Dividend Stocks to Climb as Investors Could Start Deploying $6 Trillion Parked in Money-Market Funds, Says BofA

Dividend-paying stocks struggled last year as interest rates soared to two-decade highs, prompting investors to favor bonds over volatile stocks for similar yields. The S&P 500 Dividend Aristocrats index saw only a modest 5.7% increase in 2023, significantly lagging behind the S&P 500's 26% gain. However, Bank of America (BofA) predicts a rebound for dividend stocks as investors begin to deploy the $6 trillion held in high-interest money market funds.

BofA strategist Savita Subramanian referred to the dividend trade as a "pain trade" because most investors are not well-positioned to benefit from the potential upside of dividend-paying stocks. With the Federal Reserve poised to start cutting rates, Subramanian highlighted that while bond funds have seen record inflows this year, equities present more opportunities for yield-seeking investors. BofA identified over 200 S&P 500 companies offering higher real return potential compared to the 2% yield from the 10-year Treasury, noting that 75% of these stocks are under-owned by investors.

Tech stocks are transforming dividend investing, with high-growth tech firms like Alphabet, Meta, and Salesforce announcing their first dividend payouts. Traditionally, tech companies reinvest profits to fuel expansion rather than pay dividends. This shift provides income strategies with access to market-driving names. Matt Quinlan from Franklin Equity Income fund and Tom Huber from T. Rowe Price Dividend Growth fund both see opportunities for dividend growth investors in tech stocks. Additionally, optimism about a potential rate cut by the US Federal Reserve in September is driving more investors towards dividend stocks in search of higher yields. (Full story)

In a viral video titled "The most violent text message between a boss and employee ever," entrepreneur Chris Donnelly highlights the conflict between an employee named Mike and his boss Geordie. Geordie demanded that Mike work during his previously approved Christmas PTO, due to understaffing after another employee, Rachel, quit. Despite Mike's reminders of his approved leave and his past willingness to work on other holidays, Geordie insisted on his presence, threatening disciplinary action and termination. Mike, asserting his ability to find another job, ultimately quit when Geordie continued to pressure him. This incident reflects a broader trend of bosses increasingly denying PTO requests, exacerbating employee dissatisfaction. A BambooHR report shows a growing gap between PTO requests and approvals, with requests increasing by nine percent but approvals only by three percent in early 2024. This disparity underscores the ongoing friction between employees' desire for personal time and organizational demands, as discussed by New York University psychology professor Tessa West. (Full story)

A mother was shocked and frustrated after receiving an invitation to her child's friend's birthday party, which included a pricey wish list and a £21 fee per child. This situation has sparked debate about the rising costs and social pressures of children's parties. Many parents, like Lucky Magezi, find it unreasonable to charge admission fees for such events. Magezi, a London-based hairstylist, initially agreed to the fee to let her children enjoy the party but was outraged by the additional extravagant gift requests. She believes parents should plan within their means and not impose financial burdens on others. Online communities on platforms like Mumsnet and Reddit have echoed similar sentiments, with many parents unwilling to pay admission fees for parties. The issue extends to adult events as well, where guests have faced fees for baby showers and weddings, leading to criticism and accusations of greed. This trend highlights the broader challenge of balancing social expectations with financial realities. (Full story)

A frustrated job applicant has called for mandatory salary range disclosures on job postings, arguing that the lack of pay transparency makes job hunting excruciating and tiresome. Jess Goodwin shared her experience on Instagram Threads, highlighting how unclear salary expectations can deter job seekers from applying and lead to undervaluation. She recounted applying for a job without a listed salary range, only to be offered a figure nearly $30,000 below her stated expectations, prompting her to withdraw her application. This incident underscores the broader issue of employers' reluctance to disclose pay, despite a significant rise in salary transparency due to new laws in states like New York, California, Colorado, and Washington. These laws aim to promote fair compensation practices and empower job seekers, though some companies fear that revealing salaries might hinder recruitment and increase turnover. Ultimately, salary transparency can streamline the hiring process and ensure fairness for applicants and employers alike. (Full story)

Intel's shares dropped over 18% to $23.56 on August 1 after missing Q2 earnings estimates. Revenue fell 1% YoY to $12.8 billion, missing the $12.9 billion expected, and Q3 revenue estimates also fell short at $12.5-$13.5 billion against the anticipated $14.3 billion. Intel suspended dividend payouts starting Q4 but announced a Q3 dividend of $0.125 per share. As part of a $10 billion cost-cutting plan, Intel plans to lay off over 17,000 employees. The company is restructuring to compete in the AI chip and foundry market against AMD and TSMC. Intel’s Data Center and AI business revenue slightly missed estimates at $3.05 billion, with high demand for CPUs and GPUs, though GPU demand lags behind Nvidia’s. The Client segment saw revenue growth to $7.4 billion from $6.7 billion YoY, but below the expected $7.5 billion. Despite shipping over 15 million AI PCs since December 2023 and targeting over 40 million deliveries by year-end, Intel faces challenges from Qualcomm's new Snapdragon X Elite PC chip. Intel's CFO attributed poor Q2 margins to AI PC product ramp-up and non-core business restructuring. The broader tech sector also showed signs of weakness, with Nvidia's stock recently dropping due to antitrust investigations and a sector-wide selloff amid economic concerns. (Full story)