Latest news with #growthstocks
Yahoo
2 days ago
- Business
- Yahoo
Could Buying Vanguard Dividend Appreciation ETF Today Set You Up for Life?
Vanguard Dividend Appreciation ETF attempts to use dividends to identify growth stocks. The ETF's yield is 1.8%, which is somewhat higher than the S&P 500 index's 1.3%. Investors looking for income will want to think carefully before buying the Vanguard Dividend Appreciation ETF. 10 stocks we like better than Vanguard Dividend Appreciation ETF › Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) is an interesting exchange-traded fund (ETF). It has the word dividend in the name, but it really doesn't have a high yield at around 1.8%. Is this an ETF that could set you up for life, or would it actually set you up for disappointment? Here's what you need to know. The Vanguard Dividend Appreciation ETF tracks the S&P U.S. Dividend Growers Index. This index is fairly simple. First, it pulls out all of the U.S. companies that have increased their dividends for at least 10 consecutive years. And then it removes the 25% with the highest dividend yields because these companies have a greater chance of being yield traps that could potentially cut their payouts. Everything else gets into the index and into the Vanguard Dividend Appreciation ETF. The stocks are market-cap-weighted, so the largest companies have the greatest impact on performance. When you step back and examine the ETF's name, Vanguard Dividend Appreciation ETF pretty much does what it says it does. Even eliminating the highest-yielding 25% of investment candidates is logical, given that it likely removes stocks that are at the highest risk of a dividend cut. So, if you want to own a diversified collection of stocks that increase their dividends regularly, Vanguard Dividend Appreciation could set you up for a lifetime of doing just that. But is it the best exchange-traded fund for you? That's a different question. For starters, Vanguard Dividend Appreciation's 1.8% dividend yield is higher than what you'd get from an S&P 500 (SNPINDEX: ^GSPC) ETF like Vanguard S&P 500 ETF (NYSEMKT: VOO), which has a 1.3% or so yield. But 1.8% is hardly a large yield on an absolute basis. You could do better with Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD), which has a roughly 4% yield. Schwab U.S. Dividend Equity ETF also picks from the U.S. stocks that have increased dividends for 10 years. But it layers on a screening process that focuses on buying high-quality, growing businesses with attractive yields. It leans more toward yield than the Vanguard Dividend Appreciation ETF, making the Schwab U.S. Dividend Equity ETF a better choice if you are looking for income. What about "appreciation," for those more interested in total return? Looking at Vanguard Dividend Appreciation ETF's total return versus the Vanguard S&P 500 ETF paints an ugly picture. As the chart below highlights, just buying the S&P 500 index would have resulted in a notable improvement in total return. All in, you can do better on the yield front than Vanguard Dividend Appreciation ETF with a more refined investment approach like the one offered by Schwab U.S. Dividend Equity ETF. And you can do better on the total return front with a simple S&P 500 tracking ETF. Since dividends and appreciation are the two main reasons to buy Vanguard Dividend Appreciation ETF, it doesn't come across as a compelling buy. To be fair, Vanguard Dividend Appreciation ETF isn't a horrible ETF. It will likely continue to provide investors with a modest level of dividends and some capital appreciation over time. You probably wouldn't be making a huge mistake buying it if you like to focus on companies that regularly increase their dividends. However, if you are looking to maximize either income or capital appreciation, there are clearly better options out there. Before you buy stock in Vanguard Dividend Appreciation ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Dividend Appreciation ETF 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 $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — 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 . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard Dividend Appreciation ETF and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy. Could Buying Vanguard Dividend Appreciation ETF Today Set You Up for Life? was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
The Smartest Growth Stock to Buy With $5,000 Right Now
This stock offers four businesses in one. Each of these businesses is in either a prosperity or recovery mode. A rising revenue growth rate coupled with a low valuation should bode well for investors. 10 stocks we like better than Advanced Micro Devices › Investors tend to gravitate to growth stocks they perceive as smart. Indeed, the idea of a smart stock can depend heavily on one's point of view. Still, most would agree that buying a wonderful company at a fair price, as Warren Buffett advises, would qualify a stock as such a pick. This may be especially true of an investor who has $5,000 to put in a growth stock, as even that relatively modest sum could grow significantly in size with the right investment. One stock that arguably fits those criteria is Advanced Micro Devices (NASDAQ: AMD). Since Lisa Su took over as CEO in 2014, the company has recovered from the brink of bankruptcy and become a top semiconductor stock. Amid the artificial intelligence (AI) revolution and the soaring demand for chips, the company and its shareholders should prosper; here's why. AMD has evolved since its founding in 1969, but Su turned it into a company focused primarily on CPUs and GPUs. To that end, AMD is now four chip-related enterprises under one umbrella. The largest segment is its data center business, which accounted for half of the company's revenue in the first quarter of 2025. It designs CPUs and GPUs to handle workloads and create its AI accelerators, which help power workloads in that fast-growing segment. That led to a 57% year-over-year revenue growth rate in Q1. Approximately 30% of the company's revenue comes from the client segment. It designs chips for desktops, laptops, and handheld computers. In Q1, revenue rose 68% annually as customers took to its Zen 5 Ryzen processors and other offerings. Its