125 - Profit From the Fed Pivot: Real Stocks, Real Strategy, Real Results

The Fed’s rate cut is shaking up markets — but not every sector reacts the same.
 In this episode, we take the 6 biggest macrotrends from the current rate environment and dig into real stock and ETF ideas that could benefit most.

We cover:
 🏗️ Manufacturing & Construction plays with upside potential
 🏢 REITs & commercial real estate names that could pop
 💻 Tech & growth stocks primed for a comeback
 🛍️ Retail, hospitality, and dividend sleepers
 🏦 BDCs, mREITs, and financials — who’s still safe, who’s not
 📊 Plus: The yield monsters quietly compounding behind the scenes

If you want tickers, yields, and real-world context — not just Fed-speak and forecasts — this episode is for you.

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**DISCLAIMER**
Ticker metrics change as markets and companies change, so always do your own research. The content in this podcast is based on personal experience and is for educational purposes, not financial advice. See full disclaimer here.

Episode music was created using Loudly.

Transcript

Welcome to roaming returns a podcast about generating a passive income with dividend stocks so you can secure your finances and liberate your life. 

Last week we broke down what the Fed’s rate cut actually means for normal people. 
This week we’re taking it a step further: turning those macrotrends into real investment opportunities.
From manufacturing and real estate to tech and services — we’re diving into the sectors that could actually win from rate cuts, and which tickers we’re eyeing right now.
Grab a warm beverage, open your portfolio app, and let’s go deal diving.
What's up, y'all? We back. Last week we looked at what interest rates hikes actually mean to most typical Americans. This week we're going to use that macro trend.
Remember I said, remember these things I have listed or talked about at the very end there? Remember these macro trends coming out of the rate cuts and we're gonna look at a couple investment ideas and within each of the six or whatever they were listed. So this week we're getting tickers. It's a party.
This is supposed to be a party. It's like a galaxy vortex. Okay, just for a reminder, what we're seeing, what I'm thinking is going to happen is manufacturing and construction is going to benefit from a lower financing cost for projects and equipment.
So that's one sector that we're gonna look at. I mean, I don't know if they're the same sector, but that's one area we're gonna look at. Second area is gonna be commercial real estate.
That could apply to regular real estate, but I think commercial is actually gonna benefit more than residential in the meantime because commercial prices aren't as going up as high as the residential real estate prices are going up. The third area is technology and growth stocks. That's a no-brainer.
I shouldn't have to explain that. The fourth area is retail, hospitality, and services sector. The reasoning behind that, if people have more money, they're gonna spend more money on dumb shit.
So that's why that one's there. The fifth one is the banking and financial institutions. Because the lower rates they can actually tweak with their interest margins to actually make a lot more money.
Then we're gonna look at some just extra things that I label interest rate dependent businesses. There are certain businesses out there that are closed into funds that actually should do well in a reducing interest rate environment. So that's what we're gonna dive into today.
Six. Six. The count.
So these days all the data was accurate as of 10-4 when I did this, but we're gonna go through them on the first couple. If you're watching the video, if I give tickers down the road, which I'm sure I will, you can actually then go in and actually do the research to verify that I'm not full of shit. So on your own.
The first one is LYB. Londondell DeBasel. This is a chemical company that hangs out in the industry and construction sector.
Lyondell Basel. London Basel Industries. You see the current price is $40 something.
I'll go down here. Current price is $48.87. You want to go down to the chart and click on what term? Year to date. So year to date, it's been garbage.
Whenever you're in Schwab, this is really nice. You can click on year to date and you see over here on the right side there where it says negative 34.47 percent. That's how much the stock is down in price this year.
That doesn't include, that's not the total return. That doesn't include dividends being dropped off a cliff, dividends being reinvested back in. My birthday area.
Very nice. You see that it's down 34, 35 percent. You'll see.
Look at that volume increase. Yeah. Scroll down to the dividend.
You'll see the dividend, the yield now is over 11 percent. And that the next dividend, August. So the next one will be paid out December 2nd.
So if you want to get into this one, if you have to get in before November, the end of November, so you can get that dollar 37 dividend, which might get screwed up for Thanksgiving. So let's see. Back in quarter one, they actually have 134.
And then quarter two, they increased it by three cents. That's what a lot of these companies that have like dividend streaks going on. What they'll do is they'll increase it like two or three cents whenever money's getting tight.
When money's like the coffers are full, then they'll do like a five or six percent dividend increase. But anyway, scroll down. The first thing we're going to look at is we're going to look at earnings.
Click on show more. So we're under the historical earnings area. If you click on the show more tab.
Right. Scroll down. You'll see the gap earnings, earnings per share.
You have the non gap and gap for normal stocks. No normal stocks. You want to use the gap, the non gaps when they do the accounting tricks and everything.
So you want to use the gap. You'll see that in quarter two, quarter two, it had 47 cents per share. You just if you remember what we just looked at, the dividends a dollar or 37.
So they're not going to be able to afford their dividend with that type of earnings. But that's like, but this is a good like snapshot of what the what the company has been doing. Earnings per share at the last.
What is that? Three years, four years, whatever that is. Yeah. Three years.
So generally, this company has really, really good earnings per share. So that cover the dividend 175 to 18 to 29, whatever. But every now and then they took on debt in quarter four of twenty, twenty four.
And then they're slowly paying back with profits. That's what that looks like to me. Kind of.
I don't know what you dug up in the research. OK, scroll down a little bit. You'll see the here that that's the revenue.
That's what they're what they're generating each quarter in revenue. And the revenue has been pretty good up until the quarter one where a drop down to seven point seven billion. But it was generally like double digits revenue.
And the reason that the stock took a shit is if you look at the last column there, you see the cash flow. Normally they have lots of money, like lots of cash, like free cash. And then you see quarter four.
They did like they were negative. So that's one area to look at where you can actually get like a like a visual representation of the financial as opposed to trying to dig and dig into earnings reports and everything. So that's why I like Schwab, because it's really simple.
