On July 10, 2025, Stewart Murray Lee (Head of People & Strategy) executed an open market sale of 50,000 shares of New Horizon Aircraft Ltd.(NASDAQ:HOVR), with the transaction disclosed in a Form 4 filing dated July 15, 2025.

Transaction summary

Metric	Value
Shares Traded	50,000
Transaction Value	$89,050
Post-Transaction Value	$387,180, as of July 15, 2025.
12-month Performance	196%, as of July 15, 2025.

Key questions

What proportion of the insider's holdings was sold in this transaction?
The transaction represented approximately 16.8% of Lee Stewart Murray's holdings, leaving 248,194 shares after the sale.

What is the current market context for New Horizon Aircraft Ltd?
As of July 18, 2025, shares were priced at $1.74 a share. In the 12 months ended July 19, 2025, the company delivered a 190.6% total return, reflecting significant appreciation over the past year.

What is the significance of this transaction relative to recent activity?
This is the insider's first reported sale following a period of predominantly buying activity and accelerating trade frequency, with five trades in the last 30 days and six in the last 90 days.

Company overview

Metric	Value
Market capitalization	$65.10 million
Employees	20
Revenue (TTM)	$0
Net income (TTM)	$10,114,000

Company snapshot

• Develops hybrid electric vertical takeoff and landing (eVTOL) aircraft, including the Cavorite X7, targeting the regional air mobility market.
• Operates a research and development-driven model focused on engineering and prototyping.

New Horizon Aircraft Ltd. is an early-stage aerospace engineering company specializing in hybrid eVTOL aircraft for regional air mobility. Its focus on the Cavorite X7 positions it to compete in the emerging advanced air mobility sector.

Foolish take

New Horizon Aircraft was founded in 2013. It was acquired by Astro Aerospace in 2021, was taken private a year later by its own shareholders, and eventually went public on the Nasdaq stock exchange in January 2024 through a SPAC merger.

Horizon Aircraft, as the company calls itself, is building a hybrid electric eVTOL that can quickly move people and goods within a region of 50 to 500 miles. Cavorite X7 is a 7-seater aircraft that can take off and land vertically similar to a helicopter but can fly faster, farther, and more efficiently. Emergency medical services, disaster relief, critical supplies to remote communities, military missions, and luxury travel are the key use cases for eVOTL aircrafts.

The eVOTL market has strong growth potential. Grand View Research, for instance, predicts the eVOTL aircraft market in the U.S. to grow at a compound annual growth rate of 53% from 2024 to 2030.

Horizon Aircraft currently has a full-sized prototype aircraft under construction but it doesn’t expect to deliver its first aircraft “until 2027, at the earliest, if at all.” It will take years for the Canada-based company to obtain a type certificate, production certificate, and airworthiness certificate for the Cavorite X7 from Canada’s civil aviation authority, without which it cannot sell planes commercially. The eVOTL stock, meanwhile, has surged 190% in one year and has a market cap of $65 million, as of this writing.

Glossary

Open market sale:When an insider sells company shares on a public stock exchange, not through private arrangements.
Form 4 filing:A required SEC document disclosing insider trades in a company's securities.
Insider:Company executive, director, or major shareholder with access to non-public information.
Insider's trade sizes:The number of shares an insider typically buys or sells in each transaction.
Post-transaction:The status or amount of holdings after a specific trade has been completed.
Total return:The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
eVTOL:Electric Vertical Takeoff and Landing aircraft, capable of taking off and landing like a helicopter using electric or hybrid power.
Regional air mobility:Air transportation solutions for short to medium distances, often using innovative aircraft.
Prototyping:Creating early models of a product to test concepts and designs before full-scale production.
TTM:The 12-month period ending with the most recent quarterly report.
Advanced air mobility:New aviation technologies enabling efficient, flexible, and often urban or regional air transport.

Where to invest $1,000 right now

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*Stock Advisor returns as of July 21, 2025

Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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.

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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.

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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.

Key Points

• The S&P 500 index rebounded in May and continued its winning streak through June.

• Not all S&P 500 stocks, however, made investors money.

• The top two worst-performing stocks in the index hit their 52-week lows in June.

• 10 stocks we like better than Lululemon Athletica Inc. ›

The S&P 500 (SNPINDEX: ^GSPC) index rose 5% in June, but there were plenty of laggards among the index's 500 stocks. The two worst-performing stocks in the S&P 500 fell by double-digit percentages. Notably, both were consumer stocks.

Lululemon Athletica

Lululemon Athletica (NASDAQ: LULU) stock plummeted over 20% on a single trading day in June, marking one of its biggest intraday falls in history, after reporting poor numbers. It ended the month down 25%.

Lululemon's same-store sales grew by only 1% year over year, while its operating margin fell by 110 basis points to 18.5% in the first quarter. With tariff-driven costs eating into its profits, Lululemon slashed its earnings outlook for the full year by almost 25% to $14.68 per share at the midpoint.

However, Lululemon reaffirmed its sales growth guidance of 7% to 8% and is raising prices and diversifying sourcing channels to mitigate the impact of tariffs. Lululemon doesn't manufacture but outsources production to countries like Vietnam, Cambodia, and Sri Lanka. Lululemon, however, still gets almost 75% revenue from the Americas.

After June's fall, Lululemon stock is trading at a price-to-earnings (P/E) of 16, less than half its five-year average P/E.

J.M. Smucker

J.M. Smucker (NYSE: SJM) stock tanked 12.8% to a 52-week low of $93.30 per share in June after reporting 3% and 13% declines in sales and adjusted earnings per share (EPS), respectively, for its fourth quarter of fiscal 2025. Low demand for dog snacks and sweet baked goods, the recent divestment of pet food brands, and rising costs were largely to blame.

Smucker expects total sales to grow by only 2% to 4% in fiscal 2026, versus 7% last year, and adjusted EPS to fall by 11%.

