buy

The S&P 500 index (^GSPC 0.53%) has a miserly yield of just 1.2% or so today. That’s a number that you can beat pretty easily, but you want to make sure you do it with reliable dividend stocks. There are some companies that have huge yields, but the risk involved isn’t worth it.

That’s why you’ll probably prefer to buy (and likely hold forever) companies like Realty Income (O 1.13%), Prologis (PLD 2.40%), and UDR (UDR 0.50%). Here’s a quick look at each of these high-yield dividend stocks.

1. Realty Income is boring, which is a good thing

Realty Income is the largest net lease real estate investment trust (REIT) you can buy. It owns over 15,600 properties and has a market cap that is more than three times larger than its next-closest peer. Add in a dividend yield of 5.4% and a 30-year streak of annual dividend increases and you can see why dividend investors would like this stock.

The key, however, is how boring a business it is. It starts with the net lease approach. A net lease requires the tenant to pay for most property-level expenses. That saves Realty Income cost and hassle, leaving it to, in a simplification of the situation, sit back and just collect rent. On top of that, the company’s primary focus is retail properties, which are fairly easy to buy, sell, and release if needed. But that isn’t the end of the story, either, since Realty Income is also geographically diversified, with a growing presence in Europe.

Slow and steady is the name of the game for Realty Income, which makes sense given that the REIT has trademarked the nickname “The Monthly Dividend Company.” This high yielder isn’t going to excite you, but that’s basically the point. Investing $1,000 into Realty Income will leave you owning roughly 16 shares.

2. Prologis is building from within

Prologis is another industry giant, this time focused on the industrial asset class. It is one of the largest REITs in the world, with a market cap of more than $100 billion. (It’s about twice the size of Realty Income, which has a roughly $50 billion market cap.) The dividend yield is around 3.5%, which isn’t nearly as nice as what you’d get from Realty Income, but there’s more growth opportunity. To put a number on that, Realty Income’s dividend has grown 45% or so over the past decade while Prologis’ dividend has increased by over 150%.

Like Realty Income, Prologis offers global diversification. It has operations in North America, South America, Europe, and Asia, with assets in most prominent global transportation hubs. It has increased its dividend annually for 12 years, with a high likelihood of years of dividend growth ahead. That’s because the REIT has a $41.5 billion opportunity to build new properties on land it already owns. What’s exciting now is that the dividend yield happens to be near the high end of the range over the past decade, suggesting today is a good time to jump aboard. A $1,000 investment will allow you to buy eight shares of the stock.

3. UDR is diversified and provides a basic necessity

UDR is an apartment landlord, offering the basic necessity of shelter. That’s not going to go out of style anytime soon. The company underwent a painful overhaul a few years back when it sold a portfolio of lower quality apartments, leaving it focused on its remaining and better-positioned assets. This was a good move for the REIT, but it led to a dividend reset (the painful part for shareholders). However, the dividend has been growing ever since, with an annual streak that’s now up to 16 years. There’s no reason to believe another cut is in the cards.

What dividend lovers get now, however, is fairly attractive. For starters, the portfolio is well-diversified by geographic region in the United States and by quality (A and B level assets only, the fixer-uppers it once owned are gone). Technology has been an increasingly important aspect of the business, with UDR working to use the internet to lease and serve tenants more nimbly. Essentially, UDR is a great way to get diverse exposure to apartments.

UDR’s dividend yield is 4.7% right now, which is fairly high for the REIT and well above the REIT average of around 3.8%. If you want to own a REIT that provides a basic necessity, UDR is worth looking at today. A $1,000 investment will get you roughly 27 shares.

Three high-yield, buy-and-hold options for your portfolio

If you are focused on yield, Realty Income is likely to be the most appropriate choice for your portfolio. If you like dividend growth, take a look at Prologis. And if you are fond of companies that provide basic services that everyone needs, that would be UDR. All three have lofty yields and are worth buying and holding for the long term.

Stock prices continue to grow to the sky, and the S&P 500 index has set 28 record highs this year through the end of September.

Moreover, valuations continue to stretch. At 39.7, the Shiller Cyclically Adjusted (CAPE) Ratio is at its second highest level of the past century (higher than the eve of the Great Crash of 1929, though still a bit lower than the eve of the Internet bubble burst in 1999).

What should a prudent investor do in such a frothy market?

Investing in defensive stocks that are less vulnerable to market pullbacks, drawdowns, and corrections is one great idea. And here’s an even better idea: Buying reliable, stable defensive stocks that pay high dividends and reward investors with passive income.

Stability and income

So, what’s the best exchange-traded fund (ETF) to buy right now if you want exposure to defensive stocks that provide stable earnings and dividends? I like the Vanguard High Dividend Yield ETF (VYM) because it gives you a stake in a broad swath of high-yielding, stable, large-cap value stocks. Thus, you get safety and reliable passive income, and at a rock-bottom price.

The Vanguard High Dividend Yield ETF tracks the performance of the FTSE High Dividend Yield Index, which measures the return of a set of stocks characterized by high dividend yields. With total assets of $81.3 billion, the fund currently holds 579 stocks. Its top five holdings are:

• Broadcom, which accounts for 6.7% of the fund
• JPMorgan Chase, 4.1%
• ExxonMobil, 2.4%
• Johnson & Johnson, 2.1%
• Walmart, 2.1%

Such big, safe companies — ones that we would expect to be around for the long haul — are typical of the fund’s holdings. And it avoids risky and distressed firms.

Other than chipmaker Broadcom, no one stock currently accounts for more than 5% of the ETF, which makes it highly diversified. It’s also diversified among sectors. Its biggest holding by sector is financials, with about 22% of its assets in that industry. It also has large positions in consumer discretionary, healthcare, industrials, and technology, among a few other sectors.

The fund’s current yield is a very respectable 2.49%, about 1.3 percentage points above that of the S&P 500. The annual fee is a minuscule 0.06%, which is far lower than the 0.87% average for similar funds. The ETF is up about 10.4% year to date, which is solid given the income it produces.

Not so boring

Investors who think dividends are boring should think again. From 1940 to 2024, dividend income contributed 34% of the total return of the S&P 500, according to Hartford Funds.

Source: Getty Images.

That contribution varies a lot by decade. Dividends contribute a larger share of the total market return when the stock market is rising slowly, and a smaller share when it’s soaring. That makes sense. Companies with higher-yielding stocks tend to be large and slower-growing, just what you want to own in a challenging market environment.

Yes, there are stocks with much higher yields than those in the Vanguard High Dividend Yield ETF. But that’s by design, too. The fund avoids stocks with deteriorating fundamentals and declining prices, limiting its exposure to risky companies.

Best of all — considering the bubbly nature of the current stock market — this dividend ETF outperforms in difficult markets. It beat similar funds during the COVID-19 sell-off of early 2020 and outperformed other funds in its category by 7 percentage points in 2022, when the S&P 500 fell more than 19%.

The Vanguard High Dividend Yield ETF provides a steady, safer approach to higher-yielding stocks, and reliable passive income. Such an approach is beginning to look very attractive to many investors.

Over the next few weeks, many of America’s largest technology companies will report their operating results for the quarter ended Sept. 30. They will provide investors with a valuable update on their progress in the artificial intelligence (AI) race, which is driving an enormous amount of value right now.

Sept. 30 marked the end of Microsoft‘s (MSFT -0.43%) fiscal 2026 first quarter, and it is scheduled to report those results on Oct. 29. The company’s Azure cloud computing platform and its Copilot virtual assistant will be key points of focus for Wall Street because they are at the center of the company’s AI strategy.

Microsoft stock has already climbed 25% year to date. Is it still a buy ahead of the Oct. 29 earnings report?

Keep an eye on Copilot adoption

Microsoft launched its Copilot virtual assistant in early 2023. It was created using a combination of the company’s own AI models and those developed by its longtime partner OpenAI. The chatbot can be used for free in some of Microsoft’s flagship software products like Windows, Edge, and Bing, but it’s also available as a paid add-on for enterprise products like the 365 productivity suite.

Copilot can rapidly generate content in applications like Word and PowerPoint, autonomously transcribe meetings in Teams, and help users craft email replies in Outlook, so it has the potential to significantly increase productivity for enterprises. Microsoft says organizations around the world pay for over 400 million licenses for 365, all of which are candidates for the paid Copilot add-on, so the AI assistant could generate billions of dollars in recurring revenue for the company over the long term.

