Retirement-Ready: 3 Dividend ETFs for Growth, Stability, and Income

2025-11-03 17:57:16 By David Davis

Key Points

  • Dividend ETFs ensure retirement portfolios balance income, growth, and stability. 
  • Income-generating funds suit all ages, offering reliable payouts. 
  • Low-cost, diversified ETFs reduce risk, supporting long-term wealth and financial security.
  • It sounds nuts, but SoFi is giving new active invest users up to $1k in stock, see for yourself (Sponsor)

Planning for retirement is critical whether you’re 25 and just starting out or nearing retirement age. A well-constructed portfolio can provide income, growth, and stability to ensure financial security through your golden years. 

Dividend ETFs are a cornerstone for many investors, offering diversified exposure to companies that pay consistent dividends, balancing yield with capital appreciation. The three exchange-traded funds (ETFs) discussed below stand out for their focus on quality dividend-paying stocks, low costs, and resilience across market cycles. They help retirees generate reliable income while preserving wealth and allow younger investors to build a foundation for long-term growth.

Vanguard Dividend Appreciation ETF (VIG)

TheVanguard Dividend Appreciation ETF(NYSE:VIG) tracks theS&P U.S. Dividend Growers Index, focusing on companies with at least 10 years of consecutive dividend increases. With an expense ratio of just 0.05%, it’s one of the cheapest ways to invest in Dividend Aristocrats — firms known for financial strength and consistent payout growth.

Its 30-day SEC yield hovers around 1.6%, but the real strength lies in its long-term capital appreciation, averaging about 10% annualized returns since inception. VIG’s portfolio includes blue-chip names likeMicrosoft(NASDAQ:MSFT) andJohnson & Johnson(NYSE:JNJ), ensuring sector diversification and stability. 

VIG

$217.05▲ $21.35(9.84%)1Y1D5D1M3M6M1Y5YMAX

For retirees, VIG offers inflation-beating dividend growth, preserving purchasing power. Younger investors benefit from its compounding potential, as reinvested dividends fuel portfolio growth over decades. Its low volatility and focus on quality make it a bedrock for retirement portfolios, providing a balance of income and growth without excessive risk. 

VIG is ideal for those prioritizing long-term wealth preservation and steady, growing payouts in a retirement-ready strategy.

iShares Core Dividend Growth ETF (DGRO)

TheiShares Core Dividend Growth ETF(NYSE:DGRO), managed byBlackRock(NYSE:BLK), tracks theMorningstar US Dividend Growth Index, targeting companies with sustainable dividend increases. With an expense ratio of 0.08% and a yield of about 2.2%, DGRO strikes a balance between income and growth. Its more than 400 holdings include stalwarts likeApple(NASDAQ:AAPL) andProcter & Gamble(NYSE:PG), offering broad market exposure with a focus on firms with strong balance sheets. 

DGRO’s emphasis on dividend growth — typically 5% to 7% annually — makes it a strong choice for retirees needing reliable income that keeps pace with inflation. For younger investors, its diversified approach and low costs support long-term wealth accumulation. 

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The ETF’s historical returns of around 11% to 12% annualized since its 2014 launch highlight its growth potential. DGRO’s low volatility and focus on financially healthy companies reduce downside risk, making it a retirement-ready pick for those seeking a mix of stability, income, and moderate capital appreciation in their portfolios.

SPDR S&P Dividend ETF (SDY)

TheSPDR S&P Dividend ETF(NYSE:SDY), managed byState Street Global Advisors, tracks theS&P High Yield Dividend Aristocrats Index, focusing onS&P 500companies with 25 or more years of consecutive dividend increases. With an expense ratio of 0.35% and a yield of about 2.5%, SDY prioritizes ultra-reliable dividend payers likeVerizon(NYSE:VZ) andCoca-Cola(NYSE:KO). Its focus on elite Dividend Aristocrats ensures stability, making it ideal for retirees who need consistent quarterly income to cover living expenses. 

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The ETF’s near-150 holdings provide diversification, though it leans toward value sectors like consumer staples and industrials, reducing market volatility. For younger investors, SDY’s long-term dividend growth supports compounding, with historical total returns of around 8% to 9% annually. While its higher expense ratio is a drawback, the trade-off is access to companies with unmatched dividend reliability. 

SDY’s conservative approach makes it a retirement-ready cornerstone, offering peace of mind through market cycles and dependable income for retirement spending needs.

Want Up To $1,000? SoFi Is Giving New Active Invest Users up to $1k in Stock

Looking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open an account, fund it with $50 or more, and you could receive up to $1,000 in complimentary stock for Active Invest accounts.

From $0 commission trading to fractional shares and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.(sponsor)

DISCLOSURE:

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).

Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov.

Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify.Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees.Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org).There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event.Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options [HYPERLINK: https://www.theocc.com/getmedia/a151a9ae-d784-4a15-bdeb-23a029f50b70/riskstoc.pdfInvesting in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement [HYPERLINK https://www.sofi.com/iporisk/]. This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation [HYPERLINK https://support.sofi.com/hc/en-us/articles/360058602892-How-does-SoFi-allocate-IPO-shares].

Highly Recommended

Unlock $10,000 Annual Passive Income with Strategic Schwab ETF Investments

-->-->Key PointsMany of Schwab’s ETFs offer attractive dividend yields and low operating fees.With some planning and a large enough account size, you can leverage Schwab’s suite of ETFs to earn $10,000 per year.It sounds nuts, but SoFi is giving new active invest users up to $1k in stock, see for yourself (Sponsor)-->-->When your cash hoard grows big enough, you can start planning out your passive income streams. To that end, Schwab’s broad variety of exchange traded funds (ETFs) eliminates the need for individual stock picking and can unlock substantial dividend yields.If you choose your ETFs carefully, you could potentially earn $10,000 in passive income per year when your account size is big enough. The three Schwab funds I’ll tell you about today have an average dividend yield of (3.67% + 3.76% + 2.96%) / 3, or 3.46%.So, if you have $300,000 to invest equally into those three Schwab ETFs, you should receive $300,000 x 3.46% or $10,380 worth of dividends after one year. Sure, the funds will deduct operating expenses from the share price, but Schwab’s fees are quite low. Now, let’s take a closer look at three Schwab ETFs that you can strategically use to generate $10,000 or more in annual passive income.Schwab U.S. Dividend Equity ETF (SCHD)Loading stock data...The first $100,000 of a $300,000 investable cash account could be dedicated to theSchwab U.S. Dividend Equity ETF(NYSEARCA:SCHD). This fund has “Dividend” in its name, so you know it will appeal to passive income seekers.A diversified fund with 103 stocks in its holdings list, the Schwab U.S. Dividend Equity ETF provides portfolio exposure to established names across multiple economic sectors. Stocks on the SCHD ETF’s holdings list include dividend payers likeChevron(NYSE:CVX),Coca-Cola(NYSE:KO),Lockheed Martin(NYSE:LMT), andAltria Group(NYSE:MO).Granted, an annual operating fee (known as the expense ratio) will be automatically deducted from the fund’s share price. However, the Schwab U.S. Dividend Equity ETF’s expense ratio is ultra-low at just 0.06%, which equates to $0.06 per year for every $100 invested in SCHD.Best of all, the Schwab U.S. Dividend Equity ETF currently features a trailing 12-month (TTM) distribution yield (i.e., the fund’s historical dividend yield) of 3.67%. With a yield of that size, you’ll be a big step closer to reaching your goal of $10,000 in passive income per year. Schwab International Dividend Equity ETF (SCHY)Loading stock data...The next $100,000 of a $300,000 portfolio could be used to purchase shares of theSchwab International Dividend Equity ETF(NYSEARCA:SCHY). Whereas SCHD focuses on U.S.-based stocks, the SCHY ETF concentrates on non-U.S. businesses that offer high dividend yields.Don’t worry if you’re not experienced with non-U.S. investments. One of the benefits of ETF investing is that a fund management firm like Schwab can conduct thorough research. Then, the firm can carefully pick non-U.S. businesses for inclusion in an ETF like SCHY.The names on the holdings list of the Schwab International Dividend Equity ETF include Roche Holding(OTC:RHHBY), Vinci(OTC:VCISY), Wesfarmers Limited(OTC:WFAFY), andTotalEnergies(NYSE:TTE). You might not be familiar with the 142 stocks on the SCHY ETF’s holdings list, but that’s fine since the fund’s management did all of the due diligence on your behalf.It’s not a terrible idea to diversify your portfolio beyond the U.S., and you can easily achieve this with Schwab International Dividend Equity ETF. The fund only deducts an expense ratio of 0.08%, and the SCHY ETF’s eye-catching 3.76% TTM distribution yield should attract income collectors around the world.Schwab U.S. REIT ETF (SCHH)Loading stock data...Finally, to potentially achieve $10,000 in annual passive dividend income, the third $100,000 of a $300,000 account could be allocated toward theSchwab U.S. REIT ETF(NYSEARCA:SCHH). This fund includes 124 stocks in its holdings list, and it focuses on real estate investment trusts (REITs) but “excludes mortgage REITs and hybrid REITs.”At this point, you might wonder whether it’s safe to invest in REITs. Yet, this is another way to diversify your portfolio. Plus, the Schwab U.S. REIT ETF has picked out well-established real estate names likeRealty Income Corp.(NYSE:O), Simon Property Group(NYSE:SPG), Crown Castle(NYSE:CCI), and Welltower(NYSE:WELL).All of a sudden, real estate investing is easier than you ever imagined it could be. You’ll end up paying an annual expense ratio of 0.07% to hold this fund, but that’s a small fee in the grand scheme of things. After all, the Schwab U.S. REIT ETF instantly expands your portfolio into the REIT sector while bringing you substantial passive income.Speaking of which, the Schwab U.S. REIT ETF currently features a TTM distribution yield of 2.96%. When you average that out with the yields of SCHD and SCHY, the math works out to roughly $10,000 worth of annual dividend payouts from a $300,000 portfolio. With that, you now have a strategic plan to unlock an easy and powerful income stream from just three premier Schwab ETFs.Want Up To $1,000? SoFi Is Giving New Active Invest Users up to $1k in StockLooking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open an account, fund it with $50 or more, and you could receive up to $1,000 in complimentary stock for Active Invest accounts.From $0 commission trading to fractional shares and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.(sponsor)DISCLOSURE:INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUEBrokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov.Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify.Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees.Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org).There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event.Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options [HYPERLINK: https://www.theocc.com/getmedia/a151a9ae-d784-4a15-bdeb-23a029f50b70/riskstoc.pdfInvesting in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement [HYPERLINK https://www.sofi.com/iporisk/]. This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation [HYPERLINK https://support.sofi.com/hc/en-us/articles/360058602892-How-does-SoFi-allocate-IPO-shares].