Smucker's Uncrustables brand, however, reported double-digit sales growth in Q4 and is close to hitting a billion dollars in sales. Meanwhile, Smucker continues to generate solid cash flows and is taking "decisive actions" to revive its sweet baked segment, which has struggled since acquiring Twinkies maker Hostess Brands in 2023.

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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends J.M. Smucker and Lululemon Athletica Inc. The Motley Fool has a disclosure policy.

Key Points

• Home Depot is a blue chip dividend stock long-term investors can count on.

• Nucor, UnitedHealth, and Alphabet have become too cheap to ignore.

• Criteo is a hidden-gem growth stock packed with upside potential.

The second half of the year is a great time for folks to review what companies they are invested in, why they are invested in them, and to update their watch lists with exciting stocks to buy.

However, some investors may be hesitant to put new capital to work in the market given the rapid recovery over the last few months. The S&P 500 is up more than 20% from its April lows, putting pressure on companies to deliver on expectations.

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 »

When valuations are high, it's even more important that investors focus on quality companies that have what it takes to deliver strong returns without everything having to go right.

Here's why these Fool.com contributors believe that Home Depot (NYSE: HD), Nucor (NYSE: NUE), UnitedHealth Group (NYSE: UNH), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Criteo (NASDAQ: CRTO) stand out as top stocks to buy in July.

Spring for this retailer's cheap stock

Demitri Kalogeropoulos (Home Depot): Home Depot stock has become cheaper relative to the market over the past year, and that fact should have investors feeling excited about adding the retailer to their portfolios. Sure, the home improvement giant's business hasn't been performing as well as it did through the pandemic and its immediate aftermath. Comparable-store sales (comps) in the most recent quarter were essentially flat due to a sluggish housing market. Consumers are trading down to less ambitious home improvement projects, too.

Yet customer traffic through early May was positive, rising 2% to help overall revenue improve by 9%. Those figures bode well for the chain's crucial spring selling season, when homeowners tend to spend aggressively on outdoor projects.

"We feel great about our store readiness and product assortment as spring continues to break across the country," CEO Ted Decker told investors in late May. Executives at the time affirmed their fiscal year outlook that calls for comps growth of about 1%, combined with a drop in profit margin to 13% of sales.

That decline would still keep Home Depot ahead of rival Lowe's on profitability. And cash flow remains strong enough for the chain to continue repurchasing shares and paying a robust dividend while investing in the business. The dividend yield is at 2.4%, compared to Lowe's 2%, giving investors another reason to prefer the market leader in this niche.

It could be some time before Home Depot's sales gains accelerate to above 5% again, while operating margin returns to its prior level of just over 14%. But patient investors can hold this sturdy stock while waiting for that rebound, collecting those generous dividend checks along the way.

A turnaround story in the making?

Neha Chamaria (Nucor): After I recommended Nucor in February, the stock sank to a 52-week low in April but has bounced back dramatically -- almost 33% since. Although I am a long-term investor and do not track price movements in the short term, there's a reason I brought this up here. The thesis that I saw earlier this year is playing out for Nucor, meaning the time is ripe to buy the stock if you still haven't.

President Donald Trump imposed a 50% tariff on steel and aluminum imports on June 3, up from 25% he had proposed earlier, to curb the dumping of low-cost steel by other countries and boost the domestic steel industry. Nucor CEO Leon Topalian has publicly supported Trump's tariff policies and believes some, like steel tariffs, were long overdue. Soon after the tariff announcement, his company raised the prices of hot-rolled steel coils and issued encouraging guidance for its second quarter.

After muted first-quarter numbers, the company expects second-quarter earnings to rise considerably across all its segments: steel mills, steel products, and raw materials. Steel mills, also Nucor's largest segment, are expected to report the largest growth in earnings, driven by higher average selling prices.

Overall, the company expects to report earnings between $2.55 and $2.65 per share for the second quarter versus only $0.67 in the previous quarter. Although its second-quarter earnings could still be around 5% lower year over year, this could just be the beginning of an upward earnings and sales trend.

Shares have hugely underperformed the S&P 500 over the past year or so because of declining sales and profits. With demand and prices both picking up, this could be an inflection point for Nucor stock, making it a solid long-term buy at current prices.

A blue chip stock that's a bad-news buy

Keith Speights (UnitedHealth Group): Timing the market is next to impossible. But timing can sometimes be important when buying specific stocks. I don't think there has been a better time to invest in UnitedHealth Group in years.

To be sure, this healthcare stock faces numerous problems. UnitedHealth's Medicare Advantage costs have gotten so out of hand that the company was forced to first cut its full-year 2025 guidance and then later suspend the guidance altogether. This issue seems to have played a big role in the unexpected departure of former CEO Andrew Witty.

The Wall Street Journal's article about a Justice Department (DOJ) investigation into alleged criminal fraud by the company made matters worse. To add to the healthcare giant's misery, President Trump threatened to eliminate pharmacy benefits managers (PBMs). UnitedHealth's Optum Rx ranks as the nation's third-largest PBM.

Why buy UnitedHealth Group stock amid all of this doom and gloom? Its business prospects are significantly better than its valuation reflects. After plunging more than 50%, shares trade at only 13.3 times forward earnings. But most of the headwinds the company faces should eventually wane.

For example, management expects to return to growth next year. I think that makes sense. The solution to higher-than-anticipated Medicare Advantage costs is to boost premiums. While the company has to wait to implement its higher premiums, you can bet they're coming.

Witty was replaced by former longtime CEO Stephen Hemsley, and the company should again be in good shape under his leadership. I suspect Hemsley will direct the company to issue new full-year guidance as soon as possible, which should bolster investors' confidence.

What about the DOJ investigation? It hasn't been confirmed yet. And President Trump's threats to cut out the PBM middleman? That's much easier said than done.

The bottom line is that I believe UnitedHealth Group stock is way oversold right now. This blue chip is a great bad-news buy in July.

A standout in the "Magnificent Seven"

Daniel Foelber (Alphabet): Google parent Alphabet rebounded in lockstep with the broader market last week. But it's still a compelling buy in July.

