Jim Cramer says these are his favourite financial institution shares in 2022

CNBC’s Jim Cramer on Thursday reviewed the latest list of big bank earnings and explained why his nonprofit investment trust is sticking with his property MorganStanley and Wells Fargo.

“Banks are everywhere this earnings season, which just goes to show how important individual stock selection is,” he said “Bad Money” host said. “All banks are not created equal,” he added, although he expects 2022 to be a solid year overall for financials due to likely Federal Reserve rate hikes.

Citigroup

When Citigroup reported Friday, it indicated an 18% year-on-year increase in operating costs. That’s disappointing for Wall Street, Cramer said, because the company’s revenue rose just 1%.

Cramer said the best thing he could say about Citi stock is that it’s cheap, trading at about 80% of its tangible book value. However, he did concede that the stock, which is down nearly 5% over the past week, could see a rebound this quarter if Citi resumes share buybacks; The bank suspended its buyback program in December due to regulatory issues.

JPMorgan

Investors were disappointed too JPMorgan‘s leap in interest-free spending up 11% YoY‘ Cramer said. While it’s no secret that JPMorgan is investing in its business to fend off fintech competition, Cramer said the Street was a little surprised by the amount of capital tied up.

Cramer said he thinks JPMorgan’s sharp sell-off after earnings was a bit overdone. “After that drop, JPMorgan is trading at just 13 times earnings despite being the most expensive in the group [a book value basis]. I think you can do better,” he said.

Wells Fargo

Owned by Cramer’s Wells Fargo Charity Foundation exceeded analysts’ expectations for sales and earnings. “Most importantly, Wells is very interest rate sensitive. So when you see bond yields rising, think Wells Fargo,” Cramer said, adding that the bank’s about-face under CEO Charlie Scharf is “finally paying off.”

Goldman Sachs

Cramer reiterated his positivity on Goldman Sachs, and states that he believes the investment banking giant can do it continue his record in 2021 with another strong performance this year. “Goldman is one of the best franchises in the world, but for heaven’s sake it’s selling for less than nine times its profits,” he said.

He said the only reason his charitable foundation doesn’t own Goldman Sachs is because it already owns Morgan Stanley. “I’m a big believer in diversification — you don’t have to have two investment banks in your portfolio,” he said.

MorganStanley

Cramer said he was very impressed Morgan Stanley’s earnings results for Wednesday, noting that sales and earnings per share exceeded Street’s expectations. Its investment banking unit and wealth management are doing well, Cramer said, and spending remains under control.

“Oh, and they’re aggressively buying back shares. asked Cramer rhetorically.

Bank of America

said Cramer Bank of America, the also reported on Wednesday, delivered solid numbers, including the fact that revenue growth of 10% outpaced spending growth of 6%.

“Like Wells Fargo, Bank of America is very sensitive to interest rates, which means it’s in a great position going into 2022,” Cramer said, adding that the only reason his charitable foundation doesn’t own Bank of America is because of that that he likes Wells Fargo better .

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Jim Cramer, who as soon as noticed oil shares as uninvestable, explains new view

CNBC’s Jim Cramer on Wednesday offered a defense of his newfound optimism about investing in oil stocks, claiming he changed his mind after concluding that circumstances had changed.

“From an asset manager’s perspective, there’s no shame in wearing flip-flops. Call me crazy, but when the facts change, I change my mind. I want to make money,” he said “Bad Money” Host who stated in January 2020 that he was “Done with fossil fuels” and suggested oil stocks were the new tobacco.

At the time, Cramer offered a gloomy outlook on shareholders’ ability to make money from fossil fuel stocks because he believed concerns about climate change were keeping young investors away from these stocks.

Cramer said Wednesday he believes his thinking is justified.

“Was I wrong to call them uninvestable? I do not think so. Before hitting rock bottom in 2020, this group spent years in the kennel. Of course that’s no longer the case,” Cramer said, alluding to the fact that Energy ended in 2021 as the best performing sector in the S&P 500. Energy, too, has already increased by about 16% in 2022.

