OKP Holdings First Half 2025 Earnings: EPS: S$0.062 (vs S$0.039 in 1H 2024)

2 Top Dividend Stocks Duke It Out. Which Is Better?

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2 Top Dividend Stocks Duke It Out. Which Is Better?

Key Points On top of its regular dividend, Costco also occasionally pays out a much bigger special dividend. Both companies increased their dividend this year. Valuation is ultimately what makes one stock a better buy than the other. 10 stocks we like better than Alphabet › When investors think about dividend stocks, they usually start with high-yielding names. Utilities, telecoms, and big consumer staples often dominate the conversation. But sometimes the best dividend opportunities come from companies with low payouts. That's where membership-based wholesale retailer Costco (NASDAQ: COST) and Google parent Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) come in. Both yield less than 1%, making them easy to dismiss for income. Yet, both are outstanding businesses with excellent dividend growth prospects. Costco, specifically, delivers incredible stability and even pays occasional special dividends on top of its regular dividend. Meanwhile, Alphabet has a brand-new payout and is one of the cheapest valuations among big tech. But which one of these two dividend growth stocks edges out the other when compared head-to-head? Costco: Dependable income at a high price Costco has a reputation for consistency, and its dividend reflects that. The company's payout is below 30%, leaving plenty of room for business reinvestment and steady dividend increases over time. Additionally, Costco has increased its dividend every year for more than two decades, with an annual growth rate of around 13% in recent years. The latest raise came this spring, when management boosted the quarterly dividend to $1.30. That puts the annual payout at $5.20 and the dividend yield at roughly 0.5%. Notably, Costco offers more than just its regular dividend. From time to time, the company pays special dividends, too. In early 2024, for instance, shareholders received a $15 special dividend. These extra payouts can make a big difference for long-term holders, even though they come only occasionally. The issue with Costco, however, is the stock's valuation. Shares trade at more than 50 times earnings, a very high multiple for a stock that grew its sales and earnings per share 8% and 13%, respectively, in its most recent quarter. That premium reflects both the quality of the business and investors' willingness to pay up for its reliability. But such a lofty valuation leaves little margin for error. Even though sales and earnings continue to grow at a healthy pace, today's stock price already bakes in years of strong performance. Investors buying now should expect modest returns from here unless Costco delivers upside surprises. Alphabet: Small yield, big upside Alphabet only started paying a dividend in 2024, so it doesn't have Costco's long track record. The payout is small, with an annual dividend of $0.84 per share and a yield of around 0.4%. But the payout ratio is less than 10%. That leaves huge room for growth if management decides to raise the dividend in future years. The company is also aggressively investing in its business (perhaps explaining why management increased its dividend by only 5% this year). Capital expenditures are surging as Alphabet builds out its artificial intelligence (AI) and cloud infrastructure. Sure, this has weighed on free cash flow in the short term. But investors should remember that these investments are aimed at capturing long-term growth opportunities. Making the case for Alphabet stock even stronger, the internet search and cloud computing company's growth story benefits from a diversified set of key revenue sources -- and they're all doing well. Alphabet's advertising business remains strong, YouTube continues to expand, and Google Cloud is gaining ground. Unlike Costco, valuation is a bright spot for Alphabet. Shares trade at about 21 times forward earnings -- a much lower multiple than tech peers like Microsoft and Meta and far below Costco. That's unusual for a company still posting strong double-digit growth in both revenue and profits. Revenue and operating income both increased 14% year over year in the company's second quarter of 2025. With earnings growth like this, Alphabet could ramp up its dividend in a big way down the road (though it might have to get through a period of high capital expenditures first as it invests aggressively in growth). A clear winner Costco and Alphabet may both look like low-yield stocks, but they represent two very different kinds of dividend investments. Costco is the steady option. It offers a safe payout, regular increases, and the occasional special dividend. But investors pay a steep price for that safety, which limits future returns. Alphabet, by contrast, has only just begun rewarding shareholders with dividends. The yield is tiny but could grow substantially over time. More importantly, the tech stock's valuation is much cheaper than Costco's. For investors willing to accept a small payout today in exchange for better long-term potential, Alphabet is the clear winner. Should you invest $1,000 in Alphabet right now? Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Alphabet 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 $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% 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 August 13, 2025 Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Costco Wholesale, Meta Platforms, and Microsoft. The Motley Fool 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. 2 Top Dividend Stocks Duke It Out. Which Is Better? was originally published by The Motley Fool

Warren Buffett Is Selling Apple and Bank of America Stock and Piling Into an Embattled Healthcare Stock Down 46% This Year

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2 hours ago

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Warren Buffett Is Selling Apple and Bank of America Stock and Piling Into an Embattled Healthcare Stock Down 46% This Year

