Tag: How To Invest In The Stock Market (Page 2 of 3)

The Best Dividend Stocks to Buy for Passive Income

Best Dividend Stocks to buy
Personal Finance: Best dividend stocks to buy | Stocks to buy now

Today I’m going over 8 of the best dividend stocks to buy for passive income in 2022.

These tickers have been yielding cash returns (which I’ve reinvested back) no matter whether the markets are up or down all year long.

Investing in these types of passive income trains is something Warren Buffett has done over the course of his lifetime.

And the sooner you begin investing in dividend stocks, the more you’ll thank yourself later.

Let’s get started!

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Best Dividend Stocks to Buy in 2022

Best Dividend stocks to buy 2022
List of the best dividend stocks to buy | Stocks to buy now

Dividend stock investing can yield big passive income when done right.

Dedication and patience are two key virtues to making the best out of this wealth building strategy.

Here’s a list of the best dividend stocks to buy this year:

#1. VOO (S&P 500)

Dividend Yield: 1.56%

VOO has paid $5.65 per share in the past year during the bull market but is currently paying $1.43 per share in this year’s bear market.

VOO is Vanguard’s S&P 500 ETF which tracks the top 500 performing companies in the United States.

#2. GPC (Genuine Parts Co.)

Dividend Yield: 2.40%

GPC has paid $3.42 per share but is currently paying investors during this bear market $0.90 per share.

Genuine Parts Company is an American service organization engaged in the distribution of automotive replacement parts, industrial replacement parts, office products and electrical/electronic materials.

#3. VNQ (Real Estate REIT)

Dividend Yield: 3.53%

VNQ has paid $2.86 per share but is currently paying investors approximately $0.56 per share in today’s bear market.

VNQ is Vanguard’s real estate ETF which invests in stocks issued by real estate investment trusts (REITs), companies that purchase office buildings, hotels, and other real property.

#4. OMF (One Main Holdings, Inc.)

Dividend Yield: 7.96%

OMF currently pays investors $0.95 per share but has paid them as much as $6.80 per share during the bull market.

OneMain Holdings, Inc. is an American financial services holding company that provides loan products, offers credit cards, and other personal loans.

#5. T (AT&T)

AT&T

Dividend Yield: 9.71%

AT&T is currently paying shareholders $0.28 per share but has paid investors $1.60 in the past.

AT&T Inc. is an American multinational telecommunications holding company offering internet and cellular services.

#6. NRZ (Real Estate REIT)

Dividend Yield: 9.85%

NRZ stock is currently paying investors $0.25 per share but has paid $1 per share before.

New Residential is a publicly traded mortgage real estate investment trust with a diversified portfolio and a strong track record of performance.

#7. EMR (Emerson Electric Co.)

Dividend Yield: 2.45%

EMR pays shareholders $0.51 per share but has paid investors $2.05 per share prior to today’s bear market.

Emerson Electric Co. is an American multinational corporation headquartered in Ferguson, Missouri.

The Fortune 500 company manufactures products and provides engineering services for industrial, commercial, and consumer markets.

#8. ESGV (ETF)

Dividend Yield: 1.26%

ESGV currently pays shareholders $0.20 but has paid investors $0.88 per share in the past.

ESGV tracks the performance of large-, mid-, and small-capitalization stocks.

The ETF specifically excludes stocks of certain companies related to the following: adult entertainment, alcohol, tobacco, cannabis, gambling, chemical and biological weapons, cluster munitions, anti-personnel landmines, nuclear weapons, conventional military weapons, civilian firearms, nuclear power, and coal, oil, or gas.

Send this list to someone you know!

Share this list of the best dividend stocks to buy right now with someone you know who is invested in the market.

I personally hold these stocks in my stock portfolio and figured I’d share with my readers which dividend stocks I recommend checking out.

I’d love to hear your thoughts on this list – do you hold any?

Leave a comment down below.

Here’s how you make money trading the stock market.

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Related: How to Invest in The Stock Market for Beginners

Long-Term Investing vs Short Squeeze Plays vs Day Trading

Long-Term Investing vs Short Squeeze Plays vs Day Trading
Wealth Building: Differences between Long-Term Investing, Short Squeeze Plays, and Day Trading

Today’s article is going to be extremely educational; I’m going over the biggest differences between long-term investing, short squeeze plays, and day trading.