Cramer said there have been two major shifts at oil and gas companies that have helped stocks in the cohort surpass their previously lackluster returns. The first is that there is an “entirely new attitude” to efforts to reduce carbon emissions, Cramer claimed, pointing out chevrons $10 billion investment by 2028 and Exxon MobileI was recently announced Net zero promise by 2050.

From an investment perspective, however, Cramer said the more important change was that “both the majors and the independents have moved away from that ‘drill-baby-drill’ mentality.”

“Instead of spending a fortune to flood the market with new supply every time oil prices go up, they have become much more cautious. … Your reticence has helped the entire industry catch its breath, and that’s a key reason. ..why crude oil is now $86 a barrel,” he added, explaining that higher oil prices allow the company to be significantly more profitable.

“I spent years telling you all the issues with the oil industry — from an investing perspective — then these companies addressed each and every one of the issues that are important to me,” Cramer said.

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Cramer says anticipate business consolidation earlier than shopping for on-line sports activities playing shares

CNBC’s Jim Cramer said Monday he believes investors should stay away from online sports betting, claiming it was unattractive for their own businesses like Draft kings because there is too much competition in the gaming industry.

“Until we see fewer promotions and more M&A deals, these online sports betting stocks are … very difficult to own,” he said “Bad money” said the host, noting that this view is in stark contrast to something of optimism around the burgeoning cohort in early 2021.

“But when we see what the reality looks like, there is a lot of competition for market share and little profit. What a shame, because profits are what this market wants right now. That’s why every single one of these stocks has been destroyed.” “Said Cramer, referring to people like Penn National Gaming, DraftKings and FanDuel parents Flutter entertainment.

Other players in this area are Caesars Entertainment, which operates an online sports betting company, and Rush Street Interactive.

Cramer’s comments on Monday are in response to a major milestone on Saturday when mobile sports betting was officially legalized in New York, the most populous US state where it did so. The first four bookmakers to meet regulatory requirements and start taking bets were DraftKings, Caesars Sportsbook, Rush Street Interactive, and FanDuel.

Another five operators are still in the process of meeting all legal requirements, Associated Press reported. Cramer said this is something that investors need to consider when examining the impact of New York’s high-profile start.

“These online gambling companies are throwing money at people to gain market share,” Cramer said, referring to the commercial and commercial blitz taking place in New York. “If the industry is already that competitive with four players, imagine the deals you get with nine players.”

Another factor to consider is New York’s “astronomical” 51% tax rate on revenues that online sports betting providers will be subject to, Cramer said.

“Before you can think about buying sports betting stocks, I think we need to see some consolidation. We have to see some companies leave, ”he said.

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Airline shares surge as buyers shrug off 1000’s extra flight cancellations

Airline pilots walk over Ronald Reagan Washington National Airport in Arlington, Virginia on December 27, 2021.

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Airline investors shrugged thousands of dollars Flight cancellations over the holidays, even if disruptions worsened on Monday.

Airlines scrubbed more than 2,900 U.S. flights on Monday, in addition to more than 5,400 over the weekend, largely due to the severe winter weather that has handicapped some of the country’s busiest airports from Seattle to Washington DC and a spike in Covid -Infections among flight crews. Operations appeared to be improving, however, with 306 flight cancellations scheduled for Tuesday.

Over the holidays, including porters Delta Airlines, United Airlines and JetBlue Airways Said crews were increasingly sick from the rapidly spreading Omicron variant of Covid. The Federal Aviation Administration also warned of delays as their employees increasingly tested positive for the coronavirus.

Delta said it expects to cancel about 200 flights a day out of about 4,000 daily departures on Tuesday and Wednesday.

United, spirit and Alaska are among the airlines that offered their crews additional payment for travel pickup to alleviate the disruption.

From Christmas Eve through Tuesday, airlines have canceled more than 18,700 US flights, according to FlightAware. More than 12% of Saturday’s scheduled flights were canceled when a winter storm hit the Midwest, and nearly 11% of Sunday flights were also scrubbed.

But airline stocks rebounded on Monday, a sign that investors look to the rest of the year when travel demand is expected to rise. American shares rose 4.4% to $ 18.75, United gained 3.9% to close at $ 45.49, and Delta rose 3.1% to end at $ 40.29.