As many megacap growth stocks have compounded in value, some investors are questioning whether there's still room for these stocks to run or if valuations could limit returns. Alphabet doesn't have that problem.

The stock is so attractively priced that it is cheaper than the S&P 500 on a forward price-to-earnings basis. Whereas the rest of the "Magnificent Seven" are more expensive than the S&P 500 based on this key metric. Meaning that investors don't have the same lofty earnings expectations for Alphabet as they do for companies like Nvidia, Microsoft, or even Apple (even though Apple is growing slower than Alphabet).

To be fair, getting too bogged down by valuations has been a historically bad idea for many of today's top companies. Measuring Microsoft for its legacy software suite alone would have drastically undervalued its now huge cloud computing segment.

Amazon used to be an online bookstore turned e-commerce giant. Similarly, its cloud computing segment, Amazon Web Services, is arguably more valuable than the rest of the company combined. Nvidia used to make most of its money from selling graphics processing units (GPUs) and other solutions for gaming and visualization customers. But today, GPU demand for data centers is the company's bread and butter.

Since no one has a crystal ball, investors have to make calculated bets based on where they think a company could be headed. Looking at Alphabet, I think the company has fairly low risk for its upside potential. Part of that reasoning is that its existing assets are drastically undervalued, and investors aren't giving the company much credit for the upside potential of self-driving through Waymo, the company's quantum computing investments, or its artificial intelligence tool Gemini.

Add it all up, and Alphabet stands out as an effective way to get exposure to many different end markets at a good value.

This ad-tech expert's stock is way too cheap in July

Anders Bylund (Criteo): Sometimes I wonder what it takes to impress Wall Street's market makers. Digital advertising expert Criteo has consistently stumped analysts since the spring of 2023, but the stock is down by 39% in 2025 at the time of this writing.

I get where the market skepticism is coming from. Criteo's top-line sales have been rather slow in recent quarters. The macroeconomic backdrop isn't ideal for big-ticket marketing campaigns, since consumers are holding on to their money with an iron grip.

But the company has tightened up its operations in this uncertain economy. In May's first-quarter report, adjusted earnings rose 38% year over year while free cash flow soared from breakeven to $45 million. For a sense of scale, that's 10% of its revenue in the same quarter.

So Criteo is a cash machine when it counts, and the lessons learned in these hard times should result in solid profit gains when the economy turns sweeter.

Meanwhile, the stock is priced for absolute disaster. Shares are changing hands at 9.8 times earnings and 5.7 times free cash flow, as if the company were losing money by the truckload. The stock price is entirely inappropriate for a very profitable specialist in a temporarily downtrodden industry.

I'm tempted to double down on my Criteo holdings in July, and I highly recommend that you consider this overlooked stock while it's cheap.

Should you invest $1,000 in Home Depot right now?

Before you buy stock in Home Depot, 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 Home Depot 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 $697,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $939,655!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 178% 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 June 30, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anders Bylund has positions in Alphabet, Amazon, Criteo, Nvidia, and UnitedHealth Group. Daniel Foelber has positions in Nvidia. Demitri Kalogeropoulos has positions in Amazon, Apple, and Home Depot. Keith Speights has positions in Alphabet, Amazon, Apple, Lowe's Companies, and Microsoft. Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Home Depot, Microsoft, and Nvidia. The Motley Fool recommends Criteo, Lowe's Companies, and UnitedHealth Group and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Dividend-paying stocks tend to be lower-risk investments compared to non-payers. They typically produce more than enough cash to fund their growth, leaving them with excess to return to shareholders via dividends.

However, some dividend stocks are less risky than others. Black Hills (NYSE: BKH), Kinder Morgan (NYSE: KMI), and American States Water (NYSE: AWR) stand out to three Fool.com contributing analysts for their lower risk profiles. As a result, they can turn $1,000 into durable streams of dividend income.

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 »

Black Hills is a boring, high-yield regulated utility

Reuben Gregg Brewer (Black Hills): From a business perspective, the ultimate achievement is a monopoly. This is such a powerful industry position that the government attempts to prevent monopolies from existing...with a few exceptions.

One exception is the utility sector, as building two electric grids in one region would be prohibitively difficult. That's why the government regulates utilities like Black Hills, which has a monopoly on natural gas distribution and electricity in the areas it serves in Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming.

There are both positive and negative aspects to being a regulated utility. One negative is that the government dictates Black Hill's rates and capital investment plans. Regulators try to strike a balance between reward, reliability, and customer costs, leading to slow and steady growth for utilities like Black Hills. That's a positive, as regulator-approved spending generally occurs regardless of what's going on in the economy or on Wall Street. Investors buying Black Hills are, effectively, buying into a fairly reliable business through the economic cycle.

In the case of Black Hills, its customer base is growing around twice as quickly as the broader U.S. population. There's a good reason to believe that more regulator-approved growth lies ahead. Looking backward, meanwhile, investors have benefited from a regularly increasing dividend payment. At this point, Black Hills is one of the few utilities to have achieved Dividend King status, with over five decades of annual hikes.

Given the company's expectation of 4% to 6% earnings growth for the foreseeable future, meanwhile, it seems like the dividend streak will continue. Add in an above industry-average yield of 4.8% and you can see why this low-risk dividend stock might be a great buy today. A $1,000 investment will net you around 17 shares.

A very bankable income stream

Matt DiLallo (Kinder Morgan): Kinder Morgan operates one of the country's largest energy infrastructure platforms. Its pipelines, processing plants, terminals, and other midstream energy assets generate lots of very stable cash flow. Take-or-pay contracts, which entitle the company to payment regardless of volume, back 64% of the company's annual cash flows.

On top of that, Kinder Morgan has hedging contracts that lock in an additional 5% of its cash flows. Meanwhile, another 26% of its cash flows are fee-based, which provides it with a fixed fee based on volumes (most of which tend to be very stable). That leaves only about 5% of its annual earnings exposed to the ups and downs of commodity prices.