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Palantir Technologies’ Stock Will Crater If Revenue Is Up 50%

-->-->Key PointsPalantir Technologies(PLTR) guided Q3 revenue at $1.085 billion at the midpoint, a 49.6% year-over-year rise, with Wall Street eyeing $1.090 billion.The stock’s 128% YTD gain masks risks, including a recent 7.5% drop on Army prototype security issues.At 233 times forward earnings, even modest growth shortfalls could trigger a valuation reset.It sounds nuts, but SoFi is giving new active invest users up to $1k in stock, see for yourself (Sponsor)-->-->Palantir Technologies(NYSE:PLTR) faces a high-stakes moment as it approaches its third-quarter earnings in early November. With revenue guidance set at $1.083 billion to $1.087 billion, implying a 49.6% year-over-year surge, the data analytics giant is under intense scrutiny. Wall Street’s slightly higher forecast of $1.090 billion leaves little room for error. This 50% growth hurdle, while a slight acceleration from Q2’s 48% rise, decelerates sequentially from a 68% spike. PLTR stock is up 128% year-to-date, having ridden a wave of enthusiasm for artificial intelligence (AI). It stumbled 7.5% on Friday after aReutersreport flagged security concerns in an Army communications prototype. With valuation fears lingering from an August dip, anything less than a stellar earnings beat could send shares spiraling.Why the Market Demands MorePalantir’s growth story hinges on its dual pillars: government and commercial segments. Government revenue, which makes up about 55% of the total, grew 53% in Q2, driven by expanded U.S. Army and intelligence community deals. Commercial revenue surged 93%, fueled by its Foundry platform’s adoption in healthcare and manufacturing. Yet, the bar is set high. Investors now expect the commercial side to pull even more weight as Palantir pushes into Europe and Asia. A miss below 50% could signal saturation in government contracts, where Palantir’s Gotham software dominates but faces competition from startups likeAnduril. Recent wins, including a $480 million Army contract extension, buoyed shares, but delays in deployment could cap upside. The company’s adjusted operating margin hit 34% last quarter, up from 28%, showing profitability gains, and management is guiding for 45% margins in Q3. Still, with R&D expenses climbing 25% year over year, any revenue shortfall amplifies concerns over free cash flow, which stood at $140 million last quarter.Loading stock data...The Peril of Plateauing MomentumPalantir’s trajectory mirrors the hype cycle of AI enablers. After a 27% Q2 revenue jump last year, the pace surged to 48% this year, prompting whispers of a coming “law of large numbers” slowdown. At current valuations — trading at 233 times forward earnings — PLTR stock demands flawless execution. A revenue print showing 49%, even though within guidance, might underwhelm investors if U.S. commercial deals lag.Broader market jitters add fuel. Enterprise spending cooled in Q3, according to surveys from Gartner, with 40% of CIOs citing AI return on investment uncertainty. Palantir’s bootcamps, which accelerate client onboarding, converted 20 new logos last quarter, but scaling to 100 annually is the unspoken goal. If Q3 reveals pipeline weakness, it echoesSnowflake‘s (NYSE:SNOW) post-IPO stumbles, where growth deceleration triggered a 50% drawdown.Valuation Traps in a Hot SectorPalantir’s multiples underscore the need for caution. At 116 times sales, it dwarfs peers likeDatadog(NASDAQ:DDOG) at 17 times. The 128% YTD stock surge erases the memory of August’s 15% pullback on valuation fears, but shares remain 20% above their 200-day moving average. Palantir bulls cite a $10 billion addressable market in AI operations, with rule-of-40 metrics (growth plus margin) at 78. Bears, though, point to insider sales — CEO Alex Karp offloaded $110 million in shares this year — as a red flag.If revenue tops 50%, bulls may win and PLTR stock could test $200 per share. But a whisper below, and the multiple compresses to 80 times sales, implying a 25% drop to $130. Options flow shows heavy put buying at $160 strikes, betting on volatility.Recent Volatility Exposes CracksPalantir’s run has been anything but smooth. It hit an all-time high of $190 last month on hype around its AIP platform. But Friday’s 7.5% tumble to $173 per share from the Reuters report indicates vulnerability. The issues, involving data encryption gaps, prompted a review but no contract cancellation. Still, it reignited fears of execution risks in defense, where Palantir derives 30% of government revenue.The episode underscores Palantir’s dependency on federal clients and is subject to policy shifts. With U.S. elections looming, budget hawks could trim AI pilots. Palantir’s response — vowing patches by year-end — calmed some nerves, but the stock’s beta of 2.6 means it amplifies sector swings. Compared toNvidia‘s (NASDAQ:NVDA) AI-fueled ascent, Palantir lacks the consumer moat, making it prone to headline-driven dips.Analyst Targets Miss the MarkWall Street’s $1.09 billion consensus revenue target sits $3 million above the midpoint of management’s guidance, leaving no margin for error. Of 25 analysts, 15 rate it Buy, with a $153 per share average target — implying 11% downside (18% before Friday’s tumble). But the smallest shortfall could spark downgrades, as seen in Q1 when a 1% miss shaved 10% off the stock. Consensus EPS of $0.17 assumes margins hold, as any cost overruns from its talent hiring spree could disappoint.In a sector where growth is king, Palantir’s fate rests on that 50% line. Exceed it convincingly, and the narrative flips to $100 billion in revenue by 2030. Fall short, and the crater for PLTR stock opens wide.Want Up To $1,000? SoFi Is Giving New Active Invest Users up to $1k in StockLooking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open an account, fund it with $50 or more, and you could receive up to $1,000 in complimentary stock for Active Invest accounts.From $0 commission trading to fractional shares and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.(sponsor)DISCLOSURE:INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUEBrokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov.Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify.Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees.Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org).There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event.Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options [HYPERLINK: https://www.theocc.com/getmedia/a151a9ae-d784-4a15-bdeb-23a029f50b70/riskstoc.pdfInvesting in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement [HYPERLINK https://www.sofi.com/iporisk/]. This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation [HYPERLINK https://support.sofi.com/hc/en-us/articles/360058602892-How-does-SoFi-allocate-IPO-shares].