Shares in Southwest Airlines, which canceled hundreds of flights in the past few days, rose 2.7% to end the day at $ 44. The Dallas-based airline canceled another 605 flights, or 16% of its schedule, on Monday, according to FlightAware. Southwest said bad weather had dislocated planes and crews and some employees were unable to work at a regular pace.

“The cancellation of hundreds of flights is disrupting our entire operating system,” the airline said in a statement on Monday. “The storm cleared Denver, for example, but the extreme cold requires additional security protocols for our people working out there, slowing operations, causing delays and forcing some cancellations to keep the whole system moving.”

The cost of the disruptions is not yet clear. Vacation time was critical for airlines, whose executives anticipated some of the busiest days since the pandemic began.

The Omicron variant could pose a “modest, short-term risk” for airlines due to staff quarantines and the potential for some customers to delay travel, Citigroup airline analyst Stephen Trent wrote on Monday.

“Even so, higher vaccination rates and new antiviral treatments are just a few of the factors that could make negative, knee-jerk stock price reactions to the advent of future variants appear increasingly unreasonable,” he wrote.

Delta publishes the sector’s quarterly earnings reports on January 13th.

Get used to shrinking valuations for high-flying shares

CNBCs Jim Cramer said Tuesday that while Wall Street remains concerned, investors will have to grapple with a “new formula” for identifying earnings stocks Federal Reserve step on the brakes on the hot US economy.

“We need to get used to falling valuations for fast-growing companies, especially those that are price-to-sales,” said the “Bad money” said the host, referring to a Valuation indicator this is often applied to unprofitable companies.

“Sooner or later, I think this sell-off is going to take its course, and I am still looking for a Santa Claus rally. That hasn’t changed, ”he added. “But you have to watch out for multiple contraction … in a market that wants solid profits for P / E and no volatile sales for value for money – sales multiplier for.”

Cramer pointed out Dutch Bros to clarify his position that investors should favor companies with profits and give some of them back to shareholders. The Oregon coffee chain that went public in September is growing fast but not generating a profit yet.

That wasn’t a problem for many investors early in fall, he said, as evidenced by the fact that Dutch Bros’ shares rose as high as $ 81.40 on November 1st. It closed the session on Tuesday at $ 49.69. Over the past month, the stock is down nearly 20%.

While Cramer acknowledged that Dutch Bros could continue on its growth path and add many more businesses in the US and achieve sustainable profitability, he said that this is simply not a priority for many investors right now.

“If we’re worried about a Fed mandated slowdown and no one is willing to pay for the phantom, potential revenue is possible in more than a decade, well, good luck,” said Cramer.

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Dow rises greater than 100 factors, however shares head for first down week in six

Stocks rose on Friday but are well on their way to a five-week winning streak after a hotter-than-expected inflation reading was released on Wednesday.

The Dow Jones Industrial Average rose 160 points, or 0.4%. The S&P 500 was up 0.6% and the Nasdaq Composite was up 0.8%.

Dow component Johnson & Johnson saw shares surge about 1% after the Wall Street Journal reported the company was being split in two. Johnson & Johnson is reportedly splitting its consumer health division into a separate public company.

Mega-cap technology names supported the broader market. The Facebook parent Meta rose by more than 3%. Apple, Microsoft, Amazon, and Google parent Alphabet each added more than 1%.

The main averages are well on their way, the week after hottest inflation report in 30 years. The Dow is down 0.7%, the S&P 500 is down 0.4% and the Nasdaq Composite is down 0.9%.

CNBC Pro’s Stock Picks and Investment Trends:

New data from Friday morning underscored ongoing inflation fears and labor market challenges.

Consumer sentiment in early November dropped to its lowest level in a decadethe University of Michigan reported on Friday. According to the report, many respondents cited inflation concerns.

In the meantime, Workers left their jobs in record numbers in September 4.43 million people quit, the Ministry of Labor reported on Friday. The exodus came when the U.S. had 10.44 million job openings that month, according to the report.