I definitely feel like charge, but it's thinking your brain more than just like looking at digits. OK, so scroll back up and click on that. OK, the next thing we're going to look out for this one here, you look at the profit, the net profit margin in this column here.
Like if you have Schwab again, you'll know like this is all fantastic. Other other brokerages, I'm not sure if they have all this, but Schwab actually has the net profit margin. You know, it shows you that they're barely above water when it comes to net profit.
Net profit is like their their revenue after all their fees and expenses are taken out. Income after tax is divided by sales, both measured over the trailing 12 months, also known as return on sales. And they give you an equation.
Very nice. I hit the little info, but you see it's zero point four percent. So like they're literally just treading water at this moment.
So the fact that they have a in quarter two, they only had 47 cents per share in EPS and then they have a dividend of 137. That's a 90 cent difference. And you see that they don't really have enough money in their net profit margin.
So you'll see that they don't have enough money in their net profit margin to cover the dividend. So this one probably is going to have a dividend cut, which means that you're probably going to be able to get this one at a better deal than you're getting at right now. So that 34 percent is probably going to go down a little bit further.
But I'm going to have a little bit more. Is there anything else down here? And this year, like if you go look at this statement, the statement thing, if you click on the income statement, income statement, you'll see that the profit like their total revenue they've been generating as 2020 just scratch that because that was a shit year. But it's been kind of all over the place.
But it's actually down from twenty twenty one. You see that's that's forty six billion dollars and it's at forty billion dollars, which correlates with what we're looking at for the numbers in that other chart. When you look at that, then you can look at the net income, which is every like all their money, what they have to distribute to shareholders.
You see that that's gone down like every year since twenty twenty one. So that's another indication that this one might have a dividend cut coming. All that being said, I actually like this one and the industrial and construction area in the next 12 months, because at some point they're going to cut the dividend.
The price is going to shoot down and then you can just pick it up on sale. So this is a really good one. That should be OK.
Scroll back up. If you look at this LSAG one right here, LSAG, like if you don't feel like going into Yahoo Finance and like looking at what all the analysts are saying, you can look at this LSAG one generally has a price associated with it. You'll see that it says fifty eight dollars is the price target.
Fifty nine. Fifty nine. What was it at? Forty eight.
Yeah, so that right there is like a twenty like, you know, that's 20 percent capital appreciation. That means what that means. The price target, if you're not familiar, the price target means that within the next 12 months, they expect it to hit that price.
And if you go into Yahoo Finance, you can do the same thing under like you just type the ticker in the bar and then you go under the analysis tab. And the analysis tab will actually have the same same thing. But it'll have more however many analysts are covering the stock and it'll have an average of what they think the price target is going to be.
It's the same thing. Yeah. And that's where the ratings and crap come in.
But if you look at that, would you say 20 percent potential increase in value plus you have an 11 percent yield? Very juicy. That would be 30 in the macro trend lineup. 30.
That would be a 31 percent. So like for me, I would buy this one. So I actually we actually did buy this one in her mom's retirement account.
Even if it goes down, say another 10 percent or 15 percent because they cut the dividend. You're still making out because you have a 20 percent capital appreciation in the next 12 months. And then you have an 11 percent yield, which will go up as it goes down.
If they cut the dividend, obviously it won't be 11 percent. But you're still like the 20 percent will cover what I think the losses could be. Oh, look at that bottoming.
Yeah. So that's how I'd be. I would be is my first one in the industrial and construction area.
I really like that one. And did I cover everything in my notes? Let me look. I have notes written because I'm a dark.
Yeah. So that's good. The second one we're going to look at in the manufacturing construction is not technically a manufacturing or construction of stock, but it does do a lot of business in the in that sector is UPS.
UPS has been getting shit on this year. UPS, when I did this was trading at eighty six dollars and seventy eight cents and it had a yield of seven point five six percent. Like again, you literally if you did just go back and do what we just did and swab there, you can do that.
You can look all this up a year to date. UPS is down total return 27 percent. I think it's down like thirty three, thirty four percent without the total return to one more.
So you guys can get an idea. And then we'll kind of like we have 20 days to go through. We're going to kind of like that.
We'll pull that. I'll pull up like a couple other ones down that down the line. So click on the chart.
I want that to be your one year. Your day is down 31 percent. Shit.
If you scroll down a little bit, I'll say Xanax has a price target of one hundred and two hundred three dollars around the current price is eighty six. Sixty three. So it's like a 17, 18 percent gain.
You see the dividend right here in this screen, the dollar 64, and it comes out to a seven point five, six percent yield. That's pretty good for a freaking dividend grower. Both the LYB and UPS are dividend growers.
They have like a history of growing them. OK, I'm going to earnings. Click on more.
Show more. OK, you see the gap here. You see that's at 151.
So it's closer. Like you remember L.Y.B. was like really there was a 90 cent difference. This one here is like 13 cents around there.
And it's been kind of consistent. I know that doesn't look very consistent, but like it's at 131, 187. So that's been kind of consistent.
Like it did have this outlier here, quarter four of 2022. It's fine. You see the revenue sales numbers shown.
Obviously, OK, you can read numbers and billions like numbers and billions. The revenue has been pretty consistent across the board. Like there's some ups and downs, but like a little variation.
But that's expected. And the cash flow has been pretty consistent as well. OK, and you'll see this one actually has a bit more in the net profit margin of six percent.
So this one actually has a little bit more wiggle room. The fact that they can't quite cover their dividend with their earnings per share of 151 versus 164. This one's not in jeopardy of having a dividend cut based on that net profit margin.
Here you'll see like what we like, a linear looking thing as opposed to like that chart thing with the income statement. That's what we said. The revenue has been pretty consistent, very consistent.
Ninety seven, one hundred ninety, ninety one. That's that's in billions. So that's one hundred billion, ninety billion, ninety one billion.
So it's been pretty consistent. I mean, obviously that's a huge difference, like one hundred billion and ninety one billion. But like given the volatility of stocks, that's fairly consistent.
One only thing you'll see is the net income right down here has actually been shrinking for the last four years. It went from twelve to twelve billion down to five billion. So, oh, wow.
