Key Points

• Palantir topped $1 billion in quarterly revenue for the first time.

• Considering the company's extreme valuation, it may be tempting to take profits.

• These 10 stocks could mint the next wave of millionaires ›

Palantir Technologies (NASDAQ: PLTR) just keeps steaming along. The company had another great earnings report for the third quarter, sending the stock higher again. The year's best-performing stock in the S&P 500 is up 128% just this year, and by an incredible 600% in the last 12 months.

Before Palantir's earnings, I noted three of the most important metrics that investors should consider when evaluating the results -- revenue growth, customer growth and the company's backlog. In all three cases, Palantir managed to exceed expectations, which is why the stock is setting new all-time highs.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Now that the dust has settled, it's time to take a fresh look at Palantir in the wake of its earnings report. Should investors still be bullish, or is it time to start taking profits? Or perhaps investors would do well to sit back and wait.

Here's a peek behind the curtain of Palantir stock.

Palantir's earnings dominance

Palantir operates dominant artificial intelligence (AI) platforms that specialize in pulling information from multiple sources to allow users to make real-time decisions. Its Gotham platform is used by governments and militaries to tap into satellites and scour other sources of information to help commanders position their troops and achieve objectives.

The company's work came to light when it was credited for helping the U.S. military track down 9/11 mastermind Osama bin Laden. Under the Trump administration, it's greatly expanding its work to include Homeland Security, the State Department, the Federal Aviation Administration, and the Centers for Disease Control and Prevention.

Meanwhile, Palantir's Foundry platform is used by commercial customers to help manage a range of activities from hospital records to supply chains and reduce manufacturing costs. Both platforms operate in coordination with Palantir's Artificial Intelligence Platform (AIP), which allows users to type in detailed prompts to get recommendations and insights that are delivered through generative AI. When Palantir unveiled its AIP more than a year ago, its stock really took off.

The momentum continued in the second quarter, when Palantir's quarterly revenue topped the $1 billion mark for the first time, up 48% from a year ago. Income was $269.3 million, up 27% from last year. Breaking it down further, Palantir saw U.S. commercial revenue jump 93% to reach $306 million and U.S. government revenue rise 53% to $426 million.

The company's customer count also jumped, rising 43% from a year ago and 10% from the first quarter. Palantir closed 157 deals in the quarter valued at at least $1 million, and 42 that were valued at at least $10 million.

In addition, Palantir has a long runway of additional growth. The company says it has $2.42 billion in total remaining performance obligations, up from $1.37 billion in the second quarter of last year and up from $1.9 billion in the first quarter. When I analyzed Palantir before its most recent earnings report, I said I would consider anything over $2.15 billion to be a strong number -- and Palantir blew that out of the water.

So where do we go from here -- buy, sell, or hold?

The argument to buy

Simply put, Palantir is a world-changing company that has exploded to become one of the most consequential of our time. With a market cap of more than $400 billion now, Palantir is bigger than Home Depot and Procter & Gamble. At the time of this writing, it ranks as No. 23 in the world in size.

With the U.S. government eager to expand Palantir's role and dozens of commercial clients lining up to take advantage of the company's unique abilities, I'm firmly convinced that it's just getting started. CEO Alex Karp has the same vision.

In his most recent letter to shareholders, he boldly states: "With continued execution, and a focus on what matters and a near complete disinterest in what does not, we believe that Palantir will become the dominant software company of the future. And the market is now waking up to this reality."

The argument to sell

I'm a Palantir bull but recognize that the valuation of this stock is out of control. For instance, the company has a price-to-earnings ratio (P/E) of 777 and a forward price-to earnings ratio of 307. That's more than a nosebleed level that's overly inflated because Palantir is reinvesting a lot of its profits. But it would also be ridiculous for anyone to assume that the company will keep that same rate of growth.

Instead of P/E, let's use the price-to-sales ratio (P/S) to forecast reasonable growth. Assume that Palantir generates 40% revenue growth in the next year -- a number that would actually be slowing from its current pace. With that growth, it would have annual revenue of roughly $4.4 billion. As the company has a forward price-to-sales valuation of 108, this would give it a projected market cap in a year of $471 billion -- which would give it roughly the same market cap as Netflix.

That's fine growth, but the market isn't going to keep paying this multiple if the market cap upside is only 18% in the next year -- especially when you consider how dynamic its growth has been so far.

PLTR Market Cap data by YCharts.

