Latest news with #highyield
Yahoo
14 hours ago
- Business
- Yahoo
3 Magnificent Dividend Stocks to Buy Today and Hold for 20 Years
Key Points This Dividend King has a high yield and trades at a bargain price. This leading restaurant brand offers a high yield as its new CEO implements a promising strategy to return the business to growth. This top dividend stock is also delivering double-digit growth on the bottom line. 10 stocks we like better than Target › Investors looking for solid income stocks to boost their passive income can find some attractive opportunities in 2025. The past few years have seen high inflation and interest rates put pressure on the financial results and share prices of top consumer brands. This has driven the dividend yield up to attractive levels for several top companies. To give you some ideas, three contributors believe Target (NYSE: TGT), Starbucks (NASDAQ: SBUX), and Philip Morris (NYSE: PM) are solid buys today. Here's why these companies should pay growing dividends to shareholders for years to come. Low price, top dividend (Target): It might seem surprising to hear that Target is an excellent stock to buy now, considering its declining sales. But there are good reasons to believe it can bounce back, and with its cheap price and top dividend, now could be a great time to take a position. Target has dealt with a slew of problems over the past few years, and its stock is 62% off its highs. Things may not improve much in the short term; its most pressing problems today are that customers are still holding back on discretionary purchases due to inflation, and home improvement is still suffering from a low real estate market. In the 2025 fiscal first quarter (ended May 3), sales were down 2.8% from last year, and comparable sales (comps) were down 3.8%. However, it's making progress in certain key areas, like keeping costs down, and operating income increased 19% year over year. It's also still a star in omnichannel options. Digital comps increased 4.7% over last year in the first quarter, and same-day delivery sales in the membership program were up 35%. Management initiated a new enterprise acceleration office to focus on how the company can leverage technology and data to improve its connectedness and agility. Its goals are improving functionality and speed, and that complements its digital strength. Target was in a similar situation in 2017 before the pandemic, and at that time, it invested in digital channels before it was what everyone was doing. That put it in a great position to excel early in the pandemic, and today it's following a similar playbook. Shareholders may be lamenting the price drop, but they're still enjoying the top dividend. Target is a Dividend King, having raised its dividend 54 years straight. That indicates reliability and growth. At the current price, the dividend yields 4.4%. If you don't own the stock, you can buy today while it's trading at a bargain price-to-earnings (P/E) ratio of only 11. If you can buy and hold for 20 years, you're likely to be well rewarded, from both the stock and the dividend. Starbucks offers an appetizing yield of 2.6% John Ballard (Starbucks): Starbucks stock has underperformed the market indices the past few years. In fact, it's still trading at about the same share price in 2019. But the company has continued to grow its dividend, bringing the yield up to an attractive 2.61%. Starbucks' business is not performing well. Sales have fallen over the past year, but its comparable-store sales are starting to flatten, down just 1% year over year in the company's March-ending fiscal Q2. New CEO Brian Niccol, who came over from Chipotle last year, appears to be the right leader to turn Starbucks around. Niccol is focusing on building a customer-centric brand and turning Starbucks' coffeehouses into places where customers want to hang out again. This follows a proven strategy that if you take care of customers first, everything else falls into place. Starbucks is the McDonald's of coffee. That is a good or bad thing, depending on your perspective. From a dividend investor's view, it's a good thing. With a Starbucks on every corner, it has tremendous global presence and scale that produces overall consistent financial results and dividend payments. Over the last five years, the dividend grew from $1.44 in fiscal 2019 (ended in September) to $2.28 in fiscal 2024. At the current quarterly payment of $0.61, Starbucks should pay $2.44 for fiscal 2025. This is even as weak sales are expected to send adjusted earnings down to $2.47 this year, which is enough to cover the dividend, especially as Starbucks returns to earnings growth over the next few years. Starbucks has the brand to get back on track, especially with a talented CEO at the helm. The stock offers solid value right now that can potentially pay growing dividends for a lifetime. A great combination of growth and dividends Jeremy Bowman (Philip Morris International): One dividend stock that looks well-positioned to deliver for investors over the next two decades is Philip Morris International. Philip Morris International was formed in the divorce between Altria and Philip Morris in 2007. Altria kept the domestic business, while PMI sold the same products in international market. That's proven to be the more favorable side of the business, as smoking rates remain higher in places like Europe, Latin America, and Asia, and have not declined as fast as in the U.S. Meanwhile, PMI has also innovated with next-gen, smoke-free