Look how low that was in 2020. Nobody was doing anything. Nobody's done anything.
I imagine this is like tariff CPS affected by tariffs. Yes. Well, people aren't buying as much because but it shouldn't have been down last year shipping as much.
Well, it's twenty three. Yeah, that's weird. It's been going down.
I don't know. So you saw that L.Y.B. was going to have a dividend cut more than likely because of the not revenue matching the revenue and the EPS aren't actually covering the dividend, which is that's what I've said. And you're not concerned about it because the because it has 21 percent upside plus the yield.
So like unless it drops like because of the macro trend. Yeah, unless it drops like another 30 percent, like I'm not worried another 30. All right.
Continue on with the UPS before I cut you out of the UPS. And then we saw the price targets are like one or two hundred three. So it has 20 percent upside plus the seven percent, 7.5 percent yield.
Like this is a really good one to get in the industrial construction area. I've been nagging a few to subscribe to the email. You know, I've been talking about UPS, like one of the van life people.
We we assist in her portfolio. She was like gobsmacked because like I like the last time she said, I have like X amount of money laying around. What do I put in? I said, you want to put it in target UPS? And she's like, that doesn't make sense because you always give me like obscure shit to put it in.
And these are like actual companies. And I was like, yeah, but like they're both they're both target and UPS. We'll get to target in a couple of minutes.
But target and UPS are both and they're both in the buy zone. Obscure shit. And the third one in the industrial and construction one is CAG.
That's a conga, conga, conga, conga, conga, whatever that is, that the trucks you see with the sea on it. I can't ever like I swear to God, I speak English, but I don't. Conk, conagra, conagra, conagra.
Yes, conagra. I don't even know what you're talking about. So we'll just pretend like I do.
OK, this one's currently on again on October 4th. It was at nineteen dollars, 11 cents with a seven point three three percent yield year to date. It was down twenty seven percent.
And its profit margin was about like that with of UPS six point zero nine percent. And the revenue is is down the last two years. It went from twelve point two billion in twenty twenty two to eleven point six billion in twenty twenty four.
We're soon going to be able to have the the twenty twenty five statistics that we can actually then start using that when we do this next time. Doing what we did before we were you scroll down to the earnings thing and you click on it, you get the the the UPS. Their last UPS was in quarter four and it was fifty three cents a share and the dividends only thirty five.
So that's this one actually can cover the dividend. Plus it has a twelve month target price of twenty one. So that's twenty ten percent upside with the with the company that can actually afford the dividend and currently has with a seven percent yield.
So this one here is another really good one in this in this area. Very nice commercial real estate. Now, this is the tricky part, because I know people think commercial real estate.
They think like buildings, shopping centers, whatever. But like the three I have, like literally none of them are in that area. None of them are in that area.
The first one's GLPI. What do they do? It's like a casinos and entertainment. You would find a freaking casino one.
This one actually has raised this dividend for I think it's 16 years or something like that might be 26 years. There's a six in there somewhere. But it's it's price was forty six eighty seven and it has a six point six six percent yield at that price year to date.
It's only up one point seven percent. So it's kind of trading sideways year to date. It has profit margin of forty seven point thirty percent.
And because it's a REIT, you kind of want to look at the AFFO, which is the adjusted free funds on another. It's when you look at REITs, you want to look at the AFFO and the FFO. AFFO is better than the FFO because it actually breaks it down even further.
The AFFO for GLPI came in at ninety six cents. So that's pretty that's pretty sick. The dividend seventy eight cents.
So the AFFO is covering the dividend by quite a quite a quite a big margin. This one, the revenue is up each of the past five years. It was at one point one five billion in 2020, and it's at one point five three billion at the end of twenty twenty four.
So it's been gradually going up for the last four years. Their latest EPS came in. It was a quarter to earnings report came in at fifty four cents.
But again, the EPS on REITs, you kind of have to like divert to the AFFO. The EPS was fifty four, but the AFFO is ninety six. The dividend being seventy eight.
So this one actually can afford their dividend. And as REITs, you know, they have to take ninety percent of their after tax income or their whatever that is, free cash and distribute to the shareholders, distribute to the shareholders, avoid they get a tax slam. This one has a twelve month target price of fifty four dollars.
So it has 15 percent upside with this almost seven percent yield with the finances that can actually cover the dividend. And it's had revenue growth of the last five years. So this one is definitely a buy in the commercial real estate.
Heck yeah. The second one is EPR. EPR is the one that does like the movie theaters and the ski resorts and whatnot.
It's an entertainment one as well. You have a lot of like cinny stock type things. Bring it, bring it.
Depression, depression stocks, casinos, gambling. EPR is at fifty seven forty six on ten four with a six point one six percent yield year to date, though this one's up thirty six percent around there. So just under thirty six percent that this one's went up.
It's profit margin came in at twenty five point two eight percent and it's a FFO is that one dollar and twenty one cent. The revenue dropped from seven hundred six million in twenty twenty three to six hundred ninety eight million twenty twenty four, which is not good. But prior to twenty twenty three, it actually had gone up from like six five hundred and some million up to about seven hundred and two million or something like that.
So it did that thing where it went up and then it plateaued in twenty twenty three and then it went down a little bit in twenty twenty four. I suspect this one will be back up above the seven hundred million market at the end of twenty twenty five, just based on how everything's been going. The latest EPS for this one in quarter two was ninety one cents.
Again, the FFO was a dollar. Twenty one EPS came in at ninety one cents in their dividend. It's a one that pays per month and it's point two nine five per month.
So that comes out to point eight eight five. So on eighty eighty eight and a half cents per quarter. So the FFO and the EPS can both cover the dividend.
It has a 12 month target price of fifty eight. So it's going to trade sideways. There's really no upside.
So you're just basically getting in this one to accumulate dividend and dividends so that you can accumulate shares. That's if that's what you want to do. The GLPI is better because you actually have more upside.
But yeah, I hear you. Or you could buy the next one, buy the next one. The next one like this, like anyway, IIPR is the third one.