Despite this week’s losses, the three big averages are within striking distance of their record highs. The S&P 500 is up more than 24% in 2021.

four Market-Topping Dividend Shares That Can Double Your Cash by 2026

There are a number of ways for investors to make money on Wall Street. However, Dividend stocks stand head and shoulders above their colleague.

In 2013, JP Morgan Asset Management published a report comparing the performance of companies that paid and increased their dividends over a four-decade period (1972-2012) with non-dividend stocks. The result? Dividend paying stocks delivered and average annual profit of 9.5% over 40 years. In comparison, the non-dividend-bearing companies achieved an annualized return of a meager 1.6% over the same period.

Since dividend stocks are often profitable and proven, they are the ideal way for long-term investors to use their money in any economic environment.

If you’re looking for market-leading dividend stocks – that is, companies that generate a return that of the broader ones. is superior S&P 500 – Which can generate significant wealth and income, the following four have the potential to double your money by 2026.

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AGNC Investment Corp .: 8.8% return

For most of the last decade, mortgage real estate investment trusts (REITs) have been Wall Street’s underdogs. But with certain economic factors now working in their favor, the next five years will be could be particularly cheap for an extremely high-yielding stock like AGNC Investment Corp. (NASDAQ: AGNC).

For mortgage REITs, pretty much nothing is more important than interest rates. This is because mortgage REITs borrow money at short-term borrowing rates in order to use that capital to purchase mortgage-backed securities (MBSs) that offer higher long-term returns. AGNC and its competitors are constantly looking for ways to maximize the difference between the average return on assets it holds and the average cost of borrowing. This difference is known as the net interest margin.

The great thing for investors is that the mortgage REIT space is transparent. When the yield curve flattens out (that is, the gap between short-term and long-term returns narrows) or when the Federal Reserve changes monetary policy quickly, mortgage REITs like AGNC do poorly. Conversely, companies like AGNC thrive when the yield curve steepens and the Fed announces its moves in an orderly fashion. We are 100% in the latter scenario right now and will likely stay in that scenario for years to come.

When the US economy takes hold, we should witness one slow but steady expansion the net interest margin of AGNC. Coupled with the use of leverage to increase profitability, AGNC Investment has a good chance of generating serious income for shareholders and a modest average annual return on its shares through 2026.

A flowering cannabis plant in a commercial indoor grow farm.

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Innovative industrial real estate: 2.3% return

Try this for size: A Marijuana stock it pays off.

While it is unusual for a high-growth company to pay a dividend, it is perfectly normal for a REIT to distribute most of its profits to its shareholders in the form of a dividend. This is exactly the case with the cannabis-focused REIT Innovative industrial real estate (NYSE: IIPR).

Innovative Industrial Properties, or IIP for short, is acquiring medical marijuana-focused cultivation and processing facilities with the aim of leasing them for extended periods of time. While acquisitions are IIP’s primary source of growth, investors should keep in mind that inflation-driven rent increases and a property management fee based on the annual rental price are passed on to tenants annually. Thus, a modest organic growth component is integrated into the operating model.

As of mid-August, IIP owned 74 properties with 6.9 million square feet of lettable space in 18 states. The more important number is that 100% of this area has been rented, with a weighted average rental period of 16.6 years. It should take less than half of that time for the company to fully repay the capital invested.

The icing on the cake for Innovative Industrial Properties is that the lack of cannabis banking reform in the US has worked in their favor. The companys Sale-leaseback program is particularly popular with multi-state operators.

It’s a fast-growing income stock that could double your money by 2026.

A generic white drug tablet with a dollar sign stamped on it.

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Viatris: 3% yield

Another market-leading dividend stock with all the tools it needs to double investor money by 2026 is the pharmaceutical company Viatris (NASDAQ: VTRS). If the name doesn’t ring, it’s because it was formed from the combination of less than a year ago Pfizer‘s established pharmaceutical division Upjohn and the generic drug manufacturer Mylan.

As a combined company, Viatris is expected to perform better and to be able to achieve more from a growth perspective than Upjohn and Mylan would ever have been able to do as a stand-alone company. While joining forces left the company with approximately $ 26 billion in debt, a quarter of that debt ($ 6.5 billion) is expected to will be paid off by the end of 2023. Once its debt levels get below $ 20 billion, the company may consider share buybacks and will almost certainly invest in new drug development.