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3 Ultra-Safe Dividend Stocks to Buy Now, If You’re Concerned About Volatility Ahead

Investors who find themselves awake at night thinking about their portfolios, fear not. I am too.The reality is that there are many red flags that have popped up in recent years that have now become too hard to ignore. Yes, inflation has come down from its 2022 peak, but it remains markedly above the Federal Reserves (notably arbitrary) 2% target. But it’s still elevated, at the same time that the jobs market has markedly weakened. -->-->Key PointsDividend stocks are an excellent option for investors concerned with the current macro backdrop to consider.Here are three of my top sleep-at-night picks I think long-term investors should consider form here.Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; get started by clicking here.(Sponsor)-->-->Accordingly, the path forward for interest has grown increasingly uncertain of late, and the gyrations I’ve seen in the bond market make me shiver.But I still take the view that over the medium-term interest rates will more likely be lower than higher from here. Coca-Cola (KO)Loading stock data...Any stock Warren Buffett has held for decades is one I’d think is about as stable as they come. As it turns out, Coca-Cola (NYSE:KO) remains a staple of his portfolio, with the Oracle of Omaha originally purchasing his position way back in 1988. That’s a long time to hold a given stock, but that’s Warren Buffett’s investing style (and it’s one I’d certainly like to emulate).As is the case with many of Buffett’s picks, Coca-Cola has traditionally paid a rather hefty dividend yield, and that’s still true today. The company pays investors an annualized yield of approximately 3.1%, and this yield has spiked a bit higher of late thanks to a stock price dip over the course of the past few months.Now, KO stock is still higher than where it was during the April-driven market selloff, and there are reasons why long-term investors may be enticed to buy this dip and the relatively higher yield the carbonated beverage giant provides investors right now.I think the sheer amount of brand value Coca-Cola provides, as well as one of the most ardent and loyal customer bases, ensures revenue and earnings stability over time. Coca-Cola’s impressive balance sheet stability and its scale and size provide a defensive option for dividend investors looking to pull in a yield of more than 3% in this current environment. Johnson & Johnson (JNJ)Loading stock data...In the healthcare sector,Johnson & Johnson (NYSE:JNJ) is one of the largest U.S. giants, well-positioned for long-term growth and stability. Again, in this market environment, that’s something many investors are going to want to look for – truly defensive dividend stocks. With a 2.9% dividend yield, investors have the potential to not only create the kind of long-term passive income stream they’re looking for, but do so holding one of the most stable and consistent blue-chip growers in the S&P 500. Of note, and one of the things I think many other analysts and market participants continue to gravitate toward when it comes to JNJ, is the company’s rock solid balance sheet and credit rating. I’ve actually seen a number of articles recently discussing how the yields on Johnson & Johnson’s corporate debt are lower than the U.S. government. In other words, investors would rather own this company’s debt than that of Uncle Sam. Says something about the stability of this company relative to the current macro backdrop we find ourselves in.That said, given the yield investors can get on JNJ stock right now, the clear choice appears to be this company’s equity. Those thinking long-term can’t go wrong with this pick in my view, at least over a sufficiently long time frame. Fortis (FTS)Loading stock data...One of my more unique dividend picks I continue to pound the table on is a lesser-known utility company in Fortis (NYSE:FTS). That’s partly because this utility company is based in Canada, where it generates the vast majority of its revenue and earnings. However, in a world that is likely to be significantly reshaped by the rise of AI, one thing most investors can agree on is that we’re going to need a lot more energy. Fortis’ business model in providing electricity and natural gas utilities to millions of commercial and residential customers is one that’s about as steady as they come. And with a more than five-decade-long track record of hiking its dividend, Fortis is among the best options for investors seeking not only a robust and consistent passive income stream, but one that can grow and (hopefully) keep up with inflation over time.That’s the trick isn’t it – finding such companies that provide stable passive income, but also some level of inflation protection (with capital appreciation upside if this spending cycle continues). Fortis offers the best mix of all three, in my view. If You’ve Been Thinking About Retirement, Pay Attention (sponsor)Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance, and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor. Here’s how:Answer a Few Simple Questions. Get Matched with Vetted Advisors Choose Your  Fit Why wait? Start building the retirement you’ve always dreamed of.Get started today! (sponsor)

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5 Companies Investors Always Forget Under $10 With Huge Dividends

