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☆ How to get the biggest bang for your buck while investing in dividend-paying stocks
▼ + stars: | 2024-01-29 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

As attractive as today's yields may look on certain dividend-paying stocks, they only tell part of the story when you're choosing names for income. Lower interest rates make other income-generating assets, including dividend-paying stocks, more attractive compared to the risk-free yields on Treasurys. Dividend stocks took their lumps during 2022 as the Fed embarked on its rate hikes – consider that the Vanguard Dividend Appreciation ETF (VIG) posted a total return of negative 9% in 2022 – and rate-sensitive income stocks in the utilities and real estate sector suffered. Check with your brokerage to make sure you have dividends reinvested as your preference for individual stocks and ETFs. Picking the right names Dividend investors are seeing 2024 as a potential rebound year for these stocks, anticipating a broadening rally.

Persons: Michael Arone, Dow, VIG, would've, Grace Lee, –, Dow Jones, Arone, Chris Hayes Organizations: SPDR, State, Federal, Dow Jones, Fed, Vanguard, CNBC Pro, IBM, Columbia, Opportunity, Walgreens, Alliance

For instance, the U.S. has blocked shipments of cotton coming from China, a top manufacturer of popular clothing brands, because it was produced by forced or prison labor. While prison labor seeps into the supply chains of some companies through third-party suppliers without them knowing, others buy direct. Cargill acknowledged buying goods from prison farms in Tennessee, Arkansas and Ohio, saying they constituted only a small fraction of the company’s overall volume. For instance, about a dozen state prison farms, including operations in Texas, Virginia, Kentucky and Montana, have sold more than $60 million worth of cattle since 2018. “What for?”FOLLOWING THE MONEYThe business of prison labor is so vast and convoluted that tracing the money can be challenging.

Persons: it’s, Willie Ingram, “ They’d, billy clubs, they’d, ”, Ingram, didn’t, they’re, don’t, Andrea Armstrong, Frank Dwayne Ellington, Ellington, Koch, “ It’s, it’s somebody’s, Alishia Powell, Clark, “, Bunge, Louis Dreyfus, Archer Daniels, Cargill, ” McDonald’s, Mills, ” Bunge, Burger, Jermaine Hudson, ” Hudson, Calvin Thomas, Thomas, Ken Pastorick, Pastorick, Jennifer Turner, Faye Jacobs, Jacobs, ’ ” David Farabough, they’ve, Joshua Sbicca, Cliff Johnson, Jimmy Dean, Sara Lee, Tyson, Brevard County Sheriff Wayne Ivey, that’s, ” Ivey, “ They’re, ’ ”, William “ Buck ” Saunders, Hickman’s, Brooke Counts, Counts, John’s, Jack Strain, Tammany Parish, Russell Stover, Curtis Davis, Robert Bumsted, Cody Jackson, Columbia University’s Ira A, Lipman Organizations: Louisiana State Penitentiary, The Associated Press, Walmart, Cargill, U.S, Kroger, Target, Aldi, Corrections, Loyola University New Orleans, Koch Foods, Occupational Safety, Health Administration, Washington, Archer Daniels Midland, Consolidated, AP, Foods, Dairy Farmers of, Big, Sam’s, Tyson Foods, U.S ., Civilian, OSHA, Fair Labor, American Civil Liberties, Colorado State University, MacArthur Justice Center, University of Mississippi, PepsiCo, Brevard County Sheriff, Arizona . Companies, Costco, Correctional, Prisons, Nut, Maine Foods, Taylor Farms, Transitional, Associated Press, Public Welfare Foundation, Columbia, Lipman Center for Journalism, Arnold Ventures Locations: ANGOLA, La, Southern, Louisiana, Texas, In Louisiana, Angola, United States, “, Ashland, U.S, China, Tennessee , Arkansas, Ohio, Dairy Farmers of America, Texas , Virginia, Kentucky, Montana, Baton Rouge, Mississippi, Manhattan, America, Alabama, American, Arkansas , Texas, Florida , Alabama, South Carolina, Georgia, Arkansas, In Alabama, Florida, Brevard County, Arizona, Wisconsin, California, Colorado, state’s St, Tammany, Idaho, In Kansas, Cal, St, Francisville , Louisiana, Feliciana, Investigative@ap.org