During the fiscal 2025 fourth quarter (ended June 30), Microsoft said several large customers expanded their Copilot adoption through 365. Barclays, for example, bought 100,000 licenses for its employees after running an initial test with 15,000, which implies a high degree of satisfaction with the assistant’s capabilities. This is the kind of information investors should look out for on Oct. 29, because it could be a predictor of future revenue.

But 365 isn’t Microsoft’s only enterprise opportunity when it comes to Copilot. There is Copilot Dragon, an innovative healthcare solution that autonomously documents millions of doctor-patient interactions, saving clinicians valuable time. Then there is Copilot Studio, a platform that allows businesses to create custom AI agents to automate workflows in any application, even those outside Microsoft’s ecosystem.

The most important segment to watch on Oct. 29

Microsoft’s Azure cloud platform operates hundreds of data centers spread across dozens of different regions around the world. They are fitted with the most advanced chips from suppliers like Nvidia and Advanced Micro Devices, and businesses rent the computing capacity from Azure to power their AI training and AI inference workloads.

Microsoft also launched Azure AI Foundry earlier this year, which ties many of the cloud platform’s AI services together to form a holistic solution for enterprises. It can be used to turn raw data into documents, build AI chat applications, deploy AI software, perform multimodal content processing, and more. It also offers access to the latest large language models (LLMs) from third parties like OpenAI to accelerate AI development.

Azure is regularly the fastest-growing part of Microsoft’s entire business, but it surprised even the most bullish analysts during the fiscal 2025 fourth quarter when its revenue soared by a whopping 39% year over year. It was the fastest growth rate in three years, and it marked a significant acceleration from the 33% growth Azure generated in the third quarter just three months earlier.

Demand for data center capacity and Foundry were the key drivers of the incredible result, so this is where investors should focus most of their attention on Oct. 29.

Should you buy Microsoft stock before Oct. 29?

Microsoft stock isn’t cheap right now. It’s trading at a price-to-earnings (P/E) ratio of 38.3, which is a 14% premium to its five-year average of 33.5. It’s also notably more expensive than the 33.3 P/E of the Nasdaq-100 index, which is home to many of Microsoft’s big-tech peers.

MSFT PE Ratio data by YCharts

As a result, investors who are looking for short-term gains over the next few months might be left disappointed. That doesn’t mean the stock is a bad buy ahead of Oct. 29, but investors who pull the trigger must be willing to hold it for the long term — preferably for three to five years — to maximize their chances of earning a positive return.

One single quarter is unlikely to shift Microsoft’s momentum in either direction, but as long as Copilot adoption continues to expand and Azure’s revenue growth maintains its recent momentum, investors will probably be glad this stock is in their portfolio.

Microsoft (MSFT -0.15%) and Apple (AAPL 0.54%) are forever rivals. They are competitors in the personal computer market and for years have been the leading tech companies in the world. Even today, their valuations are similar. As of Tuesday’s close, Microsoft had a slight edge in market cap ($3.82 trillion versus $3.67 trillion).

There’s a new arena that could be their new battleground: artificial intelligence (AI). It’s still the early innings of AI deployment, and how their businesses evolve and adapt to AI remains a big question mark. But based on where they are today, which AI stock looks to be the better buy right now?

Image source: Getty Images.

Which company has the better overall growth prospects?

Both of these companies already have large, robust businesses that can benefit from AI. Apple is a big name in consumer electronics with its iPads and iPhones being highly coveted products and, in some cases, status symbols. Microsoft, meanwhile, has its core in the business world with companies all over using its office products and cloud software for their day-to-day operational needs. They also both sell personal computers, with Microsoft focusing more on practicality and real-world business use, while Apple’s focus has been on simplicity and ease of use for the average user.

They both have many opportunities where AI can enhance their existing products in services. But the edge for sheer growth potential has to go Microsoft, simply because of how much broader its business has become over the years, especially in gaming, with it wrapping up its massive $69 billion acquisition of Activision Blizzard a couple of years ago.

Which company will benefit the most from AI?

AI has tremendous potential applications for these businesses. Many Apple users have been eagerly awaiting the launch of new AI-powered features for the company’s iPhones and were disappointed when they learned many of the key ones related to Siri will be pushed back until next year.

When that happens, however, that could trigger a flurry of upgrades and growth for the business. I don’t think a slow-and-steady approach will necessarily hurt Apple. In fact, it could end up being a smart move for the tech company by taking its time and ensuring everything is rolled out smoothly, to ensure that user privacy is well protected in the process.

Microsoft has already been enhancing its products and services with AI capabilities. However, there’s been plenty of debate about just how successful its Copilot AI really is. Salesforce CEO Marc Benioff has referred to it as “Clippy 2.0,” in reference to the frustrating assistant that Microsoft had years ago that users didn’t find all that helpful.

Apple deserves an edge when it comes to AI potential, simply for the massive wave of upgrades that could be coming if it hits it out of the park with its new iPhone features.

Which stock has the more attractive valuation?

It’s always important to consider valuation when buying a stock, as buying at a high price may impact your ability to earn a good return from your investment in the future. For a while, Microsoft’s stock was trading at more of a premium to Apple’s stock, but in recent weeks, that gap has evaporated.

Data by YCharts.

This one is easy to decide: It’s a tie. Their price-to-earnings multiples are almost identical at this stage. But it is notable to see that prior to the announcement of reciprocal tariffs in April, it was Apple that was trading at more of a premium than Microsoft, and then the trend reversed, with Apple’s exposure to manufacturing its iPhones in China likely weighing down the stock for part of the year.

Which stock should you buy?

The stock I’d buy today is Apple. It has devoted fans who will be willing to upgrade to the newest iPhone, even under challenging economic conditions, if it means access to cutting-edge features. Apple may be slow in rolling out AI, but when it does, the execution can be a lot cleaner, polished, and better for users in the end than if it were rushed.

Microsoft, meanwhile, has been quick to rush out AI features for its software. However, in an increasingly crowded market for AI services, it may have a more difficult time keeping customers happy when there may be other, and potentially better, options to choose from.

Apple, may, in the end, benefit from being a bit slower in its AI deployment.

Getty Images

On October 09, 2025, Voya Financial Advisors, Inc. disclosed the purchase of 126,532 shares of BND, estimated at $9.32 million based on the quarterly average price.

What happened

According to a filing with the Securities and Exchange Commission dated October 09, 2025, Voya Financial Advisors, Inc. bought 126,532 additional shares of Vanguard Total Bond Market ETF (BND -0.07%) during the quarter. The transaction was valued at $9,316,966. The fund now holds 1,935,848 shares in BND.

What else to know

The increased stake in BND brings the position to 13.89% of 13F AUM.

Top holdings after the filing:

• VV (Vanguard Large-Cap ETF): $212,202,112 (20.5% of AUM)
• BND (Vanguard Total Bond Market ETF): $144.03 million (13.9% of AUM)
• VEU (Vanguard FTSE All-World ex-US ETF): $101.80 million (9.8% of AUM)
• USIG (iShares Broad USD Investment Grade Corporate Bond ETF): $45,560,981 (4.4% of AUM)
• SPTL (SPDR Portfolio Long term Treasury ETF): $45.52 million (4.4% of AUM)

As of October 8, 2025, shares were priced at $74.28, up 0.32% for the year; the one-year alpha versus the S&P 500 was -14.13 percentage points BND’s annualized dividend yield was 3.79% as of October 9, 2025

Company overview

Company snapshot

Vanguard Total Bond Market ETF (BND) is one of the largest fixed income ETFs, offering investors comprehensive access to the U.S. investment-grade bond market. The fund tracks a broad, investment-grade, taxable U.S. bond index and invests at least 80% of its assets in bonds included in the index.

Its portfolio is composed primarily of U.S. dollar-denominated bonds with maturities over one year, selected through a sampling process to closely match the index’s risk and return characteristics.

BND serves institutional and retail investors seeking broad, cost-efficient access to the U.S. fixed income market.

Foolish take

Vanguard Total Bond Market ETF (BND) continues to attract institutional interest as investors seek stability and income in an uncertain rate environment. The bond fund‘s broad reach across the U.S investment-grade bond market gives it unique appeal in times where equities are choppy amidst U.S China trade tensions and yields remains elevated.

BND’s offering spans over 11,000 securities, blending U.S Treasuries, corporates and mortgage backed bonds into one of the most diversified fixed income portfolios available. Its current yield near 3.8 offers steady income while maintaining credit quality and moderate duration risk. For Voya advisors, building exposure through a low-cost and transparent vehicle such as BND shows a deliberate focus on resilience and disciplined asset allocation. 