products like Iqos, heat-not-burn devices, which function like vapes but use real tobacco instead of liquid, and it has found success with Zyn oral nicotine pouches, which it gained in its acquisition of Swedish Match in 2022. In fact, the success of its next-gen products may be the best reason to buy Philip Morris stock today, as they now make up more than 40% of its revenue. Unlike its big tobacco peers, Philip Morris is delivering impressive growth, bucking the expectations of declines in the industry. In the first quarter, organic revenue, which strips out the effect of currency exchange, acquisitions, and divestitures, rose 10.2% to $9.3 billion. That included 20.4% organic growth in the smoke-free business to $3.9 billion. Even cigarette sales are still growing as well, with volume sales up 1.1% in the period to $144.8 billion in the quarter. The company also delivered strong growth on the bottom line, with adjusted earnings per share up 17% to $1.76. As a dividend payer, the company offers a yield of 3% today, and it has a long track record of raising its payout, dating back to its days when it was tied to Altria. With the strength of its new products and the resilience of its cigarette business, Philip Morris should remain a rewarding dividend stock for years to come. Should you invest $1,000 in Target right now? Before you buy stock in Target, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Target 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 $687,149!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,060,406!* Now, it's worth noting Stock Advisor's total average return is 1,069% — 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 Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Jennifer Saibil has no position in any of the stocks mentioned. Jeremy Bowman has positions in Chipotle Mexican Grill, Starbucks, and Target. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill, Starbucks, and Target. The Motley Fool recommends Philip Morris International and recommends the following options: short June 2025 $55 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy. 3 Magnificent Dividend Stocks to Buy Today and Hold for 20 Years 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
a day ago
- Business
- Yahoo
Best CD rates today, July 18, 2025 (up to 5.5% APY return)
See which banks are currently paying the highest CD rates. If you're looking for a secure place to store your savings, a certificate of deposit (CD) may be a great choice. These accounts often provide higher interest rates than traditional checking and savings accounts. However, CD rates can vary widely. Learn more about CD rates today and where to find high-yield CDs with the best rates available. Banks with the best CD rates right now Today's CD rates vary quite a bit. In general, however, CD rates are beginning to decline due to the Fed's decision to cut its benchmark rate three times in the later part of 2024. Even so, some banks are still offering competitive CD rates. For those that are, top rates reach about 4% APY. This is especially true for shorter terms of one year or less. As of July 18, 2025, the highest CD rate is 5.5% APY, offered by Gainbridge® on its 5-year CD. There is a $1000 minimum opening deposit required. Here is a look at some of the best CD rates available today from our verified partners: Compare these rates to the national average as of June 2025 (the most recent data available from the FDIC): Compared with today's top CD rates, national averages are much lower. This highlights the importance of shopping around for the best CD rates before opening an account. Why do online banks have the best CD rates? Online banks and neobanks are financial institutions that operate solely via the web. That means they have lower overhead costs than traditional brick and mortar banks. As a result, they're able to pass those savings on to their customers in the form of higher interest rates on deposit accounts (including CDs) and lower fees. If you're looking for the best CD rates available today, an online bank is a great place to start. However, online banks aren't the only financial institutions offering competitive CD rates. It's also worth checking with credit unions. As not-for-profit financial cooperatives, credit unions return their profits to customers, who are also member-owners. Although many credit unions have strict membership requirements that are limited to those who belong to certain associations or work or live in certain areas, there are also several credit unions that just about anyone can join. Should you open a CD? Whether or not you should put your money in a CD depends on your savings goals. CDs are considered a safe and stable savings vehicle — they don't lose money (in most cases), are backed by federal insurance, and allow you to lock in today's best rates. However, there are some drawbacks to consider. First, you must keep your money on deposit for the full term, otherwise you'll be subject to an early withdrawal penalty. If you want flexible access to your funds, a high-yield savings account or money market account might be a better choice. Additionally, although today's CD rates are high by historical standards, they don't match the returns you could achieve by investing your money in the market. If you're saving for a long-term goal such as retirement, a CD won't provide the growth you need to reach your savings goal within a reasonable time frame. Read more: Short- or long-term CD: Which is best for you?