The company's highly contracted and predictable cash flows provide a rock-solid foundation for its more than 4% yielding dividend. The company has high visibility in its cash flow, which it expects will grow by 5% to $5.9 billion this year. That's more than enough to cover its expected $2.6 billion dividend outlay.

It's also plenty to fund its entire capital spending level for this year, with room to spare ($150 million in excess free cash flow). That surplus cash will enhance the company's already strong financial flexibility. Kinder Morgan has an investment-grade balance sheet backed by a conservative leverage ratio.

The midstream giant currently has $8.8 billion of growth capital projects underway. Those projects, predominantly natural gas pipelines ($8 billion), will enter commercial service through 2030. As they do, they'll add to the company's stable sources of cash flow. That should give Kinder Morgan more fuel to increase its dividend. The pipeline giant has raised its payout for eight straight years. With a 4% dividend yield, a $1,000 investment would generate about $40 (and growing) of dividend income each year.

70 years of dividend increases

Neha Chamaria (American States Water): Given the uncertain times we are in right now, adding stocks that can earn you some reliable extra income is a smart move. Even better, a defensive, low-risk dividend stock like American States Water should send bigger dividend checks your way every year.

American States Water is one of the largest water utilities in the U.S., serving 1 million consumers across nine states. The company also owns an electric utility and provides water and wastewater services to 12 military bases under 50-year contracts. As a regulated utility, American States Water generates stable cash flows, which is why it has been able to pay a dividend every year since 1931 and has raised it for 70 consecutive years. That incredible dividend streak makes American States Water the top Dividend King, with the longest streak of dividend increases.

After growing its dividend by a compound annual growth rate (CAGR) of 8.8% over the past five years, American States expects the trend to continue and is aiming to increase its dividend by a CAGR of over 7% in the long term. Management believes there's ample room for dividends to grow, given the company's earnings growth prospects backed by planned capital expenditures.

All that makes American States Water one of the safest and most reliable dividend stocks out there. The dividend growth potential is the cherry on top, making this 2.4%-yielding stock an incredible buy now.

Should you invest $1,000 in Kinder Morgan right now?

Before you buy stock in Kinder Morgan, 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 Kinder Morgan 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 $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $966,931!*

Now, it’s worth noting Stock Advisor’s total average return is 1,062% — a market-crushing outperformance compared to 177% 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 June 23, 2025

Matt DiLallo has positions in Kinder Morgan. Neha Chamaria has no position in any of the stocks mentioned. Reuben Gregg Brewer has positions in Black Hills. The Motley Fool has positions in and recommends Kinder Morgan. The Motley Fool has a disclosure policy.

President Donald Trump's sweeping tariffs have thrown a monkey wrench into the growth plans for some of the largest companies in the U.S. Nucor (NYSE: NUE), however, remains undeterred, and its CEO Leon Topalian has even publicly supported Trump's tariff policy. The Trump administration, after all, imposed a 50% tariff on steel and aluminum imports effective June 4, and that should work in favor of Nucor, also North America's largest and most diversified steel producer.

Nucor is already sitting on its highest backlog ever and just provided an upbeat guidance for its second quarter. Nucor is also a Dividend King -- a label only a handful of publicly listed companies in the U.S. can boast of -- and recently declared its 209th consecutive quarterly dividend. The steel stock, however, is still trading almost 39% off its all-time highs as of this writing, making it a dividend juggernaut you'd want to buy hand over fist on the dip.

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

Why Nucor is primed to grow under Trump

In a post-first quarter interview with CNBC, Topalian revealed that Nucor's backlog is at its highest ever in the history of the company, reflecting strong demand for steel and steel products.

Meanwhile, Nucor increased the prices of some of its core products like hot-rolled coil effective June 9, soon after Trump imposed 50% tariffs on steel and aluminum imports under Section 232 trade policy to protect America's steel and aluminum industries from unfair trade practices, competition, and import dumping.

Nucor already expects higher prices to drive earnings across all three of its segments -- steel mills, steel products, and raw materials -- in the quarter ending July 5. Importantly, Nucor expects its core business, steel mills, to record the largest earnings growth. Steel mills accounted for 61% of total external sales in fiscal year 2024. Nucor is a vertically integrated company and sells 80% of the steel produced externally while using the remaining to manufacture steel products.

Vertical integration is also among Nucor's biggest competitive advantages. Since Nucor's steel mills manufacture steel mainly from scrap produced in-house by its raw materials segment, the company is insulated from external raw material cost and supply shocks. To top that, the electric arc furnaces Nucor uses to manufacture steel are far more flexible and cost effective than the traditional blast furnaces.

Nucor is now building a large steel mill in West Virginia that could come online by late 2026 to serve non-residential construction and infrastructure markets. Meanwhile, it is adding more value-added products and diversifying its product mix to boost margins. Examples include its recent acquisitions of a data center infrastructure company and a manufacturer of high-speed commercial doors.

These moves, combined with Trump's policies to curb steel imports and boost the steel industry in the U.S., should drive Nucor's profits higher in 2025 and beyond. As its earnings grow, so should Nucor's dividends and share price.

A no-brainer dividend stock to buy now

Income investors are often wary of cyclical stocks, fearing that companies whose sales and earnings ebb and flow with commodity prices and economic cycles could fail to pay regular dividends. As a Nucor shareholder, you can put those fears to rest since this company has been very disciplined with capital allocation since inception. While maintaining a strong balance sheet and investing in growth, Nucor aims to return at least 40% of its net earnings to shareholders.

NUE data by YCharts.

So far, Nucor has increased its dividend for 52 straight years, and that has hugely contributed to its stock's returns. With reinvested dividends, Nucor stock has more than tripled investors' money in the past decade and generated a staggering 800% returns in 20 years. If you notice, the stock has surged since 2020 ever since Topalian took the helm.

Those massive returns are also a reminder for investors to look beyond dividend yields when buying dividend stocks. Nucor stock yields only 1.8%, but its dividend stability and growth easily make up for it as evidenced by the chart above, making it one of the best dividend stocks to buy on any dip.