While short-term rate movements can influence bond prices, BND’s scale and efficient structure marks a dependable core holdings for both institutional and retail portfolios. As markets shift toward a lower-rate outlook, BND stands out as a practice way to capture broad bond exposure and steady total returns over time. 

Glossary

Assets Under Management (AUM): The total market value of assets a fund or investment manager oversees on behalf of clients.

13F: A quarterly report filed by institutional investment managers to disclose their equity holdings to the SEC.

Dividend Yield: The annual dividend income an investment pays, expressed as a percentage of its current price.

Alpha: A measure of an investment’s performance relative to a benchmark, indicating value added or subtracted by active management.

ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.

Investment-Grade: Bonds rated as relatively low risk of default by credit rating agencies, typically BBB/Baa or higher.

Sampling Process: A portfolio construction method where a subset of securities is selected to closely match an index’s characteristics.

Mortgage-Backed Securities: Bonds secured by a pool of home mortgages, with payments passed to investors.

Asset-Backed Securities: Bonds backed by pools of financial assets, such as loans or receivables, other than mortgages.

TTM: The 12-month period ending with the most recent quarterly report.

Reportable Assets: Assets that must be disclosed in regulatory filings, such as those reported in a 13F filing.

Stake: The amount or percentage of ownership an investor holds in a particular security or fund.

Exchange-traded fund (ETF) investing removes the guesswork from portfolio construction. Rather than researching dozens of companies and hoping your picks outperform, ETFs deliver instant diversification across hundreds or thousands of stocks with a single purchase. The costs stay low — often just a few dollars per $10,000 invested each year — and ETFs eliminate the mistakes that hurt individual stock pickers who panic during market drops or chase hot stocks at the wrong time.

Among fund families, Vanguard deserves special attention. Fund investors actually own the management company itself, which means Vanguard works for shareholders instead of outside profit-seekers. This setup keeps costs far below what most competitors charge. Lower costs mean more money stays in your account, and those savings add up to significantly higher returns over decades.

Image source: Getty Images.

Three Vanguard ETFs stand out as core holdings for investors building wealth over time. Here’s a brief overview of each fund and how it may fit into a well-diversified portfolio.

The everything U.S. stock fund

Vanguard Total Stock Market ETF (VTI 0.47%) tracks nearly 100% of the investable U.S. equity market through ownership of roughly 3,500 stocks spanning large-cap giants down to tiny specialists. The fund captures the full range of American business — from Nvidia powering the artificial intelligence (AI) revolution at 6.5% of assets to small regional banks and industrial firms that barely move the needle individually but collectively represent substantial economic activity.

The Vanguard Total Stock Market ETF sports an expense ratio of just 0.03% annually while delivering a 1.11% annualized yield and 14.7% average returns over the past 10 years. That outstanding performance reflects the advantage of owning everything rather than trying to pick winners.

Furthermore, the fund automatically adjusts as companies grow or shrink, ensuring Microsoft and Apple earn their positions through market performance rather than manager guesswork. For investors seeking one fund that covers the entire U.S. market, the Vanguard Total Stock Market ETF delivers complete coverage at rock-bottom cost.

The global diversification play

Vanguard Total International Stock ETF (VXUS 0.86%) covers what U.S.-only portfolios miss. The fund holds over 8,600 stocks from developed and emerging markets outside the U.S., creating exposure to economies and industries where American companies operate less.

Top holdings include Taiwan Semiconductor Manufacturing at 2.46% — the world’s leading chip manufacturer — along with Chinese tech giants Tencent and Alibaba, European leaders like ASML and SAP, and thousands of mid-sized firms across Asia, Europe, and Latin America.

The Vanguard Total International Stock ETF costs just 0.05% per year, delivers a 2.78% yield that runs well above most domestic funds, and has posted 8.4% average annual returns over the past 10 years. International stocks have trailed U.S. returns recently, but these markets trade at cheaper prices and offer diversification benefits when domestic momentum eventually reverses.

The fund’s massive holding count prevents too much concentration in any single company, while the higher yield provides current income that can be reinvested or spent. For portfolios weighted too heavily toward U.S. stocks, this fund provides geographic balance.

The technology concentration play

Vanguard Information Technology ETF (VGT 0.77%) narrows its focus to the main sector driving market returns — technology. The fund holds roughly 316 stocks classified under information technology — software, hardware, semiconductors, and IT services — with Nvidia, Microsoft, and Apple combining for about 44% of total assets. That concentration creates higher ups and downs but also captures the ongoing shift toward digital infrastructure, AI, and cloud computing that defines modern economic growth.

The Vanguard Information Technology ETF charges 0.09% annually, yields just 0.4% as tech companies reinvest cash into growth rather than paying dividends, and has delivered exceptional 23.4% average annual returns over the past 10 years. That performance reflects tech dominance — technology now makes up roughly 30% of the benchmark S&P 500, and this fund provides pure exposure without watering it down with utilities or consumer staples.

The risk comes from concentration. When tech sells off, this fund falls harder than diversified alternatives. But for investors who believe software continues taking over more industries and AI represents real change rather than hype, this fund offers direct access to the companies building that future.

Trump has recently targeted India for its Russian oil purchases, imposing tariffs on Indian exports to the US.

United States President Donald Trump says that Indian Prime Minister Narendra Modi has pledged to stop buying oil from Russia, and Trump said he would next try to get China to do the same as Washington intensifies efforts to cut off Moscow’s energy revenues.

India and China are the two top buyers of Russian seaborne crude exports, taking advantage of the discounted prices Russia has been forced to accept after European buyers shunned purchases and the US and the European Union imposed sanctions on Moscow for its invasion of Ukraine in February 2022.

Trump has recently targeted India for its Russian oil purchases, imposing tariffs on Indian exports to the US to discourage the country’s crude buying as he seeks to choke off Russia’s oil revenues and pressure Moscow to negotiate a peace deal with Ukraine.

“So I was not happy that India was buying oil, and he assured me today that they will not be buying oil from Russia,” Trump told reporters during a White House event.

“That’s a big step. Now we’re going to get China to do the same thing.”

The Indian embassy in Washington did not immediately respond to emailed questions about whether Modi had made such a commitment to Trump.

Russia is India’s top oil supplier. Moscow exported 1.62 million barrels per day to India in September, roughly one-third of the country’s oil imports. For months, Modi resisted US pressure, with Indian officials defending the purchases as vital to national energy security.

A move by India to stop imports would signal a major shift by one of Moscow’s top energy customers and could reshape the calculus for other nations still importing Russian crude. Trump wants to leverage bilateral relationships to enforce economic isolation on Russia, rather than relying solely on multilateral sanctions.

During his comments to reporters, Trump added that India could not “immediately” halt shipments, calling it “a little bit of a process, but that process will be over soon”.

Despite his push on India, Trump has largely avoided placing similar pressure on China. The US trade war with Beijing has complicated diplomatic efforts, with Trump reluctant to risk further escalation by demanding a halt to Chinese energy imports from Russia.

What happened

Chesapeake Asset Management LLC disclosed a new position in Ryder System (R -0.12%), according to a quarterly report filed with the Securities and Exchange Commission on October 15, 2025 (SEC filing). The fund purchased 19,350 shares during the period, bringing the position’s value to approximately $3.08 million as of June 30, 2025. This trade represents an estimated 2.78% of the fund’s $110.74 million in U.S. equity holdings.

What else to know

This is a new position for the fund, representing 2.78% of 13F reportable assets under management following the trade.

Chesapeake’s top five fund holdings after the filing are:

• NASDAQ:MSFT: $11.41 million (10.0% of AUM) as of 2025-06-30
• NYSE:LLY: $6.94 million (6.2% of AUM) as of 2025-06-30
• NYSE:SPOT: $6.27 million (5.6% of AUM) as of 2025-06-30
• NASDAQ:AAPL: $5.99 million (5.4% of AUM) as of 2025-06-30
• NYSE:JPM: $5.52 million (5.0% of AUM) as of 2025-06-30

As of October 14, 2025, Ryder System shares were priced at $182.01, up 20.07% over the past year, outperforming the S&P 500 by 6.68 percentage points over the same period

Company Overview

Company Snapshot

Ryder System, Inc. is a leading provider of logistics and transportation solutions, operating globally with a diversified service portfolio. The company leverages its scale and expertise to deliver integrated fleet management and supply chain services to enterprise customers.

