Investing.com -- Cabot gave its weekly top ten stock list, naming Kyndryl Holdings (NYSE:KD) its top pick given its attractive entry point. “As for the market, things finished up...
Investing.com -- Cabot gave its weekly top ten stock list, naming Kyndryl Holdings (NYSE:KD) its top pick given its attractive entry point.
“As for the market, things finished up with a nice rally last Friday, but while certainly good to see, that doesn’t undo the action of the prior couple of weeks as a whole,” analyst wrote highlighting that many major indexes and growth measures had cracked their intermediate-term uptrends.
Astera Labs: Riding the AI wave with its cutting-edge PCIe 6 switches, Astera is primed to dominate high-speed data transfer in cloud-scale environments.
Birkenstock (NYSE:BIRK): The sandal giant leverages its luxury scarcity model and quality-focused manufacturing to drive robust sales growth.
Celestica (NYSE:CLS): Positioned as a key enabler in the AI ecosystem, Celestica thrives with its high-speed ethernet switches and optical transceivers.
Dutch Bros: A rapid expansion strategy and innovative menu offerings have turned Dutch Bros into a promising growth story.
Klaviyo (NYSE:KVYO): Simplifying marketing for retailers, Klaviyo’s user-friendly platform integrates customer data for optimized campaigns.
Kyndryl Holdings: A former IBM (NYSE:IBM) division, Kyndryl leverages AI and cloud trends to modernize hybrid IT systems with strong consulting growth.
Ollie’s Bargain Outlet: With its strategic acquisitions and closeout retail model, Ollie’s is scaling operations while maintaining financial stability.
Taiwan Semiconductor: The chipmaking powerhouse continues to lead with advanced semiconductor production and expansion into global markets.
Trip.com: As Chinese travel rebounds, Trip.com is exceeding pre-pandemic levels, driven by strong domestic and international demand.
United Airlines: Optimized operations and increased travel demand position United Airlines for sustained profitability and growth in 2025.
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Selling Covered Calls On The Dogs Of The Dow Stocks
The Dogs of the Dow is a long standing wall street strategy for investing in the stock market that involves purchasing the 10 highest yielding Dow Jones Industrial Average stocks. The DJIA is a stock market index that consists of 30 large publicly traded companies listed on the New York Stock Exchange and the NASDAQ 100 Index .
The Dogs of the Dow strategy is based on the idea that the high dividend yield of these stocks indicates that they may be undervalued by the market and are likely to outperform in the future. The strategy involves rebalancing the portfolio at the end of each year to ensure that it still includes the 10 highest yielding DJIA stocks.
The Dogs of the Dow strategy has been popular with investors as a way to potentially generate income and outperform the market. However, like all investment strategies, it carries risks and may not always be successful.
So, what are the 10 highest yielding stocks in the Dow right now? We can use the Stock Screener to find all the Dow stocks and include a column for Annual dividend yield.
Then for the results, we select Filter View and sort by Dividend Yield.
So our 10 Dogs of the Dow for 2024 are:
Verizon
Chevron
Amgen
Johnson & Johnson
Merck & Company
Coca-Cola Company
International Business Machines
Cisco
Proctor & Gamble
McDonald’s
As shown in the above table, there are some very healthy dividend yields on offer. One way to further enhance this yield is by selling covered calls.
Some people like to sell monthly covered calls, but that can require ongoing maintenance and monitoring. Today, we’re going to look at a yearly covered call for those that like a more set and forget approach.
Amgen Yearly Covered Call Example
Let’s use the third stock on the list, Amgen, and look at an example.
Buying 100 shares of AMGN would cost around $26,354. The December 19, 2025, call option with a strike price of $280 was trading yesterday for around $21.10, generating $2,110 in premium per contract for covered call sellers.
Selling the call option generates an income of 8.71% in 358 days, equalling around 8.88% annualized.
That assumes the stock stays exactly where it is. What if the stock rises above the strike price of $280?
If AMGN closes above $280 on the expiration date, the shares will be called away at $280, leaving the trader with a total profit of $3,781 (gain on the shares plus the $2,110 option premium received). That equates to a 15.61% return, which is 15.92% on an annualized basis.