Another thing that is being overlooked about Viatris is the key role it will play in the generics space. Since generics have significantly lower margins than branded drugs, volume is important. With the list prices of branded drugs soaring, it only makes sense that the use of generic drugs will increase over time. Patients and insurers will try to cut costs, as will generic drug developers are the obvious beneficiaries.

Viatris is dirt cheap too, which could be a selling point for value investors. It has generated $ 2 billion in operating cash flow over the past 12 months and can be purchased for less than four times projected earnings per share in 2021. If you set a return of 3%, you have a recipe for success.

Ascending stacks of coins in front of a two-story house.

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Annaly Capital Management: 10.1% return

No list of market-leading dividend stocks is ever complete without one Annaly Capital Management (NYSE: NLY)I believe it is Top Ultra High Yield Dividend Stock Income seekers can buy. Between its double-digit yield and its upside potential, this mortgage REIT is capable of doubling investors’ money by 2026.

As I described with AGNC Investment, mortgage REITs are in the sweet spot of their growth cycle. Pretty much every decade-long economic recovery has steepened the yield curve. As long-term returns rise, Annaly should be able to earn a higher average return on the MBS she has purchased. At the same time, short-term borrowing costs should remain unchanged or rise more slowly. This is a formula for widening the net interest margin.

Another key factor in Annaly’s (and AGNC’s) success is its focus on agency-backed securities. These are assets that are secured by the federal government in the event of a default. As of June 30, $ 66.5 billion of the $ 69 billion in securities held were Agency MBSs. While this added protection will lower the returns on these securities, it also allows the company to use leverage to increase its profit potential.

Since its inception in 1997, Annaly distributed more than $ 20 billion in dividends to shareholders. It also has an average return of around 10% over the past two decades. It’s a good bet to consistently deliver for your shareholders until at least the middle of the decade.

This article represents the opinion of the author who may disagree with the “official” referral position of a premium advisory service from the Motley Fool. We are colorful! Questioning an investment thesis – even one of our own – helps us all think critically about investing and make decisions that will help us get smarter, happier, and richer.

5 Excessive-Yield Dividend Shares That Can Double Your Cash by 2029

There are many ways to make money on Wall Street. But if there is one common theme among the best performing portfolios, it is that they often rely on it Dividend stocks.

In 2013, JP Morgan Asset Management released a report showing how dominant dividend stocks are compared to publicly traded companies that don’t pay dividends. Between 1972 and 2012, companies that initiated and increased their payouts averaged an annual profit of 9.5%. By comparison, ineligible stocks only posted a meager annualized return of 1.6% over the same period.

These results should come as no surprise. Because most dividend stocks are profitable and have proven operating models, they are the ideal place for long-term investors and income seekers to park their money.

The dilemma for income seekers is how to get the highest possible income with the least risk. However, There is a tendency for there to be a correlation between risk and return as soon as you get into the high-yield category (over 4%).

Image source: Getty Images.

However, this is not the case for the following five high yield stocks. These proven companies should continue to benefit investors through price increases and returns. I believe they can double your initial investment by 2029 (or sooner).

Annaly Capital Management: 10.3% return

For income seekers who prefer the dividend to do most of the heavy lifting, the Mortgage Real Estate Investment Trust (REIT) Annaly Capital Management (NYSE: NLY) is a good bet to double your money by or before 2029. If you were to reinvest your payouts at that 10.3% return, Annaly’s dividend alone would Double your initial investment in seven years.

Mortgage REITs like Annaly seek to borrow money at lower short-term rates in order to buy mortgage-backed securities (MBS) with higher long-term returns. The aim is to maximize the difference between the average long-term MBS rate of return and the average interest rate on debt, known as the net interest margin. When the yield curve steepens during an economic recovery, net interest margins tend to widen. As the US economy regains its foothold, Annaly’s core business and earnings potential should improve.

Annaly is also helped by her ability to carefully rely on leverage to increase her earnings potential. Since the majority of the assets are securities of the agency – that is, those protected from default by the federal government – Annaly can borrow more money to grow her profits and fund her hefty dividend.

