Top Airline Stocks for Summer Travel

by Nkem Iregbulem

This summer is the 10th consecutive summer to see an increase in the number of passengers flying. Airline for America (A4A) expects the number of passengers to rise 3.4% from 248.8 million travelers last summer to 257.4 million travelers this summer. Low airfares, higher household net worth, and a strong U.S. economy could all be driving this record high air travel. In response to this growing demand, airlines have added more seats to existing planes and increased the capacity of new ones.

Airline stocks may benefit from this busy travel season. These include Alaska Air (ALK), American (AAL), Delta (DAL), SkyWest (SKYW), Spirit (SAVE), Southwest (LUV), and United Continental (UAL). The ALK, DAL, LUV, and SAVE stocks are traded on the New York Stock Exchange, and the SKYW, UAL, and AAL stocks are traded on the NASDAQ exchange.

Alaska Airlines is the fifth largest airline in the U.S. when measured by fleet size, passengers carried, and destinations served. With its fleet size of 334, Alaska Airlines flies to over 100 domestic and international destinations. The airline is headquartered in Washington and was founded in 1932. Alaska Air has a market cap of $8.01 billion and pays a dividend yield of 2.16%. The stock trades at 14.34 times trailing earnings and at 11.10 times forward earnings. It has an excellent price-to-sales ratio of 0.95 and a price-to-book ratio of 2.02. The company boasts a 3-year revenue growth rate of 13.86% and a 5-year revenue growth rate of 9.89%.

American Airlines is the world’s largest airline when measured by number of passengers carried, fleet size, revenue, and destinations served. Founded in 1926 and based in Texas, the airline serves 350 destinations in over 50 countries. It has a market cap of $14.09 billion and pays a dividend yield of 1.26%. The stock trades at 8.26 times trailing earnings and at 6.03 times forward earnings. It has an excellent price-to-sales ratio of 0.33 and a price-to-book ratio of 1.25. The company enjoys a 3-year revenue growth rate of 2.81% and an even better 5-year revenue growth rate of 10.74%.

Delta Airlines is ranked the world’s second largest airline when measured by the number of passengers carried and fleet size. Headquartered in Georgia and founded in 1924, it serves 325 destinations across 52 countries. Delta has a market cap of $40.46 billion and pays a dividend yield of 2.59%. The stock trades at 9.86 times trailing earnings and at 8.85 times forward earnings. It has an excellent price-to-sales ratio of 0.92 and a price-to-book ratio of 2.90. With its revenue increasing each fiscal year since 2016, Delta enjoys a 3-year revenue growth rate of 2.97% and a slightly better 5-year revenue growth rate of 3.30%.

SkyWest is the largest regional airline in North America when measured by fleet size, number of passengers, and destinations served. Based in Utah and founded in 1972, it flies to over 250 destinations across in the United States, Canada, Mexico, and the Bahamas. SkyWest has a market cap of $3.11 billion and pays a dividend yield of 0.79%. The stock trades at 9.99 times trailing earnings and at 10.12 times forward earnings. It has a normal price-to-sales ratio of 1.02 and a price-to-book ratio of 1.56. SkyWest’s revenue has increased each fiscal year since 2015, giving it a 3-year revenue growth rate of 1.34% but a 5-year revenue growth rate of -0.47%.

Spirit Airlines is an ultra-low-cost carrier and the seventh largest airline in the United States. Based in Florida and founded in 1983, it serves 76 destinations across Central America, South America, and the United States. Spirit Airlines has a market cap of $2.88 billion and does not pay a dividend yield. Spirit has a fleet size of 75 and flies to 76 domestic and international destinations. The stock trades at 10.27 times trailing earnings and at 7.15 times forward earnings. It has an excellent price-to-sales ratio of 0.79 and a price-to-book ratio of 1.37. Spirit Airlines boasts a 3-year revenue growth rate of 15.77% and a 5-year revenue growth rate of 14.97%.

Southwest Airlines is the world’s largest low-cost carrier. The airline carries more domestic passengers than any other United States airline. Based in Texas and founded in 1971, it serves just over 100 destinations within the United States and 10 other countries. Southwest has a market cap of $29.82 billion and pays a dividend yield of 1.31%. The stock trades at 13.06 times trailing earnings and at 11.95 times forward earnings. It has a normal price-to-sales ratio of 1.40 and a price-to-book ratio of 3.05. Southwest enjoys a 3-year revenue growth rate of 3.48% and a slightly better 5-year revenue growth rate of 4.41%.