In this article you’re going to discover what makes each one more susceptible than the other to market manipulation and overall risk.

When you’re looking to build wealth in the market, it is important to identify the major differences between the three.

Be sure to bookmark this page so you can come back to it in the future for a mental refresh.

Let’s get started!

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Welcome to Franknez.com – join my newsletter to receive more content just like this straight to your inbox.

I’ve helped people learn how to invest in stocks, crypto, and how to day trade options as well.

My goal is to help you take your finances to the next level. Be sure to browse the blog for market news, wealth building tips, and other valuable content.

Let’s dive right into it!

#1. Long-Term investing

Long-term investing is the #1 traditional way to build wealth over a long period of time.

Investors looking to build wealth this way tend to invest in high dividend yielding stocks such as the S&P 500.

Here, an investor’s portfolio compounds over time as dividends are rolled over or reinvested back into the asset – further purchasing more stock on its own.

During the years of retirement, investors may decide to stop reinvesting the dividend and accept the dividend as cash instead.

This is how a dividend stock portfolio may yield investors with big passive income in the form of cashflow many years later.

Many of these stocks are not heavy victims to market manipulation due to the security and minimalistic risk there is to invest in these funds.

Read: The Best Dividend Stocks to Buy for Passive Income

#2. Short Squeeze plays

Short squeeze plays have a high risk/high reward ratio that has attracted many new investors into the market.

When a stock is being heavily shorted, the short interest percentage of the stocks float tends to rise.

This means that with enough buying pressure, investors may increase the probability of squeezing short sellers from their positions.

We saw this occur when AMC ran from $2 per share to $72 per share and when GameStop skyrocketed into the hundred-dollar levels.

While both these two stocks are still heavily shorted, these are just two examples of short squeeze plays where investors could have taken advantage of an opportunity to make big bucks.

Short squeeze plays are more susceptible to market manipulation since market makers tend to have a lot of control of retail investor’s orders.

They may drive share prices down by overleveraging their already bias positions, which means a lot of momentum is required for a short squeeze play to be successful.

Short squeeze plays are a form of swing trades that may last weeks to months of holding a stock before trading it for profit.

This type of investment strategy may be viewed as mid-term investing to cash in big on a rather unique opportunity.

#3. Day Trading

Day trading uses leverage as a multiplier to trade stocks in a short-term timeframe.

What makes this investment strategy attractive to most investors are the possibilities to earn massive gains in such a short period of time.

Traders are earning money whether the market is up or down through ‘put and call options contracts’.

Unlike long-term investing or short squeeze plays that have a buy and hold approach, day trading is a skill that requires focus, discipline, and a deep understanding about the psychology of trading.

Day traders can earn hundreds to thousands and even tens of thousands of dollars on a daily basis (you can view my gains here).

While day trading is mainly a form of income, traders may still allocate earnings towards long-term investments to further build their wealth.

Here’s how you make money trading the S&P 500.
Read: How to Trade Options in The Market with a 9-5

Which investment strategy is best for you?

As investors, we need to identify the best way to take advantage of the tool that is the stock market.

Long-term investors should focus on increasing their income to flood their portfolios with compounding effects.

Short squeeze traders should draw out a macro vision board to determine which path to take after short squeeze profits are secured.

Day traders would be wise to invest a portion of their income towards dividend paying assets or physical assets (such as property or a business) that will produce cashflow.

Building wealth is about having your money work for you so that you can have the time freedom to do what you love most.

If you enjoyed this article, please share it on your favorite social media platform!

I’m curious to know your thoughts, leave a comment down below.

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Read: How to Invest in the Stock Market for Beginners

Is AMC A Good Stock to Buy?

is AMC a good stock to buy?
AMC Entertianment Holdings, Inc. – is AMC a good stock to buy? AMCStock Reddit

You might have heard all the ruckus going on with AMC and are now wondering, is AMC a good stock to buy?

What was once a struggling movie theatre chain company is now a rising phoenix innovating in every direction the market demands.

AMC Entertainment Holdings, Inc. came near bankruptcy when the pandemic shut down movie theatres across the country.

Now that the world seems to be going back to normal, people are wondering how the movie theatre chain will stand against online streaming.

In this article I’m going to break down earnings, debt, short percentage, and various key factors that will help you make a decision.

franknez.com

Welcome to Franknez.com – today I’m going to help you answer the question everyone wants to know. Is AMC a good stock to buy?