☆ A slate of banks slashed CD yields. Here’s where you can still find a solid rate
▼ + stars: | 2024-01-26 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

Online banks, which have offered some of the richest annual percentage yields on savings products, are slashing the interest they pay. Though the 1-year Treasury bill is yielding about 4.78%, select institutions will offer upward of 5% to hold your cash in a 1-year CD. "We believe banks are repositioning their CD rates ahead of potential Fed rate cuts in 2024," said analyst Michael Kaye in a report on Friday. See below for a table of where online banks now stand on 1-year CD rates. Wells Fargo scanned the online banks under its coverage and found the average APY for a 1-year CD was 0.64% in March 2022.

Persons: Wells Fargo, Michael Kaye, Mark Haefele, Cash Organizations: Treasury, Federal Reserve, CME Group, Synchrony, UBS Locations: Wells

☆ JCPenney has become TikTokers' unlikely beauty obsession
▼ + stars: | 2024-01-24 | by ( Jennifer Ortakales Dawkins | ) www.businessinsider.com time to read: +5 min

JCPenney has replaced its Sephora shops with JCPenney Beauty sections. JCPenney's revamped beauty department has become a destination for finding beauty brands TikTokers can't get at other beauty stores. Last summer, the retailer launched KimChi Chic Beauty in more than 600 stores, beauty trade publication Happi reported. JCPenney replaced Sephora shops with JCPenney Beauty. Beauty retailer Ulta hit $2.5 billion in net sales last quarter, an increase of more than 6%.

Persons: —, JC, Kailey, JCPenney, JCPenney's, Adam Ryan, Alexis Androulakis, @thelipsticklesbians, y’all, @JCPenney, ike, orth, Penney Organizations: JCPenney, Service, JC Penney, Sephora, Black, Black Enterprise, Alpha Locations: JCPenney, Staten Island

☆ Here’s how to squeeze a little more juice out of these tax-advantaged yields
▼ + stars: | 2024-01-23 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Indeed, investors get paid for taking a small step down in credit quality in the muni bond space. What's even sweeter is that municipal bond income is generally exempt from federal income tax. This also means high income investors would have to scoop up a higher yielding corporate bond to get the same tax-advantaged yield a muni bond would generate. A measured amount of risk Munis offer lower yields compared to their corporate counterparts, but they also carry significantly less risk. Lower risk, however, doesn't necessarily mean risk free.

Persons: Jennifer Johnston, Franklin Templeton, Lyle Fitterer, munis, corporates, Cooper Howard, Jonathan Mondillo, Franklin Templeton's Johnston Organizations: Federal Reserve, Franklin, AAA, muni, Strategic Municipal Bond Fund, York Life Investments, Moody's Investors Service, Charitable, Schwab Center, Financial Research Locations: muni, Abrdn

☆ CD rates are coming down. Here’s where you can lock in yields of nearly 5% for 2 years
▼ + stars: | 2024-01-16 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +3 min

The Federal Reserve's interest rate hikes starting in March 2022 led to a sharp runup in yields on Treasurys. Rates on a range of otherwise plain vanilla investments also rose sharply, with money market funds offering yields exceeding 5%, and some banks boosting their CD yields to lure deposits. See below for a table of longer-term CD yields and where you can get them. There's also a tradeoff: You can collect this higher yield, but you'll have to be comfortable with reduced access to your money. By locking in an 18-month or 24-month CD, savers can benefit from today's higher yields well after the Fed begins dialing back rates.

