Making Cents Sense

The technology sector has been a dominant force in the stock market for years, often outperforming the broader market. One of the most popular ways investors gain exposure to tech stocks is through exchange-traded funds (ETFs). Among the most widely followed is the Vanguard Information Technology ETF (VGT) , which tracks the performance of the MSCI US Investable Market Information Technology 25/50 Index . With the sector experiencing rapid innovation and economic tailwinds, investors are now wondering: Can VGT beat the S&P 500 again in 2025? This blog will analyze VGT’s historical performance, key holdings, market trends, and economic factors that may influence its performance compared to the S&P 500. A Look Back: VGT vs. S&P 500 Performance Over the past decade, technology stocks have driven much of the S&P 500’s returns, thanks to the meteoric rise of companies like Apple, Microsoft, NVIDIA, and Alphabet . VGT, which primarily consists of large-cap tech stocks, has of...

In the modern global economy, staying at the top of an industry is no small feat. The competition is fierce, consumer preferences shift, and economic and political factors continually reshape the business landscape. However, some companies have stood the test of time, maintaining their dominance for decades. Among these are Nike (NYSE: NKE), Hershey (NYSE: HSY), and PepsiCo (NASDAQ: PEP), brands so beloved by consumers that they have retained immense pricing power. Despite their long-term success, even the best companies face challenges. These industry giants have recently seen stock price declines ranging from 22% to 58% as they grapple with management missteps, supply chain disruptions, and shifting market conditions. However, these downturns present intriguing opportunities for dividend investors looking for long-term value. 1. Nike: Overcoming Management Missteps for a Stronger Future Nike is a global leader in athletic footwear and apparel, with a brand that is deeply embedded in ...

Investing in ultra-high-yield dividend stocks can be an excellent way to generate passive income while building long-term wealth. While some high-yield stocks carry significant risks, others provide stable and sustainable dividends that can serve as a cornerstone for an income-focused portfolio. In this article, we will explore three ultra-high-yield dividend stocks that have the potential to generate strong returns over the next decade. These companies have robust business models , solid cash flows , and sustainable dividend policies , making them ideal candidates for long-term investment. Why Ultra-High-Yield Dividend Stocks? Ultra-high-yield dividend stocks—those yielding above 6% —attract income investors looking for strong cash flow. However, not all high-yield stocks are safe investments. Some companies offer high dividends due to declining businesses , unsustainable payout ratios , or external economic pressures . To find the best ultra-high-yield dividend stocks , we focus on...

Becoming a millionaire in just a decade may seem like an unattainable dream, but with the right investments, strategic planning, and patience, it's possible. The key is choosing low-effort investments that maximize returns while minimizing time and energy commitments. Below are 14 investment opportunities that can set you on the path to seven figures in 10 years or less. 1. Index Funds and ETFs Index funds and Exchange-Traded Funds (ETFs) are some of the best low-effort investments available. These funds track market indexes like the S&P 500, providing instant diversification and long-term growth. Historically, the S&P 500 has returned about 8-10% annually. Investing consistently and reinvesting dividends can help you compound your wealth significantly over a decade. How to Start: Open a brokerage account with Vanguard, Fidelity, or Charles Schwab. Invest in a broad-market index fund like VOO or SPY. Set up automatic contributions and let compound growth work its magic. 2. ...

Investing in high-yield dividend stocks priced under $20 can be an effective strategy for investors seeking both income and potential capital appreciation. These stocks offer the opportunity to build a diversified portfolio without requiring substantial capital outlay. However, it's crucial to conduct thorough research to ensure these investments align with your financial goals and risk tolerance. Below, we explore five high-yield dividend stocks under $20 that have garnered positive attention from Wall Street analysts. 1. AGNC Investment Corp. (AGNC) AGNC Investment Corp. is a real estate investment trust (REIT) that specializes in residential mortgage-backed securities. The company primarily invests in agency securities for which the principal and interest payments are guaranteed by U.S. government-sponsored entities such as Fannie Mae and Freddie Mac. As of January 25, 2025, AGNC's stock is trading at $9.68. The company offers a substantial dividend yield, which is particula...

Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, has long been revered for his astute investment strategies and ability to identify companies with enduring value. As of January 2025, Berkshire Hathaway's equity portfolio is valued at approximately $297 billion, with significant holdings in various sectors. The Motley Fool For investors looking to allocate $1,200 into Buffett-endorsed stocks, it's essential to consider companies that not only have the Oracle of Omaha's backing but also align with one's investment objectives and risk tolerance. 1. Coca-Cola (KO): A Timeless Beverage Giant Coca-Cola has been a cornerstone of Berkshire Hathaway's portfolio since the late 1980s. As of the latest filings, it remains one of the top holdings, underscoring Buffett's enduring confidence in the company. GuruFocus The company's consistent performance and global brand recognition have contributed to its long-standing success. Coca-Cola's ability...

Alphabet subsidiary Google recently announced two major technical achievements with its Willow quantum computing chip. This news sent shockwaves through the investment community, leading to massive rallies in the stock prices of Rigetti Computing (NASDAQ: RGTI) and D-Wave Quantum (NYSE: QBTS). Over the following three weeks, shares of Rigetti soared by 280%, while D-Wave Quantum climbed 110%. However, while the advancements in quantum computing are promising, the market reaction appears to have been overly enthusiastic. Wall Street analysts have been quick to issue cautionary notes, suggesting that both stocks could decline sharply in the coming months. Let's take a closer look at why these stocks surged, the reality of quantum computing’s timeline, and why investors should be wary of making long-term bets on companies like Rigetti and D-Wave at this stage. Understanding Google's Willow Quantum Computing Chip Google's quantum computing division has been a leader in advancin...

Investing in the stock market is all about identifying opportunities before they become mainstream. As we head into early 2025, several stocks stand out as strong buys due to their growth potential, strong fundamentals, and industry trends. Whether you’re an investor looking for long-term gains or short-term profits, these five stocks deserve a place on your watchlist. In this blog, I’ll break down my top five stock picks for early 2025, including an analysis of their financials, growth prospects, and why they could outperform the market. Let’s dive in! 1. NVIDIA Corporation (NVDA) Sector: Technology | Market Cap: ~$1.5 Trillion Why NVDA Is a Buy in 2025 NVIDIA (NASDAQ: NVDA) has been one of the best-performing stocks in the past few years, and it remains a must-have for 2025. The company dominates the GPU (graphics processing unit) market and has expanded aggressively into artificial intelligence (AI), data centers, and autonomous driving. AI Boom : NVIDIA’s GPUs power AI applications...