Let’s dive right into it!

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AMC now has positive EBITDA

AMC Positive EBITDA - is AMC a good stock to buy?
‘The Batman’ – AMCStock Reddit

AMC Entertainment announced during their Q4 earnings call that the company now has positive cash flow for the first time in two years.

EBITDA provides investors with a snapshot of a company’s overall financial performance.

AMC currently has a positive net cash flow of $160 million.

Why is this important?

The company almost went bankrupt during the lockdowns during the pandemic.

This is massive progress for any company to stand up after almost being defeated.

It demonstrates the will to succeed.

AMC box office grosses improved each and every quarter of 2020 and 2021 as the number of movie titles increased.

The company hosted approximately 60 million guests in the United States, Europe, and Middle East in Q4 of 2021 alone.

The recovery for AMC has been incredible in such a short period of time.

Now that the company has positive cash flow, AMC Entertainment will be able to provide more value to its guests and shareholders alike.

AMC futures

AMC Futures
AMCStock Reddit

AMC Entertainment saw more than $1.8 billion in liquidity its fourth quarter of 2021 and anticipates doubling its revenue this year 2022.

With more movie titles coming to the big screen this new year, CEO and President Adam Aron says the $1.8 billion will provide AMC with more security and flexibility to go on the offense.

AMC Entertainment doesn’t plan on sitting on this money, but rather on using it to play offense and innovate.

Adam Aron says he plans on obtaining licensing agreements to feature live movie concerts and live sports events in theatres.

If you’re betting on AMC long term you might want to become an owner of the company by purchasing the stock.

90% of retail investors now own the century old movie theatre chain according to the CEO.

The company has a strong and loyal shareholder base that even played a major role in resuscitating the company when it faced bankruptcy.

Adam Aron praises his shareholders as they are the majority owners of the company.

It’s a first in history where shareholders have a massive ownership of a company this big.

The CEO communicates with shareholders on Twitter where he takes ideas from the public to better structure certain areas of the company.

The number of AMC shareholder has increased from 3 million last year to now more than 4 million this new year 2022.

Innovation and revenue streams

AMC Perfectly Popcorn Brand - AMC Innovation and revenue streams
AMC Perfectly Popcorn Brand – AMCStock Reddit

AMC Entertainment has really transformed its business model and is now taking form of a modern-type business.

This leading movie industry chain is now accepting cryptocurrencies as a form of online payment for movie theatre tickets, gift cards, and other accessories.

Not only have they cultivated the crypto movement, but the company is also releasing NFTs when new movie titles are released.

With NFTs, AMC Entertainment will earn a royalty every time an NFT is sold or traded in the marketplace.

This opens opportunity in the marketplace for both AMC Entertainment the company and the asset owner.

AMC Perfectly Popcorn brand is on track to hit retail stores and supermarkets this year too.

They will be selling AMC Perfectly Popcorn brand microwavable popcorn at your favorite grocery stores and outlets.

Adam Aron announced during the Q4 earnings call that AMC and UberEATS are working on making it possible to order pre-packaged popcorn for home-delivery services.

So even if you’re not going out to the movies, you can order AMC Perfectly Branded popcorn for that movie night at home.

This is just one way the company is hedging against online streaming.

Once the theatre chain has access to exclusively release live concerts and sports events, the theatrical experience is going to transform how we look at movie theatres today.

Although online streaming has blown up, the theatre experience is something you cannot replicate anywhere else.

And the data has spoken for it.

Does AMC have debt?

does AMC have debt?

AMC Entertainment, like many companies has debt.

However, unlike the previous year when they had debt and negative cash flow, the company has eliminated most of its debt and created positive EBITDA.

AMC paid $61 million of deferred (postponed) rent in Q4 of 2021, reducing their total deferred rent to $315 million.

It reduced a total of $155 million of deferred rent over the last 9 months of 2021.

They plan to reduce the deferred rent by $150-$200 million in 2022 leaving them with $160-$115 million left for 2023.

This amount could be paid in full that same year.

So, while they still owe money, the execution is being handled with vigorous accountability and success.

AMC Entertainment should have no problem paying this off while maintaining a positive EBITDA through its multiple revenue streams.

Last year the company sold a $950 million junk bond which they used to pay down debt and refinance certain interests to much lower rates.