Investors lovedividend stocks, especially those with high yields, because they provide a substantial passive income stream and offer significant total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation. At 24/7 Wall St., we consistently emphasize the potential of total return to our readers. It is one of the most effective ways to enhance the prospects of overall investing success. Once again, total return refers to the collective increase in a stock’s value, including dividends.-->-->24/7 Wall St. Key Points:With over 12,000 publicly traded stocks, it is easy to lose track of some companies, even if they are very well known.With interest rates likely heading lower, these five mystery companies should see some investor interest the rest of 2025 and into next year.Stocks trading under $10 allow investors the ability to put together a bigger position, which ultimately could lead to higher profits and total return.Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here.(Sponsor)-->-->We decided toscreen our 24/7 Wall St. low-priced dividend stock database, looking for companies that yield 10% or more but are always forgotten by growth and income investors. Five stocks have caught our attention, and once our readers realize they’ve also overlooked them, it might be time to take a closer look. While not suited for everybody, those trying to build strong passive income streams can do exceptionally well with some of these top companies in their portfolios. Paired with more conservative blue-chip dividend giants, investors can employ a barbell approach to generate substantial passive income streams.Why do we cover high-yield dividend stocks?Since 1926,dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciation has contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the 50 years from 1973 to 2023. Over the same timeline, this was more than double the annualized return for non-payers (3.95%).AGNC InvestmentAGNC Investment CorpNASDAQ:AGNC$10.02▲ $1.14(11.39%)1YPre-Market1D5D1M3M6M1Y5YMAXKEY DATA POINTS−Previous Close$10.01Market Cap10.55BDay's Range$9.95 - $10.0552wk Range$7.27 - $10.31Volume15.62MP/E Ratio33.40Gross Margin76.20%Dividend Yield14.40%ExchangeNASDAQAGNC InvestmentCorp. (NASDAQ: AGNC) provides private capital to the U.S. housing market, enhancing liquidity in the residential real estate mortgage markets and, in turn, facilitating home ownership in the United States. This company has paid a solid monthly dividend, currently yielding 14.30%, for years.The companyinvests primarily in agency residential mortgage-backed securities (Agency RMBS) on a leveraged basis.These investmentsconsist of residential mortgage pass-through securities and collateralized mortgage obligations for which a U.S. government-sponsored enterprise guarantees the principal and interest payments.AGNC buysdebt from the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Together, Fannie Mae and Freddie Mac are known as the GSEs, or government-sponsored enterprises. Alternatively, AGNC may purchase debt from a U.S. government agency, such as the Government National Mortgage Association (Ginnie Mae).Barings BDCBarings BDC IncNYSE:BBDC$8.76▲ $0.13(1.43%)1YPre-Market1D5D1M3M6M1Y5YMAXKEY DATA POINTS−Previous Close$8.78Market Cap909.63MDay's Range$8.70 - $8.9752wk Range$7.38 - $10.40Volume539,103P/E Ratio9.11Gross Margin35.70%Dividend Yield12.40%ExchangeNYSEBarings BDCInc. (NYSE: BBDC) primarily makes debt investments in middle-market companies. This business development company (BDC) is a leader in its industry and pays a substantial 12.10% dividend. It is a publicly traded, externally managed investment company elected to be treated as a BDC under the Investment Company Act of 1940.It seeksto invest primarily in:Senior secured loansFirst lien debtUnitrancheSecond lien debtSubordinated debtEquity co-investmentsSenior secured private debt investments in private middle-market companies operating across various industriesThe companyspecializes in:MezzanineLeveraged buyoutsManagement buyoutsESOPsChange of control transactionsAcquisition financingsGrowth financingRecapitalizations in lower-middle market, mature, and later-stage companiesBarings BDCinvests in manufacturing and distribution, business services and technology, transportation and logistics, and consumer products and services. It invests in the United States and companies with EBITDA of $10 million to $75 million, typically in private equity sponsor-backed investments.The Bank ofAmerica price target is set at $10.Hooker FurnishingsHooker Furniture CorporationNASDAQ:HOFT$8.80▼ $4.02(45.70%)1YPre-Market1D5D1M3M6M1Y5YMAXKEY DATA POINTS−Previous Close$8.63Market Cap93.53MDay's Range$8.64 - $9.2052wk Range$7.03 - $18.35Volume20,743P/E RatioN/AGross Margin-3.40%Dividend Yield10.30%ExchangeNASDAQWhile wayoff the radar, this company is the largest supplier of case goods and upholstery in the U.S., and it pays a solid 9.23% dividend. Hooker Furnishings Corp. (NASDAQ: HOFT) is a designer, marketer, and importer of case goods (wooden and metal furniture), leather furniture, fabric-upholstered furniture, lighting, accessories, and home decor for the residential, hospitality, and contract markets.Its segmentsinclude:Hooker BrandedHome MeridianDomestic UpholsteryThe HookerBranded segment, which includes two businesses:Hooker Casegoods, which covers a range of design categories and includes home entertainment, home office, accent, dining, and bedroom furniture in the upper-medium price points sold under the Hooker Furniture brand.Hooker Upholstery, which includes imported upholstered furniture targeted at the upper-medium price range.The HomeMeridian segment includes Pulaski Furniture, Samuel Lawrence Furniture, Prime Resources International, and Samuel Lawrence Hospitality.The DomesticUpholstery segment includes Bradington-Young, HF Custom, Shenandoah Furniture, and Sunset West operations.HuntsmanLoading stock data...Like manychemical companies, this stock has had a challenging year; however, it appears poised for a rebound with a 10.70% dividend yield. Huntsman Corp. (NYSE: HUN) is a manufacturer of diversified organic chemical products.It operatesthrough three segments:PolyurethanesPerformance ProductsAdvanced MaterialsThe Polyurethanesproduct segment includes methylene diphenyl diisocyanate, polyols, and thermoplastic polyurethane products.The PerformanceProducts segment is engaged in the manufacturing and sale of amines and maleic anhydride, serving a variety of consumer and industrial end markets.Huntsman’sAdvanced Materials segment includes technologically advanced epoxy, phenoxy, acrylic, polyurethane, mercaptan, and acrylonitrile butadiene-based polymer products as well as carbon nanomaterials.The company’sproducts comprise different chemicals and chemical formulations, which it markets globally to a wide range of consumers, primarily industrial and building product manufacturers. Its products are used in a range of applications, including adhesives, aerospace, automotive, coatings, construction, and others.Western UnionWestern Union CoNYSE:WU$8.16▼ $2.00(24.48%)1YPre-Market1D5D1M3M6M1Y5YMAXKEY DATA POINTS−Previous Close$8.28Market Cap2.63BDay's Range$8.14 - $8.3152wk Range$7.67 - $11.05Volume7.35MP/E Ratio3.08Gross Margin21.80%Dividend Yield11.80%ExchangeNYSEWestern UnionCo. (NYSE: WU) is a multinational financial services corporation based in the United States. While the demand for telegrams is long gone, the demand to transfer money is not, and this famous company has grown as a result. It pays a strong 11.70% dividend and is a provider of cross-border, cross-currency money movement, payments, and digital financial services, empowering consumers, businesses, financial institutions, and governments.Its ConsumerMoney Transfer segment facilitates money transfers, which are primarily sent from its retail agents and owned locations worldwide, as well as through websites and mobile devices. Its money transfer service is provided through one interconnected global network. This service is available for international cross-border transfers and, in certain countries, intra-country transfers.The ConsumerServices segment includes the company’s bill payment services, money order services, retail foreign exchange services, media network, prepaid cards, lending partnerships, and digital wallets. The company provides its services primarily through a network of agent locations in more than 200 countries and territories.Four Stocks That Yield 12% and Higher Are Passive Income KingsIf You have $500,000 Saved, Retirement Could Be Closer Than You Think (sponsor)Retirement can be daunting, but it doesn’t need to be. Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.(sponsor)

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Tired of Low Yields? Grab These Dividend Powerhouses Yielding 8% for Endless Cash Flow

-->-->Key PointsDividend investing is a proven strategy that builds wealth through compounding over time.Dividend growth stocks beat inflation while signaling company strength.High yields boost returns but require investors to check for business health and payout safety.Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here.(Sponsor)-->-->Dividend investing stands out as a reliable path to building wealth over time. By reinvesting dividends, investors benefit from compounding, where earnings generate more earnings, turning modest initial sums into substantial portfolios. This approach suits those seeking steady growth without constant market timing. Among dividend strategies, dividend growth stocks shine brightest. These companies not only pay dividends but raise them annually, outpacing inflation and boosting purchasing power. A track record of dividend increases signals financial health and management commitment to shareholders.High yields can supercharge this model. A stock offering an above-average yield delivers immediate cash flow that rivals bond returns, amplifying total returns when paired with modest price appreciation. Yet chasing yield alone carries risks. Elevated payouts often stem from slumping share prices due to business woes, like declining revenues or mounting debt. Unsustainable dividends may get slashed, eroding income and capital. That’s why scrutinizing high-yield candidates matters — check payout ratios below 90%, strong balance sheets, and consistent earnings growth to confirm safety. The two stocks featured here average a 8.7% yield, blending generous income, secure payouts, and expansion potential — making them ideal for years of passive income.Main Street Capital (MAIN)Main Street Capital(NYSE:MAIN) operates as a business development company, or BDC, lending to and investing in lower-middle-market firms overlooked by big banks. This niche lets it snag above-average returns while collecting interest and fees that fuel reliable dividends. With a market cap of $5.6 billion, MAIN balances scale with agility, targeting companies with $10 million to $150 million in revenue.MAIN’s 6.8% yield comes from monthly payouts totaling $3.00 per share over the past year, including a supplemental dividend that rewards excess earnings. This isn’t luck — it’s strategy. The company maintains a payout ratio near 63%, leaving room for reinvestment and buffers against downturns. In 2025, despite economic headwinds, MAIN grew net investment income by 8%, driven by a diversified portfolio of 180-plus investments across industries like healthcare and tech services.Loading stock data...Growth adds appeal. MAIN has hiked dividends for 17 straight years, with a 4% bump in 2025 alone. Its internal rate of return on new deals hit 13% last quarter, and a low non-accruing investment rate under 1% shows portfolio strength. Trading at a slight premium to net asset value, shares have returned 15% annually over five years on average, blending yield with capital gains. For passive income hunters, MAIN’s monthly checks and growth trajectory make it a set-it-and-forget-it holding.Fidus Investment (FDUS)Fidus Investment(NASDAQ:FDUS) mirrors MAIN as a BDC but carves its edge in the $10 million to $75 million revenue sweet spot, focusing on subordinated debt and equity in resilient sectors like business services and manufacturing. This setup yields fat margins — often 12% on loans — translating to chunky dividends for shareholders. At a $720 million market cap, FDUS stays nimble, avoiding the bloat that hampers larger peers.The yield steals the show at 11%, paid quarterly at $0.565 per share, for an annual $2.26 per share. That’s cash flow firepower, outpacing most fixed-income options. It is sustainable as well, with a 74% payout ratio on distributable earnings to keep it safe. Net investment income over the first half of 2025 is up 5% year-over-year and FDUS supplements core dividends with special payouts from realized gains, as seen in a $0.20 per share bonus in Q2. It ensures the yield stays juicy without straining operations.Loading stock data...On growth, FDUS shines with a 11.2% five-year dividend CAGR, even amid rate volatility. Portfolio yield climbed to 11.8% in mid-2025, fueled by $150 million in new originations at premium rates, while mon-performing assets hover at 0.5%. Leverage remains conservative at 1.1 times debt-to-equity. FDUS stock trades near book value, delivering 28% total returns over five years. For those building passive streams, Fidus Investment offers high-octane income with low drama, perfect for long-term stacking.Get Ready To Retire (Sponsored)Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.Here’s how it works:1. Answer SmartAsset advisor match quiz2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future.