That's the that's the pottery, the pot one. They like they own all the land that the pot stores are on and that people pay them rent and everything. And they enter into like really lucrative owner friendly contracts, like if like if they like if they're behind, if they miss like a if they're late on a payment, they get like they just take the store back and shit like that.
Like they're the way they write their contracts up is not real friendly to their tenants is super friendly to IIPR. So that's pretty nice. It what do they do? Confiscate all their their business and materials.
Probably. So like you don't pay, we take your weed. Yeah, that's hilarious.
So that was trading at fifty six, forty six. And that came out to a 13.46 percent yield, which is enormous. Year to date, it's down seven percent, which is pretty nice.
The profit margin was forty seven point seven one. AFFO in the last last earnings report came in at one one seventy one. And that revenue is up for the last five years.
In 2023, it was three hundred and ten million. In 2024, it was three hundred nine million. Prior to that, it actually had gone up from like one hundred and eighteen million up to three ten.
So when it went up a lot and it dropped just a smidgen in twenty twenty four and it's up one hundred sixty four percent since Covid. So this one's actually been taken off. The latest DPS in their last earnings report was quarter to quarter two is at eighty six percent.
And you see that the AFFO is one seventy one, but their dividends a dollar ninety. So they actually can't afford the dividend. This one might be it might come due for a dividend cut unless things turned around in twenty twenty five.
I don't know. And then like this one here is a really weird one, because if you do, if you go into like different publications, you look at the price target for this one. It's all over the place.
It's anywhere between fifty five and like one hundred dollars. The one in Schwab, which was which was what I was using, said the twelve month target price was fifty seven. So there's no upside to this one.
You're literally just, again, getting into it while it's cheap, accumulating a thirteen and a half percent dividend so that you can accumulate more shares. So when everything corrects, which it will, because legislation and policy is leaning towards like they're like decriminalizing marijuana, they're taking it from being whatever it was, a class three or a felony down to like a class one misdemeanor and stuff like that. So like marijuana is on going to it's on its way to being legal.
And when it's legal, then this one's going to explode. I personally think the twelve month target price of fifty seven is low. I think it's about 80 in the next twelve months.
This one should hit about eighty dollars. So it is, again, up in like the one twenty one thirty range before. So 80 would be like if you did 80, that would be eighty thirty five percent plus a thirteen and a half percent yield.
So even if they cut the dividend a little bit, I'm OK with that because you're getting a lot of upside with with a healthy yield. So that's the three I found in the commercial real estate. None of them are actually like, you know, shopping centers, but whatever.
Who cares? Technology and growth stock. Oh, boy, this one's going to be fun. Was this hard to freaking narrow down to three? Well, the pay the dividend.
Yeah. Because most of you, as you know, most tech stocks don't pay dividends and most most growth stocks don't pay dividends, either. They take the revenue and the profits and they dump it back into the business to grow the business, to actually, you know, make more money.
One that does pay a dividend is Skyworks. And this one coming back. We invested in this before we started on stocks.
I remember Skyworks. Skyworks, SWKS, it's seventy seven dollars and ten cents and it has a three point six eight percent yield. Don't let that fool you.
This one actually has grown their dividend by like damn near 100 percent in like the last seven or eight years. Really? Yeah. Wow.
A year today is down 12 percent. And that happened, if you remember, we talked about this before because they actually took 25 percent less of their revenue is going to come from Apple because Apple's doing something else. That's right.
That's right. So like it got really punished. And so it's down 12 percent.
Its profit margin is a little bit lower at nine point eight eight percent. And the revenue is down the past two years. It was at five point five billion in twenty twenty two.
And it's all the way down to four point two billion in twenty twenty four. Well, that would make sense if they got that cut, right? The 30 percent. That's not ideal, but like I'm sure they're signing more contracts with other chip makers.
So I'm not entirely I'm not worried about this one at all. The latest DPS and I think it was quarter three was 70 cents and the dividend seventy one. So they can it's again, it's in the area where they can afford the dividend without a dividend cut.
Very nice. The 12 month target price for this one is eighty five dollars. Again, I think that's low.
But I went with what Schwab said. And so that's 10 percent upside, getting four percent yield in the company that I believe will probably be above one hundred dollars, one hundred like in the one hundred and ten to one hundred twenty range in the next twelve to sixteen months. As for the other two that I want to do, I want to talk about the tech the tech realm because we are dividend focused because we are because we focus on dividend and not the puny pipsqueak ones.
How many doesn't need to video pay like a fraction of 0.01 percent? Yeah, that's pretty retarded. You get like to you get like like interest rates on your savings account. So nonsense.
So but like what I do, how I invest in the tech is I invest in the close of the fund like JEPQ or another one USA or they have a couple of others is strictly tech fund type NBXG. They just invest in the tech companies for a year. Then they write the cover calls and they give you a monthly dividend.
But what I found in like the last eight months or so is that the Roundhill weekly pairs are really good. Fucking awesome. Yeah.
So we're going to look at two of them, the two that I would actually invest in before Skyworks. And you know how high I am at Skyworks is PLTW, which is the Palantir Roundhill Weekly and the NVDW, which is the NVIDIA NVIDIA Roundhill Weekly. First, we'll look at PLTW, which has a price of forty five sixty seven on ten four and it has a ninety nine percent yield year to date.
It's up twenty nine percent. That's again, that's total return. That means getting your dividends.
You see you're dripping back in. If you just take the cash, it's only up 14 percent. The dividend in this one for what it is, what it is, you've actually collected eighteen dollars and eighty six cents in dividends in nine months so far in twenty twenty five, which is insane.
So if you get it at forty six dollars and you've already collected nineteen dollars, that's like your your cost basis is only twenty six dollars at that point. And you can just keep collecting. They pay a weekly and they're pretty good.
Anyway, profit. So what I did is that I actually looked at the Palantir because the reason I picked these two specifically in the tech one is because Roundhill actually holds shares of Palantir and NVIDIA. And and this is why I looked at the Palantir financials.