This has given the company much more flexibility than needed.

I think it’s fair to say the company has proved that it can handle its use of money quite well.

CEO Adam Aron also donated $1 million dollars of his personal money to charity in both stocks and cash.

“I benefited greatly as retail investors have embraced AMC. That makes it time for me to step up and personally give back.”

CEo and president, adam aron
Related: AMC Dominates with Powerful Q1 Results: Highlights

Does AMC offer dividends?

does AMC offer dividends?
Spider-Man NFT – AMCstock Reddit

AMC currently does not offer dividends.

However, the company releases NFTs when new movie titles are released.

These NFTs can sell on NFT marketplaces for quite a large amount of money, depending on the rarity of course, but they’re out there.

The highest sold AMC NFT was a Spider-Man NFT that sold for $17,000 according to Adam Aron.

When Spider-Man No Way Home came out, the first movie ticket buyers received random Spider-Man NFTs.

This is another great incentive to encourage engagement and revenue for the company.

I mean, what other company is truly innovating like this?

Elon Musk announced in January Tesla would accept Dogecoin for its merchandise.

But even he hasn’t gotten involved in NFTs like Adam Aron has, with all respect to Mr. Musk.

AMC shareholders who signed up before December 31st of 2021 also received a series 1 “I Own AMC” NFT.

More than half a million of these NFTs were created and sent to shareholders for free.

I believe these series 1 NFTs will be worth a lot of money years down the road as the company releases a variety of series NFTs with series 1 being AMC’s ‘originals‘.

The concept is incredible but only time will tell.

Are you an NFT collector?

Leave a comment below.

Is AMC still being shorted?

AMC currently has a short interest of 22%.

It’s relatively high meaning short sellers continue to bet on AMC’s stock price to go down.

In fact, the Department of Justice is investigating short sellers and big-time hedge funds for illegally driving AMC and GameStop’s share prices down.

Elon Musk spoke out against short sellers with Adam Aron mocking them for the second time when the announcements were made public.

Short sellers have been long accused by the retail community of tampering with AMC’s share price as the demand for the stock has not been accurately reflecting on the price.

Once called conspiracy theorists, major publications and regulators have now confirmed every allegation.

Predatorial strategies in the market are real and AMC has been abused by them.

The retail community is fighting to lift the market manipulation imposed on so called ‘meme stocks’.

The lift would allow the stocks to naturally surge based on supply and demand.

Is AMC a good stock to short?

Absolutely not.

Hedge funds have lost billions of dollars betting against AMC Entertainment and now the Justice Department has gotten involved.

The SEC recently warned short sellers of ‘short squeeze’ risks in a market transparency report.

The number of activists in the retail community has multiplied over the months and year.

Can AMC still squeeze?

AMC’s current short interest is more than enough to send the share price to an all-time high.

The company’s stock reached $72 per share when the short interest was only at 20%.

The short interest came down to around 14% shortly after the price surge but has since gone up to now 21%.

When AMC climbed to $72 per share it was with only 6% short interest out of 20%.

Is it worth buying AMC for a short squeeze trade?

90% of retail investors holding the stock certainly think so.

For many, the reward outweighs the risk involved.

Though a wise man did once say, the only risk is not taking a risk at all.

Join my discord where many community members are discussing the data.

Is AMC a good stock to buy today?

is AMC a good stock to buy today
AMCStock Reddit – is AMC a good stock to buy?

What makes AMC so different from most stocks is the peculiar spot it’s in.

The company is working extremely hard to improve its fundamentals by innovating, paying off its debt, and increasing its revenue streams.

In the meantime, you have a loyal shareholder base looking to squeeze shorts from their positions while keep their ties to the company after successfully doing so.

Moody’s recently upgraded AMC to Caa2 rating saying the outlook on the company is positive amid the cinema industry’s recovery.

And while corporate (mainstream) media might tell you otherwise, it’s important to note that these companies are often times influenced and bought by hedge funds.

There’s no narrative here, only data.

Is AMC a good stock to buy?

The stock could be a great buy whether you’re looking at a long-term fundamental investment or whether you’re diving into a short squeeze trade.

Just remember, this is not financial advice, and my suggestion as always is to never put more money in the market than you can afford to lose.

Always do your due diligence and stick true to your conviction.