Either the valuation begins to return to Earth or the stock remains overly inflated. But I can't think of a reasonable argument based on math instead of momentum for Palantir to sustain its current valuation. With the stock price up 600% in the last 12 months, I couldn't blame anyone for a little profit-taking here.

The argument to hold

This is a simple play -- sit back and wait for more information. If you're not day trading, then it's often wrong to overreact to the news of the day because timing the market is virtually impossible. You'll tend to lose out on opportunities and rack up way too many fees by buying and selling too much. As long as you're confident in the quality of the company, there's nothing wrong with emulating the master of buy-and-hold investing, Warren Buffett.

The final call

While the momentum is all for buying Palantir and the math says to sell, I'm bridging the middle and holding. I think that the opportunity surrounding Palantir is too valuable to discard, but I'm not eager to buy more of the stock at this valuation.

I think that's the right play -- particularly if you have Palantir as part of a well-balanced portfolio. However, if the company is one of a few holdings or it makes up an overly large percentage of your overall holdings, then this is the ideal time to rebalance and reduce your overall exposure.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 1,026%* — a market-crushing outperformance compared to 180% for the S&P 500.

They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.

See the stocks »

*Stock Advisor returns as of August 4, 2025

Patrick Sanders has positions in Palantir Technologies. The Motley Fool has positions in and recommends Home Depot, Netflix, and Palantir Technologies. The Motley Fool has a disclosure policy.

The Omnicom Group-Interpublic Group merger still has to get EU approval before it can officially close.

Key Points

• Dividend stocks are a useful source of extra income.

• The best dividend stocks, however, also increase payouts over time and can build you a fortune.

• The S&P 500 index has some top-notch dividend stocks, some of which are no-brainer buys now.

• 10 stocks we like better than Medtronic ›

Dividend stocks are one of the most powerful wealth compounders. The S&P 500 (SNPINDEX: ^GSPC) index offers the perfect example. Over the past 25 years, while the S&P 500 rose by over 300%, its total returns crossed 550% thanks to reinvested dividends.

As you may guess, the S&P 500 comprises some of the best dividend stocks out there, many of which have been multibaggers and have the potential to continue being so. Here are 10 such magnificent S&P 500 dividend stocks -- trading at least 10% below their all-time highs -- to buy now and hold forever.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Johnson & Johnson: down 11.5%, yield 3.4%

Johnson & Johnson (NYSE: JNJ) is a cash-flow machine. It generated $95 billion in free cash flow (FCF) over the past five years and returned 60% of it to shareholders. The stock is also a dividend powerhouse, increasing its dividend for 62 consecutive years. Johnson & Johnson has robust financials, invests heavily in research and development, and has big plans for both its businesses, pharmaceuticals and medical technology, making it a top S&P 500 dividend stock to buy and hold.

ExxonMobil: down 11.6%, yield 3.7%

ExxonMobil (NYSE: XOM) is one of the world's largest oil and gas companies. In 2024, the oil and gas giant generated $55 billion in cash flow from operations, compared to $30 billion in 2019. ExxonMobil is a dividend behemoth with a 42-year streak of consecutive dividend increases. After its $60 billion acquisition of Pioneer Natural Resources in 2023, ExxonMobil has been targeting higher production at even lower costs and focusing on boosting its cash flows, all of which makes this magnificent S&P 500 dividend stock a buy at every dip.

Procter & Gamble: down 14%, yield 2.7%

Procter & Gamble (NYSE: PG) owns over 60 brands, most of which are household names today. Although its organic sales growth has slowed due to higher costs and weak consumer sentiment, it's just a short-term blip. Procter & Gamble is restructuring operations and targeting core earnings per share by mid- to high-single-digit percentages in the long term by exiting low-margin brands and markets. Above all, Procter & Gamble has a strong balance sheet and is a Dividend King, having increased its dividend for 69 consecutive years.

NextEra Energy: down 19%, yield 3.3%

NextEra Energy (NYSE: NEE) operates the largest electric utility in America (Florida Power & Light), which generates steady cash flows. It is also the world's largest producer of wind and solar energy, as well as a key player in battery storage, all of which are growth drivers. NextEra Energy stock has increased its dividend for over 20 years and has generated humongous returns for investors who reinvested the dividends. The global shift to renewables and a massive pipeline make NextEra Energy a no-brainer S&P 500 dividend stock to buy and hold forever.

NEE data by YCharts.

