All posts by PARKERYL

​One of the most discussed cryptocurrencies on the market, dogecoin (DOGE) transforms little deposits into early adopters’ life-changing fortunes. Not everyone entered at the proper moment, though, and many investors now are looking for the next great prospect. While meme coins like DOGE have depended on community enthusiasm and speculation, utility-driven enterprises with real-world use cases will shape high-growth crypto investments. One such initiative is Rexas Finance (RXS), which gives investors a chance to get more profits quickly, surpassing the increases in DOGE. With a strong basis in real-world asset (RWA) tokenization, a CertiK-audited security architecture, a successful presale, and a $1 million giveaway, RXS offers a perfect chance for investors who missed DOGE’s early surge. A $640 investment in Rexas Finance could yield enormous gains within the next seven months, with the RXS presale almost finished and the token poised to launch at a higher price.

Rexas Finance (RXS): An explosive potential real-world utility token

Rexas Finance is a blockchain-based platform revolutionizing asset management by tokenizing, unlike Dogecoin, which was first invented as a joke and subsequently acquired value via community excitement. Real estate, gold, art, and intellectual property are among the real-world assets users may possess or tokenize on the platform, hence increasing the liquidity and accessibility of asset investing. The success of the RXS presale is evidence of the project’s market faith. Selling around 453 million tokens, Rexas Finance has now raised $46.79 million out of its $56 million goal. Early investors are already set for gains even before RXS goes listed on main exchanges, with the presale price set at $0.20 and a launch price of $0.25. With blockchain-based asset tokenization fast embraced, RXS is not just another cryptocurrency but also a breakthrough platform bridging the distance between conventional finance and decentralized investment.

Rexas Finance Beats Dogecoin

One of the main differences between Dogecoin and Rexas Finance is the project’s underlying value. Social media trends, celebrity sponsorships, and speculative trading have always propelled Dogecoin more than practical application. Although this paradigm worked in the past, the crypto market is changing as investors increasingly search for tokens with actual use. By allowing the tokenization and trading of actual assets, Rexas Finance brings liquidity to otherwise illiquid markets and presents a concrete, long-term use case. This practical use guarantees RXS’s intrinsic worth regardless of social media buzz or market trends. Another main component that distinguishes RXS is security. Many cryptocurrencies, like DOGE, are prone to attacks and fraud since many run without strict security systems. Rexas Finance has been proactive, completing an extensive audit under one of the most reputable blockchain security companies, CertiK. The CertiK audit guarantees that RXS is constructed on a trustworthy and safe architecture, lowering the risks of smart contract weaknesses.

Seven-Month Growth Potential of RXS

The following seven months will be vital for Rexas Finance as the project shifts from presale to full launch. Because of its excellent fundamentals and forthcoming exchange listings, RXS is now positioned for fast expansion, unlike Dogecoin, which needed years to peak. Early presale purchasers are assured an instantaneous price boost, with RXS expected to release at $0.25 per token. Demand for RXS is predicted to explode as more investors see real-world asset tokenization possibilities, increasing the price within the next few months. Among the most appealing investment prospects in the crypto industry, RXS is one because of its fast development potential.

How might one enter the Rexas Finance Presale?

Though time is running out, the RXS presale is still accessible for early investors. Participating in the presale is easy and lets investors get tokens at a reduced price before they reach the main markets. Connecting a Web3 wallet like MetaMask or Trust Wallet lets investors buy RXS straight from the official Rexas Finance website. ETH or USDT is one of the payment choices, giving diversity to several crypto investors. This is one of the last chances to get RXS at the presale price before it goes live since there are just a few tokens left before launch.

The one-million-dollar giveaway and implications for investors

Rexas Finance is holding a huge $1 million contest. Twenty winners will each receive $50,000 worth of RXS tokens, drawing in early adopters. Completing easy chores, referring friends, and interacting with the Rexas community help participants increase their chances of winning. This offer honors early supporters and raises awareness of and acceptance of the upcoming project before its formal start. The offer to investors is another motivation to participate early on. Participants gain from being part of a fast-expanding ecosystem with significant community involvement and a clear road to long-term value, even without winning.