Persons: Banks, Sallie Mae, Morgan Stanley's Betsy Graseck, There's Organizations: Ally

☆ At 31, ‘cash-strapped’ single mom started saving $25 a month—she used it to launch a business that brings in $440,000 a year
▼ + stars: | 2024-01-15 | by ( Megan Sauer | ) www.cnbc.com time to read: +1 min

In 2000, Penny Bowers-Schebal was a 31-year-old "cash-strapped" single mother struggling to cover basic household bills. She wanted to "build financial security" beyond the 401(k) program at her employer, Progressive Insurance, she tells CNBC Make It. So, at the advice of Suze Orman, she started putting $25 per month into a Dividend Reinvestment Plan (DRIP). Ultimately, her Home Depot investment brought her an annual return of roughly 13%. "I'm not a big investor, and this was a life-changing investment for me," Bowers-Schebal, now 55, says.

Persons: Penny Bowers, Schebal, Suze Orman, — Bowers, Bowers Organizations: Progressive Insurance, CNBC, Depot Locations: Geneva , Ohio, Erie , Pennsylvania

☆ Corporate bond yields are off highs, but are still attractive. Here's what experts say to look for in 2024
▼ + stars: | 2023-12-29 | by ( Michelle Fox | ) www.cnbc.com time to read: +5 min

While corporate bond yields have moved down off their highs, investors will still be able to snap up some juicy income next year, experts believe. USIG YTD mountain The iShares Broad USD Investment Grade Corporate Bond ETF tracks the ICE BofA U.S. Corporate Index. However, for income investors not just focusing on the next 12 months, investment-grade corporate bonds look very attractive, he said. WINC YTD mountain Western Asset Short Duration Inc ETF In fact, he thinks 2024 will provide a unique opportunity for corporate bond investors. He also doesn't think corporate bonds are particularly attractive on a total return performance thanks to their recent run higher.

Persons: Goldman, Lindsay Rosner, Collin Martin, Charles Schwab, Martin, Martin doesn't, Fitch, Kurt Halvorson, Halvorson, you'll, Michael Kessler, Kessler, Schwab's Martin Organizations: Federal Reserve, ICE, Corporate, . Investment, Goldman, CNBC, Western Asset, Albion Financial, Investors Locations: Goldman Sachs

☆ These bonds offering tax-free income will still be a good deal in 2024
▼ + stars: | 2023-12-27 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +6 min

Municipal bonds, favored for their tax-free income, are looking at a solid year in 2024 and could be a compelling purchase for investors hoping to lock in attractive yields. "We will likely see positive total returns," said Cooper Howard, fixed income strategist at the Schwab Center for Financial Research. "Munis are one of the best things going in the fixed income space," he said. It provides all the attributes of fixed income, and it serves as ballast to an overall diversified portfolio." Naturally, rates are on the minds of fixed income investors and strategists, as well as recession risk.

Persons: Cooper Howard, who've, Peter Higgins, Ben Barber, Schwab's Howard, Paul Malloy, It's, Beth Foos, Malloy, Howard, you've Organizations: Schwab Center, Financial Research, Morningstar U.S, Municipal, Shelton Capital Management, York Life Investments, Franklin, AAA, Vanguard, Bond, Morningstar Locations: New York , New Jersey, California

☆ Bond yields will come down from their fever pitch in 2024. How to prepare your portfolio
▼ + stars: | 2023-12-05 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Expect to work a little harder for those fixed income returns in the new year. As a result, it may be time to start unwinding those big cash positions and adopt a longer-term mentality for fixed income investments. A runup in bond yields is accompanied by a decline in prices, and the two move inversely to one another. The sector "remains well positioned to maintain its high credit quality, driven by solid state credit quality and strong state financial support, despite soft enrollment trends," analyst Kathleen McNamara wrote last week. Consider dollar cost averaging into those longer-dated positions, incrementally building up exposure to intermediate duration bonds.