Their profit margin for Palantir is twenty two point four five percent. The revenue is up the past five years across the board from one point zero nine billion in twenty twenty to two point eight seven billion in twenty twenty four. This one's taken off like like a rocket ship.
If you're under if you're under a rock and you don't know about PLTR. Sorry, the last day, the last DPS was quarter two and it came in at 13 cents per share, which actually doesn't sound like a lot. But if you go back and you look at like the inch while you look at that, you see that they were underwater for until like I think five quarters ago and they started making like a penny and then five pennies.
So they actually started coming out of their debt and their R&D and all that stuff, and they're finally starting the fact it's up to 13. I bet you that EPS is in the 60 to 70 cent range and within the next probably six earnings reports. Yeah, this is tech and growth.
So that's usually what happens. The problem with Palantir is it took off so high. It's up at like one eighty right now.
The twelve month target price for Palantir for across like the consensus, everybody is like one fifty three. So there's potential for a huge loss because it's at one eighty. So that's why I would invest in Palantir.
I just do the do this because the Roundhill one doesn't go up as much as Palantir does when it goes up because it only holds 20% of stock for everything and it doesn't go down as much when Palantir goes down. Like the other day Palantir was down eight or nine points and the PLTW only went down like three dollars. So like you're capping your earnings but you're actually you're capping your losses.
And you're making crap tons of money. So I don't mind the steep loss for a stock that's paying 99%. And if you look at it like I said 1886 in dividends collected in nine months and you've only lost $10 in share price since 1.1. So you're actually you're $9 up even with like the share price doing what it's doing.
I personally think that Palantir this one in particular PLTW is a great way to make money in the tech sector and make a lot of money. And we're starting to buy it for reasons in our portfolio. I have it in the Van Life one.
I kind of add to it when I can and then I have it in the Van Life where we're doing that thing with this Coney experiment. I keep dumping the cash into that one and buying Palantir stock. Like the dividends like it's like between like 50 cents and like a dollar 20 like every week.
It's insane. Ridiculous. The second one that I do this with is in VDW.
The problem with this one is I didn't get into it at the right time so I was only able to get a couple hundred dollars into it before it like just exploded. This one was trading at $28 like in April. Oh man that sucks.
It's currently at $49.72 and it has 118% yield and its year to date is 121%. It's up almost 122%. Again so like for the financials I went and looked at Nvidia.
Nvidia has profit margin of 52.41%. Again that revenue is up each of the past five years from $16.7 billion in 2020 to $130.5 billion in 2024. I mean just let that sink in. It went from $16 billion to $130 billion within like four years.
That's insane. The latest EPS for Nvidia is $1.08 per share and if you go back and look like there was a time when it did the exact same thing that Palantir is doing where it was like a couple cents like 12 cents, 17 cents, 18 cents and then it just shot off and that's what Palantir is going to do at some point. And Nvidia isn't it like more than 10% of the actual stock market or something? That's the whole reason the markets are up? It's around like I think 9% of the NASDAQ.
That's insane. Insane. Now the 12 month target price for Nvidia is $215 so you're actually getting a pretty good bump.
It's like $180 so it's only like 15% but as well like I said with PLTW I think this is like one of the best ways to actually make money in the tech field is finding these two specifically. If you think the tech is going to keep doing what it's doing, NVDW, PLTW. With this one you only collected $1380 in dividends in nine months so like it's kind of weak sauce compared to Palantir.
Why'd you giggle like a little school girl? Because it's like only you only collected $14. Only and normally it's like oh you got $3 for the year. But the price in 2025 has gone from $29 to almost $50 so like you're so like you've appreciated what is that 42% plus probably another like you're up a lot.
I can't do the math in my head but. Up a lot. So this one should go higher again it's capped because they only have I think 18% or 19% of their.
But again if Nvidia is supposed to appreciate as much as it's supposed to that NVDW is probably going to go up in price too so like get it while you can. The problem was I got it I got in at like $38 and then it just shot up to like $44 and I was like I'm not paying more than $38 for it and like it's it hasn't. You might be shooting yourself in the foot by not.
It hasn't even sniffed the $38 since I got into it so again I've only got a couple hundred dollars but it keeps it like again they're weekly payers so it just keeps giving me 0.2 something shares a week so I'm getting. Are you reinvesting it? I am reinvesting that one because until we get in the van which is coming soon. Oh my god we're literally in the last week guys.
The last week we were starting to move stuff out amazing. So once we get in the van I'm turning like the drip off on all these little little ones and all these little paper cuts are going to add up to like a lot of money. If you're on video right now I don't know if we're going to have green screen behind us next week it's probably gonna be like a field or a forest.
A cornfield yeah. A cornfield. Well they're around everywhere.
Well it would be the woods or a freaking shed one or the other. Or the van. We can put the van in the background.
Wallace. Okay so that's the tech one. If you do let me just revisit that.
If you buy PLTW or NVDW only put like half of what you're going to put into something and don't buy them both because your objective with those is you don't want to leave the drip on you basically if you say you put a thousand dollars in PLTW you want to recoup the thousand dollars so you basically got your money back you keep the shares and then you whenever you whatever you get from PLTW going forward then you can dump it into NVDW. It's the safe way to like minimize the risk whenever you're whenever you're doing these weekly payers. Yes because these high yield ETFs have NAV decline they're not as bad as yield max but they still have that risk so take your risk off the table as much as possible it'll just help you sleep at night.
Yeah so the next sector is the retail hospitality and service sector. The first one's Target. Target has had a really shitty year.
I'm still laughing at Alex. I'm surprised we're buying stocks that I actually know about. A really shitty year.
So Target's down over 30% like the last like. Isn't that because they made that like. It's just a combination they did like the DEI stuff which pissed a lot of people off but then they had really bad like really bad earnings so that just compounded the problem like that's down 32%.
It's at 8903 and it has a 5% yield if you know anything about Target you know that yield should be in like the like high 2.2 point range 2.7 to the low 3% like 3.2. The fact that it's double. That's how much it's fallen. Profit margin was 3.72 the revenue is down the last two years from 109.1 billion in 2023 to 106.6 billion in 2025 which isn't that's chicken scratch to them but like to us it's like ridiculous.