Why RXS Might be the Leading Crypto Investment Made in 2025?

When all these elements come together, Rexas Finance stands as among the top investing prospects for 2025. Real-world asset tokenization, a successful presale, a CertiK-audited security architecture, forthcoming exchange listings, and a huge giveaway campaign make RXS a highly prospective token with great upside. For those who missed the early surge of Dogecoin, RXS offers an even better chance to make life-altering profits. Rexas Finance provides a solid basis in blockchain-based asset management, unlike meme coins that depend on hype and offer real-world use, guaranteeing long-term value.

Conclusion

If the token approaches complete market adoption, a modest $640 investment in RXS today could pay off handsomely in the next seven months. Given that the presale is ending soon and upcoming exchange listings, investors who get in now will be in the best position to profit from RXS’s explosive expansion. Although Dogecoin generated ripples in the crypto space, a token with real-world use and security—Rexas Finance is that token—will be the next major winner. Those seeking a high-reward possibility with solid foundations should not miss this chance to purchase RXS at its lowest price before it becomes popular.

For more information about Rexas Finance (RXS) visit the links below:

Website: https://rexas.com

Win $1 Million Giveaway: https://bit.ly/Rexas1M

Whitepaper: https://rexas.com/rexas-whitepaper.pdf

Twitter/X: https://x.com/rexasfinance

Telegram: https://t.me/rexasfinance ​

Disclaimer: The views and opinions presented in this article do not necessarily reflect the views of CoinCheckup. The content of this article should not be considered as investment advice. Always do your own research before deciding to buy, sell or transfer any crypto assets. Past returns do not always guarantee future profits.

Updated on March 17th, 2025 by Bob Ciura

Spreadsheet data updated daily

Master Limited Partnerships – or MLPs, for short – are some of the most misunderstood investment vehicles in the public markets. And that’s a shame, because the typical MLP offers:

1. Tax-advantaged income
2. High yields well in excess of market averages
3. The bulk of corporate cash flows returned to shareholders through distributions

An example of a ‘normal’ MLP is an organization involved in the midstream energy industry. Midstream energy companies are in the business of transporting oil, primarily though pipelines. Pipeline companies make up the vast majority of MLPs.

Since MLPs widely offer high yields, they are naturally appealing for income investors. With this in mind, we created a full downloadable list of nearly 100 MLPs in our coverage universe.

You can download the Excel spreadsheet (along with relevant financial metrics like dividend yield and payout ratios) by clicking on the link below:

 

This comprehensive article covers MLPs in depth, including the history of MLPs, unique tax consequences and risk factors of MLPs, as well as our 7 top-ranked MLPs today.

The table of contents below allows for easy navigation of the article:

Table of Contents

The History of Master Limited Partnerships

MLPs were created in 1981 to allow certain business partnerships to issue publicly traded ownership interests.

The first MLP was Apache Oil Company, which was quickly followed by other energy MLPs, and then real estate MLPs.

The MLP space expanded rapidly until a great many companies from diverse industries operated as MLPs – including the Boston Celtics basketball team.

One important trend over the years, is that energy MLPs have grown from being roughly one-third of the total MLP universe to containing the vast majority of these securities.

Moreover, the energy MLP universe has evolved to be focused on midstream energy operations. Midstream partnerships have grown to be roughly half of the total number of energy MLPs.

MLP Tax Consequences

Master limited partnerships are tax-advantaged investment vehicles. They are taxed differently than corporations. MLPs are pass-through entities. They are not taxed at the entity level.

Instead, all money distributed from the MLP to unit holders is taxed at the individual level.

Distributions are ‘passed through’ because MLP investors are actually limited partners in the MLP, not shareholders. Because of this, MLP investors are called unit holders, not shareholders.