Persons: Jerome Powell, it's, Kathy Jones, Shannon Saccocia, Jones, Nicholos Venditti, Kathleen McNamara, Schwab's Jones, Barry McAlinden, Michael Bloom Organizations: Schwab Center, Financial Research, Bond, SEC, Muni Bond ETF, Allspring Global Investments, UBS

☆ Here are Friday's biggest analyst calls: Tesla, Boeing, Amazon, Delta, Spotify, Alibaba, Johnson & Johnson and more
▼ + stars: | 2023-12-01 | by ( Michael Bloom | ) www.cnbc.com time to read: +9 min

Here are the biggest calls on Wall Street on Friday: Stifel initiates Boeing at buy Stifel said it sees a "favorable" setup for Boeing shares. Citi downgrades Spotify to neutral from buy Citi said in its downgrade of Spotify that the risk/reward is less compelling. Jefferies initiates Arcos Dorados as a buy Jefferies said the Latin American McDonald's franchisee is a "consistent compounder." Jefferies initiates CSG Systems as buy Jefferies said in its initiation of the software-as-a-service company that it sees burgeoning growth. Jefferies initiates Amdocs as buy Jefferies said it sees opportunity for the Israel-based software and systems integration supplier. "

Persons: Stifel, TD Cowen, Morgan Stanley downgrades Alibaba, Morgan Stanley, it's, Alibaba, Tesla, Cantor Fitzgerald, Cantor, Jefferies, Piper Sandler, TXRH, Wells, Wells Fargo, Emerson, Oppenheimer, Goldman Sachs, Bonnie Herzog's, MarketWise, Redburn, Johnson Organizations: Boeing, Delta, Air Lines, Citi, Spotify, RBC, Western Alliance, Novo Nordisk, Arcos, American, Crescent Energy, Fortrea Holdings, ISI, Aspen Technology, Emerson, JPMorgan, Constellation Brands, Constellation, UBS, Bank of America, Norfolk Southern, of America, Norfolk, CSG Systems, Communication Service, Financial Services, Technology, Healthcare, Westinghouse, Johnson, Innovative Medicine, Pharmaceutical Locations: Europe, China, Arcos, 4Q24, reaccelerate, Aspen, Norfolk, Israel

☆ Why cautious investors may want to look beyond high-yield savings accounts
▼ + stars: | 2023-11-25 | by ( Meredith Mutter | ) www.cnbc.com time to read: +1 min

Cautious investors piling into cash may want to consider other options. According to SPDR Exchange Traded Funds' Matthew Bartolini, active management can also provide them with stability and income while creating more opportunities for upside. Bartolini contends that not only do they give investors more flexibility, the strategies also provide consistent performance and improved tax efficiencies. "But with higher returns comes higher volatility," added Bartolini, who sees big benefits from active management. "On the cash portion of the market, that income is not going to be as stable as it once was because of reinvestment risk," he said.

Persons: Matthew Bartolini, CNBC's, Bartolini Organizations: SPDR

☆ These unique assets are now a popular way to lock in yield. What to know about defined maturity ETFs
▼ + stars: | 2023-11-24 | by ( Michelle Fox | ) www.cnbc.com time to read: +8 min

After being on the market for more than a decade, defined maturity bond funds are finally attracting attention. Traditional open end, bond mutual funds or bond ETFs, on the other hand, have no maturity date. One big advantage over owning individual bonds, however, is that defined maturity ETFs are easy to purchase on the stock exchange. How they work Each defined maturity bond fund holds securities in the same sector that come due in the calendar year chosen for the fund. Callable bonds are simply those that can be redeemed or paid off by the issuer prior to the bonds' maturity date, according to the Securities and Exchange Commission.

