Elon Musk's rise and fall at the White House
Author and tech journalist Kara Swisher has covered Silicon Valley and Elon Musk for years. She spoke with The National's Adrienne Arsenault about the tech giant's stint with the U.S. government and what could be next.
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Premarket: Global shares slide as Russia-Ukraine conflict, OPEC+ output plan push oil prices higher
Global shares sank on Monday and oil prices jumped as trade tensions and the Russian-Ukraine conflict ratcheted up geopolitical uncertainty. The future for the S&P 500 lost 0.5% while that for the Dow Jones Industrial Average gave up 0.4%. Germany's DAX retreated 0.4% to 23,891.11 and the CAC 40 in Paris declined 0.5% to 7,712.40. British FTSE 100 gained 1% to 8,778.84. In Asia, Hong Kong's Hang Seng initially plunged more than 2% as Beijing and Washington traded harsh words over trade. U.S. President Donald Trump's announcement that he will double tariffs on steel and aluminum to 50% layered on still more worries for investors. But the Hang Seng closed just 0.6% lower, at 23,157.97. Markets in mainland China were closed for a holiday. China blasted the U.S. for issuing AI chip export control guidelines, stopping the sale of chip design software to China, and planning to revoke Chinese student visas. A report over the weekend that China's factory activity contracted in May, although the decline slowed from April as the country reached a deal with the U.S. to slash President Donald Trump's sky-high tariffs, further undermined market sentiment. Oil prices rallied after OPEC+ decided on a modest increase in output beginning in July. It was the third monthly increase in a row. U.S. benchmark crude oil gained $2.08 to $62.87 per barrel, while Brent crude, the international standard, was up $1.75 at $64.53 per barrel. Moscow pounded Ukraine with missiles and drones just hours before a new round of direct peace talks in Istanbul and a Ukrainian drone attack destroyed more than 40 Russian planes deep in Russia's territory, Ukraine's Security Service said on Sunday. Hong Kong's Hang Seng dropped 0.6% to 23,157.97 as China and the U.S. accused each other of breaching their tariff agreement reached in Geneva last month. Tokyo's Nikkei 225 lost 1.3% to 37,470.67, while the Kospi in Seoul added 0.1% to 2,698.97. Australia's S&P/ASX 200 retreated 0.2% to 8,414.10. India's Sensex lost 0.4% while the Taiex in Taiwan fell 1.6%. On Friday, Wall Street closed its best month since 2023. The S&P 500 retreated less than 0.1% and the Dow Jones Industrial Average edged 0.1% higher. The Nasdaq composite fell 0.3%. Hopes had largely been rising that the worst of such worries had passed, which in turn sent stocks rallying, after Trump paused his tariffs on both China and the European Union. A U.S. court then on Wednesday blocked many of Trump's sweeping tariffs. That all sent the S&P 500 in May to its first winning month in four and its best since November. But the tariffs remain in place while the White House appeals the ruling by the U.S. Court of International Trade, and the ultimate outcome is still uncertain. In the bond market, Treasury yields eased after a report showed that the measure of inflation that the Federal Reserve likes to use was slightly lower in April than economists expected. A separate report from the University of Michigan said that sentiment among U.S. consumers was better in May than economists expected. Sentiment improved in the back half of the month after Trump paused many of his tariffs on China. In currency trading early Monday, the U.S. dollar fell to 142.91 Japanese yen from 143.87 yen. The euro inched up to $1.1421 from $1.1351. The Associated Press
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Wondering If UPS' 6.7%-Yielding Dividend Is Sustainable? Here's What You Need to Know.