Ridiculous amounts of money. With Target the latest EPS which was quarter 2 of 2026 don't ask me why I don't know why the companies are doing what they do with their earnings report we're in quarter 2 whenever we're actually in quarter 3 of 2025 but whatever. The latest EPS of Target was $2.05 and their last dividend was $1.13 so this one can afford their dividend to the moon so that's awesome.
To the moon. The 12-month Target price for this one's $105 which is 18% upside from where it currently is $105 is low telling you this one's in the $130 to $150 range that's where it should be based on the financials. They're going to turn their crap around some way shape or form.
So this one here is a no-brainer because you're getting a lot of upside again with a pretty good yield and this one's a dividend grower. It's like it's coming up I think it's if it's not a dividend aristocrat it's coming up on that relatively soon and speaking of that next week I'm taking five dividend aristocrats and I'm going to go back 30 years and see how much money you actually would have made had you invested $10,000 in them and then just compounded it for 30 years. To show you how that yield creeps up even though it stays technically the same percent.
Just to show you what a shitty stock like I mean a shitty yield not a shitty stock. A shitty yield for a dividend grower. A shitty yield can do if you actually use the time to your advantage.
When you have a dividend grower. Dividend grower is the key there. So that's that.
Target, buy. Period. I tell everybody buy Target.
Period. Target and EPS both buys like just buy them. Second one in this sector is BMY.
It's Bristol-Myers Squibb. It's currently $45.45 with the 5.46 yield. Again this one's down 16%.
This one's had another shitty year. Y'all right over there. Yeah why? Oh Yanni.
I don't know why I get Yanni when we do this. Yanni. It doesn't matter what time of day it is.
So what that's saying like normally Bristol-Myers has a dividend that's like 3.8 to 4.1%. So again this one's dropped a lot. So you can tell by the yield of 5.46. So that's a perfect time to pick it up whenever it's that high. This one has profit margin of 10.62% and the revenue has been mixed over the past five years.
But it actually is trending upwards. In 2020 it was $42.5 billion. And in 2024 it was $48.3 billion.
So it's gone up a little bit. But it's done that shit where like one year it's up. Next year it's down.
Next year it's up. Next year it's down. So whatever.
I mean it's perfect for like a pattern if you like to see patterns and things. Yeah if you pull out. The last EPS which was quarter two of 2025 came in at 64 cents.
And the dividend is 62 cents. So they can actually cover the dividend. So you're not in threat of a dividend cut in this one.
And the 12-month target price of BMY is 53. So that's 17% upside from where it is right now. 53 is way low.
It should be in the 70s to 80s. But again I'm just doing what Schwab said. I'm not taking my personal bias out.
That's what Schwab says. 53 and again 70s to 80s. So like this one's going to double like in the next like probably 18 months.
Ooh. And the third one is another boring dividend grower Verizon. Dividend grower Verizon.
We're back on Verizon now that they signed a contract or whatever the heck. Verizon's currently at 43.67 and its yield is 6.32%. Whereas normally that's like about where it normally is. Between like the six and the six and a half percent range.
Year-to-date it's up 14%. The reason that the yield is 6.3 is because they actually did raise the dividend. It went from I want to say.
They rose it. It went up like 5% somewhere around there. Didn't they have a massive price drop with those power lines or something? Yeah they did but they're back.
Wow. So the year-to-date it's up 14%. The profit margin is 13.6. Revenue is up four of the last five years.
In 2020 it was 128.3 billion. And in 2024 at the end of 2024 is 134.8 billion. So not a lot of super jump there.
But like most people associate Verizon with the utility anyway. But like most people do in utilities that's what they do. They just creep up.
The latest EPS for Verizon came in at $1.18 and quarter two. And the dividend is 69. That's where it went from 67 to 69.
69 cents. Oh two pennies. So their EPS what they're bringing in can easily cover the.
They're a dividend grower aren't they? Yes. Yeah so. And the 12-month target price for Verizon is 49.
Again it's low but we'll go with what they say. So 12% upside with 6% yield on the dividend grower. Yeah that one's pretty good.
It's not as good as Target but you know. It didn't get a hard on for Target right now. Just I can't believe it's $80.
I'm telling you I think it was like $150, $160, $170 forever. The fact that you can get it for half is crazy. Yeah.
Now we're going to look at the banking and financial institutions. The first one that I'm going to look at is actually it's an M-rate. The mortgage rate that means they actually don't have anything other than paper.
They just hold paper. But that's actually part of the banking and financial institution. And that's AG&C.
AG&C we actually have that one. We've held that one for years. Yeah we do.
It's at $10.06 and it has a 14.31% yield. So that's wow right? I know. Year to date it's up 21% and it has a profit margin of 11.08%. The revenue has been doing ridiculously well the last four five years.
It's risen from a $501 million in 2020 which again coming out of COVID that makes sense. So if you look at 2021 it was at $1.2 billion. So even if you use that number.
So we'll use the 2021 number of $1.2 billion. It had $3.9 billion in 2024. So it tripled its revenue.
Yeah you went from a million to a billion. Even if you exclude COVID it tripled. Latest EPS of AG&C.
Now this one here because it's an mREIT. They actually use the non-GAAP. So if you remember we pulled that up you had the GAAP.
There's the GAAP and there's non-GAAP. So you want the non-GAAP. You use the non-GAAP when it comes to these ones here because they do all this stuff before they do the accounting stuff.
So the EPS was $0.38 and the dividend is $0.36 and it's $0.12 a month. So every month you get a paycheck from AG&C and the EPS can actually cover it. 12-month target price is $10.
So you're literally getting no upside. But who cares for a 14% yield? I don't give a shit. You're making 14% and you've just turned the drip on and you're just you're golden on this one.
Especially if this thing's revenue's gone up like shit they might raise the dividend. The second one is NLY. It's A-N-N-A-L-Y capital.