The company generates revenue through leasing and maintenance contracts, rental fees, logistics services, and the sale of used vehicles, offering integrated solutions to optimize clients’ transportation and supply chain operations.

IMAGE SOURCE: GETTY IMAGES.

Ryder System provides fleet management, supply chain solutions, and dedicated transportation services, including full-service leasing, commercial vehicle rental, and logistics management.

It serves businesses across industries with large-scale transportation and logistics needs, targeting corporate clients seeking efficiency, reliability, and scalability in fleet and supply chain management.

Foolish take

Chesapeake Asset Management starting a new position in transportation giant Ryder System is noteworthy. The investment isn’t small; Ryder stock sits just outside the financial management company’s top five holdings at the number six position.

Ryder had a rough 2023 with sales down 2% year over year, but it undertook changes to its business, bouncing back strong in 2024 with 7% year-over-year revenue growth to $12.6 billion. However, sales results in 2025 have been mixed. Through the first half of this year, revenue of $6.3 billion was flat compared to 2024.

But that’s not the whole story. Ryder expects its free cash flow (FCF) for the year to reach between $900 million and $1 billion. This sum far outpaces the $133 million in FCF produced last year, and will allow it to continue paying its robust dividend.

Moreover, the company adopted cost-saving initiatives that helped it increase diluted earnings per share (EPS) by 11% year over year to $3.15 in the second quarter. That’s the third consecutive quarter of double-digit EPS growth.

Ryder’s transformation from its difficult 2023 is delivering benefits to shareholders through higher EPS and FCF even though topline sales have not been impressive in 2025. These factors probably contributed to Chesapeake’s decision to begin investing in Ryder, which looks like a solid stock to buy for income investors.

Glossary

13F reportable assets: Assets that investment managers must disclose quarterly to the SEC if they exceed $100 million in U.S. equity holdings.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Position: The amount of a particular security or investment held by an investor or fund.
Stake: The ownership interest or share an investor holds in a company or asset.
Top five holdings: The five largest investments in a fund’s portfolio, usually by market value.
Outperforming: Achieving a higher return than a specific benchmark or index over a given period.
Dividend yield: A financial ratio showing how much a company pays in dividends each year relative to its share price.
Fleet management: Services that oversee and coordinate commercial vehicles for businesses, including maintenance, leasing, and logistics.
Supply chain solutions: Services that help businesses manage the flow of goods, information, and resources from suppliers to customers.
Full-service leasing: A leasing arrangement where the provider handles maintenance, repairs, and other services for the leased asset.
Logistics management: The planning and coordination of moving goods and resources efficiently through a supply chain.
TTM: The 12-month period ending with the most recent quarterly report.

On October 14, 2025, CCLA Investment Management disclosed it had sold its entire position in NICE (NICE -1.26%) in an estimated $120.03 million transaction.

What Happened

According to a filing with the Securities and Exchange Commission dated October 14, 2025, CCLA Investment Management exited its holding in NICE by selling all 710,865 shares, with an estimated trade value of $120.03 million.

What Else to Know

CCLA Investment Management sold out of NICE, reducing its post-trade stake to zero; the position now represents 0% of 13F AUM.

Top holdings following the filing:

• NASDAQ:MSFT – $369.63 million (5.9% of AUM) as of September 30, 2025
• NASDAQ:GOOGL – $345.87 million (5.5% of AUM) as of September 30, 2025
• NASDAQ:AMZN – $269.0 million (4.3% of AUM) as of September 30, 2025
• NASDAQ:AVGO – $207.92 million (3.3% of AUM) as of September 30, 2025
• NYSE:V – $180.65 million (2.9% of AUM) as of September 30, 2025

As of October 13, 2025, shares of NICE were priced at $132.00, marking a 23.8% decrease over the year ended October 13, 2025. Over the same period, shares have underperformed the S&P 500 by 35.5 percentage points.

Company Overview

Company Snapshot

NICE Ltd. delivers AI-powered cloud software solutions designed to optimize customer experience and enhance compliance for enterprises and public sector organizations worldwide. The company leverages a broad portfolio of proprietary platforms and analytics tools to address complex business needs in digital transformation, financial crime prevention, and operational efficiency.

The company offers AI-driven cloud platforms for customer experience, financial crime prevention, analytics, and digital evidence management, including flagship products such as CXone, Enlighten, and X-Sight.

NICE Ltd. serves a global client base of enterprises, contact centers, financial institutions, and public safety agencies seeking advanced automation, compliance, and customer engagement solutions. It operates a subscription-based business model, generating revenue from cloud services, software licensing, and value-added solutions for enterprise and public sector clients.

Foolish Take

In a recent regulatory filing, CCLA Investment Management revealed that it has completely sold out of its ~$120 million position in NICE, an Israeli software company. This move comes following a tough period for NICE stock.

Over the last five years, the company’s stock has consistently underperformed the broader market. Shares have logged a total return of (44%) over this period, equating to a compound annual growth rate (CAGR) of (11%). This compares quite unfavorably to the S&P 500, which has generated a total return of 105% over the last five years, equating to a CAGR of 15%.

All that said, NICE’s stock performance doesn’t reflect its underlying fundamentals. Total revenue, net income, and free cash flow have all increased significantly over the last five years, indicating strength in the company’s business model, which relies on artificial intelligence (AI) to power applications serving contact centers, financial institutions, and public safety organizations. Moreover, the company recently announced plans to buy back up to $500 million worth of its outstanding shares, which could help put a floor under its share price.

While CCLA’s recent sale does indicate the deterioration of some institutional support, retail investors may want to take a look at NICE — an under-the-radar AI growth stock.

Glossary

13F reportable assets: Assets disclosed by institutional investment managers in quarterly SEC Form 13F filings.

AUM (Assets Under Management): The total market value of investments managed by a fund or investment firm on behalf of clients.

Quarterly average price: The average price of a security over a specific quarter, often used to estimate transaction values.

Post-trade stake: The number of shares or value held in a position after a trade is completed.

Flagship products: A company’s leading or most prominent products, often representing its brand or core offerings.

Cloud platforms: Online computing environments that provide scalable software and services over the internet.

Digital evidence management: Systems for storing, organizing, and analyzing electronic data used in investigations or compliance.

Financial crime prevention: Technologies and practices designed to detect and stop illegal financial activities, such as fraud or money laundering.

Compliance: Adhering to laws, regulations, and industry standards relevant to a business or sector.

TTM: The 12-month period ending with the most recent quarterly report.

Operational efficiency: The ability of a company to deliver products or services using minimal resources and costs.

Technology stocks continue to help lead the market higher and remain a great space to find investment ideas. Let’s look at three top tech stocks to buy right now.

1. Nvidia

There has been a lot of news recently around new artificial intelligence (AI) chip challengers, but Nvidia (NVDA -4.33%) remains the company at the forefront of AI infrastructure. The company’s graphic processing units (GPUs) are powering most of the world’s AI workloads today, and that dominance doesn’t look to be slipping anytime soon.

Image source: Getty Images.

Nvidia is much more than a chipmaker. Its edge comes from its CUDA software platform, which it smartly provided for free to universities and research labs that were doing the early work on AI. That led to early AI foundational code being written for its chips and locked in a generation of developers into its ecosystem. Today, the company’s chips, networking, and software work together as one integrated tech stack, giving customers performance advantages.

The company’s huge commitment to partner with OpenAI is another sign that it’s not content to sit back. While other chipmakers have struck deals with OpenAi, Nvidia is the only company getting a significant equity stake in the AI model leader. Together, the two companies will work together to help shape where AI is going.

With demand for AI infrastructure still far outpacing supply, Nvidia’s growth story is nowhere near finished. Nvidia is arguably the most important stock in the market today, and one to own.

2. Alphabet

If there is one company that will challenge Nvidia as an AI leader, it’s Alphabet (GOOGL 0.62%) (GOOG 0.75%). The company has its fingers in multiple aspects of AI, with a unique positioned.

Arguably, no company has as complete of an AI tech stack as Alphabet. Its strength starts with its Gemini large language models (LLMs), which rival those of OpenAI. Meanwhile, the company has developed its own custom AI chips, called tensor processing units (TPUs), that were designed to optimally run its cloud computing infrastructure. The chips are in their 7th generation, and far ahead of most other custom AI chips.