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

Before you buy stock in Nucor, 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 Nucor 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 $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $881,731!*

Now, it’s worth noting Stock Advisor’s total average return is 994% — a market-crushing outperformance compared to 172% 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 June 23, 2025

Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Sunny days and summertime festivities are on the horizon for June. But there's no guarantee the clouds overhanging the broader market will dissipate.

Instead of trying to guess what the stock market will do in the short term, a better approach is to invest in companies with strong underlying investment theses that have the staying power to endure economic cycles.

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

Here's why these Fool.com contributors see Apple (NASDAQ: AAPL), Shopify (NASDAQ: SHOP), Cava Group (NYSE: CAVA), ExxonMobil (NYSE: XOM), and Energy Transfer (NYSE: ET) as five top stocks to buy in June.

Apple's pricing power will be put to the test

Daniel Foelber (Apple): There are 30 components in the Dow Jones Industrial Average (DJINDICES: ^DJI), and the worst-performing year to date is health insurance giant UnitedHealth (NYSE: UNH) -- which crashed due to cost pressures, regulatory scrutiny, suspended guidance, and another major leadership change. However, it's the second-worst performing Dow stock that is piquing my interest in June -- Apple.

Apple is down 22% year to date at the time of this writing -- making it the worst-performing "Magnificent Seven" stock. I think the sell-off is an excellent opportunity for long-term investors.

The simplest reason to buy Apple is if you think it can pass along a decent amount of tariff-related cost pressures. The latest update at the time of this writing is a 25% tariff on smartphones made outside the U.S. And since Apple assembles the vast majority of iPhones in China, the tariff could directly impact its bottom line.

Given higher labor costs and manufacturing challenges, moving production to the U.S. isn't a viable option. So, the million-dollar questions are how long tariffs will last and if Apple can pass along some of its higher costs to consumers.

A major catalyst that could drive iPhone demand even if prices go up is the upgrade cycle. Apple releases new iPhones every September. Most consumers aren't upgrading every year, but rather, waiting until they need to upgrade or the features appeal to them.

The upcoming iPhone 17 could have far more artificial intelligence (AI) features than the iPhone 16 -- which could attract buyers even with a higher price tag. Investors will learn more about Apple's technological advancements at its Worldwide Developers Conference from June 9 to 13.

Also, in Apple's favor, its pricing has stayed consistent for years. The base price of a new iPhone hasn't changed since 2017 as the company has preferred to keep prices low to get consumers involved in its ecosystem to support growth in its services segment. Apple's product growth has been weak in recent years, but the services segment has flourished, led by Apple TV+, Apple Music, Apple Pay, iCloud, and more.

Given tariff woes, it's easy to be sour on Apple stock right now. But the glass-half-full outlook on the company is that if tariffs do persist, at least they are coming during a time when Apple is expected to make by far its most innovative iPhone ever.

All told, long-term investors looking for an industry-leading company to buy in June should consider scooping up shares of Apple.

A growing e-commerce platform giant

Demitri Kalogeropoulos (Shopify): Shopify stock returns are roughly flat so far in 2025, but there are brighter days ahead for owners of this e-commerce services giant. The company just wrapped up a stellar Q1 period, as sales growth landed at 27%. Sure, that was a modest slowdown from the prior period's 31% increase, but it still marked the eighth consecutive quarter of growth of at least 25%.

Merchants are finding plenty of value in Shopify's expanding suite of services, even through the latest disruptive tariff-fueled trade disruptions. Merchant solutions revenue jumped 29%, helping lift sales growth above the company's 23% increase in gross sales volumes. "We built Shopify for times like these," company president Harvey Finklestien said in a press release. "We handle the complexity so merchants can focus on their customers."

Shopify is having no trouble converting those market share gains into rising profits, either. Operating income more than doubled to $203 million, and the company achieved a 15% free cash flow margin, up from 12% a year ago.

Concerns over more trade disruptions have likely kept a lid on the stock price following that positive Q1 earnings report in early May. But the company still expects 2025 growth to be in the mid-20s percentage range year over year. Shopify affirmed its initial aggressive outlook for free cash flow, too, although management sees a slightly slower profit increase (in the low-teens percentage rate) ahead for the year.

Investors can look past that minor profit downgrade and focus on Shopify's broader growth story that involves more merchants signing up for more services and booking more transactions on its platform. Success here should make the stock a great one to add to your portfolio in June, with the aim of holding it for the long term.

A Mediterranean feast for growth investors

Anders Bylund (Cava Group): Shares of Cava Group are down more than 40% in the last six months. That doesn't exactly make it a cheap stock, since Cava trades at 69 times earnings and 9.2 times sales even now.

But the Mediterranean fast-casual restaurant chain is growing quickly while reporting profits, and also widening its profit margins over time. That's a lucrative combo that deserves a premium stock price.

Cava's success hasn't gone unnoticed, despite the plunging stock chart. Two-thirds of analysts who follow this stock have issued a "buy" or "overweight" rating, and Wall Street's average target price is 44% above Thursday's closing price.

The company has a habit of absolutely crushing each quarter's analyst estimates across the board, including a huge surprise in May's first-quarter report. The average analyst expected earnings of just $0.02 per share on revenues in the neighborhood of $281 million. Instead, Cava reported earnings of $0.22 per share and $332 million in top-line sales.

A report like that would normally boost Cava's stock, but the market reaction was negative. Management noted that same-store sales growth could slow down in the second half of 2025, since the unpredictable economy is weighing down consumer spending. Cava's healthy salad bowls and pita wraps are on the pricey side, making the chain a vendor of everyday luxuries. This strategy could make Cava vulnerable to shifts in consumer confidence, especially when paired with the stock's lofty valuation.

So you won't find the stock in Wall Street's bargain basement today, but it did move down from the high-end valuation penthouse it inhabited a few months ago. If you like your investments fresh and flavorful, Cava's combination of healthy growth and expanding profits could be a recipe for long-term portfolio success.