And, the money MLPs pay out to unit holders is called a distribution (not a dividend).

The money passed through from the MLP to unit holders is classified as either:

• Return of Capital
• Ordinary Income

MLPs tend to have lots of depreciation and other non-cash charges. This means they often have income that is far lower than the amount of cash they can actually distribute. The cash distributed less the MLPs income is a return of capital.

A return of capital is not technically income, from an accounting and tax perspective. Instead, it is considered as the MLP actually returning a portion of its assets to unit holders.

Now here’s the interesting part… Returns of capital reduce your cost basis. That means taxes for returns of capital are only due when you sell your MLP units. Returns of capital are tax-deferred.

Note: Return of capital taxes are also due in the event that your cost basis is less than $0. This only happens for very long-term holding, typically around 10 years or more.

Each individual MLP is different, but on average an MLPs distribution is usually around 80% to 90% a return of capital, and 10% to 20% ordinary income.

This works out very well from a tax perspective. The images below compare what happens when a corporation and an MLP each have the same amount of cash to send to investors.

Note 1: Taxes are never simple. Some reasonable assumptions had to be made to simplify the table above. These are listed below:

• Corporate federal income tax rate of 21%
• Corporate state income tax rate of 5%
• Qualified dividend tax rate of 20%
• Distributable cash is 80% a return of capital, 20% ordinary income
• Personal federal tax rate of 22% less 20% for passive entity tax break
  (19.6% total instead of 22%)
• Personal state tax rate of 5% less 20% for passive entity tax break
  (4% total instead of 5%)
• Long-term capital gains tax rate of 20% less 20% for passive entity tax break
  (16% total instead of 20%)

Note 2: The 20% passive income entity tax break will expire in 2025.

Note 3: In the MLP example, if the maximum personal tax rate of 37% is used, the distribution after all taxes is $8.05.

Note 4: In the MLP example, the accrued cost basis reduction tax is due when the MLP is sold, not annually come tax time.

As the tables above show, MLPs are far more efficient vehicles for returning cash to shareholders relative to corporations. Additionally, in the example above $9.57 out of $10.00 distribution would be kept by the MLP investor until they sold because the bulk of taxes are from returns of capital and not due until the MLP is sold.

Return of capital and other issues discussed above do not matter when MLPs are held in a retirement account.

There is a different issue with holding MLPs in a retirement account, however. This includes 401(k), IRA, and Roth IRA accounts, among others.

When retirement plans conduct or invest in a business activity, they must file separate tax forms to report Unrelated Business Income (UBI) and may owe Unrelated Business Taxable Income (UBTI). UBTI tax brackets go up to 37% (the top personal rate).

MLPs issue K-1 forms for tax reporting. K-1s report business income, expense, and loss to owners. Therefore, MLPs held in retirement accounts may still qualify for taxes.

If UBI for all holdings in your retirement account is over $1,000, you must have your retirement account provider (typically, your brokerage) file Form 990-T.

You will want to file form 990-T as well if you have a UBI loss to get a loss carryforward for subsequent tax years. Failure to file form 990-T and pay UBIT can lead to severe penalties.

Fortunately, UBIs are often negative. It is a fairly rare occurrence to owe taxes on UBI.

The subject of MLP taxation can be complicated and confusing. Hiring a tax professional to aid in preparing taxes is a viable option for dealing with the complexity.

The bottom line is this: MLPs are tax-advantaged vehicles that are suited for investors looking for current income. It is fine to hold them in either taxable or non-taxable (retirement) accounts.

Since retirement accounts are already tax-deferred, holding MLPs in taxable accounts allows you to ‘get credit’ for the full effects of their unique structure.

4 Advantages & 6 Disadvantages of Investing in MLPs

MLPs are a unique asset class. As a result, there are several advantages and disadvantages to investing in MLPs. Many of these advantages and disadvantages are unique specifically to MLPs.