United Airlines is another large airline. Founded in 1926 and headquartered in Illinois, it serves over 200 domestic destinations and over 300 destinations in total across five continents. United Continental has a market cap of $24.13 billion and does not pay a dividend yield. The stock trades at 8.63 times trailing earnings and at 8.07 times forward earnings. It has an excellent price-to-sales ratio of 0.59 and a price-to-book ratio of 2.34. With its revenue increasing each fiscal year since 2016, United has a 3-year revenue growth rate of 2.94% and a 5-year revenue growth rate of 1.53%.

Maybe some of these airline stocks will be flying high.

Stocks Going Ex Dividend in August 2019

by Fred Fuld III

The following is a short list of some of the many stocks going ex dividend during the next month.

Many traders and investors use the stock trading technique called ‘Buying Dividends,’ also commonly referred to as ‘Dividend Capture.’ This is the strategy of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend.

This technique generally works in bull markets and flat or choppy markets, but you need to avoid the strategy during bear markets. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can’t sell the stock until after the ex date.

The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend in the near future. The list contains many dividend paying companies, lots with market caps over $500 million, and many with yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the periodic dividend amount, and annual yield.

PetMed Express, Inc. (PETS) 8/1/2019 0.27 6.71%
Citigroup Inc. (C) 8/2/2019 0.51 2.84%
MetLife, Inc. (MET) 8/5/2019 0.44 3.52%
Boeing Company (BA) 8/8/2019 2.055 2.42%
Walmart Inc. (WMT) 8/8/2019 0.53 1.89%
Eli Lilly and Company (LLY) 8/14/2019 0.645 2.37%
Duke Energy Corporation (DUK) 8/15/2019 0.945 4.31%
Moody’s Corporation (MCO) 8/19/2019 0.50 0.99%
Carnival Corporation (CCL) 8/22/2019 0.50 4.22%
Johnson & Johnson (JNJ) 8/26/2019 0.95 2.86%
Goldman Sachs Group, Inc. (GS) 8/29/2019 1.25 2.27%
Molson Coors Brewing (TAP) 8/29/2019 0.57 4.03%
Kellogg Company (K) 8/30/2019 0.57 3.90%

The additional ex-dividend stocks can be found HERE . (If you have been to the page before, and the latest link doesn’t show up, you may have to empty your cache.) If you like dividend stocks, you should check out some of the other high yield stock lists HERE . Most of the lists are free.

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Monthly Dividend Stock List

Record date: the day when you must be on the company’s books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks at two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don’t forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written.

You May Be Entitled to Free Credit Monitoring or $125 Cash Payment

by Fred Fuld III

Equifax has set up a website for the settlement of the data breach back in September of 2017.

If you have been impacted, you can file a claim and receive free credit monitoring, or if you already have credit monitoring, you can request a $125 cash payment.

In addition, you may be able to claim for time you spent to remedy the misuse of your personal information, assuming you can provide documentation.

To see if you have been impacted, go to the following site, scroll down and click on the Find Out If Your Information Has Been Impacted button.

https://www.equifaxbreachsettlement.com

To file a claim, go to the following link:

https://www.equifaxbreachsettlement.com/file-a-claim

 

Target Funding: A Proven System to Get the Money & Resources You Need to Start of Grow Your Business

by Fred Fuld III

The book, Target Funding: A Proven System to Get the Money & Resources You Need to Start of Grow Your Business by Kedma Ough is by far the the most thorough book I have ever read on getting money for startups and small businesses.

As someone who has created a couple of businesses, I know how hard it is to raise money. Target Funding is a complete guide to finding sources of funds, whether it be for an invention, a technology venture, a startup, a small business, and even franchises.

The book goes into great detail on funding if you fit into a special category, such as veterans, people with disabilities, minority, and women.

Startups are not just for young people. If you are over 50, you may be eligible for ROBS, Rollovers for Business Startups. Never heard of them? Then you better check out page 120 in the book.