42 dividend raises, with more coming up

Neha Chamaria (ExxonMobil): With renewables on the rise, people often believe the oil and gas industry isn't where to bet on anymore. While the global demand for energy overall is only expected to grow, driven by developing countries, ExxonMobil is in a sweet spot. It is working hard to bring down its break-even oil price significantly to stay relevant in the long run. At the same time, it is developing new low-carbon products and solutions.

It believes these new businesses could have potential addressable markets worth $400 billion by 2030 and over $2.3 trillion by 2050. Biofuels, carbon capture and storage, and low-carbon hydrogen are just some of the new products ExxonMobil is focused on.

Overall, ExxonMobil wants to produce "more profitable barrels and more profitable products" and is also cutting costs aggressively. The oil and gas giant believes a better product mix and its cost-reduction efforts combined could add nearly $20 billion in incremental earnings and $30 billion in operating cash flows by 2030.

In short, ExxonMobil is already charting a growth path to 2030 without compromising on capital discipline. It wants to generate big cash flows and maintain a strong balance sheet even through oil market down cycles, and ensure it can continue to reward shareholders with a sustainable and growing dividend on top of opportunistic share buybacks.

ExxonMobil has already proven its mettle when it comes to shareholder returns. It has increased its dividend each year for the past 42 consecutive years. Even without dividends, the stock has more than doubled shareholder returns in the past five years. With ExxonMobil stock now trading almost 20% off its all-time highs, it is one of the top S&P 500 (SNPINDEX: ^GSPC) stocks to buy now and hold.

Ready to rebound

Keith Speights (Energy Transfer): I'm not worried in the least that Energy Transfer LP's unit price is down year to date. This pullback presents a great opportunity to buy the midstream energy stock in June.

Energy Transfer's business continues to rock along. The limited partnership (LP) set a new record for interstate natural gas transportation volume in the first quarter of 2025. Its crude oil transportation volume jumped 10% year over year in Q1. Natural gas liquid (NGL) transportation volumes rose 4%, with NGL exports increasing 5%.

The LP's growth prospects remain solid. Energy Transfer commissioned the first of eight natural gas-powered electric generation facilities in Texas earlier this year. It plans to partner with MidOcean Energy to build a new LNG facility in Lake Charles, Louisiana. Artificial intelligence (AI) is a new growth driver, with Energy Transfer agreeing to provide natural gas to Cloudburst Data Centers' AI data centers.

The Trump administration's tariffs shouldn't affect Energy Transfer much. All of the company's 130,000-plus miles of pipeline are in the U.S. Energy Transfer has already secured most of the steel to be used in phase 1 of its Hugh Brinson pipeline project. Co-CEO Marshall "Mackie" McCrea said in the Q1 earnings call that management doesn't "expect to see any major challenges, if any challenges at all, selling out our terminal every month, the rest of this year."

Even if Energy Transfer's unit price doesn't move much, investors will still make money thanks to the LP's generous distributions. The midstream leader's forward distribution yield currently tops 7.3%. Energy Transfer plans to increase its distribution by 3% to 5% each year.

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

Before you buy stock in Apple, 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 Apple 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $828,224!*

Now, it’s worth noting Stock Advisor’s total average return is 979% — 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 June 2, 2025

Anders Bylund has positions in UnitedHealth Group. Daniel Foelber has no position in any of the stocks mentioned. Demitri Kalogeropoulos has positions in Apple and Shopify. Keith Speights has positions in Apple, Energy Transfer, and ExxonMobil. Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Shopify. The Motley Fool recommends Cava Group and UnitedHealth Group. The Motley Fool has a disclosure policy.

The energy midstream sector has been a great spot for investors to go if they want to make some passive income. Many companies in this sector produce very stable cash flow as oil and gas flow through their pipelines and related midstream assets. That gives them money to pay lucrative dividends and invest in growing their businesses.

Enbridge (NYSE: ENB), Enterprise Products Partners (NYSE: EPD), and Kinder Morgan (NYSE: KMI) are among the top options, according to a few Fool.com contributors, for those seeking passive income in the sector. Here's why this trio of midstream companies could help you create years of passive income.

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 »

Enbridge: A high yielder that's built to last

Reuben Gregg Brewer (Enbridge): The midstream sector is tied at the hip to oil and natural gas producers. But not every pipeline company is the same, and one notable standout is Enbridge. A key corporate goal is to provide the world with the energy it needs. Today, only around 75% of Enbridge's earnings before interest, taxes, depreciation, and amortization (EBITDA) are linked to oil and natural gas pipelines.

That 75% is a solid core, to be sure, given that Enbridge is one of the largest midstream players in North America. And this foundation has handily supported regular dividend increases, with the annual streak now up to three decades. But long-term dividend investors need to pay particular attention to the other 25% of EBITDA.

The rest of the portfolio is split between regulated natural gas utilities and renewable power investments. Both of these businesses provide reliable cash flows, just like pipelines. However, the utility business tends to provide more consistent opportunities for capital investments, while clean energy investment is expected to grow materially in the years ahead. And both natural gas utilities and renewable power are moving Enbridge in the same "cleaner power" direction as the rest of the world. In other words, Enbridge is preparing today for the energy market of tomorrow.

With a huge 5.8% yield, 30 annual dividend increases, and a business that is changing with the energy needs of the world, Enbridge is the kind of dividend stock you buy and hold for the long term.

These dividends should keep growing

Neha Chamaria (Enterprise Products Partners): Enterprise Products Partners is one of the largest midstream energy companies in the U.S., with a massive pipeline network spanning over 50,000 miles. While its large footprint provides critical energy transportation services to the economy, Enterprise Products has judiciously used capital over the decades to grow its business and reward shareholders while maintaining a strong balance sheet.

Enterprise Products has increased its dividend for 26 consecutive years, and its distributable cash flows (DCF) have covered its dividend payout by at least 1.5 times since 2018. Similar to cash flows from operations, DCF is an important metric for master limited partnerships like Enterprise Products, as they are required to distribute a major portion of their income to shareholders in the form of dividends.