Advantages of MLPs

Advantage #1: Lower taxes

MLPs are tax-advantaged securities, as discussed in the “Tax Consequences” section above. Depending on your individual tax bracket, MLPs are able to generate around 40% more after-tax income for every pre-tax dollar they decide to distribute, versus Corporations.

Advantage #2: Tax-deferred income through returns of capital

In addition to lower taxes in general, 80% to 90% of the typical MLPs distributions are classified as returns of capital. Taxes are not 0wed (unless cost basis falls below 0) on return of capital distributions until the MLP is sold.

This creates the favorable situation of tax-deferred income.

Tax-deferred income is especially beneficial for retirees as return on capital taxes may not need to be paid throughout retirement.

Advantage #3: Diversification from other asset classes

Investing in MLPs provides added diversification in a balanced portfolio. Diversification can be measured by the correlation in return series between asset classes.

MLPs are excellent diversifiers, having either a near zero or negative correlation to corporate bonds, government bonds, and gold.

Additionally, they have a correlation coefficient of less than 0.5 to both REITs and the S&P 500. This makes MLPs an excellent addition to a diversified portfolio.

Advantage #4: Typically very high yields

MLPs tend to have high yields far in excess of the broader market. As of this writing, the S&P 500 yields ~2.1%, while the Alerian MLP ETF (AMLP) yields over 25%. Many individual MLPs have yields above 10%.

Disadvantages of MLPs

Disadvantage #1: Complicated tax situation

MLPs can create a headache come tax season. MLPs issue K-1’s and are generally more time-consuming and complicated to correctly calculate taxes than ‘normal’ stocks.

Disadvantage #2: Potential additional paperwork if held in a retirement account

In addition, MLPs create extra paperwork and complications when invested through a retirement account because they potentially create unrelated business income (UBI). See the “Tax Consequences” section above for more on this.

Disadvantage #3: Little diversification within the MLP asset class

While MLPs provide significant diversification versus other asset classes, there is little diversification within the MLP structure.

The vast majority of publicly traded MLPs are oil and gas pipeline businesses. There are some exceptions, but in general MLP investors are investing in energy pipelines and not much else.

Because of this, it would be unwise to allocate all or a majority of one’s portfolio to this asset class.

Disadvantage #4: Incentive Distribution Rights (IDRs)

MLP investors are limited partners in the partnership. The MLP form also has a general partner.

The general partner is usually the management and ownership group that controls the MLP, even if they own a very small percentage of the actual MLP.

Incentive Distribution Rights, or IDRs, are used to ‘incentivize’ the general partner to grow the MLP.

IDRs typically allocate greater percentages of cash flows to go to the general partner (and not to the limited partners) as the MLP grows its cash flows.

This reduces the MLPs ability to grow its distributions, putting a handicap on distribution increases.

It should be noted that not all MLPs have IDRs, but the majority do.

Disadvantage #5: Elevated risk of distribution cuts due to high payout ratios

One of the big advantages of investing in MLPs is their high yields. Unfortunately, high yields very often come with high payout ratios.

Most MLPs distribute nearly all of the cash flows they make to unit holders. In general, this is a positive.

However, it creates very little room for error.

The pipeline business is generally stable, but if cash flows decline unexpectedly, there is almost no margin of safety at many MLPs. Even a short-term disturbance in business results can necessitate a reduction in the distribution.

Disadvantage #6: Growth Through Debt & Share Issuances

Since MLPs typically distribute virtually all of their cash flows as distributions, there is very little money left over to actually grow the partnership.

And most MLPs strive to grow both the partnership, and distributions, over time. To do this, the MLP’s management must tap capital markets by either issuing new units or taking on additional debt.

When new units are issued, existing unit holders are diluted; their percentage of ownership in the MLP is reduced.

When new debt is issued, more cash flows must be used to cover interest payments instead of going into the pockets of limited partners through distributions.