How about an IDA, an individual development account, for setting aside funds for starting or expanding a business. If you haven’t heard of this, go to page 277.

Ough has done an outstanding job compiling all this information. I highly recommend  Target Funding.

 

Stocks of the Richest Self-Made Women

by Fred Fuld III

In the June 30, 2019 issue of Forbes Magazine, the cover feature was about America’s most successful women entrepreneurs. Several of these women have a connection to publicly traded stocks. Here are the ones that have that connection.

Meg Whitman, second wealthiest woman entrepreneur. eBay (EBAY), Hewlett Packard Enterprises (HPE), HP Inc. (HPQ).

Doris Fisher. #8. The Gap (GPS).

Johnelle Hunt. #8. J. B Hunt Transportation (JBHT).

Elaine Wynn. #11. Wynn Resorts (WYNN).

Sheryl Sandberg. #12. Facebook (FB).

Jayshree Ullal. #18. Arista Network (ANET)

Alice Schwartz. #20. Bio-Rad Laboratories (BIO)

Safra Catz. #22. Oracle (ORCL)

Weili Dai. #26. Marvell Technology (MRVL)

Christel DeHaan. #27. Resort Condominiums – Wyndham Destinations (WYND)

Young Sohn. #30. Veeva Systems (VEEV)

 

Disclosure: Author didn’t own any of the above at the time the article was written.

How to Get Two Free Shares of Stock

by Fred Fuld III

There is a relatively new stock brokerage firm called WeBull that is offering one free share of stock worth $2.50 to $250 when you open an account and when you fund your account with at least $100, you get another free share of stock, which will be worth anywhere from $8 per share to $1000 per share.

In addition to the free stocks, WeBull also offers commission-free trading, advanced order types, extended hours trading, and a free paper trading platform.

WeBull is a member of FINRA and SIPC. SIPC protects accounts up to $500,000.

For more information on this offer, go to  WeBull on your cell phone and sign up. I’m not sure how long this offer will last.

 

 

Disclosure: Author has signed up with WeBull. Article includes affiliate link.

How to Triple Dip Your Rewards Points

by Fred Fuld III

It’s nice that you get cash back or rewards points when you use your credit card. It’s also great when you can get rewards from the company you make purchases from. It’s like double dipping.

But wouldn’t it be great if you could triple dip. How would you like to receive free stock in the companies that you buy from? Well now it’s possible.

There is a company called Bumped, which allows you to have a percentage of your purchase go towards fractional shares of stock in those companies. The percentage isn’t a lot but it adds up over time.

For example, if you buy rom Starbucks (SBUX), you get 2% of your purchase price going towards the company’s stock. If you buy from ExxonMobil (XOM), you get 0.5%. The range goes all the way up to 3% defending on the type of business.

Here are the categories and their percentages:

  • Coffee  2%
  • Gas/Convenience Stores  0.5%
  • Entertainment  2%
  • Family Dining  2%
  • Personal Care  1%
  • Quick Eats  3%
  • Vineyards  1%

So, for example, if I buy food and a beverage at Starbucks, and I pay with my cash back American Express (AXP) card, I will get the cash back bonus from AmEx at the end of the month. Plus, if I’m a member of the Starbucks rewards program, I get those benefits. Finally, if I have linked my AmEx card to Bumped, I get 2% of my purchase applied to the Starbucks stock.

My Bumped app when I just started out
My Bumped app when I just started out

There are a wide range of companies that are participating in this program. Just in the Quick Eats category alone, there is:

  • Burger King
  • Chipotle (CMG)
  • Jamba Juice
  • McDonalds (MCD)
  • Subway

Now you may ask, what about the private companies that are listed, such as Jamba Juice and Subway? Well, if you purchase from Jamba Juice, your 3% is applied towards the Vanguard Total Stock Market Index Fund ETF (VTI).

So when I bought a Jamba Juice recently, I got cash back on my AmEx card, I got more Jamba Juice  points since I’m a member of their rewards program, and I got 3% of my purchase automatically invested in VTI.

Other companies that are part of the program include Peet’s Coffee, BP (BP), Chevron (CVX), Shell (RDSA), Netflix (NFLX), Spotify (SPOT), Lyft (LYFT), Uber (UBER), plus several restaurants and other businesses.