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Wall Street Price Prediction: Tesla’s Share Price Forecast for 2025

After soaring in 2023 and 2024, shares ofTesla(NASDAQ:TSLA)were battered throughout Q1 2025. And while the stock performed marginally better in Q2, the largest U.S. EV-maker slid into Q3. Things have been looking better of late, but over the past five trading sessions, the stock lost 2.70% after losing 0.08% the five prior. Despite that stock slipping slightly over the past two weeks, its recent rally has brought it out of the red on the year with a YTD gain of 14.93%. However, since hitting its all-time high on Dec. 17, TSLA remains down more than 9%.Shareholders are hoping that the launch of Tesla’s Robotaxi can help the stock, which has seen increased volatility in the wake of abysmal Q1 and Q2 earnings and the ongoing fallout with the Trump administration. Global Tesla sales are looking weaker than they are in the U.S. Since launching in India in mid-July, Tesla has only received a paltry 600 orders. After several quarters of weakening momentum, Tesla’s deliveries are seeing a positive break in trend, according to Canaccord. Further, the firm expects Tesla to announce new electric vehicle models soon, which should help its global sales momentum. The new models will help alleviate any post-Q3 “cliff” in the U.S. after electric vehicle tax credits go away, Canaccord believes. Over the past decade, Tesla has suffered incredible losses that have shocked investors who had grown accustomed to the stock’s rapid appreciation over the past decade. The company’s meteoric rise has practically minted millionaires who jumped on the Musk bandwagon in the early goings. That’s certainly a move that’s come with some baggage and volatility along the way. But overall, it’s clear that Musk’s visionary status has rewarded shareholders since Tesla’s IPO on June 29, 2010. 24/7 Wall St.conducted analysis to provide more clarity. Let’s dive into whether Tesla’s troubles this year can be expected to continue, or if this is a top growth name that can rebound to new all-time highs and resume its march higher.-->-->Key PointsTesla deliverables are down year-over-year, and it continues facing headwinds in the U.S. and European markets.As CEO Elon Musk’s feud with President Trump continues, the stock has seen heightened volatility.If you’re looking for some stocks with huge potential, make sure to grab a free copy of ourbrand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.-->-->Tesla IncNASDAQ:TSLA$435.15▲ $422.09(97.00%)1YPre-Market1D5D1M3M6M1Y5YMAXKEY DATA POINTS−Previous Close$429.24Market Cap1.45TDay's Range$426.33 - $440.5152wk Range$212.11 - $488.54Volume71.56MP/E Ratio256.20Gross Margin6.34%Dividend YieldN/AExchangeNASDAQKey Drivers of Tesla’s Stock Performance1. Core EV Business:Tesla’s most important business line is unsurprisingly the company’s auto business. With sales of the company’s EVs down on a year-over-year basis, and margins also declining from historically high levels following the onset of the pandemic, investors will continue to assess the company’s future prospects in proportion to how the company’s core revenue and earnings driver is performing. 2. Autonomous Driving (FSD), Robotics and More:Tesla’s value can be ascribed to what many long-term investors view as a call option on some other key growth categories CEO Elon Musk continues to work on. Aside from the company’s core electric vehicle offering, Tesla’s energy business, its FSD platform, humanoid robotics endeavors, AI verticals, and other growth categories make this stock unique in terms of the breadth and number of potential catalysts investors can look to for future growth. Of course, the extent to which these endeavors deliver boosted margins (or increased CapEx) remains to be seen. 3. Macro and Political Environment:Like it or not, Tesla CEO Elon Musk has cozied up to president Trump in a big way. This move is one that’s been broadly cheered by the overall market, at least out of the gate. Tesla stock soared following Donald Trump’s election victory, though Tesla has since given up its gains since this pivotal event, and has trended lower for seven straight weeks following the election. We’ll have to see if the Trump administration brings forward the sort of regulatory environment so many investors had hoped for in 2025 and in the years to come. What Wall Street ThinksTesla’s stock price outlook for 2025 varies widely among analysts, reflecting uncertainties in production, market conditions, and EV advancements. Analyst price targets span a very wide range, with the most bearish analyst putting forward a $19.05 price target, and the most bullish suggesting this stock could head to $500 per share. Thus, there’s not really a true idea of where this stock is headed. And when investors think about the fact that many of these analyst projections are outdated, doing the math on where this stock could be headed over the course of the next year isn’t as easy as it seems. It’s worth noting that analysts remain largely bullish on the stock, though.However, given how Tesla has fallen from its peak, even if the company can hit this target over the next year, it’ll still have a ways to go to make it to a new all-time high. The thing about Tesla and other high-growth stocks is that I find analysts are often chasing the returns these stocks provide. Thus, I think it’s best for most investors to steer clear of using analyst price targets as anything other than guardrails. Indeed, Tesla is one company I think is worth doing one’s own DCF analysis on and coming to one’s own price target. Analysts’ Price TargetsIn October, Stifel raised its price target on Tesla to $483 from $440 while keeping its “Buy” rating. The firm cited progress with Tesla’s Robotaxi network and full self-driving software. Nonetheless, on Sept. 22, Mizuho raised its price target on Tesla to $450 from $375 while keeping its “Outperform” rating. More recently, Canaccord raised its price target on Tesla to $490 from $333 while keeping a “Buy” rating, citing data from 30 counties showing Tesla’s deliveries are rising.This summer, Barclays said Tesla’s Q2 earnings came in-line with estimates, highlighted by strong gross margins, but its near-term fundamentals are weakened on tax credit expirations, tariffs and reduced regulation credit sales. The “gulf” between the stock’s narrative and the company’s fundamentals has further widened, the analyst tells investors in a research note. Barclays believes Tesla shares are “increasingly disconnected from fundamentals.” Tesla’s fundamentals “remain choppy” and are likely to deteriorate in the coming quarters, contends Barclays. It keeps an “Equal Weight” rating on the shares with a $275 price target.In July, Goldman Sachs raised its price target on TSLA to $315 from $285, but maintained a “Neutral” rating after Tesla reported preliminary Q2 vehicle deliveries of about 384,000, which was down 13% year-over-year.  In June, Benchmark analyst Mickey Legg raised the firm’s price target on Tesla to $475 from $350, maintaining its “Buy” following the successful launch of Robotaxi. The firm believes the rollout demonstrates “a controlled and safety-first approach,” according to the analyst, who argues that winning over regulators and public opinion is “paramount and will allow a rapid scale up if achieved.” The company continues to see sales decline in the U.S. and abroad, resulting in a series of downgrades. Also in early June, Guggenheim said the company’s fundamentals “continue to deteriorate at an alarming rate,” with “soft” Q2 delivery trends. Guggenheim reiterates a “Sell” rating on the shares with a $175 price target. Tesla’s 2025 OutlookAs we move through 2025, analyst opinions on where Tesla could be headed do vary. Overall, Tesla’s stock performance in 2025 is expected to be shaped by production output, market trends and advancements in EV and battery technology. Analysts project a 17.5% revenue increase to $117.2 billion, driven by growing demand and energy sector expansion. Tesla’s 2025 deliveries are forecasted at 1.95 million units by Barclays, below Bloomberg’s consensus of 2.08 million and Tesla’s earlier estimates.Despite a 62.5% stock surge in 2024, an $80 billion market value drop raised concerns. Musk remains optimistic, expecting a 20% to 30% delivery increase, though management later emphasized a “return to growth.” Additionally, competition from Waymo and declining registrations in Germany, France and California present challenges. Tesla’s push into AI and autonomous driving, including plans for a Robotaxi launch, could be a game-changer, but the company recently saw its share of the EV market slip below 50% in California. To compound matters, the stock is losing favorability among the smart money. Institutional holdings for TSLA are down t0 47.91%.Tesla Stock 2025 Price TargetBased on Wall Street analysts’ estimates, the median one-year price target for shares of TSLA is $365.88, representing potential downside of 16.06% from its current price. Of the 38 analysts covering Tesla, the stock currently receives a consensus “Hold” rating, with 16 analysts rating it a “Buy,” 13 rating it a “Hold” and nine rating it a “Sell.” 24/7 Wall St.‘s 12-month price target for Tesla is also bearish at $352.99, which represents potential downside of 19.02% from the current share price. Those figures are based on the company seeing projected revenue growth climb from $112.091 billion in 2025 to $297.430 billion in 2030, alongside normalized EPS growth of $2.85 in 2025 to $11.61 in 2030.  "The Next NVIDIA" Could Change Your LifeNVIDIA has returned 250-fold in the past 10 years as artificial intelligence took off.But if you missed out on NVIDIA's historic run, your chance to see life-changing profits from AI isn't over.The 24/7 Wall Street Analyst who first called NVIDIA's AI-fueled rise in 2009 just published a brand-new research report named "The Next NVIDIA".The report outlines key breakthroughs in AI and the stocks ready to dominate the next wave of growth. The report is absolutely free. Simply enter your email belowGet Report Now » It's Free Thanks! We will redirect you shortly to the free report! By providing your email address, you agree to receive communications from us regarding website updates and other offerings that may be of interest to you. 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Nvidia Just Became the First $4.5 Trillion Stock. How Long Before It Hits $5 Trillion?