Persons: Charles Rotblut, Bonds, Sarajat Samant, Karen Veraa, BlackRock's, —, Veraa, IBonds, Invesco, Treasury iBond, Jason Bloom, Invesco's Bloom, haven't, I'm, BlackRock's Veraa, Morningstar's, Samant, AAII's Organizations: Investors, American Association of, Treasury, BlackRock, Securities and Exchange Commission, Invesco Locations: BlackRock's iShares, U.S

☆ Turn to this high-quality income play for the new year, Wells Fargo Investment Institute says
▼ + stars: | 2023-11-23 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Investors who hope to generate portfolio income while recession fears ramp higher can seek some safety in municipal bonds. Wells Fargo Investment Institute recently issued its fixed income guidance for 2024, forecasting "higher for longer" rates across the yield curve as the Federal Reserve remains vigilant to bring down inflation. Municipal bonds offer a combination of characteristics that appeal to investors: General obligation bonds are backed by the revenue of the municipality issuing them. "Going into a slowdown, you anticipate rates to fall," said Brian Rehling, head of global fixed income strategy at Wells Fargo Investment Institute. The top marginal income tax rate is 13.3% in California and well over 10% in New York and New Jersey.

Persons: Brian Rehling, Jennifer Johnston, Franklin Templeton, Johnston Organizations: Wells, Wells Fargo Investment Institute, Federal Reserve, Fargo Investment Institute, AAA, Muni Bond ETF, Vanguard, Bond, Fed, New York Life Investments, Investors, York State, Metropolitan Transportation Authority Locations: Wells Fargo, Fargo, New, California, New York, New Jersey, York

☆ These bond funds are among the top performers in 2023 – Here’s what investors should do next
▼ + stars: | 2023-11-21 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Risk-taking investors also fared well in high-yield bonds, as the fund category generated a 2023 total return of 6.98% through Friday. Big performers in that category include the Pacific Income Advisors High Yield (MACS) Fund (PIAMX) for investors with managed accounts. The BondBloxx CCC Rated USD High Yield Corporate Bond ETF (XCCC) was also among the strongest performers in the fund category. See below for a list of top performing high yield bond funds, according to Morningstar Direct. "I think these historically high yields have offered attractive entry points for high quality," said Murphy.

Persons: It's, Morningstar, it's, Thomas Murphy, Rowe, Murphy Organizations: Treasury, U.S, Morningstar, Morningstar . Bank, SEC, Pacific Income, PIAMX, Morningstar Direct Locations: U.S

☆ ETF Edge: Cash and bonds stay "sticky"
▼ + stars: | 2023-11-20 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailETF Edge: Cash and bonds stay "sticky"Matt Bartolini, State Street Global Advisors; Dan Egan, Betterman; and CNBC's Kate Rooney join ‘Halftime Report’ to discuss confidence in the investing landscape, reinvestment risk, and more.

Persons: Matt Bartolini, Dan Egan, CNBC's Kate Rooney Organizations: Street Global Advisors, ‘

☆ These bond funds withstood the 2008 and 2020 recessions. What investors can learn from them
▼ + stars: | 2023-11-07 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Investors curious as to whether their bond funds could withstand an economic downturn would do well to look back to the last two recessions. The PGIM Core Bond Fund (TAIBX) and the Calvert Core Bond Fund (CLDAX ) earned returns of more than 8% from December 2007 to the end of June 2009, according to data from Morningstar Direct. Standouts include the Carillon Reams Core Bond Fund (SCCIX) , which incurred a 7.55% return from February through April 2020, per Morningstar. The Johnson Institutional Core Bond fund (JIBFX) and American Funds' Bond Fund of America (ABNDX) round out the top three, with total returns in that period of more than 4%. A combo of attributes Core bond funds have a combination of features that prepare them for downturns.

Persons: Liz Young, Lehman, Calvert, Paul Olmsted, Olmsted Organizations: Nasdaq, Federal, Lehman Brothers, Bond Fund, Morningstar Direct, Funds, Bond Fund of America, Morningstar, Treasury Bond ETF

☆ As Devastated Acapulco Rebuilds, Other Mexico Resorts Urged to Heed Its Lessons
▼ + stars: | 2023-11-06 | by ( Nov. | At A.M. | ) www.usnews.com time to read: +5 min

By Cassandra Garrison and Dave GrahamMEXICO CITY (Reuters) - Hurricane Otis not only devastated Acapulco, but also exposed fatal weaknesses in ageing infrastructure, teaching hard lessons that coastal cities throughout Mexico must draw on. As Acapulco rebuilds after the deadly Category 5 hurricane, climate experts, architects, engineers and politicians recommended steps Mexico should take. He noted that after the 1985 Mexico City earthquake killed thousands, the capital imposed tougher building standards. While Mexico City must update its standards for structural design every six years, Mexico lets other individual municipalities issue their own construction regulations. After Odile, Baja California's building standards reflected new guidance on areas of weakness identified, such as roofs.