Key Points Warren Buffett and Berkshire Hathaway's team of investors continued a recent trend in trimming down their positions in Apple and Bank of America. Apple is Berkshire's top holding, while Bank of America is the large conglomerate's third-largest holding. Berkshire's biggest buy in the quarter involved a beaten-down health insurance stock. 10 stocks we like better than UnitedHealth Group › Each quarter, investors anxiously await Warren Buffett's company Berkshire Hathaway filing its 13F filing with the Securities and Exchange Commission, divulging what stocks Berkshire held at the end of the quarter, and, therefore, what stocks the company bought and sold in any given quarter. Investors are always looking for a glimpse into the genius of Buffett and his team of investors, especially with Buffett set to step down as CEO of the company at the end of the year. While Berkshire has been quiet in recent quarters, the large conglomerate made some notable moves in the second quarter. Berkshire recently sold some shares in two of its largest positions, while piling into an embattled healthcare stock that has struggled immensely this year. Trimming Apple and Bank of America In the second quarter, Berkshire continued to trim its largest position, Apple (NASDAQ: AAPL), and its third-largest holding, Bank of America (NYSE: BAC). In the quarter, Berkshire sold 7% of its stake in Apple and 4% of its stake in Bank of America. Over the past year, Berkshire has reduced its stake in Apple by 30% and Bank of America by 41%. While the bull market has raged for more than 2.5 years, Berkshire has plodded along conservatively, hoarding hundreds of billions of dollars in cash and cash equivalents, selling more stocks than it buys, and even turning away from share repurchases more recently. Given stretched valuations and the stock market's big run, many investors simply think Buffett and his team are not seeing compelling opportunities. There's also talk that Berkshire is staying conservative to prepare for the big transition that will see Buffett step down as CEO but retain his role as chairman of the board of directors. Longtime Berkshire veteran Greg Abel is set to step into Buffett's big shoes. Berkshire's stock got off to a terrific start this year but has floundered since the transition was announced. Apple has been dealing with tariff-related issues all year. Buffett and Berkshire may have foreseen this once President Donald Trump won the election, leading them to pare back their position. If Berkshire is concerned about the economy, perhaps paring back some of their bank holdings makes sense as well, as banks are typically cyclical. Playing contrarian on this healthcare giant In the second quarter, Berkshire initiated a $1.57 billion position in the nation's largest healthcare insurer, UnitedHealth Group (NYSE: UNH). UnitedHealth's stock has been crushed this year and is down about 46%. However, after the news came out about Berkshire buying the stock, shares increased close to 9.5% in after-hours trading. UnitedHealth has dealt with a flurry of issues this year, including higher medical insurance costs, which is a common trend across the sector. In the second quarter, management at UnitedHealth revised its prior full-year outlook down to $16 adjusted earnings per share, significantly below Wall Street's consensus estimates coming into the year. The main culprit is medical costs, which management thinks will come in $6.5 billion higher than previously expected. The sector has struggled in the face of an aging population, higher utilization of and more expensive services, higher drug prices, and inflation. Additionally, the U.S. Department of Justice (DOJ) is probing UnitedHealth in a criminal investigation over the way it charges customers in its Medicare Advantage program. The Wall Street Journal has previously reported on suspicious billing practices that allegedly increase payouts to the company. In a statement in late July, UnitedHealth said it is cooperating with the DOJ but has "full confidence in its practices and is committed to working cooperatively with the Department throughout this process." At their core, Buffett and his team are value investors, meaning they look for stocks with a market value below a company's perceived intrinsic value. While UnitedHealth has struggled and is forecasting a significant earnings decline this year, management is still projecting double-digit revenue growth in 2025. Furthermore, the company's balance sheet seems to be on solid footing. Sure, the company has high debt, but through the first six months of the year, earnings from operations of about $14.3 billion are still more than 7 times debt interest expense. Additionally, UnitedHealth's dividend yield is now roughly 3.25%, while the company's trailing free-cash-flow yield is above 10%, showing the company can easily cover the dividend for the foreseeable future. In fact, UnitedHealth recently increased its quarterly dividend by 5%. Ultimately, UnitedHealth trades at a lower-than-usual forward price-to-earnings ratio, despite expectations of much lower earnings this year, and at less than 1 times revenue. Buffett and his team value strong moats, so with UnitedHealth still controlling market share in the healthcare insurance industry, they likely see an attractive risk-reward proposition. Should you buy stock in UnitedHealth Group right now? Before you buy stock in UnitedHealth Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and UnitedHealth Group 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 $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% 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 August 13, 2025 Bank of America is an advertising partner of Motley Fool Money. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy. Warren Buffett Is Selling Apple and Bank of America Stock and Piling Into an Embattled Healthcare Stock Down 46% This Year was originally published by The Motley Fool

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3 hours ago

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Warren Buffett Is Selling Apple and Bank of America Stock and Piling Into an Embattled Healthcare Stock Down 46% This Year