Yahoo
3 days ago
- Business
- Yahoo
Best savings interest rates today, July 17, 2025 (top account pays 4.3% APY)
If you're looking to supercharge your savings, a high-yield savings account could provide an above-average return to help your balance grow faster. However, not all banks offer high savings account rates, which is why it's important to shop around and find the most competitive savings interest rates available. Read on to learn more about where to find the best savings interest rates today. Banks with the best savings interest rates today Savings account rates have been trending down since last year, when the Federal Reserve began cutting the federal funds rate. The good news is that many high-yield savings accounts still offer rates of around 4% APY and up. The best rates are typically offered by online banks, although you may be able to find comparable savings interest rates at some credit unions and community banks. As of July 17, 2025, the highest savings account rate available from our partners is 4.3% APY. This rate is offered by EverBank and Openbank and requires no minimum opening deposit. Here is a look at some of the best savings interest rates available today from our verified partners: How do I choose the best savings account? Selecting a savings account with a competitive interest rate is important. The higher the rate, the faster your balance will grow over time. That said, the interest rate shouldn't be your only point of comparison. Other factors, such as fees, ATM locations, the bank's reputation, and more should also be considered. The best savings accounts offer a combination of high rates, low fees, accessibility, and an overall positive banking experience. Not sure where to start? Check out our ranking of the 10 best high-yield savings accounts available today. Savings account interest rate forecast Following several years of near-zero interest rates, the Federal Reserve began raising the the federal funds rate in 2022 in order to combat rapidly rising inflation. As a result, savings interest rates skyrocketed, reaching a 15-year high. However, in late 2024, the Fed implemented a series of cuts to the federal funds rate, and savings account rates have started dropping. It's also expected that the Fed will implement more rate cuts in 2025. It's difficult to predict exactly how and when interest rates will change going forward, but one thing is for sure: Today's high savings account rates won't last forever. So, if you're hoping to give your savings a boost and take advantage of the best rates on the market, there's no better time than now. How to open a savings account The requirements involved in opening a savings account vary by financial institution. However, if you're ready to open an account, you can follow these general steps: Research savings account rates: Of course, when choosing a savings account, one of the most important factors to evaluate are the interest rates. Be sure that you select a savings account with a competitive rate to help your money grow. Figure out your must-haves: Although savings account interest rates should be top of mind, that's not the only factor to consider. You'll also want to think about what else you need from your account, whether it's no minimum balance requirement, low fees, or other perks. Finding a savings account with a solid rate that also helps you achieve your goals is key. Prepare documentation: Opening a bank account requires you to provide a few important personal details and documents. Before you start your application, be sure you have your Social Security number, driver's license or passport number, and proof of address. Fill out the application: In many cases, you can apply for savings account online. However, some financial institutions may require you to visit the branch in person to apply. Either way, the application for a new savings account should only take a few minutes to complete. In many cases, you'll get your approval decision instantly. Fund your account: Once your savings account application is approved, you'll need to add funds to the account. Be sure you're aware of any minimum opening deposit requirements and timeline for funding. Read more: Step-by-step instructions for opening a high-yield savings account
Forbes
3 days ago
- Business
- Forbes
High-Yield Savings Account Rates Today: July 17, 2025
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Savings account yields are much higher than a few years ago Top rates may fall if the Federal Reserve cuts interest rates Online banks tend to offer the best yields available Rates on savings accounts are the same compared to one week ago. You can now earn up to 5.84% on your savings. In the market for an account where you can put some money aside? Here's a look at some of the best savings rates you can find today. Related: Find the Best High-Yield Savings Accounts Of 2025 Traditional savings accounts, called "statement savings accounts" within the banking industry, were notorious for paying meager interest in the aftermath of the Great Recession. Rates have been on the rise in recent years, and you can earn even more if you know where to