Persons: Cassandra Garrison, Dave Graham MEXICO, Otis, Enrique de la, Andres Manuel Lopez Obrador, Adrian Pozos, Hurricane Odile, Odile, Pozos, Lopez Obrador, David Waggonner, Waggonner, Waggoner, Dave Graham, Daina Beth Solomon, David Gregorio Organizations: Dave Graham MEXICO CITY, Mexican Tourism, National Autonomous University of Mexico, American Society of Civil Engineers Locations: Acapulco, Mexico, Enrique de la Madrid, Oaxaca, Tamaulipas, Guerrero, Baja California, Baja, Puerto Vallarta, Cancun, Miami, New Orleans

☆ Activist Engaged Capital sees a path to lift VF Corp’s share price and slash costs
▼ + stars: | 2023-11-04 | by ( Kenneth Squire | ) www.cnbc.com time to read: +6 min

Activist Commentary: Engaged Capital was founded by Glenn W. Welling, a former principal and managing director at Relational Investors. Engaged has had great success as an activist, but almost all that success has come at small-cap companies. VF Corp. was in desperate need of a new CEO, and they got one. Engaged also urges VF Corp. to evaluate non-core divestitures to fix the balance sheet. After adding up all the pieces, Engaged sees a path to a $46 share price within three years.

Persons: Glenn W, Steve Rendle, Rendle, Bracken Darrell, Darrell, Rendle's, Ken Squire Organizations: Welling, Relational Investors, VF Corp, Bloomberg, Partners, Management, Vans, Logitech, Corp, 13D

☆ These two banks just hiked their 1-year CD yield to 5.3%
▼ + stars: | 2023-11-03 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

Marcus by Goldman Sachs and Synchrony Financial each raised the annual percentage yield on their 1-year certificates of deposit to 5.3% this past week, according to an analysis from Wells Fargo. Even if the central bank were to step back from its monetary policy stance, banks could still see pressure from higher deposit costs as they compete with money market funds and lower cost CDs reprice at higher rates. Investors hiding in cash-like instruments, including money market funds and savings accounts, face reinvestment risk if interest rates decline. Savers who want the safety of a steady rate for two years also saw yields go up for CDs at select banks this past week. Marcus by Goldman Sachs hiked its APY to 4.85% for its 2-year CD, and Discover Financial boosted its rate to 4.4%.

Persons: Marcus, Goldman Sachs, Richer, Morgan Stanley's Betsy Graseck, Michael Bloom Organizations: Federal, Synchrony, Bread, Fed, Discover Financial Locations: Wells Fargo

☆ Here’s where billionaire investor Jeffrey Gundlach sees income opportunities as recession risk looms
▼ + stars: | 2023-11-02 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

Jeffrey Gundlach sees an economic downturn on the horizon, but he also sees an opportunity emerging for income investors. Gundlach, founder of DoubleLine Capital, sees interest rates falling as the U.S. economy moves into a recession in the first part of 2024 . However, investors seeking income may do well to step out a little further on the yield curve, rather than hiding in 6-month Treasury bills and cash-like investments. Investors in holdings that are too short-dated may find themselves exposed to reinvestment risk as rates decline. He said investors could buy "the entire yield curve at this point."