Unfortunately, there is a waiting list for Bumped, (they don’t want to get overwhelmed as they are growing) but once they notify you that you are eligible, you can jump on the triple dip bandwagon.

Disclosure: Author owns MCD, VTI, SBUX, & XOM. I did not receive any compensation from Bumped. 

How to Invest in Space Travel

by Fred Fuld III

Last month, I published an article called UFO Stocks. The report covered many of the companies that are involved in the satellite and space industry, such as Maxar Technologies (MAXR),  Viasat (VSAT), and EchoStar (SATS). I also mentioned the Procure Space ETF (UFO) which is a diversified way to play the space industry.

However, there is a new way to invest in space travel. How would you like to invest in Richard Branson’s Virgin Galactic? This is the company that will allow anyone (even you) to flying space, assuming you are willing to pay the fee of $200,000 to $250,000. The company already has a waiting list of 600 people.

The way to invest in Virgin Galactic is through a company called Social Capital Hedosophia (IPOA), which trades on the New York Stock Exchange. Social Capital Hedosophia will be involved in a merger and end up owning 49% of Galactic.

It will be interesting to see if this stock gets as high as the aircraft that will be sent into space.

Disclosure: Author owns IPOA.

Stocks Going Ex Dividend in July 2019

by Fred Fuld III

The following is a short list of some of the many stocks going ex dividend during the next month.

Many traders and investors use the stock trading technique called ‘Buying Dividends,’ also commonly referred to as ‘Dividend Capture.’ This is the strategy of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend.

This technique generally works in bull markets and flat or choppy markets, but you need to avoid the strategy during bear markets. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can’t sell the stock until after the ex date.

The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend in the near future. The list contains many dividend paying companies, lots with market caps over $500 million, and many with yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the periodic dividend amount, and annual yield.

Darden Restaurants, Inc. (DRI) 7/9/2019 0.88 2.85%
Ethan Allen Interiors Inc. (ETH) 7/9/2019 0.19 3.63%
Intuit Inc. (INTU) 7/9/2019 0.47 0.69%
American Eagle Outfitters, Inc. (AEO) 7/11/2019 0.138 3.21%
Foot Locker, Inc. (FL) 7/18/2019 0.38 3.61%
WD-40 Company (WDFC) 7/18/2019 0.61 1.50%
Caterpillar, Inc. (CAT) 7/19/2019 1.03 3.04%
Lowe’s Companies, Inc. (LOW) 7/23/2019 0.55 2.11%
DuPont de Nemours, Inc. (DD) 7/30/2019 0.30 4.07%
Hasbro, Inc. (HAS) 7/31/2019 0.68 2.54%

The additional ex-dividend stocks can be found HERE . (If you have been to the page before, and the latest link doesn’t show up, you may have to empty your cache.) If you like dividend stocks, you should check out some of the other high yield stock lists HERE . Most of the lists are free.

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Monthly Dividend Stock List

Record date: the day when you must be on the company’s books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks at two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don’t forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written.

Top Performing Stock Motifs Up over 30% (like mini ETFs)

by Fred Fuld III

Motifs are similar to Exchange Traded Funds, but any investor can create them. An investor can choose the stocks they want for the Motif portfolio, or even better, the investor can invest in the Motifs created by others for a low commission rate. I have created many motifs that are available for anyone to invest in, a few of which are up over 100% since inception.

Here are some of the motifs I created and the returns since inception (created about a couple years ago). You will notice that some are up over 100%.

Anti-Crime Stocks +37.0%

Liquid Biopsy Stocks +227.9%

Stem Cell Stocks +344.0%

Firearms Stocks +12.9%

Gisele Bundchen Stocks +41.1%

Water Desalination +36.7%

Drone Stocks +53.3%

Cuba Stocks +23.1%

Puerto Rico Stocks +88.3% (in spite of the hurricane)

Marijuana Cannabis Stocks +81.3%

Horse Race Stocks +74.1%

Cosmetic Surgery Stocks +168.8%

Beer Stocks +29.2%

Wine and Liquor Stocks +22.5%

Virtual Reality Stocks Over $5  +25.5%

Virtual & Augmented Reality Stocks +56.3%%

If you are searching for specific industries to invest in, Motifs might be the way to go.