If an MLPs management team starts projects with lower returns than the cost of their debt or equity capital, it destroys unit holder value. This is a real risk to consider when investing in MLPs.

The 7 Best MLPs Today

The 7 best MLPs are ranked and analyzed below using expected total returns from the Sure Analysis Research Database. Expected total returns consist of 3 elements:

• Return from change in valuation multiple
• Return from distribution yield
• Return from growth on a per-unit basis

Investors should note that the top MLPs list was not screened on a qualitative assessment of a company’s dividend risk. The focus is expected annual returns over the next five years.

That said, MLPs with current distribution yields below 2% were not considered. This screen makes the list more attractive to income investors.

Continue reading for detailed analysis on each of our top MLPs, ranked according to expected 5-year annual returns.

MLP #7: Enterprise Products Partners LP (EPD)

• 5-year expected annual returns: 10.6%

Enterprise Products Partners was founded in 1968. It is structured as a Master Limited Partnership, or MLP, and operates as an oil and gas storage and transportation company.

Enterprise Products has a large asset base which consists of nearly 50,000 miles of natural gas, natural gas liquids, crude oil, and refined products pipelines.

It also has storage capacity of more than 250 million barrels. These assets collect fees based on volumes of materials transported and stored.

Source: Investor Presentation

Enterprise Products Partners reported strong fourth-quarter 2024 earnings, delivering $1.6 billion in net income, or $0.74 per common unit, representing a 3% increase over the prior year.

Adjusted cash flow from operations rose 4% to $2.3 billion, with the company declaring a quarterly distribution of $0.535 per unit, a 4% year-over-year increase.

Enterprise also continued its capital return strategy, repurchasing 2.1 million common units during the quarter and 7.6 million units for the full year, bringing total buybacks under its program to $1.1 billion.

For the full year, the company posted $9.9 billion in EBITDA, moving 12.9 million barrels of oil equivalent per day.

Click here to download our most recent Sure Analysis report on EPD (preview of page 1 of 3 shown below):

MLP #6: Hess Midstream LP (HESM)

• 5-year expected annual returns: 11.1%

Hess Midstream LP owns and operates midstream assets primarily located in the Bakken and Three Forks Shale plays in North Dakota. It provides oil, gas and water midstream services to Hess and third-party customers in the U.S.

Hess Midstream has long-term commercial contracts, which extend through 2033. Its contracts are 100% fee-based and minimize the exposure of the company to commodity prices.

Source: Investor Presentation

In late January, Hess Midstream reported (1/29/25) financial results for the fourth quarter of fiscal 2024. Throughput volumes grew 15% for gas processing and gas gathering over the prior year’s quarter thanks to higher production and higher gas capture.

As a result, revenue grew 11% and earnings-per-share grew 24%, from $0.55 to $0.68.

Management expects 10% growth of throughput volumes, 11% growth of adjusted EBITDA and at least 5% annual growth of distributions until 2027.

It also expects to reduce leverage ratio (Net Debt to EBITDA) below 2.5x by the end of 2026.

Click here to download our most recent Sure Analysis report on HESM (preview of page 1 of 3 shown below):

MLP #5: AllianceBernstein Holding LP (AB)

• 5-year expected annual returns: 12.3%

AllianceBernstein L.P. is an asset manager with an emphasis on fixed income investments, but offers diversified investment solutions for institutional investors, private wealth clients, and retail investors.

The company traces its roots back to Sanford C. Bernstein & Company, founded in 1967, and to Alliance Capital, founded in 1971.

AllianceBernstein (AB) delivered a strong performance in Q4, surpassing $800 billion in assets under management (AUM). Fixed income inflows reached $6 billion, driven by robust retail demand, particularly in taxable and tax-exempt strategies.

American Income led taxable fixed income demand, while tax-exempt strategies saw over $3 billion in net inflows, supported by retail municipal separately managed accounts and Bernstein Private Wealth clients.