Its software stack, which includes Vertex AI, meanwhile, is top-notch. Alphabet even owns the largest private fiber network in the world, which ensures low latency. Its pending acquisition of cloud cybersecurity company Wiz also adds to its vertical offering.

Right now, this vertical AI integration is helping power revenue growth and operating leverage at Google Cloud. Last quarter, Google Cloud revenue climbed 32% to $13.6 billion, while its operating income more than doubled to $2.8 billion. Meanwhile, it’s using its Gemini model to help power its search and AI chatbot offerings, as well.

Fears that chatbots would eat into Google’s search business have faded as the company blended its Gemini models directly into its core products. Features such as AI Overviews, Circle to Search, and Lens have made search more dynamic, leading to more queries, while its new AI mode lets users easily shift from AI-powered search to a traditional AI chatbot. Alphabet is no longer just playing defense when it comes to search and AI; it’s clearly playing offense, and it is well-positioned to win given its distribution and data advantages.

Alphabet is also making early progress in new areas such as robotaxis through Waymo and in quantum computing, which could eventually open new growth streams. Between search, cloud, and its AI push, Alphabet is a growth stock to buy right now.

3. GitLab

Compared to the two stocks above, GitLab (GTLB 1.11%) is certainly flying under the radar. However, this is a company that has been seeing strong growth. It’s grown its revenue by between 25% to 35% for eight consecutive quarters, including 29% last quarter, and more strong growth could be in store as the company continues to evolve.

GitLab started as a platform for developers to securely write and store code, but has evolved into a full software development lifecycle solution. Its Duo AI agent has the potential to be a big growth driver, as it helps automate repetitive work that eats up most of a developer’s day. Freeing up time to actually write code means more software projects, which drives more demand for GitLab’s tools.

Meanwhile, the company is starting to shift to a hybrid seat-plus-usage pricing model. This could be a huge growth driver for Gitlab, as it lets the company capture more revenue from usage and the increased value its offering is now bringing to its customers. A usage model also counteracts the biggest bear argument against the stock, which is that AI will reduce the number of coders.

That bearish argument has driven the stock to an attractive valuation, with it trading at a forward price-to-sales (P/S) multiple of 6.5 times 2026 analyst estimates. For a company with approximately 90% gross margins growing revenue near 30%, that’s a huge bargain.

Eli Lilly (LLY -0.82%) has been one of the best-performing healthcare giants over the past decade. It now stands as the largest in the sector by market cap.

Even with headwinds it has encountered this year, the drugmaker is arguably one of the top stocks in its industry to buy right now. Here’s why.

Image source: Getty Images.

Innovation pays off

It’s hard to find a drugmaker that has proven more innovative than Eli Lilly in recent years. Within its core areas of diabetes and weight management, Lilly launched tirzepatide, marketed as Mounjaro for diabetes and Zepbound for obesity. Tirzepatide was a significant breakthrough, as the first dual GLP-1 (glucagon-like peptide-1) and GIP (gastric inhibitory polypeptide) agonist, a medicine that mimics the action of these two gut hormones.

That’s one of the reasons tirzepatide has proved more effective than traditional GLP-1 drugs, and is racking up sales the likes of which have almost never been seen in the history of the industry. That’s not hyperbole. Most compounds never reach $1 billion in annual sales. Most of those that do, never get to $5 billion, and those that do, typically take years on the market to get there. In its third full year on the market, tirzepatide will generate well over $20 billion this year.

The next chapter

Last year, Eli Lilly earned approval for Kisunla, a medicine indicated to treat Alzheimer’s disease, an area that had long been considered the graveyard of investigational medications. So Lilly’s innovative prowess extends beyond its core markets. And the company is leveraging its success in weight management and obesity to establish a strong foundation for the future.

Thanks to acquisitions and licensing deals, it has significantly expanded its pipeline, which should power clinical and regulatory success over the next few years and strong financial results well into the next decade. That’s why Eli Lilly is one of the top healthcare stocks to buy right now.

It’s easy to feel complacent in today’s market. The S&P 500 hasn’t fallen by more than 3% from its all-time high for over five months — meaning volatility is virtually nonexistent.

Artificial intelligence (AI) spending deals are resulting in big stock pops and record runs for chip giants. The rift between winners and losers is growing, with just a handful of stocks making up a massive percentage of the index. That said, it’s a mistake to sell winning stocks just because they have gone up. So a better approach is to stay even-keeled and build a balanced financial portfolio.

Here’s why Netflix (NFLX -0.07%) is a growth stock that can back up its expensive valuation, and why Texas Instruments (TXN 1.95%) is a reliable high-yield dividend stock to buy in October.

Image source: Netflix.

Netflix is worth the premium price

Like many growth stocks, Netflix’s valuation is arguably overextended. But it could still be a good buy for patient investors. The simplest reason to buy and hold Netflix is that the company has become somewhat recession-proof. It is one of the few consumer-facing companies that continues to deliver solid earnings growth despite a challenging operating environment.

Inflation and cost-of-living increases have been no match for Netflix. Despite a crackdown on password sharing and price increases, Netflix’s subscribers are sticking with the platform — which is a great sign that folks believe the subscription is worth paying for, even as they pull back on other discretionary goods and services like restaurant spending.

Netflix is a textbook example of the effectiveness of boosting the quality of a product or service to justify higher prices. The company isn’t just making the same bag of chips and hiking the price in the hopes that customers give in and buy. Rather, the value of the platform has grown immensely due to the depth, breadth, and quality of its content.

Netflix’s business model acts like a snowball. The more subscribers there are, the more revenue it generates, the more content it can create, the more valuable the platform becomes, and the greater the justification for increasing prices.

What Netflix is doing sounds simple, but it is far from it. It has taken Netflix well over a decade to perfect its craft — developing content that resonates with subscribers of all interests. No other streaming platform comes close to replicating this efficiency, as evidenced by Netflix’s sky-high operating margins of 29%.

At about 47 times forward earnings, Netflix is far from cheap. But it’s the kind of stock that can grow into its valuation because the business can do well even during an economic slowdown.

A dividend play in the semiconductor space

The semiconductor industry has been soaring — led by massive gains in Nvidia, Broadcom, and most recently, Advanced Micro Devices. The iShares Semiconductor ETF, which tracks the industry, is up a mind-numbing 34.7% year to date — outpacing the broader tech sector’s 24.8% gain. So investors may be wondering why Texas Instruments, commonly known as TI, is down over 4% in 2025.

The most likely reason TI is underperforming the semiconductor industry is that it doesn’t sell graphics processing units and central processing units, which are in high demand by hyperscalers to build out data centers. Instead, TI makes analog and embedded semiconductors that are used across the economy.

The industrial and automotive markets accounted for around 70% of TI’s 2024 revenue. So this is a far different business model than chip companies that are playing integral roles in building out data centers. In fact, TI’s core business is in the midst of a multi-year slowdown, as evidenced by TI’s negative earnings growth.

Despite these challenges, the company is a coiled spring for a cyclical recovery in its key end markets. Lower interest rates should help boost spending by industrial customers and jolt demand in the automotive industry.

TI is a great buy for investors who value free cash flow and dividends. In its 2024 annual report, TI stated, “Looking ahead, we will remain focused on the belief that long-term growth of free cash flow per share is the ultimate measure to generate value. To achieve this, we will invest to strengthen our competitive advantages, be disciplined in capital allocation, and stay diligent in our pursuit of efficiencies.” This is a far different mantra than companies that are throwing capital expenditures at shiny new ideas.

With a 3.2% dividend yield and 22 consecutive years of dividend increases, TI stands out as an excellent buy for income investors in October.

The artificial intelligence (AI) revolution is transforming every corner of the global economy. Nvidia, the company at the center of this revolution, continues to be a Wall Street favorite for all the right reasons. As an undisputed leader in accelerated computing, the company’s hardware and software power much of the world’s AI infrastructure buildout.

Shares of Nvidia have already surged over 43% so far in 2025. However, despite the massive demand for its Blackwell architecture systems, software stack, and networking solutions, the stock may grow quite modestly in future months. With its market capitalization now exceeding $4.6 trillion and shares trading at a premium valuation of nearly 30 times forward earnings, much of the optimism is already priced in.

Memory giant Micron (MU 6.12%), on the other hand, is still in the early stages of its AI-powered growth story. Shares of the company have surged nearly 128% in 2025, which highlights the increasing investor confidence in its high-bandwidth memory and data center portfolio. Yet, Micron could still offer investors higher returns in 2026, while riding the same AI wave. Here’s why.