I've read several articles recently suggesting that United Parcel Service (NYSE: UPS) should cut its dividend. The reasoning is that the world's largest package delivery company could create more value for shareholders if it did. While the idea of a dividend cut might be appealing to some, I suspect many income investors won't like it one bit. If you're in that group, you might be wondering if UPS' 6.7%-yielding dividend is sustainable. Here's what you need to know. Reasons for concern If UPS already had ample financial flexibility to fund its dividend and invest in growth, you probably wouldn't hear anyone talk about a potential dividend cut. The reality, though, is that there are some reasons for concern. Let's start with the dividend payout ratio. The closer this ratio is to 100%, the more precarious a company's dividend is. UPS' dividend payout ratio is a little over 95%. However, sometimes dividend payout ratios can be misleading. Why? They're based on earnings, which don't always give the best picture of a company's ability to fund its dividend program. Earnings can be weighed down by non-cash charges such as amortization and depreciation. A better metric to look at is free cash flow. In the first quarter of 2025, UPS generated free cash flow of nearly $1.5 billion. It paid $1.35 billion in dividends during the quarter. The company's payout ratio based on free cash flow is 90%. That gives UPS a little more breathing room to pay its dividend, but it's still not great. I also noticed that UPS Carol Tomé didn't talk about the dividend in the Q1 earnings call. But in the 2024 Q4 call, she said that the company had "plenty of liquidity to pay the dividend." It could be reading something between the lines that isn't there, but the absence of any discussion about management's commitment to the dividend could trigger a not-so-warm-and-fuzzy feeling for some income investors. Encouraging news Want some encouraging news for income investors? I have some for you. UPS' decision to slash its Amazon shipping volume in half by mid-2026 will help in several ways. The company plans to reduce total operational hours by roughly 25 million hours. It's cutting around 20,000 positions this year. UPS is closing 73 buildings by the end of June, with a total of 164 closures in the first phase of its network reconfiguration. Granted, reducing shipments for Amazon will also result in lower revenue. However, the reason behind the move was that this business isn't very profitable. UPS expects its operating margin and profitability to increase as a result of the Amazon glide-down. In addition, the package delivery giant has embarked on a major efficiency improvement project. UPS is using robots to automate label application, sorting, unloading and loading trailers, and more. By the end of 2025, the company expects to have 400 facilities partially or fully automated. With both the Amazon reductions and the efficiency improvements, UPS thinks it's on track to cut costs by $3.5 billion in 2025. This should boost free cash flow to some extent. The Trump administration's tariffs might not hurt UPS as much as anticipated, either. The U.S. International Court of Trade and the U.S. District Court for the District of Columbia ruled last week that the president can't unilaterally impose some tariffs based on the International Economic Emergency Powers Act (IEEPA). Although the tariffs remain in place while the administration appeals the decisions, these court rulings could be upheld. Is UPS' dividend sustainable? So, is UPS' juicy dividend sustainable? I think so. That doesn't mean the company's board of directors won't ultimately decide to cut the dividend. However, at least for now, they don't necessarily have to make that call. And if the Amazon glide-down and efficient improvement initiatives pay off as much as expected, maybe UPS won't have to seriously consider a dividend cut for a long time to come, if ever. Should you invest $1,000 in United Parcel Service right now? Before you buy stock in United Parcel Service, 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 United Parcel Service 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 is979% — a market-crushing outperformance compared to171%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 19, 2025
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1 Top Dividend Growth Stock to Buy Right Now
For many investors, dividends can become a realistic source of income after retirement. For example, if you owned $1 million worth of Realty Income (NYSE: O) at its current yield of 5.7%, you would generate $4,750 per month or $57,000 in cash every year without having to work. That's significantly more than the U.S. median income of $42,220. To be fair, most Americans don't have $1 million in cash lying around. However, accumulating this amount of money is very doable over the long term. The key is starting early and taking advantage of the power of aggressive saving and compounding interest. 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 » Let's explore why Realty Income could be an excellent addition to a balanced investment portfolio. Slow and steady wins the race It can be tempting to pour money into the most exciting asset classes like cryptocurrencies, leveraged exchange-traded funds (ETFs), or penny stocks. However, the losses from these high-risk strategies can often overshadow the gains, leading to a lower-than-expected long-term return. Real estate investment trusts (REITs) operate under a completely different value proposition: Slow and steady wins the race. Realty Income is the quintessential example of how this works. Since its listing on the New York Stock Exchange in 1994, the company has generated a compound annual total return of 13.6% through a combination of dividend payouts and growth in its stock price. Returns have been around 4x higher than the S&P 500 index, which tracks a basket of leading stocks. O Total Return Level data by YCharts. A diversified and stable portfolio The economy is notoriously unpredictable, especially over the long term. While dominant companies like Apple, Google, and Netflix look unbeatable today, investors don't know if they will become the IBM, Blockbuster, or General Electric of the future. That said, when it comes to consumer-facing real estate, investors can sleep a little easier. Real estate has a strong economic moat because it offers one of the key inputs other businesses need to survive. If a record store goes under, it can be replaced by a Blockbuster. And when that goes bankrupt, it can be replaced by an H&R Block office. Realty Income builds upon the industry's natural advantages by focusing on clients that supply consumer staple goods that will remain in demand no matter what is happening in the economy. Top clients include grocery stores, convenience stores, and dollar stores, which sell low-cost, necessary items like food and toiletries. Realty Income boasts a remarkably high occupancy rate of 98.5%, which speaks to the quality of its tenants. It boosts safety even further by using net lease agreements, where the tenant is responsible for many of the property's operating expenses, like taxes, maintenance, and insurance. Realty Income is a strong buy With a combination of safety, longevity, and a high yield, Realty Income is an excellent pick for investors who want sustainable long-term income and peace of mind in the stock market. But the icing on the cake comes from the company's growth potential. While Realty Income is already a $50 billion company, it still has plenty of room for expansion in the $22.5 trillion U.S. commercial real estate market. Management is also targeting international opportunities in continental Europe and the United Kingdom, where it serves household names such as the well-known supermarket chains Sainsbury's and ASDA. Historically, Realty Income has grown its dividend payout by an average of 4.3% annually since its listing in 1994. It looks capable of maintaining this track record for decades into the future. 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 $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 is979% — a market-crushing outperformance compared to171%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 19, 2025