Key Points Warren Buffett and Berkshire Hathaway's team of investors continued a recent trend in trimming down their positions in Apple and Bank of America. Apple is Berkshire's top holding, while Bank of America is the large conglomerate's third-largest holding. Berkshire's biggest buy in the quarter involved a beaten-down health insurance stock. 10 stocks we like better than UnitedHealth Group › Each quarter, investors anxiously await Warren Buffett's company Berkshire Hathaway filing its 13F filing with the Securities and Exchange Commission, divulging what stocks Berkshire held at the end of the quarter, and, therefore, what stocks the company bought and sold in any given quarter. Investors are always looking for a glimpse into the genius of Buffett and his team of investors, especially with Buffett set to step down as CEO of the company at the end of the year. While Berkshire has been quiet in recent quarters, the large conglomerate made some notable moves in the second quarter. Berkshire recently sold some shares in two of its largest positions, while piling into an embattled healthcare stock that has struggled immensely this year. Trimming Apple and Bank of America In the second quarter, Berkshire continued to trim its largest position, Apple (NASDAQ: AAPL), and its third-largest holding, Bank of America (NYSE: BAC). In the quarter, Berkshire sold 7% of its stake in Apple and 4% of its stake in Bank of America. Over the past year, Berkshire has reduced its stake in Apple by 30% and Bank of America by 41%. While the bull market has raged for more than 2.5 years, Berkshire has plodded along conservatively, hoarding hundreds of billions of dollars in cash and cash equivalents, selling more stocks than it buys, and even turning away from share repurchases more recently. Given stretched valuations and the stock market's big run, many investors simply think Buffett and his team are not seeing compelling opportunities. There's also talk that Berkshire is staying conservative to prepare for the big transition that will see Buffett step down as CEO but retain his role as chairman of the board of directors. Longtime Berkshire veteran Greg Abel is set to step into Buffett's big shoes. Berkshire's stock got off to a terrific start this year but has floundered since the transition was announced. Apple has been dealing with tariff-related issues all year. Buffett and Berkshire may have foreseen this once President Donald Trump won the election, leading them to pare back their position. If Berkshire is concerned about the economy, perhaps paring back some of their bank holdings makes sense as well, as banks are typically cyclical. Playing contrarian on this healthcare giant In the second quarter, Berkshire initiated a $1.57 billion position in the nation's largest healthcare insurer, UnitedHealth Group (NYSE: UNH). UnitedHealth's stock has been crushed this year and is down about 46%. However, after the news came out about Berkshire buying the stock, shares increased close to 9.5% in after-hours trading. UnitedHealth has dealt with a flurry of issues this year, including higher medical insurance costs, which is a common trend across the sector. In the second quarter, management at UnitedHealth revised its prior full-year outlook down to $16 adjusted earnings per share, significantly below Wall Street's consensus estimates coming into the year. The main culprit is medical costs, which management thinks will come in $6.5 billion higher than previously expected. The sector has struggled in the face of an aging population, higher utilization of and more expensive services, higher drug prices, and inflation. Additionally, the U.S. Department of Justice (DOJ) is probing UnitedHealth in a criminal investigation over the way it charges customers in its Medicare Advantage program. The Wall Street Journal has previously reported on suspicious billing practices that allegedly increase payouts to the company. In a statement in late July, UnitedHealth said it is cooperating with the DOJ but has "full confidence in its practices and is committed to working cooperatively with the Department throughout this process." At their core, Buffett and his team are value investors, meaning they look for stocks with a market value below a company's perceived intrinsic value. While UnitedHealth has struggled and is forecasting a significant earnings decline this year, management is still projecting double-digit revenue growth in 2025. Furthermore, the company's balance sheet seems to be on solid footing. Sure, the company has high debt, but through the first six months of the year, earnings from operations of about $14.3 billion are still more than 7 times debt interest expense. Additionally, UnitedHealth's dividend yield is now roughly 3.25%, while the company's trailing free-cash-flow yield is above 10%, showing the company can easily cover the dividend for the foreseeable future. In fact, UnitedHealth recently increased its quarterly dividend by 5%. Ultimately, UnitedHealth trades at a lower-than-usual forward price-to-earnings ratio, despite expectations of much lower earnings this year, and at less than 1 times revenue. Buffett and his team value strong moats, so with UnitedHealth still controlling market share in the healthcare insurance industry, they likely see an attractive risk-reward proposition. Should you buy stock in UnitedHealth Group right now? Before you buy stock in UnitedHealth Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and UnitedHealth Group 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 $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% 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 August 13, 2025 Bank of America is an advertising partner of Motley Fool Money. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy. Warren Buffett Is Selling Apple and Bank of America Stock and Piling Into an Embattled Healthcare Stock Down 46% This Year was originally published by The Motley Fool Sign in to access your portfolio

OKP Holdings First Half 2025 Earnings: EPS: S$0.062 (vs S$0.039 in 1H 2024)

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2 Top Dividend Stocks Duke It Out. Which Is Better?

Warren Buffett Is Selling Apple and Bank of America Stock and Piling Into an Embattled Healthcare Stock Down 46% This Year

Warren Buffett Is Selling Apple and Bank of America Stock and Piling Into an Embattled Healthcare Stock Down 46% This Year

OKP Holdings First Half 2025 Earnings: EPS: S$0.062 (vs S$0.039 in 1H 2024)

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2 Top Dividend Stocks Duke It Out. Which Is Better?

Warren Buffett Is Selling Apple and Bank of America Stock and Piling Into an Embattled Healthcare Stock Down 46% This Year

Warren Buffett Is Selling Apple and Bank of America Stock and Piling Into an Embattled Healthcare Stock Down 46% This Year

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