This is a great time to invest in Enterprise Products stock. The midstream giant expects major projects worth $6 billion to come online this year. That's nearly 80% of all major projects under construction. As these projects start contributing to the company's earnings and cash flows, Enterprise Products should be in an even stronger position to not only pay regular dividends but also increase them year after year. With the stock also yielding a hefty 6.8%, Enterprise Products is one of the best midstream stocks to buy to earn years of passive income.

A growing pipeline of projects

Matt DiLallo (Kinder Morgan): Kinder Morgan currently clocks in with a dividend yield approaching 4.5%. That high-yielding payout is on a very sustainable foundation. The natural gas pipeline giant generates very stable cash flow, as 95% comes from highly contracted and predictable sources, like long-term fee-based contracts. Meanwhile, the company pays out less than 45% of its stable cash flows in dividends. That enables it to retain significant excess free cash flow to invest in expanding its operations.

The company has $8.8 billion of growth capital projects in its backlog, primarily natural gas pipeline expansions ($8 billion). It currently has projects underway that it expects will enter commercial service by the end of the decade. That gives it a lot of visibility into its ability to grow its cash flow in the coming years.

Kinder Morgan's backlog has ballooned by more than $5 billion over the past year as it has secured several large-scale natural gas expansion projects. Demand for gas is surging these days, fueled by catalysts like AI data centers, the onshoring of manufacturing, and the electrification of transportation. These drivers should enable Kinder Morgan to continue securing additional expansion projects in the coming years.

The pipeline giant's cash flow should grow briskly over the next several years as its growing backlog of expansion projects enters commercial service. That should enable Kinder Morgan to continue increasing its dividend. The company recently raised its payment for the eighth straight year. Given its high yield and growth visibility, Kinder Morgan can certainly create years of passive income for investors.

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

Before you buy stock in Enbridge, 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 Enbridge 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 $623,685!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $701,781!*

Now, it’s worth noting Stock Advisor’s total average return is 906% — a market-crushing outperformance compared to 164% 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 5, 2025

Matt DiLallo has positions in Enbridge, Enterprise Products Partners, and Kinder Morgan. The Motley Fool has positions in and recommends Enbridge and Kinder Morgan. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.

The energy sector can be a great place for investors to collect a lucrative passive income stream. Many energy companies generate lots of excess cash flow, giving them the money to pay hefty dividends. Several companies in the sector also have long dividend growth streaks.

TotalEnergies (NYSE: TTE), Chevron (NYSE: CVX), and Brookfield Renewable (NYSE: BEPC)(NYSE: BEP) stand out to a few Fool.com contributors as excellent energy stocks to buy for passive income. They pay high-yielding and steadily rising dividends. Here's a look at why they could deliver years of passive income.

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

TotalEnergies is acting now so it can thrive through the transition

Reuben Gregg Brewer (TotalEnergies): For most investors, the best way to invest in the energy sector will be to buy an integrated energy company. That's because these businesses have exposure to the entire industry, from the upstream (drilling) through the midstream (pipelines) and into the downstream (chemical and refining). This diversification helps to soften the peaks and valleys of an industry that is known for being volatile. But all of the major integrated energy companies are a little different, with TotalEnergies standing out in a very important way.

In 2020, European peers BP and Shell cut their dividends as they announced plans to increase investment in clean energy assets. TotalEnergies made the same commitment but maintained its dividend. Since that point, both BP and Shell have walked back their clean energy plans. TotalEnergies has increased the pace of its investment in electricity and even created a new division so investors could more easily monitor its progress. The new integrated power division grew operating income 17% in 2024.

Simply put, TotalEnergies is a well run oil and gas company and, increasingly, a well-run clean energy company, too. If you want years of passive income, the French energy giant is positioning itself to not just weather the clean energy transition but also to thrive as the world increases its use of non-carbon fuels. And you can collect a dividend yield of 6%, higher than all but one of its closest peers, if you buy it today. (Note that U.S. investors have to pay French taxes on the dividends they receive, a portion of which can be claimed back when filing U.S. taxes.)

Stress-tested to thrive on lower oil prices

Matt DiLallo (Chevron): Chevron's dividend yield is approaching 5%. That's due to a nearly 20% decline in the oil company's stock price from its recent peak. Shares of the oil giant have sold off because of lower crude prices this year. The price of Brent crude, the global oil benchmark, has fallen more than 10% to around $65 a barrel because of fears that tariffs could slow economic growth and reduce oil demand.

While lower oil prices will have an impact on Chevron's cash flow, they won't affect its ability to continue increasing its high-yielding dividend. The oil giant has stress-tested its business for a downside scenario where Brent averages just $50 a barrel from 2025 through 2027. Under that scenario, Chevron would produce enough cash to cover its investment program and pay a growing dividend with room to spare. Meanwhile, it would have the capacity to buy back shares at the low end of its $10 billion to $20 billion annual target range thanks to its strong balance sheet.

Chevron is on pace to add $9 billion to $10 billion to its annual free cash flow by 2026 in an environment where Brent is in the $60- to $70-a-barrel range. That would enable the company to buy back shares toward the upper end of its target range at the current price point. On top of that, there's additional upside if the company closes its needle-moving acquisition of Hess, which would more than double its free cash flow by 2027 at $70 oil.

Chevron's low-cost production, visible upside catalysts, and strong balance sheet put it in an excellent position to continue increasing its dividend, which it has done for 38 straight years. The oil company has grown its payout faster than the S&P 500 and its closest peer over the past five years. These factors suggest that an investment in Chevron will create a lot of passive income over the years to come.

Riding the renewable energy boom to reward investors

Neha Chamaria (Brookfield Renewable): Brookfield Renewable is one of the largest publicly traded renewable energy companies in the world with a massive portfolio spanning hydropower, wind, solar, and distributed energy and storage. The company also has a large global footprint and is embarking on a big growth journey that should drive its cash flows and dividends higher in the coming years.