They dabble in like banking and mREITs and other stuff. So it's like kind of an all-encompassing thing. Hodgepodge.
Their price was $20.76 and they have a 13.49% yield. Again, so that's pretty sick. Year-to-date they're up 24% and they have a profit margin of 13.3%. The revenue again did that mixed shit where like one year it was up, one year it was down over the past five years.
But it has risen from $2.97 billion in 2020 to $5.84 billion in 2024. COVID being 2020. So if you look at 2021, it was like 3.8%. So it hasn't done as much as AG&C.
But that's still a pretty healthy leap there with that. Their latest EPS, it was quarter two, came in at $0.73 and the dividend $0.70. So they actually can afford the dividend. Very nice.
At 13.5%. This one again has a 12-month target price of $21. So no upside for the next 12 months. But you're making $13.5 on it.
So there's these two here. There's literally no upside to them. But just the sheer yield is worth investing in.
It trades sideways. I love when markets trade sideways. I'm one of the few.
And the third one just had a really shitty earnings report. And it's Fisker Capital. We've held that one for, I'm going to say, almost three years.
Fisker is at $14.96. Now this one was at $21 not very long ago. It has an 18.72% yield, which is insane. Again, it was literally just at around $20.
So the yield was like a 10%. So the yield's damn near doubled. That's how much this went down year to date.
This is why I like when stocks drop. They're good. Year to date, it's down 21%.
But it does have a 13.2% profit margin. The revenue was up four out of the five years. But the last couple of quarters have not been so good.
Let me explain that. The revenue has actually risen from $1.08 billion in 2021 to $1.72 billion in 2024. But if you actually, in that chart where we look at, you can actually click on quarterly and it'll bring up the quarterly reports as opposed to the annual stuff we were looking at.
If you look at the quarterly stuff, you'll see that the revenue has actually fallen each quarter for the last year. It went from $439 million in quarter two of 2024 to $398 million in quarter two of 2025. And I think people that just got the shits of it and they're like, okay.
And the earnings report came out and it wasn't good. It says it's probably gonna have another year of down revenue, whatever. All I care about the latest EPS and that earnings report came in at 60 cents and the dividend is 60 cents.
They can afford the dividend at 18.72%. I don't care. And the 12 month target price on this one is $18. So there's 20% upside with 18, almost 19% yield.
So this one, if you haven't looked into it, you might want to look into Fisker FSK and- I'm assuming that you like them because they're a good company? Yeah. Okay. They're just going through revenue issues or whatever.
They're going through some crazy shit. And then we have the other interest dependent business. This is a hodgepodge of things here.
First one I'm looking at is ARCC. They are the largest BDC. You do love them.
And because they're the largest, they have the most money to spend. And I like that. They have- I like it a lot.
Yeah, their current price is $20, 15 cents. And they have like a little bit, it's 9.53% yield. It's a little bit under 10%.
Year to date, they're down 2%. But that will go, that will change because interest rate cuts. That probably will be two to 3% up by the end of the year.
So you're getting 5% between now and the end of the year just by buying it now. They have a profit margin of 44.94%, which is ridiculous. The revenue has risen the past five years from 1.5 billion in 2020 to 3 billion in 2024.
And their last earnings report, the EPS came in at 52 cents and their dividend's 48 cents. So they can cover the dividend. And the 12 month target price for this one is 24.
So 19% upside. So again, you're getting 19% upside in the next 12 months, plus the 10% yield. So you're making about 30% in one that this is probably, if not the best BDC, it's in the top five.
ARCC is an awesome, awesome BDC. Now, one that I just found a while ago, and if you subscribe to emails, what I talked about, I said, holy shit, look what I found. And then I bought it.
Like I bought it. Holy shit, look what I found. I bought it pretty much that same day.
When I made the chart and I looked at it, I did the research and I said, oh, look what I found. And I went into Schwab and I bought it. It's SPMC.
It is, I don't know what they do. I think they're a BDC, but they might be a financial one. I don't know what they do, because they're so new.
And they don't know how to phrase what they do. All right. But it trades at 1796 and it has a 16.7% yield, which is again, Wowzer.
Wowzer in the trousers. Wowzer's in the trousers. Year to date, it's down 4%.
That's because it's brand new. It came out in June. So it started, whenever things IPO, they start hot and then they go down.
So like the 4%, I'm not even worried about. Profit margin. Now this is only on two earnings reports.
They've only had two earnings reports since they came out. Profit margin is 25.05%. And the revenue is very difficult, but the revenue did increase from 28 million in quarter two to 43 million in quarter four of 2025. Whoa.
So they're doing okay on the revenue front. Something to track if you're not comfortable. You mean quarter three? No, that's the two quarters.
They didn't have the quarter three in Schwab. I don't know why. That's really weird.
So this is one to track if you're not comfortable pulling the trigger on a brand new stock. I like it. Their latest EPS came in at 53 cent.
But again, because they're new, I have no idea what numbers are accurate with this one. The dividend is 75 cents. It's 25 cents a month.
The good news is it has a 12 month target price of 21. So there's a 17% upside based on all the experts. Yeah, I don't even know how they can make an assessment either with not a lot of data.
So then I found one ETF and two closing the funds. The first is the ETF MORT. It's a mortgage ETF.
Mort. It's basically, it's an ETF that is 100% invested in the financial sector. If you actually go into it, it literally just says like it has a pie chart and it says this is the different sectors.
This is 100% financial. That is freaking hilarious. So this one's 100% invested in the financial sector.
And because it's an ETF, like there's no discount to NAV. Like ETFs, at the end of the day, they reconfigure everything. So their NAV prices change daily so that they are what they are.
It trades at $10 and 58 cents and it has a 12.22% yield with a 9% gain so far in 2025. That's one to look at if you don't want to invest in say AGNC or NLY because they're mortgage REIT companies. Just buy them all.
An ETF that is 100% invested that it covers most of the mortgage REIT companies in the market. Very nice. So it's like an index fund of mortgages.
