For Patient Investors, Dividends May Offset A Slow-Moving Summer

The Wall Street saying “Sell in May and go away,” isn’t about getting out of the market. Rather, it’s a warning that the market’s returns in the middle few months of the year tend to slow. But even through the summer, it makes sense to stay invested. It’s only September and October that are historically challenging for investors. With a summer slowdown the seasonal norm, investors can find opportunities, particularly with dividend-paying stocks. While dividends haven’t gotten as much attention in the ...
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Insider Activity Report: AutoZone (AZO)

Jenna Bedsole, a Senior Vice President at AutoZone (AZO) recently bought 36 shares. The buy is an initial stake for the SVP, and came to a total cost of $99,256. This is the first insider buy since June, when another company SVP bought 476 shares at a cost of $1.1 million. Otherwise, company insiders have largely been sellers of shares, with nearly all of those sales coming following the exercise of stock options. In total, AutoZone insiders own 0.3% of ...
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Unusual Options Activity: Workday (WDAY)

Office workflow software giant Workday (WDAY) is up 6% over the past year, far underperforming the overall market. Shares have been trending lower since late February, and one trader sees that trend continuing in the coming months. That’s based on the July $210 puts. With 51 days until expiration, 11,397 contracts traded compared to a prior open interest of 343, for a 33-fold rise in volume on the trade. The buyer of the puts paid $3.85 to make the bearish bet. Workday ...
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Smaller Players May Outperform Leaders as A “Catch-Up” Trade

In any industry, there’s one leader. Even if there are two big players that seemingly duke it out, one of them is still king of the hill. In the tech space, today’s leaders can become tomorrow’s laggards. That also means that when a leading stock is soaring, smaller players may be more attractive. Those smaller players could win from a “catch-up” trade when the leader’s momentum slows down. Right now, Advanced Micro Devices (AMD) could be the catch-up trade against industry giant ...
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Insider Activity Report: Globe Life (GL)

Frank Svoboda, CEO of Globe Life (GL), recently bought 5,000 shares across two days. The buys increased his position by 4%, and came to a total cost just over $420,000. He was joined by the company’s Co-Chairman of the Board, who bought 3,000 shares in total, at a cost of over $250,000. And the company CFO recently picked up $42,214 worth of shares. Going back to 2023, insiders were more likely to be sellers of shares rather than buyers. Overall, Read More
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Unusual Options Activity: Block (SQ)

Digital payment system operator Block (SQ) is up 14% over the past year, far lagging the overall market, and now in a downtrend. One trader sees shares continuing lower in the months ahead. That’s based on the August $62.50 puts. With 80 days until expiration, 7,482 contracts traded compared to a prior open interest of 119, for a 63-fold rise in volume on the trade. The buyer of the puts paid $3.85 to make the bearish bet. Block shares recently traded for ...
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This Industry Laggard May Get a Strong Shakeup

Defensive stocks tend to hold up well in just about any market. This recent market rally has been an exception. Tech stocks have handily beaten other sectors. And high interest rates have made dividend-paying defensive stocks look less attractive. But the businesses behind those stocks aren’t playing defense. By creating new products and expanding operations, they can continue to grow, and provide investors with great long-term returns. Buying these companies today could fare well when the tech trade slows down. One such ...
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Insider Activity Report: Caterpillar (CAT)

Gerald Johnson, a director at Caterpillar (CAT), recently bought 100 shares. The buy increased his position by 5%, and came to a total cost of $35,640. Johnson is the second director to buy this month, following a 500 share pickup from another director. There has been a large sale from a company Group President in the past month, amounting to a $7.8 million sale. Other executives have also been sizeable sellers in the past year, largely following the exercise of stock ...
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