Image source: Getty Images.

Lower customer concentration risk

Wall Street has been highlighting one significant underappreciated risk for Nvidia. Nvidia’s revenues depend heavily on a few hyperscaler customers, with two accounting for 39% and four accounting for 46% of its revenues in the second quarter of fiscal 2026 (ending July 27, 2026). Many of these hyperscaler clients are developing proprietary chips, which may offer a price-performance optimization in their specific workloads. This may reduce their dependence on Nvidia’s chips in future years.

Micron’s revenue base is significantly more diversified than Nvidia’s. The company’s largest customer accounted for 17% of total revenue, while the next largest contributed 10% in fiscal 2025 (ending Aug. 28, 2025). The company has earned over half of its total revenues from the top 10 customers for the past three years. The company has a reasonably broad customer base, including data center, mobile, PC, automotive, and industrial markets.

Hence, compared with Nvidia, Micron’s lower concentration risk makes it more resilient in the current economy.

HBM demand and AI memory leadership

Micron’s high-bandwidth memory (HBM) products, known for their superior data transfer speeds and energy efficiency, are being increasingly used in data centers. HBM revenues reached nearly $2 billion in the fourth quarter of fiscal 2025, translating into $8 billion annualized run rate.

Management expects Micron’s HBM market share to match its overall DRAM share by the third quarter of fiscal 2025. The company now caters to six HBM customers and has entered into pricing agreements covering most of the 2026 supply of HBM third-generation extended (HBM3E) products.

Micron has also started sampling HBM fourth-generation (HBM4) products to customers. The company expects the first production shipment of HBM4 in the second quarter of calendar year 2026 and a broader ramp later that year.

Beyond HBM, Micron’s Low-Power Double Data Rate (LPDDR) memory products are also seeing strong demand in data centers. The data center business has emerged as a key growth engine, accounting for 56% of Micron’s total sales in fiscal 2025.

Hence, Micron seems well-positioned to capture a significant share of the AI-powered memory demand in the coming years.

Valuation

Micron appears to offer a stronger risk-reward proposition than Nvidia, even in the backdrop of accelerated AI infrastructure spending. The company currently trades at 12.3 times forward earnings, significantly lower than Nvidia’s valuation. Hence, while Nvidia’s premium valuation already assumes near-perfect execution and continued dominance, Micron still trades like a cyclical memory stock. This disconnect leaves room for modest valuation expansion to account for Micron’s improving revenue mix toward high-margin AI memory products.

Wall Street sentiment is also increasingly positive for Micron. Morgan Stanley’s Joseph Moore recently upgraded the stock from equal-weight or neutral to overweight and raised the target price from $160 to $220. UBS has reiterated its “Buy” rating and increased the target price from $195 to $225. Itau Unibanco analyst has initiated coverage for Micron with a “Buy” rating and target price of $249.

Analysts expect Micron’s earnings per share to grow year over year by nearly 100% to $16.6 in fiscal 2026. If the current valuation multiple holds, Micron’s share price could be around $204 (up 6% from the last closing price as of Oct. 9), with limited downside potential. But if the multiple expands modestly in the range of 14 to 16 times forward earnings, shares could fall in the range of $232 to $265, offering upside of 20% to 37.8%.

On the other hand, there remains a higher probability of valuation compression for Nvidia, leaving less room for growth. With diversified customers, increasing AI exposure, and reasonable valuation, Micron may prove to be the better semiconductor pick in 2026.

Louisbourg Investments increased its stake in ATS Corporation (ATS 2.97%), buying 113,773 shares in the third quarter for an estimated $3.3 million.

What Happened

According to a filing with the Securities and Exchange Commission released on Thursday, Louisbourg Investments added 113,773 shares of ATS Corporation (ATS 2.97%)in the third quarter. The estimated transaction value was $3.3 million based on the average price during the period. The fund held 215,295 shares, with a position value of $5.6 million, at the end of the quarter.

What Else to Know

The ATS Corporation stake is now 1.2% of Louisbourg Investments’ 13F reportable AUM.

Top holdings after the filing:

• NYSE:CNI: $28.5 million (6.2% of AUM)
• NASDAQ:SHOP: $15.1 million (3.3% of AUM)
• NASDAQ:MSFT: $13.3 million (2.9% of AUM)
• NYSE:WPM: $12.7 million (2.8% of AUM)
• NYSEMKT:IVV: $12.3 million (2.7% of AUM)

As of Monday afternoon, ATS Corporation shares were priced at $26.09, down 13% over the past year and well underperforming the S&P 500’s 13% gain in the same period.

Company Overview

Company Snapshot

• ATS provides automation solutions, including planning, design, build, commissioning, and servicing of automated manufacturing and assembly systems, as well as software and digital factory management tools.
• It generates revenue through turnkey automation projects, pre- and post-automation services, contract manufacturing, and value-added engineering and integration services across multiple industries.
• The company serves clients in life sciences, transportation, consumer products, food and beverage, electronics, nuclear, packaging, warehousing, distribution, and energy sectors worldwide.

ATS Corporation provides automation solutions to a broad range of industries worldwide. The company leverages advanced engineering and digital solutions to deliver end-to-end automation systems for complex manufacturing environments. Its focus on innovation, service, and integration enables customers to drive operational efficiency and sustainable production improvements.

Foolish Take

Louisbourg Investments’ $3.3 million purchase of 113,773 shares of ATS Corporation signals growing confidence in the Canadian automation company despite a rocky year for the stock. The new stake lifted ATS to about 1.2% of Louisbourg’s portfolio—a smaller weight than core holdings like Canadian National Railway and Shopify but one that adds industrial diversification to an otherwise tech-heavy mix.

ATS shares have fallen roughly 13% over the past year as margin pressures and leadership changes weighed on sentiment. In its latest quarter, the company reported 6% revenue growth to $736.7 million, driven by acquisitions and a strong backlog in life sciences and food automation. However, net income slipped to $24 million from $35 million a year ago, and adjusted EBITDA margin narrowed to 13.8% from 15.3%. Still, a $2.1 billion order backlog suggests solid demand and visibility ahead.

For Louisbourg, the position may represent a long-term bet on automation as manufacturers invest in efficiency and reshoring capacity. Compared to its larger tech holdings like Microsoft and Shopify, ATS adds a cyclical but strategic growth complement with exposure to high-value industrial innovation.

Glossary

13F reportable AUM: The portion of a fund’s assets under management disclosed in quarterly SEC Form 13F filings.
AUM (Assets Under Management): The total market value of investments managed by a fund or investment firm.
Turnkey automation projects: Complete automation solutions delivered ready for immediate use by the client.
Contract manufacturing: Outsourcing production to a third-party company that manufactures products on behalf of another firm.
Value-added engineering: Engineering services that enhance a product’s functionality, efficiency, or performance beyond basic requirements.
Integration services: Services that combine different systems or components into a unified, functioning whole.
Commissioning: The process of testing and verifying that a new system or equipment operates as intended before full operation.
Digital factory management tools: Software solutions designed to monitor, control, and optimize manufacturing operations digitally.
TTM: The 12-month period ending with the most recent quarterly report.

Earnings season is right around the corner, and several of tech’s biggest names look to keep their momentum going. Each of these companies posted strong results last quarter, and there are good reasons to believe that strength can continue into the final stretch of the year. These stocks look attractive, not just heading into earnings, but for the long haul as well.

1. Nvidia

Nvidia (NVDA 2.87%) has been at the center of the artificial intelligence (AI) boom, and last quarter’s results showed just how strong demand for its chips has been. Its data center revenue surged 56% year over year, despite the company lacking access to the Chinese market, as companies and governments around the world continue to rapidly build out their AI infrastructure.

That trend does not look like it’s slowing, with cloud computing companies continuing to spend big on data center infrastructure and Oracle announcing massive AI data center spending plans. Nvidia, meanwhile, continues to dominate the AI infrastructure market, where its graphics processing units (GPUs) are used to power AI workloads and have an over 90% market share. Its CUDA software platform continues to give it a wide moat in the space, as most early AI code was written on it, and developers favor it.

With data center spending remaining strong and AI demand still outpacing supply, Nvidia’s growth trajectory looks intact. The company has already proven that it can deliver consistent upside surprises, and it’s positioned better than any of its peers to capture profits from the next leg of the AI infrastructure buildout.