-->-->Key PointsNvidia‘s (NVDA) $4.5 trillion valuation milestone underscores AI’s market power.NVDA’s 39% YTD gain projects a $5 trillion valuation in 109 days via simple compounding.Sustained growth drivers make stock price acceleration probable despite risks.Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here.(Sponsor)-->-->Nvidia(NASDAQ:NVDA) crossed a historic milestone this week, becoming the first company to reach a $4.5 trillion market cap. This feat not only cements its position as the world’s most valuable publicly traded stock but also highlights the transformative power of artificial intelligence (AI) in reshaping global markets. NVDA stock closed at a value that propelled the total to $4.53 trillion, edging out competitors likeApple(NASDAQ:AAPL) andMicrosoft(NASDAQ:MSFT). The achievement sparked immediate market buzz, with trading volume spiking 15% and analysts upgrading targets amid renewed optimism for tech’s recovery. This surge caps a year of explosive growth, with shares up 39% year-to-date. Investors now eye the next barrier: $5 trillion. At the current pace, simple math suggests it could happen in just a few months. But what fuels this momentum, and is the timeline realistic?The Sprint to Semiconductor SupremacyNvidia’s ascent traces back to its dominance in graphics processing units (GPUs), essential for gaming, data centers, and now artificial intelligence. The AI boom, sparked by generative models like ChatGPT, has turned Nvidia’s chips into the backbone of the tech revolution. Demand for its H100 and Blackwell GPUs shows no signs of slowing. In its latest quarter, Nvidia reported revenue of $46.7 billion, up 56% from the prior year, with data center sales alone hitting $41.1 billion.This isn’t just hype. Partnerships with cloud giants likeAmazon‘s (NASDAQ:AMZN) AWS and Google Cloud ensure steady deployment. Nvidia’s CUDA software ecosystem locks in developers, creating a moat against rivals likeAdvanced Micro Devices(NASDAQ:AMD) andIntel(NASDAQ:INTC). Wall Street analysts project continued double-digit growth, with price targets averaging $214 per share — implying a market cap well above $5 trillion if met.Loading stock data...Crunching the Path ForwardTo gauge the $5 trillion timeline, consider the YTD 39% gain as an annualized rate. Starting from $4.53 trillion, reaching $5 trillion requires about a 10.4% increase. Using compound growth, that’s roughly 109 days, landing around mid-January 2026. This assumes steady compounding and ignores inherent volatility. Historical patterns show Nvidia’s stock often accelerates after earnings, meaning its November report could shave weeks off that estimate.Yet risks loom. U.S.-China trade tensions could inhibit exports, while supply chain bottlenecks for advanced chips persist.  A broader market correction might stall the rally. Still, Nvidia’s forward P/E ratio of under 30x earnings reflects investor confidence in sustained expansion.AI’s Unstoppable EngineBeyond numbers, Nvidia’s edge lies in AI integration. Its Omniverse platform simulates real-world physics for industries like automotive and robotics, while DGX systems power enterprise AI training. CEO Jensen Huang has positioned the company as the “picks and shovels” provider in the AI gold rush, supplying tools to leaders likeOpenAIandTesla(NASDAQ:TSLA).Competitors are scrambling.Broadcom(NASDAQ:AVGO) invests in custom AI chips, and startups likexAIbuild in-house alternatives. But Nvidia’s scale — producing over 90% of high-end GPUs — keeps it ahead. If AI adoption hits projections by McKinsey, which estimates a $13 trillion global impact by 2030, Nvidia stands to capture a hefty slice.Market caps fluctuate daily, but Nvidia’s trajectory points upward. Earnings beats, product launches, and AI tailwinds could compress the timeline. Conversely, geopolitical flareups or economic dips might extend it. Key TakeawayThis projection hinges on maintaining the 39% annualized pace — a mathematical exercise, not a guarantee. Volatility defines stocks, and Nvidia faces headwinds from regulation to competition. That said, recent investments in Intel and OpenAI, and given its AI moat and revenue momentum, crossing the $5 trillion threshold seems likely to occur sooner rather than later, potentially redefining its market leadership.If You have $500,000 Saved, Retirement Could Be Closer Than You Think (sponsor)Retirement can be daunting, but it doesn’t need to be. Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.(sponsor)

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Rivian (NASDAQ: RIVN) Price Prediction and Forecast 2025-2030 for October 14