On a final note, Annaly has averaged a dividend yield of around 10% over the past two decades and has paid out over $ 20 billion in dividends since it was founded nearly a quarter of a century ago.

A laboratory researcher uses a pipette to add liquid samples to a test cup.

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AbbVie: 4.4% return

At the other end of the high-yield dividend spectrum, at least on this list, it says pharmaceutical warehouse AbbVie (NYSE: ABBV). Given its 4.4% return, modest growth potential, and insane value proposition, AbbVie has all the tools needed to double investor money by 2029, if not sooner.

There is no question that the anti-inflammatory drug Humira will play a huge role in AbbVie’s long-term success. Before the mammoth sales related to coronavirus vaccines, Humira was the best-selling drug in the world. It has 10 approved indications in the US, 14 internationally, and has annual sales of nearly $ 20 billion in 2021, based on the $ 9.94 billion registered in the first six months of the year. Despite the potential for biosimilar competition in the US in the coming years, Humiras offers multiple approved indications and generally strong pricing power for AbbVie to generate significant cash flow from its top drug.

Beyond Humira, AbbVie has turned to acquisitions to diversify its source of income and continue to support its cash flow. In May 2020, the company closed a cash-and-stock deal to purchase Allergan. Aside from being instantly profitable, the transaction provides additional cash flow for research and development and gives AbbVie another blockbuster presence with Botox, which has cosmetic and therapeutic uses.

With less than nine times future earnings, AbbVie sees each part as a bargain for value investors and income seekers.

A small pyramid of tobacco cigarettes lying on a thin bed of tobacco shavings.

Image source: Getty Images.

Altria Group: 7.1% return

I’ll be the first to admit that Tobacco stocks aren’t the sexy growth story they once were. But when the going gets tough, few industries have delivered more consistent performance to investors in the long run. By 2029, Altria Group (NYSE: MO), the company behind the premium US cigarette brand Marlboro, is a great choice for doubling investor money.

To put it bluntly, tobacco volume metrics have been going in the wrong direction for decades. As people became better educated about the negative health effects of tobacco use, fewer adults have chosen to light themselves. Interestingly, however, that didn’t hurt Altria as much as you think. The company has exceptionally strong pricing power, thanks in part to the addictive nature of nicotine, and has been able to raise prices to offset the decline in the volume of cigarettes.

Besides, Altria is invest aggressively in your future. It introduces the IQOS heated tobacco system (licensed in the US by Philip Morris International) into a number of emerging US markets and owns 45% of Canadian marijuana stocks Cronos group. Expect Altria to work hand in hand with Cronos to develop vape products and develop a marketing strategy.

With Altria offering investors a 7.1% dividend yield, it would only take a small increase in price for Altria to double your money by or before 2029.

An engineer connecting cables to the back of a data center server tower.

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IBM: 4.7% return

For the past decade IBM (NYSE: IBM) has roughly the same attraction as drying paint. The technician waited too long to shift his focus to cloud computing. As a result, sales for its legacy businesses have reversed. But after a decade of transformation a new IBM is flourishing which in turn can deliver for its shareholders.

At the end of the June quarter, IBM had cloud revenue of $ 7 billion, up 13% over the same period last year. More importantly, cloud sales accounted for 37% of total sales. Because cloud margins are significantly higher than the margins associated with IBM’s legacy operations, they are key to increasing the company’s operating cash flow. As a reminder, IBM loves to use its cash flow to pay its hefty 4.7% dividend, buy back its shares, and make purchases (mostly in the cloud space).

It’s also worth noting that IBM decided to focus on Hybrid cloud solutions – those that combine public and private clouds – that allow data to be shared between the two platforms. The hybrid cloud is perfect for big data projects in which IBM has always excelled. It’s also great for a hybrid work environment where remote workers have been a common theme since the pandemic began.

IBM is unlikely to return to its former glory. However, doubling your initial investment by 2029 versus reinvesting dividends and rising prices seems very doable.

An engineer speaks to a walkie talkie while standing next to the pipeline infrastructure.

Image source: Getty Images.