Persons: Jeffrey Gundlach, Gundlach, Stanley Druckenmiller's Organizations: DoubleLine Locations: U.S

☆ Banks Face Shake-Up of Low-Income Lending Rules
▼ + stars: | 2023-10-24 | by ( Andrew Ackerman | ) www.wsj.com time to read: 1 min

The Office of the Comptroller of the Currency, the Fed and the Federal Deposit Insurance Corp. are expected to sign off on the new requirements for banks on Tuesday. Photo: Andrew Harrer/Bloomberg NewsWASHINGTON—Top U.S. banking regulators struggled for more than five years to update anti-redlining rules aimed at making banks lend more in lower-income communities. On Tuesday, they are completing a revamp of them for the era of online banking. The 1977 Community Reinvestment Act sought to end banks’ historical practice of denying or limiting financial services in minority neighborhoods. The current rules, which are nearly 30 years old, generally require banks to serve everyone in the communities surrounding their branches, including lower-income people.

Persons: Andrew Harrer Organizations: Fed, Federal Deposit Insurance Corp, Bloomberg News WASHINGTON — Locations: Bloomberg News WASHINGTON — Top

WASHINGTON, Oct 24 (Reuters) - U.S. regulators will begin grading banks on which communities and geographies they service via online lending under tougher new rules modernizing fair lending standards to be finalized on Tuesday. The changes to 1977 Community Reinvestment Act (CRA) regulations draw a line under a contentious multiyear effort that was delayed amid fierce lobbying by community groups and lenders, as well as by a change of presidential administrations. Conceived to prevent red lining, CRA regulations are central to banks' overall supervisory performance. Historically, CRA grades focused on how well banks serviced low-income communities where banks have branches. Banks on Tuesday said they supported fair lending but flagged concerns with the final rule.

Persons: Michael Barr, Michelle Bowman, Banks, Randy Benjenk, Lindsey Johnson, Pete Schroeder, Andrea Ricci, Michelle Price, Marguerita Choy Organizations: Federal, Fed, Federal Deposit Insurance Corporation, Office, Covington, Consumer Bankers Association, Thomson Locations: U.S, Burling

☆ Get tax-exempt income on the cheap as bond shake-up hits munis
▼ + stars: | 2023-10-12 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Tax-exempt income and relative safety are on sale for investors who are sniffing around municipal bonds. Tax-exempt income Interest income from municipal bonds is exempt from federal income tax — and can avoid state and local levies, too, if an investor and the bond issuer are in the same jurisdiction. This feature makes munis especially attractive to high-income investors in the 32% marginal federal income tax bracket and higher. Investors weighing a tax-exempt municipal bond against a corporate bond would do well to check out the tax equivalent yield. Schwab's Howard noted that the 5- to 7-year part of the municipal bond curve is favorable.

Persons: MUB, Nathan Will, Will, it's, Cooper Howard, Schwab's Howard, Shannon Saccocia Organizations: Federal Reserve, Muni Bond ETF, Vanguard, AAA, Bond, ., New York Life Investments, Schwab Center, Financial Research Locations: munis, muni

☆ Morgan Stanley says stock market may break down again so buy these top dividend payers
▼ + stars: | 2023-10-09 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +3 min

Markets could remain under pressure through the end of the year, and high dividend stocks are one option to help investors through the uncertainty, according to Morgan Stanley. Investors are also assessing pressures on the market driven by the surprise attack on Israel by Palestinian militant group Hamas over the weekend. To play another potential breakdown in the market, Morgan Stanley highlighted several dividend stocks that combine yield (how much a company pays out in dividends each year), dividend growth (how much that dividend grows over a period of time) and stability, and that look attractive on a three- to five-year basis. Morgan Stanley projects yields of 9.6% for Energy Transfer in 2024 and 9.9% for MPLX, a master limited partnership created out of Marathon Petroleum that operates crude oil and refined product pipelines. The bank's preference in tobacco is Philip Morris , whose 2024 dividend yield could be 5.5%, according to Morgan Stanley.

Persons: Morgan Stanley, Mike Wilson, Wilson, Philip Morris, they're, Hess, Morgan Stanley's, — CNBC's Michael Bloom Organizations: Hamas, Energy, Marathon Petroleum, Procter & Gamble, Colgate, Palmolive, Financial, Verizon Locations: Israel, Palestinian

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