Chevron: down 19%, yield 4.8%

Chevron (NYSE: CVX) is one of the largest integrated oil companies, operating across the entire value chain, from exploration and production to pipelines, refining, chemicals, and marketing. Chevron has massive oil and gas reserves but is also growing new low-carbon businesses, such as hydrogen and renewable fuels. Chevron has increased its dividend for 38 consecutive years, making it one of the best oil dividend stocks within the S&P 500. Chevron also just won a dispute with ExxonMobil and has acquired Hess in a massive $53 billion deal.

American Water Works: down 24%, yield 2.4%

American Water Works (NYSE: AWK) is the largest regulated water and wastewater utility in the U.S., serving over 14 million customers and 18 military bases.

AWK data by YCharts.

While generating stable cash flows from these regulated and contracted businesses, American Water Works' regular investments in its infrastructure help it secure base rate hike approvals, which continue to drive its earnings, cash flows, and dividends higher. American Water Works is targeting 7% to 9% annual dividend growth for the long term, making it an incredibly safe S&P 500 dividend stock to buy now and hold forever.

Realty Income: down 29%, yield 5.6%

Realty Income (NYSE: O), a real estate investment trust (REIT), pays a dividend every month and has increased it for 110 consecutive quarters now. The company owns over 15,000 properties globally and leases them under triple-net leases, where the tenants bear most of the costs. So, Realty Income enjoys high margins, and its diverse portfolio enables the company to navigate economic challenges. Realty Income's commitment to paying a monthly and growing dividend makes it one of the top 10 dividend stocks to double up on now and hold.

Oneok: down 29%, yield 5%

Oneok (NYSE: OKE) is one of the largest energy infrastructure companies in the U.S., with a network of pipelines spanning 60,000 miles. Three big acquisitions over the past couple of years or so, including that of Magellan Midstream Partners, combined with organic expansions, should help Oneok steadily grow earnings and meet its goal of increasing the annual dividend by 3% to 4%. When coupled with a 5% yield, Oneok makes for an appealing S&P 500 dividend stock to buy and hold.

Nucor: down 30%, yield 1.7%

Nucor (NYSE: NUE) is America's largest and most diversified steel company. It is also vertically integrated, meaning it sources the bulk of its raw material in-house. That's a huge competitive advantage to have in a commodity business and one of the key factors behind Nucor's strong financials and dividend growth. Nucor aims to return at least 40% of its earnings to shareholders, has increased its dividend for 52 straight years, and is primed to benefit from President Donald Trump's steep tariffs on steel imports.

NUE data by YCharts.

Medtronic: down 33%, yield 3.3%

With revenue of $33.5 billion for the fiscal year that ended April 25, 2025, Medtronic (NYSE: MDT) is the world's largest medical device manufacturer. It offers a wide range of products across cardiovascular, neuroscience, medical-surgical, and diabetes care and uses artificial intelligence and robotics technologies to build better products. Medtronic plans to divest its diabetes business into a separate company to unlock more value for shareholders. Meanwhile, it is only two dividend raises away from becoming a Dividend King, making this S&P 500 dividend stock a solid buy.

Should you invest $1,000 in Medtronic right now?

Before you buy stock in Medtronic, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Medtronic wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,056,790!*

Now, it’s worth noting Stock Advisor’s total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 15, 2025

Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron, NextEra Energy, and Realty Income. The Motley Fool recommends Johnson & Johnson, Medtronic, and Oneok and recommends the following options: long January 2026 $75 calls on Medtronic and short January 2026 $85 calls on Medtronic. The Motley Fool has a disclosure policy.

Dividend investors are always on the hunt for the best combination of yield and company quality. Right now, you can get above-average yields from industry-leading companies in the real estate investment trust (REIT) sector. Giant high-yield landlords Realty Income (NYSE: O) and Simon Property Group (NYSE: SPG) are two companies that you might want to buy today.

Why buy real estate investment trusts?

Real estate investment trusts were specifically designed to generate tax-advantaged income for investors. Property owning REITs like Realty Income and Simon are fairly simple businesses to understand, since they do exactly what you would do if you owned a rental property. The difference is that they do it at a much larger scale, which is the whole point. REITs allow small investors access to institutional-level properties.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

The tax-advantaged part of the equation comes about because REITs avoid paying corporate-level taxes if they distribute at least 90% of taxable earnings out as dividends. Uncle Sam isn't just giving away free money, though; shareholders have to treat the dividend income as they would regular earned income. But there's a workaround. If you buy a REIT in a Roth IRA, which is funded with after-tax money, you won't have to pay taxes on the REIT dividends you collect.