-->Key PointsKey growth drivers include cost reduction in EV components and increased production capacity, targeting profitability by 2027.Rivian aims to cut material costs by 45% with the introduction of its Gen 2 platform by 2026.If you’re looking for a megatrend with massive potential, make sure to grab a complimentary copy of our“The Next NVIDIA” report. The report includes a complete industry map of AI investments that includes many small caps.-->-->Shares ofRivian Automotive(NASDAQ:RIVN)lost 3.40% over the past five trading sessions after losing 9.49% the five prior. The current skid has seen the stock slide 17.29% from its one-month high, which has dragged RIVN’s year-to-date performance down to a 1.43% loss. Over the past year, the stock is up 26.18%.In July, the EV maker announced that is continuing work on its Georgia plant, which is slated to open in 2028. Earlier in July, Rivian announced a partnership with Google Maps on a new navigation system for its electric vehicles. Rivian will continue to offer its own customized navigation interface on the 15.6-inch center touchscreen, but the underlying data is now powered by the Automotive SDK from Google Maps instead of third-party alternatives.On June 2, it was reported that Rivian was eyeing a new debt deal as expected vehicle deliveries slumped. The U.S.-based EV maker announced plans to offer $1.25 billion in senior secure green notes due 2031 in a private offering. The EV maker plans to use those funds, as well as cash on hand, to redeem $1.25 billion of outstanding senior secured notes due in 2026. On Sept. 23, Mizuho raised its price target on Rivian to $14 from $12, keeping a “Neutral” rating on the shares. The firm increased estimates in the autos space, saying U.S. tariffs should have a minimal impact on new vehicle prices. In addition, August U.S. electric vehicle sales were up 17% year-over-year as consumers look to cash in before the Inflation Reduction Act credits end, according to a Mizhuo research note to investors.The company reported full-year earnings in late February, announcing a negative gross profit of $1.2 billion compared to negative $2 billion in 2023, alongside record gross profits in Q4. Rivian expects to announce Q2 earnings on Aug. 5 after the market closes. Institutional ownership remains somewhat wary of the stock, with 54.82% of its float currently held by institutions. The largest institutional holder of RIVN remainsAmazon (NASDAQ:AMZN)with more than 158 million shares.The EV company IPO’ed in November 2021 and immediately made a splash with its stock price skyrocketing to $180 in just its first week of trading. The cash infusion was a much-needed lifeline for Rivian, with $3.7 billion in operating expenses in 2021 and only delivering 920 vehicles. The company also had backers in Amazon andFord (NYSE:F), who held 260 million shares of Rivian collectively at IPO. But as the COVID-19 lockdown investing frenzy died out, it left an SUV-sized hole in Rivian’s stock price, with the stock currently trading more than 84% lower than its post-IPO and all-time high.24/7 Wall St.aims to provide readers with our assumptions about the stock prospects going forward, what growth we see in Rivian for the next several years, and what our best estimates are for Rivian’s stock price each year through 2030.Rivian Automotive IncNASDAQ:RIVN$13.41▲ $4.36(32.51%)1YPre-Market1D5D1M3M6M1Y5YMAXKEY DATA POINTS−Previous Close$13.12Market Cap15.93BDay's Range$13.19 - $13.6452wk Range$9.50 - $17.15Volume36.08MP/E RatioN/AGross Margin-68.10%Dividend YieldN/AExchangeNASDAQRivian vs. Tesla: The Early Years  The following is a table of Rivian’s revenues, operating income and share price for the first few years as a public company. Here’s a table summarizing performance in share price, revenues, and profits (net income) from 2014 to 2018.YearShare PriceRevenuesNet Income2021$50.24$55.0 million($4.22 billion)2022$19.30$1.658.0 billion($6.856 billion)2023$10.70$4.434.0 billion($5.739 billion)2024$13.25$4.997.0 billion($4.689 billion)Now let’s take a look atTesla (NASDAQ:TSLA)in the first few years it manufactured and sold the Model S (the official launch of the Model S was June 22, 2012).YearShare PriceRevenuesNet Income2011$2.24$204.2 million($2.45 million)2012$2.25$413.3 million($3.96 million)2013$16.87$2.013 billion($74 million)2014$13.81$3.198 billion($294 million)While revenue growth for both firms after launching their first mass-market vehicles is similar, Tesla’s net income was much more favorable. Tesla CEO Elon Musk has always been a proponent of word-of-mouth marketing and a hawkish approach to minimizing product costs, allowing his company to stay afloat while moving to new lines of automobiles.The biggest question facing Rivian investors today is, can they lower costs, and when will positive net income be realized?Key Drivers of Rivian’s Stock Performance1. EV Technology and Cost Curves:  Rivian’s next generation (G2) R1 vehicles are designed for performance upgrades while at the same time reducing component costs. For example, the number of electronic components will be reduced by 60%, over 60 parts will be eliminated, the compact motor will be redesigned, and close to 2000 connections or welds will be removed. These changes alone are expected to drop materials costs by 20% and speed up the assembly line by 30%. Looking into the back half of 2026, Rivian sees a material cost reduction of 45% for the R2 line of vehicles. Rivian is also investing in enhanced advanced driver assistance systems with improved cameras, radar, and NVIDIA-powered computing power, creating highway assist and 360-degree visibility.2. Electric Vehicle Demand and Incentives:Rivian is currently delivering around 13 thousand vehicles per quarter, which is above analyst estimates, and producing 9 thousand new G2 vehicles per quarter, which keeps it on pace to produce 57,000 units in 2024. The total plant capacity is 215,000 vehicles with expansion plans of 400,000 additional vehicles in Georgia.3. Management’s Path to Profits:Rivian also expects profitability from the R1 platform through premium configurations and scale benefits. The company targets positive adjusted EBITDA by 2027, with long-term goals of 25%  gross margin, high teens adjusted EBITDA margin, and 10% FCF margin.Material Cost Reduction:The introduction of the Gen 2 platform and commercial cost downs are expected to reduce material costs by ~20%.Fixed Cost Reduction:Improved labor and overhead costs, reduced depreciation, and lower LCNRV charges due to a 30% increase in production line rate and design changes.Increased Revenue From Credits:Strong demand for regulatory credits, with over $200 million contracted for FY24.Rivian (RIVN) Stock vs. Tesla Stock: Why Rivian Receives Different TreatmentTaking a historic look at pricing Rivian stock would start by comparing the sales multiples Tesla received in 2012 to 2015 when the Model S scaled. Tesla was feeling the weight of expansion and keeping its debt load manageable and the market-priced Tesla stock was close to 10x sales.While Rivian is in a similar situation, albeit with more debt and higher expanses, the market is only valuing the stock at under 3 times sales. Let’s take a look at why that is the case.Market Position and Brand Recognition:Tesla:By 2011-2015, Tesla had already established itself as a leading innovator in the electric vehicle (EV) market, with significant brand recognition and a first-mover advantage.Rivian:Rivian is relatively new to the market and still building its brand and market position.Production and Sales Volumes:Tesla:From 2011 to 2015, Tesla ramped up production and sales, particularly with the Model S, which gained popularity and market traction.Rivian:Rivian is still in the early stages of production, with limited sales volumes compared to Tesla’s growth phase.Investor Expectations and Sentiment:Tesla:Investors had high expectations for Tesla’s future growth and disruptive potential in the auto industry, leading to higher valuation multiples.Rivian:While Rivian has potential, it has not yet demonstrated the same level of market disruption or growth trajectory that Tesla did during its comparable early years.Competitive Landscape:Tesla:Had fewer direct competitors in the EV space during its early years, allowing for a larger market share and higher investor confidence.Rivian: Faces more competition from established automakers entering the EV market and other new entrants, impacting its relative valuation.Rivian(RIVN) Stock Forecast Through 2030 YearRevenue*Shares OutstandingP/S Est. 2025$5.3741.131 B2.5x2026$7.4891.131 B2.2x2027$11.8001.131 B2.0x2028$20.9311.131 B1.8x2029$28.9481.131 B1.6x2030$36.2361.131 B1.4x*Revenue in $billionsRivian (RIVN)Stock Prediction in 2025According to Wall Street analysts, the current median one-year price target for Rivian’s stock is $13.84, which represents potential downside of 5.97% from today’s share price. Of the 22 analysts covering RIVN, the stock is a consensus “Hold,” with seven analysts providing a “Buy” rating, 11 providing a “Hold” rating and four providing a “Sell” rating.However,24/7 Wall St.’s 12-month price target for Rivian stock is $11.88, which represents potential downside of 9.03% from today’s share price.Rivian (RIVN) Stock Forecast 2o25–2030By the end of 2030, we estimate Rivian’s stock price to be $44.85 per share. Our estimated price target for RIVN represents 243.41% potential upside from where shares are currently trading.YearPrice Target%Change From Current Price 2025$11.88-9.03%2026$14.5711.56%2027$20.8759.80%2028$33.31155.05%2029$40.95213.55%2030$44.85243.41%Today’s Top Rated Credit Cards Are Hard to Believe (sponsor)It’s hard to believe, but today there are credit cards offering up to 5% cash back, $0 annual fees, travel rewards, and more. See for yourself.I couldn’t believe it at first. 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Nvidia Stock Heading to $250? Is This Target Realistic?