2. Meta Platforms

Meta Platforms (META 1.25%) has transformed itself into one of the biggest AI beneficiaries in tech, and that evolution showed up clearly in its last earnings report. The company posted 22% revenue growth in the second quarter, driven by an increase in ad impressions and higher prices. The number of daily active users across its family of apps also climbed by 6% year over year to 3.48 billion, proving that it can still draw in new users despite the maturity of its platforms.

AI has been the key driver behind Meta’s resurgence. It has been using AI to improve how its algorithms recommend content, which is keeping users more engaged. That, in turn, increases the amount of ad inventory it can sell. At the same time, its AI tools for advertisers are helping companies create and target their marketing campaigns more effectively, which boosts Meta’s ad pricing power.

Meanwhile, it is just starting to introduce ads to its biggest untapped assets, WhatsApp and Threads, both of which have huge growth potential. All these things should help keep the company’s earnings momentum going.

Meta also isn’t sitting still when it comes to innovation. It recently debuted its new Meta Ray-Ban Display glasses, sales of which could give its Q4 revenue a boost. These augmented reality glasses could also be a precursor to its eventual vision for things like “superpersonal intelligence” and the metaverse, which are longer-term bets.

Image source: Getty Images.

3. Microsoft

Microsoft (MSFT 0.77%) capped off its fiscal 2025 with one of its best quarters in years, showing just how well it’s executing across both cloud computing and AI. In its fiscal Q4, which ended June 30, revenue from its Azure cloud platform jumped by 39%, marking its eighth straight quarter of growth above 30%. Meanwhile, its Intelligent Cloud division as a whole grew by 26% to nearly $30 billion. That strength is being driven by companies accelerating their AI spending, with Azure being one of the biggest beneficiaries.

Meanwhile, Microsoft’s early investments in OpenAI continue to give it an edge. Its Copilot AI tools, now integrated across Office products, are increasingly being adopted by enterprises to increase worker productivity. These products are still in their early innings, which means there’s plenty of runway for growth left. Revenues from Microsoft 365 rose more than 20% last quarter, and even the company’s personal computing segment saw renewed growth, led by Xbox and search advertising.

Microsoft is spending aggressively to expand its data center capacity to meet the flood of AI demand, which should keep growth strong in the quarters ahead. With Azure continuing to increase its sales in a rapidly growing cloud market, and with Copilot adding a valuable new layer of recurring revenue, Microsoft looks like one of the most reliable performers heading into this earnings season and a top long-term holding for investors.

Are all dividend funds the same? They often are, even if each one is structurally and strategically unique. There’s only so much difference possible when a company and its stock’s primary purpose is just generating cash flow.

And yet, owners of the Schwab U.S. Dividend Equity ETF (SCHD -1.70%) know all too well that dividend-oriented exchange-traded funds can at times be considerably different than one another. Their fund has measurably underperformed other dividend ETFs like the Vanguard Dividend Appreciation ETF, the iShares Core Dividend Growth ETF, and Vanguard High Dividend Yield ETF over the course of the past three years. Indeed, the disparity’s been wide enough to leave them wondering if they made a mistake that should be corrected as soon as possible.

Well, they didn’t make the wrong choice, so there’s no correction to be made. The very reason this dividend ETF has underperformed of late, in fact, is the very same reason income-seeking investors might want to buy the Schwab U.S. Dividend Equity ETF now.

The same, but different — and more different than the same

What’s Schwab’s U.S. Dividend Equity ETF? It’s meant to mirror the performance of the Dow Jones U.S. Dividend Index, which, just as the name suggests, is dividend-focused. So is the Morningstar US Dividend Growth Index that serves as the basis for iShares’ Core Dividend Growth ETF, though, along with the Vanguard Dividend Appreciation ETF’s underlying S&P U.S. Dividend Growers Index, for that matter.

They’re not all the same, though. And it matters.

Take a comparison of the S&P U.S. Dividend Growers Index behind Vanguard’s Dividend Appreciation fund to the iShares Core Dividend Growth ETF’s Morningstar US Dividend Growth Index as an example. The former consists of U.S.-listed companies that have raised their dividend payments for at least the past 10 years, but it excludes the very highest-yielding tickers (on concerns that the high yields are unsustainable). The latter only requires five years of uninterrupted dividend growth, although it also generally excludes stocks with suspiciously high yields.

End result? The Vanguard fund’s top three holdings right now are Broadcom, Microsoft, and JPMorgan Chase, while the iShares ETF’s biggest three positions at this time are Apple, Microsoft, and Johnson & Johnson. They’re more different than alike, even if there is some overlap.

Image source: Getty Images.

The Vanguard High Dividend Yield ETF’s underlying FTSE High Dividend Yield Index, by the way, currently holds Broadcom, JPMorgan, and Exxon-Mobil as its top three positions — three names that offer the high yield that the index prioritizes. Even so, the fund’s trailing yield is a modest 2.45% at this time, versus the iShares ETF’s yield of 2.2% and the trailing dividend yield of 1.6% currently offered by the Vanguard Dividend Appreciation fund.

Where does Schwab’s U.S. Dividend Equity ETF stand? The Dow Jones U.S. Dividend Index’s biggest three positions right now are AbbVie, Lockheed Martin, and Cisco Systems, followed closely by Merck and ConocoPhillips. In fact, you won’t start seeing any serious overlap between this fund and the other three dividend ETFs in focus here until those positions are so small that they don’t really matter.

That’s why this ETF has underperformed the other three funds in question since early 2023; it’s not holding many of the market’s most popular growth names right now. Indeed, it currently holds a bunch of the market’s least popular value stocks.

SCHD Total Return Level data by YCharts

But that’s exactly why income-minded investors might want to dive into the Schwab ETF at this time, particularly in light of its sizable trailing dividend yield of right around 3.7%.

What went wrong for dividend-paying value names?

In retrospect, the fund’s recent underperformance actually makes a lot of sense. The few technology stocks that pay any dividend at all have performed exceedingly well since the launch of OpenAI’s ChatGPT in November 2022, setting off an artificial intelligence arms race that sent a bunch of these stocks sharply higher. The dynamic was also bullish for financial stocks like JPMorgan, which helps companies raise funds or make the acquisitions they need to take full advantage of the AI revolution.

At the other end of the spectrum, most of the Schwab U.S. Dividend Equity ETF’s holdings have been on the wrong side of one force or another. Regulatory headwinds and the impending expiration of key patents have proven problematic for pharmaceutical outfits AbbVie and Merck, for instance.

Inflation and the subsequent rise in interest rates are another one of these forces, and arguably the biggest. Although both have historically been more of a challenge for growth stocks than value names, in this instance, the opposite has been (mostly) true.

Just bear in mind how incredibly unusual the past three years have been. The bulk of growth stocks’ leadership has been fueled by the aforementioned advent of artificial intelligence, creating a secular growth opportunity that wouldn’t be stymied by any economic backdrop.

Also know that the so-called “Magnificent Seven” stocks have done the vast majority of the market’s recent heavy lifting, so to speak, fueled by AI. Data from Yardeni Research suggests that without the help of these seven tech-centric tickers, the S&P 500‘s would be about one-third less than what it’s actually been since early 2023.

It would also be naïve to pretend that value stocks like Merck, Cisco, and ConocoPhillips just haven’t offered the excitement that most investors have craved in the post-pandemic, AI-centered environment.

Here comes the pendulum

As is always the case, though, the cyclical pendulum will eventually swing back the other way. And that’s likely to happen sooner or later. As number-crunching done by Morningstar analyst David Sekera recently prompted him to note, “By style, value remains undervalued, trading at a 3% discount, whereas core stocks are at a 4% premium and growth stocks are at a 12% premium.” He adds, “Since 2010, the growth category has traded at a higher premium only 5% of the time.”

This dynamic, of course, works against dividend ETFs’ growth names, and works for dividend ETFs like the Schwab U.S. Dividend Equity ETF, which almost exclusively holds value stocks. The market just needs a catalyst to start such a shift.

That may be in the offing, though. JPMorgan CEO Jamie Dimon recently lamented in an interview with the BBC, “I am far more worried about that [a market correction] than others… I would give it a higher probability than I think is probably priced in the market and by others.” And this worry follows Federal Reserve Chairman Jerome Powell’s recent comment that U.S. stocks are “fairly highly valued.” That’s a screaming red flag from someone who makes a point of maintaining composure and not inciting panic.