The second one is the, so now we're going to go to closing the funds. The first one will be USA, which is a- You just mentioned. USA has a, yeah, it has a mixture of technology and financial stocks.
They're like large cap technology and financial stocks. Not the little tiny micro ones. This one is really affordable.
$6 and 47 cents and it has a 10.54% yield and it's only up 3% for the year. So $6 and 47, if you dumped in like say $10,000, you get a shit ton of shares. I was going to say, you get a lot of shares for that price.
Yeah. And closing it, so this way, like I said, invest in larger cap equities. When you compare it to its historical discount to NAV, it is about 5% lower than where it has been historically.
So you're getting a 5% price appreciation and you're getting a 10.54% yield and the buy of 2.4 USA is $7. According to experts or you? To me, because we just do the math, like 5% and then you figure out, you figure out where it's at around there. Most experts don't call closing the funds.
I don't know why. I think they're kind of bitchy about it because it's like, it's crazy. And the second one closing the fund is RIV and it's a closing fund that invests in closing the funds and ETFs and BDCs.
So it kind of like, I'm betting if it's invested in BDCs, the ETFs, because it doesn't list what it has. Like most of the time, like you can go in and say, show me your portfolio, what you're holding. This one doesn't list it, but if it's invested in BDCs, I'm pretty sure it's invested in ETFs that are in the financial sector and it's investing in closing the funds that are in the financial sector because that's what it's, like the BDCs are doing.
I could be wrong, but this one trades at $11.96, so it's not as affordable as USA, but that's still pretty affordable. That's still pretty affordable. Like under $12 and it has a 12 on that 12.52% yield.
That's also very nice. It's up 11% for the year and it's trading like, go into Schwab report. I'm going to show you how I come up with this type of move so people can, so I'm not like surprising them.
So there, here it is. You scroll down. There's the fund portfolio.
That'll tell you like, it seems like the net expense rate, everyone's always worried about this 3.72%, but that's after the dividend, like that's before the dividends, no, after the dividends are paid. No, that's already comes out before your dividends are paid. It doesn't matter.
It's irrelevant. You'll see that it has 339 holdings right here. And normally, normally when you scroll down here, oh, it did work.
It didn't work this morning. This, the holdings, it'll show you like what the holdings are. So 46% of the portfolio is in these different things, which is, oh, I was wrong.
It's not just BDCs and financial stuff. That's a conglomerate of all sorts of shit, but it has fixed income, income that has science and tech and it has income. It's a black rock.
So like it has a pretty good mixture of like what you're wanting here because science and tech should be take off because they're trying to repress everything and income is going to take off because of the interest rate cuts and that NUV, that's a municipal fund thing. That's like a really steady paycheck. That's interesting.
But go down a little bit further. You see there that it pays about 13 cents a month, which is nice. I like the monthly payers.
I'll go down more. How we come up with like, if closing the fund is in an area where you can buy it, you see we're down here where it says premium to discount negative 7.29. Just ignore the closing NAV price. Who cares about that? So 7.29 is where it's currently at.
You see it's one year average is whatever that says. 6.76. Oh, negative 2.82. Okay. So a lot of people make the mistake or they just go in there and they say, oh, it's undervalued because it's normally trading at 2.6. What did you say it was? I can't see that.
6.76. That one. 2.82. So they say, okay, this one's trading. It should be trading at negative 2.82 and it's trading at negative 7.29. So it's undervalued.
But with closing the funds, they have this nifty little tab right here that says since inception. That's way more reliable than that one year one. What's that say? 1.89. So this one normally trades 1.89. That means that you're normally paying a premium for this one.
The fact that you're getting it at negative 7.29 means it's about 5, maybe about 10% undervalued. That's a huge steal. That's how you come up like, so if you're ever looking at closing the funds and you have access to Schwab, you just scroll all the way down to the bottom.
Since inception high, 10.97. Whoa, that's cray cray. So it's like, I think it's about 10% below where it should be true. It should be when it's compared to that historical discount to NAV that we just looked at.
So the buy up to point is about $13. So you're getting a pretty good yield for like under $13. That's like less than a pizza or some shit.
Less than a pizza. Whatever. But that is the list.
I mean, obviously there's more. I just kind of like tried to pick the ones that I thought were undervalued that were worth looking into. Like I said, next week is going to be a huge pain in the ass to put together.
Oh, it's going to be a huge pain in the butt because you have to like calculate back and all this other stuff. But it's going to be a really good example of why dividend growers are amazing because that share price that you get in when you lock it, that grows and grows and grows and grows and grows because they do that dividend increase year over year. I'll just give you a sneak peek.
I don't know if the numbers are accurate. I have to go. Don't do it if you don't know they're accurate.
I have to double check. But $10,000 invested in Coke, according to what I came up with, I have to double check, would be worth almost $500,000 today. If you invested $10,000 in Coke 30 years ago, it would be worth $500,000 today with stock splits.
Stock splits, dividend increases. They had two stock splits and they had dividend increase every year. Every year since then, yeah.
So you have to drip on. But that's all I'll tell you. Like it's going to be pretty fucking sick.
But it's going to be a huge pain in the ass. How many are you picking? Five. Yeah, because a lot of research.
Lots of research. It's going to be Coke, Pepsi, Walmart, Altria and I don't know. I forget what the fifth one is.
We'll surprise you. We'll surprise you, yeah. All right, guys.
Altria, because they make num-nums and num-nums make me happy. Is that why you picked it? You're like, how would this in summer form? They have one of the higher yields. I want to see like what the difference is between like the Coke.
So I always had like a two to three percent yield. Now Altria's had like a five to six. I want to see what it is.
Wow, okay. Very nice. Actually, that'll be fun.
It will be fun. So next week we'll be doing that. We will make it happen even if we're moving out of the house, condo, whatever the hell we want to call this thing.
Albie. Next week we'll be on location somewhere. Yeah, for sure.
I don't think we will be here. You're not going to be here now. We're done.
If we do film, maybe we will film on location in the living room or something so you can see my handiwork. But that's it. You guys have a good week and I'll see you next week.
See you guys.