That doesn’t include dividends. AMGN is estimated to pay around $9.00 in dividends over the next 12 months which would increase the income potential by 3.40% per annum.
Let’s look at another example using Chevron.
Chevron Yearly Covered Call Example
Buying 100 shares of CVX would cost around $14,396. The December 19, 2025, call option with a strike price of $150 was trading yesterday for around $9.70, generating $970 in premium per contract for covered call sellers.
Selling the call option generates an income of 7.22% in 358 days, equalling around 7.37% annualized.
That assumes the stock stays exactly where it is. What if the stock rises above the strike price of $150?
If CVX closes above $150 on the expiration date, the shares will be called away at $150, leaving the trader with a total profit of $1,574 (gain on the shares plus the $970 option premium received). That equates to an 11.72% return, which is 11.95% on an annualized basis.
That doesn’t include dividends. CVX is estimate to pay around $6.52 in dividends over the next 12 months which would increase the income potential by 4.53% per annum.
Selling covered calls in 2025 on the Dogs of the Dow stocks, could be a great strategy for generating income and building long term wealth.
Please remember that options are risky, and investors can lose 100% of their investment. This article is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions.
On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policyhere.
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Palantir Technologies and Salesforce remain the two best plays in the software sector to benefit from the artificial intelligence revolution heading into 2025, Wedbush Securities said in a Thursday client note.
Palantir is positioned to continue expanding its pipeline and deal flow and provide more use cases to address critical problems across industries as organizations are expected to substantially increase AI spending within their IT budgets next year, according to the brokerage.
Palantir has been a major investor focus during the AI revolution because of the expanding use of its products, resulting in a larger partner ecosystem with accelerating demand for enterprise-scale and enterprise-ready generative AI, Wedbush said. The brokerage expects this to be a major growth driver for the company's commercial business over the next 12 to 18 months as more entities choose Palantir for the AI push.
"We believe Palantir has a credible path to morph into the next Oracle over the coming decade with (Artificial Intelligence Platform) leading the way as many on the Street continue to be huge skeptics of the Messi of AI," Wedbush analysts led by Daniel Ives wrote in the note.
The brokerage views Salesforce as a "clear second derivative beneficiary" of the AI boom that could add roughly $80 per share to its story. The company is poised to capture its fair share of market expansion through AI monetization, which is projected to drive the firm's growth over the next 12 months to 18 months, according to Wedbush. The brokerage also highlighted a $7 trillion digital labor market opportunity for the firm with its new agent-focused platform, Agentforce.
"The AI software era is now here in our view," according to Ives. "We believe the two best software plays on the AI revolution into 2025 remain Palantir and Salesforce."
Wedbush expects companies in the broader software industry including Oracle, International Business Machines , Snowflake and MongoDB to benefit from the AI boom with use cases increasing, enterprise consumption rising, and the launch of large language models.
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U.S. stocks higher at close of trade; Dow Jones Industrial Average up 0.16%
Investing.com – U.S. stocks were higher after the close on Monday, as gains in the Technology, Healthcare and Oil & Gas sectors led shares higher.
At the close in NYSE, the Dow Jones Industrial Average gained 0.16%, while the S&P 500 index gained 0.73%, and the NASDAQ Composite index added 0.95%.
The best performers of the session on the Dow Jones Industrial Average were NVIDIA Corporation (NASDAQ:NVDA), which rose 3.66% or 4.93 points to trade at 139.63 at the close. Meanwhile, Merck & Company Inc (NYSE:MRK) added 1.35% or 1.32 points to end at 99.37 and Unitedhealth Group (NYSE:UNH) was up 1.24% or 6.21 points to 506.34 in late trade.
The worst performers of the session were Walmart Inc (NYSE:WMT), which fell 2.04% or 1.88 points to trade at 90.36 at the close. International Business Machines (NYSE:IBM) declined 0.64% or 1.43 points to end at 221.93 and Walt Disney Company (NYSE:DIS) was down 0.56% or 0.63 points to 111.40.