Partner for corporate products: 8.3% return

One final high yield dividend stock that can double your money by 2029 or sooner thanks to its superior payout and share price is a master limited partnership Partner for corporate products (NYSE: EPD).

After last year, I can imagine the idea of ​​owning Oil stocks has a low priority for some investors. This is because a historic decline in crude oil demand has ruined the operating performance and balance sheets of most drilling companies.

However, Enterprise Products Partners was hardly concerned as it is a midstream operator. In other words, it controls more than 50,000 miles of pipeline and 14 billion cubic feet of natural gas storage space in addition to more than a dozen processing facilities.

The company’s take-or-pay contracts are designed in such a way that the majority of sales and cash flow are highly transparent. This allows the company to spend capital on infrastructure projects without worrying about hurting its earnings potential or hurting its lucrative dividend, which stood at 8.3% last weekend.

Another notable feature of Enterprise Products Partners is the dividend. The enterprise has increased its annual base payout for 22 consecutive years, and its distribution coverage ratio didn’t fall below 1.6 during the pandemic (anything below 1 would mean an unsustainable payout). With incredible cash flow visibility and a willingness to spend on new infrastructure projects, Enterprise Products Partners is a great choice for doubling investor money by 2029.

This article represents the opinion of the author who may disagree with the “official” referral position of a premium advisory service from the Motley Fool. We are colorful! Questioning an investment thesis – even one of our own – helps us all think critically about investing and make decisions that will help us get smarter, happier, and richer.

2 Well-liked Robinhood Shares I Would not Purchase With Free Cash

Robinhood Markets is the company behind the Robinhood investment platform. Robinhood is particularly popular with the younger generation and has received praise for its efforts to “democratize finance”. Thanks to his app, many who had never invested in stocks before are now actively doing so. When you consider that the stock market is still one of the best wealth generators for the common man, that’s not a bad thing.

That said, Robinhood investors aren’t perfect, and while the list of the company’s 100 most popular stocks on the platform has some excellent selections, others aren’t that great. Here are two popular Robinhood stocks that I wouldn’t buy with free money: Okcugen (NASDAQ: OCGN) and Inovio Pharmaceuticals (NASDAQ: INO).

1. Ocugen

Ocugen – a clinical stage biotech company that currently has no commercialized products – is playing in the coronavirus vaccine market. It’s not necessarily a losing strategy, especially for a company this size; The current market capitalization is only $ 1.45 billion. There is still some blank space in the COVID-19 vaccine market, particularly in developing countries and with the advent of newer varieties of the disease.

Image source: Getty Images.

If Ocugen receives the Emergency Use Authorization (EUA) from the US Food and Drug Administration for his candidate and even generates $ 1 billion in sales, it would be a big win for the company. However, there are a few important points to keep in mind. First, the company signed an agreement to jointly develop and commercialize its candidate Covaxin with India-based Bharat Biotech. While Ocugen will hold the commercial rights to the vaccine in the US and Canada (pending approval), it will retain only 45% of Covaxin’s profits in those countries.

Second, the prospects of an early EUA in the US for Covaxin are as good as gone. As recommended by the FDA, Ocugen is now likely to file a biologics application that will take several months longer to review than an EUA. Third, Covaxin’s ability to gain market share in this competitive environment is dubious. In a Phase 3 clinical study conducted in India with 25,798 participants, the vaccine candidate was found to be 77.8% effective against COVID-19. Its effectiveness against the rapidly spreading delta variant was 65.2%.

In the meantime they are from. developed vaccines Pfizer, Modern, and Novavax have all shown an overall effectiveness of 90% or greater. Could Covaxin’s overall effectiveness be at least partially less because the late-stage study was conducted in India, where the Delta variant originated? Maybe, but other vaccines including that of. displaced Johnson & Johnson, have also shown potency against this variant. Put all of this together and add the usual risks Biotech companies (including potential unforeseen clinical and regulatory setbacks), Ocugen seems far too risky to invest in right now.