For investors who are retired, buying REITs in a Roth is a great way to boost income while still minimizing the taxes you have to pay. There are a lot of REIT options, but most investors will be better off sticking with the biggest and best companies, like Realty Income and Simon Property Group.

Realty Income is the net lease giant

The average REIT is currently yielding around 4.1%, which is more than twice the yield on offer from the S&P 500 index (SNPINDEX: ^GSPC). Realty Income's dividend yield is even higher at roughly 5.7%. This isn't some fly-by-night operation, either. Realty Income is the largest net lease REIT, with a portfolio of over 15,600 properties.

Although it is heavily focused on single-tenant retail properties, it also invests in industrial assets and is increasingly diversifying into other areas. For example, it has invested in casinos in recent years and has a partnership working to build data centers. Loans are a new platform, and Realty Income is also attempting to set up an asset management business to service institutional investors (which will generate fees to support shareholders' dividends). On top of all of this, the REIT is geographically diversified across the United States and Europe.

Realty Income won't wow you with growth; it is simply too large for that. But if you want to own the biggest and best competitors, this is going to be the high-yield net lease landlord for you.

Simon Property Group is the mall king

Simon Property Group's dividend yield is around 4.9% today, also well above the REIT average and the yield on offer from the S&P 500 index. The company's focus is on owning malls, which are retail properties but have a very different dynamic from the types of properties Realty Income owns. A mall is like an ecosystem, with each tenant impacting the way the ecosystem operates.

As the largest mall REIT, Simon Property Group owns a massive collection of traditional enclosed malls and outlet centers. Its portfolio spans the globe, though its foreign investments are largely outlet centers. Over the years, the REIT has increasingly focused its portfolio on the best malls, known as A malls. These tend to be modern, well-located properties that are capable of charging the highest rents because they draw the largest crowds. Simon is a very important partner to retailers.

SPG Dividend Per Share (Annual) data by YCharts

There is a caveat with Simon. It passes a huge amount of income on to investors, but during some recent economic recessions, it has cut its dividend. After the cut, however, the dividend has quickly started to grow again toward the precut level. In the case of the deep Great Recession, meanwhile, the dividend has now grown well beyond the precut level. Simon is a stock that you'll want to hold for the long term, perhaps even buying more shares when other investors are selling.

Realty Income and Simon are the kinds of giants you own forever

Like any business, Realty Income and Simon Property Group will see their fortunes wax and wane over time. But their size and long histories of success make them strong, high-yield landlords to look at today. While they are attractive REIT investment choices most of the time, their higher-than-average yields could make each a nice addition to your stock portfolio right now.

Should you invest $1,000 in Realty Income right now?

Before you buy stock in Realty Income, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Realty Income wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $635,275!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $826,385!*

Now, it’s worth noting Stock Advisor’s total average return is 967% — a market-crushing outperformance compared to 171% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 12, 2025

Reuben Gregg Brewer has positions in Realty Income and Simon Property Group. The Motley Fool has positions in and recommends Realty Income and Simon Property Group. The Motley Fool has a disclosure policy.

Breath of Fire IV has been updated and modernized for Windows 10 and 11, including full controller support.

Small businesses could be crushed under President Trump’s increased tariffs, according to an open letter by 38 female consumer product founders. While Trump paused his tariff increases for 90 days for various countries — setting the rate at 10% for now — China’s was raised to 145%, which includes the previous 20% levy. In the letter, […]

The long-awaited Baldur's Gate 3 Patch 8 will be here in just a few days.

Road trips with just two people always have their awkward silences. In Dustland Delivery, my character, a sharpshooter, has tried to break the ice with the blacksmith he hired a few towns back, with only intermittent success.

Remember that bodyguard, the one I unsuccessfully tried to flirt with at that bar? The blacksmith was uninterested. What about that wily junk dealer, or the creepy cemetery? Silence. She only wanted to discuss "Abandoned train" and "Abandoned factory," even though, in this post-apocalypse, abandonment was not that rare. But I made a note to look out for any rusted remains; stress and mood are far trickier to fix than hunger and thirst.

Dustland Delivery, available through Steam for Windows (and Proton/Steam Deck), puts you in the role typically taken up by NPCs in other post-apocalyptic RPGs. You're a trader, buying cheap goods in one place to sell at a profit elsewhere, and working the costs of fuel, maintenance, and raider attacks into your margins. You're in charge of everything on your trip: how fast you drive, when to rest and set up camp, whether to approach that caravan of pickups or give them a wide berth.

Read full article

Comments

© Lilith Games