look. For instance, online banks and credit unions often pay much higher rates than brick-and-mortar banks. The highest yield on a standard savings account with a $2,500 minimum deposit amount within the last week has been 5.84%, according to data from Curinos. If you spot a basic savings account with a rate in that ballpark, you've done well for yourself. Today's average APY for a traditional savings account is 0.22%, Curinos says. APY, or annual percentage yield, reflects the actual return your account will earn in a year. It includes compound interest, which is interest that builds on the interest already in your account. High-yield savings accounts generally pay substantially more interest than conventional savings accounts. But the trade-off is you may have to jump through some hoops to earn that higher rate, such as becoming a member of a credit union or putting down a large deposit. On high-yield accounts requiring a minimum deposit of $10,000, today's best interest rate is 4.88%. That's about the same as last week. The average APY for those accounts is now 0.23% APY, unchanged from a week ago. On high-yield savings accounts with a minimum opening deposit of $25,000, the highest rate available today is 3.94%. You'll be in good shape if you can get an account offering a rate close to that. The current average is 0.24% APY for a high-yield account with a $25,000 minimum deposit. Whether you're looking for a traditional savings account, high-yield savings account or MMA, you'll want to keep a few things in mind. A high interest rate is important, but it's not the only factor when picking an account to hold your savings. Another major consideration is whether the account has a minimum deposit - and whether you can meet that requirement. You'll also want to watch out for fees. Savings accounts can come with monthly maintenance fees, excess transaction fees (if you ignore limits on withdrawals), and other pesky charges that can eat into your returns. And before you apply for an account, explore a financial institution's reputation and safety. You should trust your bank or credit union and feel like you're in good hands. Check the reviews, see what people have to say about customer service and find out how the institution responds to consumer questions. Search for an account that's insured by the FDIC or, in the case of credit unions, the NCUA. Those federal agencies provide up to $250,000 in insurance per depositor and per bank for each account ownership category. That's tough to say—it depends on the path of inflation and the overall economy. The highest interest rates in recent memory were seen in 1980 and 1981, when the federal funds rate skyrocketed above 19%. That was in the face of runaway inflation that had prices rising at an annual rate of more than 14%. In the early 1980s, a three-month CD went as high as 18% compared to around 5% today, according to the Federal Reserve. Savings rates would eventually fall as inflation slowed and the federal funds rate came back down. Curinos determines the average rates for savings accounts by focusing on those intended for personal use. Certain types of savings accounts —such as relationship-based accounts and accounts designed for youths, seniors and students—are not considered in the calculation. Frequently Asked Questions (FAQs) The best high-yield savings account pays 5.84% now, according to Curinos data, so you'll want to aim for an account that delivers a yield in that ballpark. But rates aren't everything. You want an account that charges few fees, offers great customer service and has a track record of being a stable institution. Savings yields are variable and can change depending on economic conditions or a bank's particular financial need. Usually rates are influenced by the federal funds rate, meaning that a bank tends to raise or lower its rates along with the Fed. Online banks and credit unions tend to offer the best yields because they can pass along savings from low overhead while also striving to attract new customers.
Wall Street Journal
3 days ago
- Business
- Wall Street Journal
Today's High-Yield Savings Rates for July 17, 2025: Up to 4.66%
Getting the best rate as a saver has been a little more difficult since the Federal Reserve started cutting its benchmark rate toward the end of 2024. Since the beginning of 2025, Fed officials have adopted a wait-and-see approach due to concerns about tariffs and economic conditions. The central bank again held the federal-funds rate steady in June, but kept the door open for future cuts as it gathers more data on how trade policy will impact inflation. With the average savings account paying 0.38%, according to the Federal Deposit Insurance Corporation (FDIC), it might feel a little bleak for savers. However, high-yield savings accounts still offer a way to get a little more yield. The best high-yield savings account pays a much higher yield. Indeed, the top rate from a national bank is 4.66% APY, according to Locally, you might be able to check with a credit union or community bank. For example, ConnectOne Bank in New York offers an APY of 4.00% if you have at least $2,500 deposited.