To put some numbers to that, Brookfield Renewable is planning to invest $8 billion to $9 billion over the next five years and expects to grow its funds from operations (FFO) per unit by over 10% annually in the long term. That's not an overly ambitious goal if you think it is, simply because almost 6% growth could already be embedded in the company's development pipeline and inflation escalation clauses in its long-term contracts. For those in the know, Brookfield Renewable sells electricity under long-term contracts, and almost 90% of its cash flows are contracted for an average of 14 years.

That also makes Brookfield Renewable's cash flows highly stable and predictable, which is why management has been able to set a goal of increasing its dividend annually by 5% to 9% in the long term. Even a 5% annual dividend growth could create years of passive income for investors if they reinvest the dividends. Investors who own the corporate shares of Brookfield Renewable also get to enjoy a high 5%-plus dividend yield now.

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

Before you buy stock in Chevron, 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 Chevron 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 $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $680,390!*

Now, it’s worth noting Stock Advisor’s total average return is 872% — a market-crushing outperformance compared to 160% 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 April 28, 2025

Matt DiLallo has positions in Brookfield Renewable, Brookfield Renewable Partners, and Chevron. Neha Chamaria has no position in any of the stocks mentioned. Reuben Gregg Brewer has positions in Brookfield Renewable Partners and TotalEnergies. The Motley Fool has positions in and recommends Chevron. The Motley Fool recommends BP, Brookfield Renewable, and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

In what might go down as one of the wildest weeks for investors in stocks in recent history, Newmont (NYSE: NEM) stock offered much respite, with solid and steady gains through the week. Shortly after noon ET Friday, Newmont stock hit a weekly intraday high of 26%, according to data provided by S&P Global Market Intelligence. The S&P 500 (SNPINDEX: ^GSPC), meanwhile, managed to log 6.1% gains, at its intraday best over the past five trading days, through 2 p.m. ET Friday

Newmont stock is riding the wave of fresh enthusiasm in gold stocks amid the stock market turmoil, with one analyst even upgrading the stock's price target by 20%.

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This analyst expects gold prices to rise further

Newmont is the world's largest gold producer, with its mines churning out 6.8 million attributable ounces of gold in 2024. The mining giant also produces silver, copper, zinc, and lead.

As one may guess, Newmont's fortunes depend on commodity prices, and we are witnessing gold's golden days right now. Gold is on fire, with its price hitting a record high this morning and jumping over $3,220 per ounce. Analysts at UBS just predicted gold prices to hit $3,500 per ounce in 2026 as investors flock to the yellow metal amid the tariffs and trade war that have triggered fears of a recession.

At the same time, analyst Daniel Major lifted Newmont stock's rating to buy from neutral and upped its price target to $60 per share from $50 a share. That would mean a 20% upside from the gold stock's closing price of April 10. Major believes Newmont stock could get a lift as the miner achieves its 2025 guidance amid low expectations.

Other gold stocks, however, could rise faster

Newmont stock has hugely underperformed the industry and gold prices in recent years as operational challenges and high costs hit the miner's profits and cash flows. 2024, however, was a strong year for Newmont. Having acquired Newcrest in 2023, Newmont's sales jumped 57% in 2024, and it turned a net profit of $3.4 billion versus a net loss of nearly $2.5 billion in 2023.

Newmont is also cutting debt, and expects to raise net cash proceeds of around $2.5 billion from the sale of some assets this year. A UBS analyst believes the miner could return much of this cash to shareholders in the form of share buybacks.

I'm not too sure here, though. While soaring gold prices should send Newmont's sales up in 2025, I'm still wary about its mining and production costs and expect them to remain high this year. That means other, even smaller, gold stocks, might be able to better exploit gold prices to their advantage and grow faster than Newmont.

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

Before you buy stock in Newmont, 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 Newmont 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 $496,779!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $659,306!*

Now, it’s worth noting Stock Advisor’s total average return is 787% — a market-crushing outperformance compared to 152% 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 April 10, 2025

Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

After hitting a 52-week low of $16.32 per share on April 4, Symbotic (NASDAQ: SYM) stock bounced back and hit a weekly intraday high of 16.1% through 10:30 a.m. ET Friday, according to data provided by S&P Global Market Intelligence.

Turns out, investors lapped up the opportunity to buy shares in the artificial intelligence (AI) automation company amid the stock market rout.

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Why Symbotic stock crashed in recent months

Symbotic develops fully autonomous mobile robots controlled by AI-enabled software to automate warehouses, distribution centers, and supply chains.

Earlier this year, Symbotic acquired Walmart's advanced systems and robotics business and struck a deal with the retail giant to develop and deploy automation systems for 400 accelerated pickup and delivery centers at Walmart stores over the next few years.

Walmart paid $230 million at the deal's closing and will pay another $290 million to Symbotic. Symbotic believes the deal could add $5 billion to its backlog in the long term and open up a new market with an addressable size of over $300 billion in the U.S. alone.

Symbotic stock surged after the Walmart deal but gave up its gains soon after as its operational performance left investors asking for more.

Is this a golden opportunity to buy Symbotic stock?

After growing its revenue by 47% year over year in the fourth quarter, Symbotic reported only 35% revenue growth for its fiscal 2025 first quarter, ended Dec. 31, 2024. Its net loss remained steady, too, at $19 million, and it guided for only around 30% revenue growth for Q2.

However, with Symbotic stock hitting a 52-week low and still down a whopping 55% in one year as of this writing, smart investors saw an opportunity to buy the stock this week.

Symbotic's long-term relationship with Walmart, which dates back to 2015, and a backlog of $22.4 billion as of Sept. 30, 2024, makes it an intriguing AI and robotics play for the long term. There could be bumps along the way though, especially amid the ongoing tariffs and trade war that could disrupt supply chains, increase costs, and slow down business. Symbotic sources raw materials from across the world, including China, Germany, Italy, Sweden, and Mexico.

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*Stock Advisor returns as of April 10, 2025

Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Symbotic and Walmart. The Motley Fool has a disclosure policy.