It’s been a bumpier ride for shares of AI chip titanNvidia(NASDAQ:NVDA) over the past year, but the ride has been worth staying on, at least so far. With the stock up 50% in the past year or just over 31% year to date, the pace of gains has been relatively modest. Despite this, there are still more than a handful of bulls who view the nearly $4.5 trillion Magnificent Seven giant as having enough gas left in the tank to move the needle higher.Indeed, it’s still been a hot year of growth, but given where expectations stood going into 2025, that translated to a decent, but not meteoric, first three quarters of gains. In any case, the GPU top dog has a ton of capital to invest in initiatives well beyond its own to capitalize on the AI boom as well as other rising tech trends, such as the Omniverse, robotics, and even quantum computing. Indeed, whenever Jensen Huang remarks on the state of quantum computing, the stocks in the space tend to react massively. -->-->Key PointsNvidia stock might not be as scorching hot this year, but it’s tough to be anything but bullish as the firm invests in other AI bets.It might not be all too long before NVDA stock hits the $6 trillion market cap level, especially if the AI trade is ready to sprint into 2026.It sounds nuts, but SoFi is giving new active invest users up to $1k in stock, see for yourself (Sponsor)-->-->Nvidia has been making some big deals across the AI space of late. Don’t discount them.With a handful of notable investments made by Nvidia in recent months, including the $100 billion stake in ChatGPT maker OpenAI, it seems like Nvidia is well-equipped to capture more of the upside from the software side of AI. If Nvidia does continue to make more such strategic bets, it’s about time that investors think of the firm as more than just a GPU maker. Now, Nvidia already has a powerful software ecosystem that’s fuelled momentum in its hardware business.At the end of the day, you need good software and tools to make the most of the hardware. With the Nvidia Cosmos Platform showing early promise as an ecosystem ahead of the potential rise of physical AI, it seems like Jensen Huang and his team are already ready for the next wave and the wave after that. In any case, I think it’s Nvidia’s software lineup that helps spin the hardware flywheel as fast as it can go. With Wedbush Securities analyst Dan Ives recently setting his sights on a $6 trillion market cap and the next phase of the AI spending “wave,” I don’t think the current Street-high price target of $250 per share is unreasonable in the slightest. Perhaps the most striking thing that Ives said about Nvidia is that the firm may stand to benefit from a revenue “multiplier” effect from the amount of capital the GPU titan puts up. I couldn’t agree more.Perhaps it’s Nvidia’s latest spending spree that could help drive upward momentum in the shares until its next big product works its way into a future quarter.It’s not just about the OpenAI investmentIt’s not just the $100 billion bet on Sam Altman’s OpenAI that makes Nvidia an even more powerful force in AI. The company’s big bet onIntel(NASDAQ:INTC), I believe, is a fantastic deep-value bet that could pay off significantly as the sagging semi firm looks for help to get back on its feet. As Intel explores more investments from other tech titans across the AI scene, it’s looking like Intel’s future stands to be a lot brighter than just a few months ago. Undoubtedly, the big-league bets on OpenAI and Intel are going to be making headlines. However, it’s the deals that don’t get all too much coverage that also stand to be major difference makers over the long term. Take the relatively small $700 million Nscale deal or the slew of strategic bets under $1 billion (think LLM firms like Mistral AI and Cohere) the firm has made in recent years. Indeed, Nvidia has spread its chips quite nicely across the AI table. And with Jensen Huang likely giving his blessing to each one of the bets, I’d many of the smaller bets have the potential to stand out as a huge winner.Many analysts are still pounding the tableIt’s lonely to be in the camp that’s anything less than bullish these days, with Nvidia continuing to defy expectations while getting the AI investment crowd hyped up with recent investments. With Loop Capital hanging onto its $250 price target, which entails a 38% move from here, I’d be inclined to stay the course as the firm runs into what Loop sees as a “Golden Wave” as demand for AI chips and gear for data centers stays hotter for a while longer.It’s not just superior chips that could cause Nvidia to keep growing faster than its much smaller rivals. Smart investments (like in OpenAI, Intel, and smaller, lesser-known LLM makers) and powerful software also make Nvidia an undisputed AI champion. Though NVDA stock may very well be on its way to $250, investors shouldn’t expect a smooth ride higher, especially if AI bubble fears amplify with every up day in markets.Want Up To $1,000? SoFi Is Giving New Active Invest Users up to $1k in StockLooking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open an account, fund it with $50 or more, and you could receive up to $1,000 in complimentary stock for Active Invest accounts.From $0 commission trading to fractional shares and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.(sponsor)DISCLOSURE:INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUEBrokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov.Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify.Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees.Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org).There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event.Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options [HYPERLINK: https://www.theocc.com/getmedia/a151a9ae-d784-4a15-bdeb-23a029f50b70/riskstoc.pdfInvesting in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement [HYPERLINK https://www.sofi.com/iporisk/]. This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation [HYPERLINK https://support.sofi.com/hc/en-us/articles/360058602892-How-does-SoFi-allocate-IPO-shares].

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Inside Costco Hides A Massive Dividend Dynamo

-->-->Key PointsCostco‘s (COST) modest 0.5% yield belies its long-term potential.The warehouse club’s yield on cost grows to 3.3% over 10 years for early investors, while special dividends add unpredictable but significant boosts.COST’s stable cash flow supports ongoing dividend growth.Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here.(Sponsor)-->-->Costco(NASDAQ:COST) is a retail giant known for its sprawling warehouses, bulk discounts, and loyal membership base. But beneath its reputation for value shopping lies a lesser-known strength: a robust dividend program that rewards long-term investors. While the company’s dividend yield may appear modest at first glance, its consistent growth transforms it into a powerful wealth-building tool, making it a compelling investment for patient shareholders.The Power of Costco’s Dividend GrowthCostco’s dividend strategy is built on steady increases and occasional special payouts. The company has raised its regular dividend annually for over two decades, a testament to its financial discipline and strong cash flow. In 2025, the warehouse club’s annual dividend stands at $4.64 per share, offering a yield of about 0.5% based on its current stock price. At first, this yield seems underwhelming compared to high-yield stocks likeAT&T(NYSE:T) at 4.3% or evenTarget(NYSE:TGT) at over 5%. However, Costco’s secret lies in its dividend growth rate, which has averaged around 12% annually over the past decade.This consistent growth means that investors who bought Costco shares years ago are now earning significantly more on their initial investment. For example, a shareholder who purchased Costco stock 10 years ago when the dividend was $1.42 per share would now receive $4.64 per share annually. This growth pushes the yield on cost — a measure of the dividend relative to the original purchase price — to an impressive 3.3%. The result is a dividend that feels far more substantial than the headline yield suggests.Understanding Yield on CostYield on cost is a critical concept for dividend investors. It measures the current dividend payment as a percentage of the stock price at the time of purchase, rather than the current market price. For Costco, this metric highlights the power of holding a stock with consistent dividend increases. As the company raises its payout, the effective yield for long-term shareholders grows, even if the stock price rises. This dynamic makes Costco particularly attractive for investors with a decade-long horizon or more, which you should have.For instance, if you invested $10,000 in Costco 10 years ago at $140 per share, you’d own about 71 shares. Back then, the annual dividend of $1.42 per share would have generated $100.82 in yearly income. Today, with the dividend at $4.64 per share, those same 71 shares produce $329.44 annually. That’s a 3.3% yield on your original investment, far surpassing the 0.5% yield new investors see today.This growth showcases how Costco turns a modest starting yield into a dynamo over time.Loading stock data...A Special Bonus for ShareholdersCostco also occasionally sweetens the pot with special dividends. These one-time payouts, often tied to excess cash, have occurred five times since 2012, with the most recent in 2023 at $15 per share. While not guaranteed, these bonuses significantly boost returns for shareholders. For long-term investors, combining regular dividend growth with these periodic windfalls creates a compelling total return profile, blending income with capital appreciation.Why Costco’s Dividend ShinesCostco’s ability to grow its dividend stems from its resilient business model. The company generates nearly $5 billion in membership fees annually, providing a stable revenue stream that supports consistent payouts. Its low-margin, high-volume sales strategy ensures steady cash flow, even in economic downturns. Additionally, Costco’s global expansion and e-commerce growth position it to sustain dividend increases for years to come. For investors seeking a blend of growth and income, Costco’s dividend program is a hidden gem.If You have $500,000 Saved, Retirement Could Be Closer Than You Think (sponsor)Retirement can be daunting, but it doesn’t need to be.Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.(sponsor)

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