embedded segment generates about 11% of the company's revenue. It designs chips that perform specific functions within larger systems. The remaining 9% of AMD's revenue is from its gaming segment. It makes CPUs and GPUs designed for gaming purposes, and its chips power Sony's PlayStation and the Microsoft Xbox. The company has benefited from rapid growth in the data center and client businesses amid soaring demand for such chips. That is how they became more than 80% of AMD's revenue. Unfortunately, the stock suffered as its embedded and gaming businesses languished in down cycles. Fortunately, embedded revenue declined by only 3% in Q1 as some signs of rising demand have finally emerged. Gaming suffered as previously locked-down gamers resumed offline activities. Also, Sony and Microsoft have not updated their consoles in a few years, leaving consumers with fewer reasons to buy. Nonetheless, gaming's 30% revenue drop in Q1 is less severe than in previous years, a sign that its decline may finally come to an end soon. Thanks to signs of improvement from its lagging sectors, AMD's revenue growth is on the rise. In the first quarter of 2025, revenue of $7.4 billion grew 36% year over year. In comparison, revenue growth in Q1 2024 was only 2%, showing a vast improvement over just one year. Moreover, costs and expenses grew at a slower pace than revenue. Consequently, AMD's quarterly net income of $709 million was far above the $123 million it earned in the year-ago quarter. Indeed, looking forward to Q2, AMD may not quite match its Q1 revenue growth rate. The company forecasts Q2 revenue to be between $7.1 billion and $7.7 billion. That would amount to 27% year-over-year revenue growth at the midpoint. However, the increased likelihood that the stock has bottomed should bode well for investors who buy now. AMD is down by approximately 50% from its all-time high in early 2024 but has surged 50% since bottoming in early April. And despite that considerable short-term gain, its valuation remains attractive. AMD sells at a P/E ratio of 85 thanks to lower earnings in past quarters. Still, with its earnings recovery more recently, its forward P/E ratio is 29. Considering its rapid revenue and earnings growth, investors may view that valuation as a bargain. Ultimately, AMD's business and its burgeoning recovery appear to make it the smartest growth stock to buy at this time. For one, the 50% discount from the all-time high and the low forward P/E ratio make the stock attractively priced for buyers. Aside from those attributes, the bad news seems to be abating. The data center and client segments have benefited from strong growth. Additionally, the embedded segment appears poised to return to a growth mode, and despite the significant declines in the gaming segments, conditions may finally be on track to get better. Thanks to such improvements, AMD's overall revenue growth rate has increased. As that rising revenue leads to accelerating profit levels, investing $5,000 in AMD stock looks more like an intelligent decision. Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Advanced Micro Devices 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 $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — 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 . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Will Healy has positions in Advanced Micro Devices. The Motley Fool has positions in and recommends Advanced Micro Devices 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. The Smartest Growth Stock to Buy With $5,000 Right Now was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
2 days ago
- Business
- Globe and Mail
Tesla Stock or Palantir Stock? The Best Growth Stock to Buy Now.
Tesla (NASDAQ: TSLA) and Palantir (NASDAQ: PLTR) are two of the most popular growth stocks on the global market. *Stock prices used were the afternoon prices of May 28, 2025. The video was published on May 30, 2025. 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 » Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $360,955!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $37,958!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $638,985!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon. See the 3 stocks » *Stock Advisor returns as of May 19, 2025 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies and Tesla. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
Yahoo
2 days ago
- Business
- Yahoo
3 Top Canadian Stocks With Healthy Growth Prospects
Written by Rajiv Nanjapla at The Motley Fool Canada The S&P/TSX Composite Index has rebounded strongly from its April lows, rising 18.2%. Easing trade tensions and favourable commentary from the Organization for Economic Co-operation and Development (OECD) on the Canadian economy have improved investors' sentiments, driving the equity markets higher. Amid rising investor confidence, I am bullish on the following three stocks, which offer healthier growth prospects. Dollarama (TSX:DOL) is a discount retailer operating 1,616 stores across Canada, with 85% of Canadians having at least one store within a 10-kilometre vicinity. The company's superior direct-sourcing model, purchasing capabilities, and efficient logistics system have helped reduce its expenses, enabling it to offer a wide array of products to its customers at competitive prices. Therefore, the Montreal-based retailer enjoys healthy same-store sales even in challenging environments. Supported by its healthy and reliable financials, the company has delivered returns of approximately 4,580% over the last 15 years, at an annualized rate of 29.2%. Moreover, Dollarama expects to increase its store network to 2,200 by the end of fiscal 2034. Considering its capital-efficient model, quick sales ramp-up, and lower store network maintenance capex requirements, these expansions could boost both its top and bottom lines. The retailer also has solid exposure to the Latin American market, with a 60.1% stake in Dollarcity, which operates 632 discount stores across the region. Meanwhile, Dollarcity continues to expand its store network, aiming to reach 1,050 by the end of fiscal 2032. Dollarama can also increase its stake to 70% by exercising its option by 2027. Furthermore, Dollarama is venturing into the