The top performers on the S&P 500 were Broadcom Inc (NASDAQ:AVGO) which rose 5.52% to 232.35, Advanced Micro Devices Inc (NASDAQ:AMD) which was up 4.55% to settle at 124.63 and Microchip Technology Inc (NASDAQ:MCHP) which gained 4.28% to close at 57.89.
The worst performers were Carnival Corporation (NYSE:CCL) which was down 3.99% to 25.73 in late trade, Paramount Global Class B (NASDAQ:PARA) which lost 2.91% to settle at 10.35 and Norwegian Cruise Line Holdings Ltd (NYSE:NCLH) which was down 2.90% to 26.13 at the close.
The top performers on the NASDAQ Composite were iCoreConnect Inc (NASDAQ:ICCT) which rose 2,252.10% to 2.80, Direct Digital Holdings Inc (NASDAQ:DRCT) which was up 900.00% to settle at 5.50 and Sol Gel Technologies Ltd (NASDAQ:SLGL) which gained 284.62% to close at 1.65.
The worst performers were iLearningEngines Inc (NASDAQ:AILE) which was down 78.53% to 0.19 in late trade, MGO Global Inc (NASDAQ:MGOL) which lost 50.53% to settle at 0.47 and LQR House Inc (NASDAQ:YHC) which was down 36.57% to 1.11 at the close.
Rising stocks outnumbered declining ones on the New York Stock Exchange by 1408 to 1393 and 76 ended unchanged; on the Nasdaq Stock Exchange, 1826 fell and 1476 advanced, while 122 ended unchanged.
Shares in iLearningEngines Inc (NASDAQ:AILE) fell to all time lows; losing 78.53% or 0.69 to 0.19. Shares in MGO Global Inc (NASDAQ:MGOL) fell to all time lows; falling 50.53% or 0.48 to 0.47. Shares in Sol Gel Technologies Ltd (NASDAQ:SLGL) rose to 52-week highs; rising 284.62% or 1.22 to 1.65.
The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was down 8.61% to 16.78.
Gold Futures for February delivery was down 0.61% or 16.16 to $2,628.94 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in February rose 0.19% or 0.13 to hit $69.59 a barrel, while the March Brent oil contract rose 0.18% or 0.13 to trade at $72.69 a barrel.
EUR/USD was unchanged 0.20% to 1.04, while USD/JPY rose 0.46% to 157.13.
The US Dollar Index Futures was up 0.44% at 107.82.
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Dj Xerox To Buy Lexmark. Yes, They Still Exist. - Barrons.Com
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Xerox to Buy Lexmark. Yes, They Still Exist. — Barrons.com
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Xerox plans to acquire Lexmark International for $1.5 billion
Investing.com -- Xerox (NASDAQ:XRX), a well-known office equipment manufacturer,
will acquire Lexmark International, a printer and printing software maker currently owned by China in a $1.5 billion deal, the companies announced on Monday.
Lexmark International, which originated from IBM (NYSE:IBM) in 1991, was sold to a consortium of Chinese investors for $3.6 billion in 2016. The consortium included Ninestar Corp, PAG Asia Capital, and Shanghai Shouda Investment Centre. With this acquisition, Lexmark will return to U.S. ownership.
Xerox has been grappling with a decrease in revenue for five consecutive quarters due to a decline in demand for printers and related equipment in the digital era.
The company also faces stiff competition from other industry giants such as HP (NYSE:HPQ) and Canon. Xerox's shares have dropped more than 50% this year, but were trading nearly 5% higher before the market opened on Monday.
Acquiring Lexmark, including its debt, will give Xerox the much-needed scale to compete more effectively.
The merged company is projected to serve over 200,000 clients in 170 countries and hold a market share among the top five firms globally in various print segments.
The deal will also enable Xerox to grow its presence in the Asia-Pacific region and strengthen its capacity to reach customers in the growing A4 segment. The A4 segment includes smaller-format printers and copiers frequently used in homes and offices.
Xerox plans to finance the acquisition, which is expected to be finalized in the second half of 2025, through a mix of cash on hand and debt financing.
To aid in reducing debt, Xerox is cutting its annual dividend to 50 cents per share from $1, starting with the dividend anticipated to be declared in the first quarter of 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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