2. Inovio Pharmaceuticals

Inovio Pharmaceuticals also hopes to enter the COVID-19 market with its candidate INO-4800. However, the biotech’s prospects are even worse than Ocugen’s. Inovio faces at least two major challenges. First, the company is unable to conduct a Phase 3 clinical trial in the US because regulators have raised concerns about the proprietary device it uses to deliver its Cellectra 2000 vaccine.

Second, the US government withdrew funding for the Phase 3 portion of its Phase 2/3 study for INO-4800. As a clinical-stage biotech, Inovio is not generating product sales, and while it received grants last year to support its coronavirus-related efforts, the company will have a hard time getting additional ones with several vaccines that are now widely available Gaining third-party funding. Party grants.

So is the INO-4800 destined to stay in Inovio’s late-stage pipeline forever? Not necessarily. The company plans to conduct a phase 3 clinical trial in Asia and South America in collaboration with Advaccine Biopharmaceuticals Suzhou. The trial, due to start before the end of summer, will test the safety and effectiveness of two doses of the vaccine candidate given one month apart. In theory, Inovio could also make decent sales on INO-4800 given the advent of newer variants of the virus. However, until the phase 3 study is completed, it is impossible to predict how much the coronavirus vaccine market will still be able to gain.

Time isn’t on Inovio’s side, and betting that the company’s master plan comes true seems speculative. In short, it would be best to stay away from this company – at least for now.

This article represents the opinion of the author who may disagree with the “official” referral position of a premium advisory service from the Motley Fool. We are colorful! Questioning an investment thesis – even one of our own – helps us all think critically about investing and make decisions that will help us get smarter, happier, and richer.

Shares making the largest strikes noon: Pfizer, Moderna, Boeing, extra

A Boeing 737 MAX 10 airliner stops while taxiing on the airline.

Stephen Brashear | Getty Images

Check out the companies that are making the headlines in midday trading.

Boeing – Boeing shares rose 3.2% after Virgin Orbit, a satellite launch spin-off from Sir Richard Branson’s Virgin Galactic, announced that it will go public at a valuation of $ 3.7 billion. Boeing will invest in the deal’s private investment in a public equity round. Virgin Orbit partners with a special purpose vehicle NextGen Acquisition Corp. II, which was up 1.9% on its shares after the news.

Pfizer, BioNTech – Drug manufacturers’ stocks rose Monday after the Food and Drug Administration full consent given to the Pfizer and BioNTech Covid-19 vaccine – first in the US to receive the coveted award. Pfizer’s shares rose 2.5% and BioNTech rose 9.6%. Shares in Modern rose 7.6% in the hope that approval paves the way for own approval.

General Motors – The automaker’s shares ticked 1.3% lower after General Motors’ Recall of his electric car Chevy Bolt on Friday. It will include newer models, a move that will cost the automaker an additional $ 1 billion. The recall addresses an issue that can increase the risk of battery fire.

Occidental Petroleum, Devonian energy – Energy stocks rebounded Oil prices rose on Monday, with a seven-day losing streak, the longest in crude oil since 2019. Occidental Petroleum rose 6.9%, Devon Energy rose 6.1%. Diamondback energy 5.9% increased and Marathon oil 5.4% up.

Robin Hood Robinhood stock rose 6.2% despite Wall Street analysts pessimistic on newly listed brokerage stocks. Many Cover initiated by investment firms was rated neutral or equal by Robinhood on Monday, and the stock was even given a rare underweight to JPMorgan’s Kenneth Worthington.

Didi Global – Chinese ride-hailing app shares rose 3.4% despite Beijing’s investigation into the company. The Financial Times reported Didi could be forced to sell shares with special rights to the Chinese government and the company could be asked to cut commissions from drivers.

Tesla – Tesla shares rose 3.8% after Deutsche Bank reiterated its purchase rating at the electric vehicle manufacturer. The company said Tesla’s Artificial Intelligence Day last week set out a “bold vision” and analysts “came with greater appreciation for it Tesla ‘s efforts on AI. “

Abercrombie & Fitch The apparel retail stock rose 2.3% after Tesley confirmed its outperformance rating from Abercrombie & Fitch and expected “margin widening”. The company plans to publish the results this week.

– CNBC’s Maggie Fitzgerald and Yun Li contributed to the coverage

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