Australian retail market through the acquisition of the Reject Shop. The company is working on acquiring the Australian discount retailer for $233 million and expects to complete the deal in the second half of this year. Considering these growth prospects, I am bullish on Dollarama. Second on my list would be Shopify (TSX:SHOP), which had reported a healthy first-quarter performance earlier this month. Its GMV (gross merchandise value) grew 23% to $74.8 billion, driven by the expansion of its customer base and same-store sales growth among existing merchants. Also, its topline grew 26.8% amid strong performance from subscription and merchant solutions. Despite the topline growth, the company incurred a net loss of $682 million, mainly due to a $900 million decline in its equity investments. Removing these one-time expenses, its adjusted EPS (earnings per share) stood at $0.25, a 25% increase from the previous year's quarter. Meanwhile, more small and medium-sized businesses are adopting an omnichannel selling model, thereby driving demand for Shopify's products and services. The company is developing innovative and artificial intelligence (AI)-powered products, venturing into new markets, and growing the penetration of its Shopify Payments, which could support its topline growth. The company is also utilizing AI to enhance its operational capabilities and improve operational efficiency. Considering all these factors, I believe the uptrend in Shopify's financials will continue, which will support its stock price growth. My final pick would be Celestica (TSX:CLS), which has witnessed solid buying over the last weeks, rising 98% from its previous month's lows. The company's impressive first-quarter performance and improving investors' sentiments have driven its stock price. In the recently reported first-quarter earnings, its revenue and adjusted EPS grew 20% and 44.6%, respectively. Meanwhile, the growing use of AI has increased AI-related investments, thereby driving demand for Celstica's storage and networking products. Additionally, the company is focusing on product innovation to launch new products that meet the growing needs of its customers and strengthen its market position. Despite the recent increase in its stock price, the Toronto-based company still trades at a reasonable NTM (next 12 months) price-to-sales multiple of 1.2, making it an excellent buy. The post 3 Top Canadian Stocks With Healthy Growth Prospects appeared first on The Motley Fool Canada. Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $50 a share. Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune. Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now. Claim your FREE 5-stock report now! More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy. 2025
Yahoo
2 days ago
- Business
- Yahoo
2 Growth Stocks to Scoop Up Now and Build Wealth for Generations
Written by Joey Frenette at The Motley Fool Canada Despite all the tariff jitters and economic headwinds, the TSX Index is off to a pretty good start to the year, with the index up more than 5% so far, better than the S&P 500, which is just shy of 1% higher year to date. Though it's tough to tell what the second half holds, I do think the odds favour the TSX Index as investors look to pay more attention to the value trade while trimming profits from the recent tech relief run. In this piece, we'll check in on a few growth stocks that could still stand tall over the next two to three years. Though the tech trade is getting hotter again, the following names, I believe, seem to still have valuations that are punching well below their weight class. Without further ado, let's check out two growth stocks that could help TFSA investors build generational wealth. Constellation Software (TSX:CSU) is starting to become a must-watch growth stock for young investors looking to build wealth over the decades. Undoubtedly, the stock looks quite pricey on the surface, now going for more than 100 times trailing price-to-earnings (P/E). That's lofty, even for a firm with a proven track record of growing earnings and sales via smart, strategic M&A. Though a premium is warranted on the name, I'd much rather wait for a steeper pullback before getting aggressive with hitting the buy button. With the stock up a modest 10% year to date, shares are faring quite well, at least compared to some of the choppier high-tech plays south of the border. In the second half, investors should look for Constellation to get a bit more active on the acquisition front, especially as AI becomes a bigger needle-mover for small software companies (prime takeover targets for a firm like Constellation). Perhaps Constellation is wise to be a bit quieter with M&A in the first half, given the recent volatility and tariff hailstorm that could continue to weigh most heavily on the tech sector. Alphabet (NASDAQ:GOOG) stock is another value play for investors looking for a steep discount to intrinsic value. Of course, the major story of the year for Alphabet has to be the disruptive potential of AI search platforms and the potential impact on the Google Search business. In many ways, it seems like Google's best days are in the rear-view. Time will tell if Google's Search moat will be eroded away. In any case, I don't think the search giant is on its way out, especially as it spends a great deal on AI innovations like Veo, Gemini, and more. If Google spends in the right places, perhaps the disrupted could become a disruptor in other markets beyond the search scene. With an 18.5 times forward price-to-earnings (P/E) multiple, I view GOOG as a deep-value stock that's hiding in plain sight this June. In the second half, look for antitrust headwinds and search fears to subside, as more focus shifts to what the firm is doing right on the AI front. Perhaps any losses suffered by the search business could be made up for in other AI-driven areas. The post 2 Growth Stocks to Scoop Up Now and Build Wealth for Generations appeared first on The Motley Fool Canada. Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Alphabet wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $21,345.77!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool recommends Alphabet and Constellation Software. The Motley Fool has a disclosure policy. 2025
