings of investment in artificial intelligence (AI) applications and the data centers necessary to support AI growth. As recently discussed, there are no signs of a slowdown in data center spending, and that bodes well for the near-term outlook. Thinking more medium-term, Vertiv's data center power systems are set to play a key role in the new generation of data centers that Nvidia is building toward. Nvidia believes the new 800-volt (V) high voltage direct current (HVDC) data centers (set to be launched in 2027) can improve efficiency by 5%, reduce copper usage, and lower maintenance costs by 70%, and also lower cooling costs. The good news is that Vertiv plans to have its 800-V HVDC power systems ready by the second half of 2026, in time for deployment with Nvidia's key platform rollouts in 2027. That should drive the next cycle of orders at Vertiv, and as long as AI demand continues to explode, it's likely that Vertiv's total addressable market for its power systems, thermal management, and data center infrastructure will also grow strongly. While semiconductor stocks often get the lion's share of attention regarding AI, Vertiv is a great consideration for investors looking to gain AI exposure -- especially with 2026 shaping up to an auspicious year of developments for the company. On the other hand, income investors who have the patience to wait out a downturn in energy prices have a great opportunity to power up their passive income streams right now with Chevron stock. Before you buy stock in Chevron, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Chevron 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 $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $888,780!* Now, it's worth noting Stock Advisor's total average return is 999% — a market-crushing outperformance compared to 174% 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 June 9, 2025 Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron and Nvidia. The Motley Fool has a disclosure policy. 2 Stocks Down 23% and 26% to Buy Right Now was originally published by The Motley Fool
Yahoo
14-06-2025
- Business
- Yahoo
2 Stocks Down 23% and 26% to Buy Right Now
If investors can see past the downturn in energy prices, Chevron stock is a great opportunity. Exponential AI demand growth is driving this company's end-market growth. 10 stocks we like better than Chevron › With the first half of 2025 nearly over, many investors are taking time to reevaluate their portfolios and take advantage of quality stocks that can be bought at a discount. It certainly requires some confidence to buy shares of a company when they're down, but it's opportunities like these that offer the potential for outsize returns. Two contributors, for example, recognize that oil supermajor Chevron (NYSE: CVX) and data center equipment provider Vertiv (NYSE: VRT) are two worthy considerations for investors to click the buy buttons on right now since they're stocks are trading down 23% and 26%, respectively, from recent all-time highs. (Chevron): While the 23% decline in Chevron stock from its all-time high in January 2023 may be disconcerting, the truth is that the stock's fall isn't wholly unexpected. There's a strong correlation between the movements of energy prices and those of energy stocks, so when investors pair Chevron stock's plunge with the 22% dip in the price of oil benchmark West Texas Intermediate during the same time period, the performance in Chevron's stock becomes much more understandable. Whether you're on the prowl for a reliable dividend stock or a steady energy stock or something in between, Chevron fits the bill. For 38 consecutive years, the company has hiked its dividend -- a notable achievement for any company but especially one whose business revolves around commodities along with their cyclical prices. Lest investors fear that the company is sacrificing its financial health to placate shareholders, a peek at Chevron's average payout ratio over the past five years should allay their concerns: It's a conservative 68.4%. Unlike some companies that solely focus on exploration and production, or those with midstream businesses, or downstream operations, Chevron operates throughout the energy value chain. This provides it with the ability to benefit from greater efficiencies than companies with more concentrated operations, as well as mitigating the risks associated with a slowing in the business of any one link in the energy value chain. For those looking to put some pep in their passive income streams, now seems like a great time to gas up on Chevron stock. Lee Samaha (Vertiv): Data center equipment provider and Nvidia partner Vertiv's stock trades down about 26% from its all-time high. It has recovered significantly recently, but despite a strong run, it's still an overall dip worth buying into. That reasoning relies on assuming that we are in the early innings of investment in artificial intelligence (AI) applications and the data centers necessary to support AI growth. As recently discussed, there are no signs of a slowdown in data center spending, and that bodes well for the near-term outlook. Thinking more medium-term, Vertiv's data center power systems are set to play a key role in the new generation of data centers that Nvidia is building toward. Nvidia believes the new 800-volt (V) high voltage direct current (HVDC) data centers (set to be launched in 2027) can improve efficiency by 5%, reduce copper usage, and lower maintenance costs by 70%, and also lower cooling costs. The good news is that Vertiv plans to have its 800-V HVDC power systems ready by the second half of 2026, in time for deployment with Nvidia's key platform rollouts in 2027. That should drive the next cycle of orders at Vertiv, and as long as AI demand continues to explode, it's likely that Vertiv's total addressable market for its power systems, thermal management, and data center infrastructure will also grow strongly. While semiconductor stocks often get the lion's share of attention regarding AI, Vertiv is a great consideration for investors looking to gain AI exposure -- especially with 2026 shaping up to an auspicious year of developments for the company. On the other hand, income investors who have the patience to wait out a downturn in energy prices have a great opportunity to power up their passive income streams right now with Chevron stock. Before you buy stock in Chevron, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Chevron 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 $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $888,780!* Now, it's worth noting Stock Advisor's total average return is 999% — a market-crushing outperformance compared to 174% 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 June 9, 2025 Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron and Nvidia. The Motley Fool has a disclosure policy. 2 Stocks Down 23% and 26% to Buy Right Now was originally published by The Motley Fool