Sure, such a setback could undermine the Schwab U.S. Dividend Equity ETF as much as it does any other stock or fund. That’s not the chief concern of any correction, though. It’s what happens afterward. That bearish jolt may well inspire investors to rethink everything about the risks they’ve been taking, souring them on tech names and turning them onto value names that also dish out above-average income.

You’ll just want to be positioned before it all starts to happen.

One of the great things about equity markets is that excellent stocks can be had at almost any price, making them accessible to most people. Even with $100, it’s possible to find outstanding, growth-oriented companies to invest in. Of course, what qualifies as “the smartest” stock to buy with any amount of money will differ from one investor to the next, depending on factors such as risk tolerance, goals, and investment horizon.

One growth stock trading for well below $100 that can meet many investors’ demands is Novo Nordisk (NVO -2.96%). Here is why the Denmark-based company is an excellent stock to buy right now.

Image source: Getty Images.

A wonderful contrarian opportunity

Quality growth stocks tend to be highly sought after. There is often a higher demand for shares of these companies than are available. That’s why their prices rise. Sometimes, though, these otherwise excellent companies encounter challenges that lead to a sell-off, providing investors with a wonderful opportunity to pick up their shares at a discount.

In my view, that’s what we have with Novo Nordisk. True, the company has faced some challenges, and it has paid for them as shares have remained southbound for over a year. Its financial results haven’t been as strong as expected. It hit a series of surprising clinical setbacks while losing market share to its rival, Eli Lilly.

However, Novo Nordisk’s prospects remain very strong. Novo Nordisk’s claim to fame is that it has been a major player in the diabetes drug market for decades. That remains the case. As of May, it had a 32.6% share of the diabetes market and a 51.9% share of the GLP-1 space. While its hold in these fields declined compared to last year, it remains a dominant force in both.

Novo Nordisk also continues to post competitive financial results for a pharmaceutical giant. The company’s sales for the first half of the year increased by a strong 16% year over year to 154.9 billion Danish kroner ($24.2 billion).

Further, the diabetes and obesity drug markets are rising fast due to several factors. Both conditions have skyrocketed in recent decades, and drugmakers are now developing highly innovative therapies to address them. Novo Nordisk is still at the forefront of this race. Even if the company has a smaller slice of the pie, that’s not a significant problem if the pie is substantially larger.

Can Novo Nordisk continue to launch innovative medicines and stay ahead of most of its peers, excluding Eli Lilly? The company’s pipeline suggests that it can, and could even catch up with its eternal rival. Consider Novo Nordisk’s potential triple agonist (a medicine that mimics the action of three gut hormones), UBT251.

In a 12-week phase 1 study, UBT251 resulted in an average weight loss of 15.1% at the highest dose. The usual caveats regarding early-stage studies apply. Still, UBT251 looks promising, especially since there is no single triple agonist approved for weight loss yet. And that’s just the tip of the iceberg. Novo Nordisk has several other exciting candidates through all phases of clinical development. And those that have already passed phase 3 studies, such as CagriSema, should generate massive sales for the drugmaker.

According to some projections, CagriSema could rack up $15.2 billion in revenue by 2030. Ozempic and Wegovy, Novo Nordisk’s current bestsellers, should also remain among the top-selling medicines in the world through the end of the decade. So, Novo Nordisk’s medium-term outlook seems promising.

There are more reasons to buy

Novo Nordisk appeals to growth-oriented investors, but it is also a great pick for dividend seekers and bargain hunters. For those seeking income stocks, the Denmark-based drugmaker is a great choice, given its strong track record. The company’s forward yield is not exceptional at 2.9% — although that’s much better than the S&P 500‘s average of 1.3% — but Novo Nordisk has consistently increased its dividends over the past decade.

NVO Dividend (Annual) data by YCharts

Finally, Novo Nordisk’s shares are trading at 14 times forward earnings, whereas the average for the healthcare industry is 17.3. Even with the challenges it has faced recently, Novo Nordisk’s strong pipeline and lineup, solid revenue growth, and excellent prospects in diabetes and weight management make the stock highly attractive. The company’s shares are changing hands for about $59, so $100 can afford you one of them.

Artificial intelligence (AI) stocks may have gotten most of the attention from investors over the last few years, but some of the period’s top-performing stocks don’t hail from the AI space — at least, not directly.

Instead, they represent emerging technologies like quantum computing, electric vertical takeoff and landing (eVTOL) aircraft, small modular nuclear reactors, and rockets and satellites. The artificial intelligence boom has provided a halo effect to other emerging technologies, as growth investors have become particularly keen to find those that might power the next breakout trend. Investing early in the company that may launch the next ChatGPT would produce huge returns, the thinking seems to go.

Thanks to the speculative optimism about their potential, many of these tech stocks have delivered returns of more than 1,000%, outperforming even Nvidia. However, few hot growth stocks have beaten AST SpaceMobile (ASTS -5.49%), which is building a satellite-based broadband network.

While it has yet to generate meaningful revenue, excitement around the business and its potential have surged recently as it has forged new agreements with customers. 

ASTS data by YCharts.

Over just the last 18 months, a $1,000 investment in AST SpaceMobile would have grown into a stake worth more than $35,000. But with that climb behind it, is it too late to buy the stock? 

What is AST SpaceMobile?

AST SpaceMobile is sometimes lumped together with other space and rocket companies like Rocket Lab, Planet Labs, and SpaceX and its Starlink subsidiary, but the company says its technology can be used with existing unmodified smartphones and operates within the low- and mid-band spectrum used by mobile network operators. That contrasts with existing space-based telecom services that are intended for low-data-rate applications, such as emergency service.

The company is building the first global cellular broadband network to connect with everyday smartphones. It intends for the technology to be used for commercial and government purposes, and is designed to reach places that are not covered by terrestrial cell towers.

It is deploying a constellation of low-Earth-orbit satellites and partnering with other telecoms to provide service to users. Founded in 2017, AST SpaceMobile launched its first test satellite in 2019 and now has a total of six satellites in orbit. It aims to have 45 to 60 satellites in orbit by 2026, serving the U.S., Europe, Japan, and other markets.

AST SpaceMobile has signed partnership deals with several global telecom companies, including AT&T, Vodafone, and Rakuten, and the stock just jumped on news that it had its expanded partnership with Verizon, adding to an earlier $100 million commitment from the telecom giant. According to the new agreement, Verizon will integrate AST SpaceMobile’s satellite network with Verizon’s 850 MHz spectrum across the country, allowing Verizon’s service to reach remote areas it doesn’t currently cover.

Image source: AST SpaceMobile.

Is AST SpaceMobile a buy?

The company expects to start booking meaningful revenues in the second half of the year. Management forecasts $50 million to $75 million in sales in the second half of 2025 as it deploys intermittent service in the U.S. That will soon be followed by service coming online in other markets like the U.K., Japan, and Canada.

Management hasn’t given a forecast for 2026, but investors expect its financial momentum to continue to build as new satellites go into service. The Wall Street consensus now predicts $254.9 million in revenue in 2026.

The company’s momentum, partnerships, and satellite deployments all sound promising, but much of its expected future success is already baked into the stock price.

AST SpaceMobile’s market cap has already soared to $31 billion, a huge number for a company that has yet to generate significant revenues. Notably, it also competes in an industry — internet connectivity — with notoriously low valuations. Verizon has a market cap of $172 billion, even though it generated nearly $20 billion in profits over its last four quarters. Internet service providers carry similarly underwhelming valuations. For example, broadband and cable service provider Charter Communications has a market cap of $36 billion, and it brought in $5 billion in net income over the last year.

The size of AST SpaceMobile’s total addressable market isn’t fully clear, though management says the global wireless services market produces over $1.1 trillion in annual revenue.

AST SpaceMobile is competing globally, which differentiates it from domestic services like Verizon. However, as it’s currently structured, the satellite company essentially aims to be a subcontractor for larger telecoms, and the telecom industry is decidedly unexciting, according to investors. As long as it’s beholden to that low-valuation ecosystem, it’s difficult to picture how the company could deliver the kind of blockbuster returns that investors seem to expect, especially considering that telecom is a mature industry.

At $31 billion, AST SpaceMobile’s market cap seems to have gotten well ahead of the reality of the business, especially as commercialization could present unforeseen challenges. In the near term, the stock could move higher if it signs more partnerships or announces other promising news, but given the sky-high valuation, the stock now looks overheated.

With AST SpaceMobile, investors are playing with fire at this point. Eventually, they’ll get burned.