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The Best Thing You Can Do When the Markets are Tanking

Why is the market going down today
Why are the markets down? Don’t panic, here’s what to do

Both the stock and crypto markets are tanking.

If you’re following me on Twitter you know I’m an advocate for both stock and crypto investing.

Now, many of you are new retail investors and have only just started buying into the stock and crypto markets.

And if you’re worried about the markets tanking right now, don’t be.

I’m going to walk you through the best thing you can do when the markets are down.

franknez.com

Welcome to Franknez.com – the blog that provides you with market news and trending investing topics. The markets are tanking, here’s how you and I can handle it.

Let’s get started!

Why are the markets down?

why are the markets down
Why have the markets been down recently?

There’s an array of reasons as to why the markets are currently down.

With the biggest being liquidation in the markets.

I’m going to break this down in the simplest form possible.

The stock market truly caters to hedge funds and a variety of private family offices and financial institutions.

Market makers are companies that process every order in the stock market.

These market makers, hedge funds, and private family offices are notoriously known for going short on stocks and betting against them.

Well, recently we’ve seen ATHs from the S&P500, the NASDAQ, Tesla, AMC, GameStop, and many more.

Companies shorting these stocks and indexes have been losing a ton of money during the rise of these assets.

In order to keep up with their margin requirements, they must liquidate certain long positions whether it be in the stock or crypto markets.

Crypto enthusiasts aren’t selling, it’s the financial institutions who are in need of the capital to keep certain positions afloat.

Worldwide news is influencing the markets

Another reason why the markets are going down is because global news such as Omicron and Covid is influencing institutional psychology.

I would say sentiment, but institutions trade based on psychology.

Now, this is completely out of the control of the retail investor.

So, what can you do to whether this storm?

Well first, one of the best things you can do when the markets are tanking is to not panic.

Now that that’s out of the way, let’s get right into how to weather this storm.

#1. Assess your risk

Risk management in the markets

Some of you are still profitable, some may be breaking even, others are down significantly on their investment portfolios.

Whatever your situation is, you’ll have to assess your risk.

Can you stomach seeing your portfolio completely (but temporarily) plummet?

Did you buy high and are now seeing your investment crash?

You’ll have to ask yourself whether it’s worth setting a stop loss and eating a few losses to re-enter much lower.

Or perhaps you’re confident in the possibility of a correction eventually eliminating any paper losses.

The important thing to remember when investing in the markets is that long-term investing often times yields the results.

#2. Take a long-term approach when investing

long term investing in the markets

Let’s take Bitcoin as an example.

Early adopters bought the cryptocurrency when it was worth only cents and sold at $10.

If they had viewed Bitcoin as a long-term asset oppose to a swing trade, they would have become multi-millionaires a decade later.

We can also use SPY stock which tracks the S&P 500 as an example.

This safer long-term index fund has more than tippled in the past decade.

Investing a hefty $300,000 would have multiplied your investment to just over $900,000.

No matter the results, it’s long-term investing that yields them.

Remember that today’s market drops are only temporary.

Investors tend to see their rewards in the long run.

Related: How to invest in cryptocurrency step-by-step for beginners

#3. Identify buying opportunities

Buying opportunities in the market

When the markets are going down it’s the perfect time to strategize and identify buying opportunities.

Your risk tolerance will guide you here.

The markets tend to naturally bounce back during a correction.

Will you take the opportunity to buy assets at a discount or will you miss these buying opportunities?

Most retail investors fail to identify the massive opportunity at hand when the markets begin to tank.

And while no one will ever truly be able to identify the bottom, go based on your instincts to secure a fire sale even if it continues to further dip.

Because even if you miss a lower bottom, that discount will eventually profit in the long-term.

When Bitcoin dipped to $30k during the summer of 2021, I bought the dip and doubled my investment when it surged to $60k again.

So what if the crypto market is going down again?

The futures of the crypto market are incredibly high to not buy even during a bull run.

Strategize and you’ll be okay

franknez.com

And there you have it ladies and gentlemen.

These 3 strategies are going to help you make a lot of money in the long-term whether you invest in stocks or crypto.

The stock and crypto markets may be going down but that does not mean you cannot take advantage of the dips.

Always have a plan and never invest more than you can afford to lose at the moment.

If you enjoyed this article, please give it a social share and be sure to join the newsletter for my free stock and crypto list, a Patreon exclusive yours free.

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