Private markets AUM grew 11% year-over-year to $68 billion, bolstered by net fundings into alternatives, including CLOs, real estate, and renewable energy.

Click here to download our most recent Sure Analysis report on AB (preview of page 1 of 3 shown below):

MLP #4: Plains All American Pipeline LP (PAA)

• 5-year expected annual returns: 14.0%

Plains All American Pipeline, L.P. is a midstream energy infrastructure provider. The company owns an extensive network of pipeline transportation, terminaling, storage, and gathering assets in key crude oil and natural gas liquids-producing basins at major market hubs in the United States and Canada.

Source: Investor Presentation

On February 7th, 2025, Plains All American posted its Q4 and full-year results for the period ending December 31st, 2024.

For the quarter, revenues came in at $12.4 billion, down 2.3% compared to last year. Adjusted EBITDA from crude oil increased by 1% year-over-year, primarily due to higher tariff volumes on its pipelines, tariff escalations and contributions from acquisitions.

Adjusted EBITDA from NGL declined 9% year-over-year results primarily due to lower weighted average frac spreads in the fourth quarter of 2024.

Click here to download our most recent Sure Analysis report on PAA (preview of page 1 of 3 shown below):

MLP #3: Delek Logistics Partners LP (DLK)

• 5-year expected annual returns: 15.2%

Delek Logistics Partners, LP is a publicly traded master limited partnership (MLP) headquartered in Brentwood, Tennessee.

Established in 2012 by Delek US Holdings, Inc. (NYSE: DK), Delek Logistics owns and operates a network of midstream energy infrastructure assets.

These assets include approximately 850 miles of crude oil and refined product transportation pipelines and a 700-mile crude oil gathering system, primarily located in the southeastern United States and west Texas.

The company’s operations are integral to Delek US’s refining activities, particularly supporting refineries in Tyler, Texas, and El Dorado, Arkansas.

Delek Logistics provides services such as gathering, transporting, and storing crude oil, as well as marketing, distributing, and storing refined products for both Delek US and third-party customers.

On February 25, 2025, Delek Logistics Partners (DKL) reported its financial results for the fourth quarter of 2024. The company achieved an adjusted EBITDA of approximately $107.2 million, an increase from $100.9 million in the same period of the previous year.

Distributable cash flow was $69.5 million, with a coverage ratio of approximately 1.2 times. The Gathering and Processing segment saw an adjusted EBITDA of $66 million, up from $53.3 million in Q4 2023, primarily due to higher throughput from Permian Basin assets and contributions from the H2O Midstream acquisition.

Click here to download our most recent Sure Analysis report on DKL (preview of page 1 of 3 shown below):

MLP #2: Brookfield Energy Partners LP (BEP)

• 5-year expected annual returns: 16.3%

Brookfield Renewable Partners L.P. operates one of the world’s largest portfolios of publicly traded renewable power
assets. Its portfolio consists of about 33,000 megawatts of capacity in North America, South America, Europe, and Asia.

Brookfield Renewable Partners is one of four publicly traded listed partnerships that are operated by Brookfield Asset Management (BAM). The others are Brookfield Infrastructure Partners (BIP) and Brookfield Business Partners (BBU).

Source: Investor Presentation

In late January, BEP reported (1/31/25) results for the fourth quarter of 2024. Its funds from operations (FFO) per unit grew 21%, from $0.38 to $0.46, thanks to development and acquisition of assets and strong pricing.

BEP is resilient to high inflation, as about 70% of its contracts are indexed to inflation and most of its costs are fixed.

The company invested an almost record $1.8 billion in all major decarbonization assets in 2024 and it is one of the largest publicly-traded renewable power platforms.

Click here to download our most recent Sure Analysis report on Brookfield Renewable Partners (preview of page 1 of 3 shown below):

MLP #1: Brookfield Infrastructure Partners LP (BIP)

• 5-year expected annual returns: 17.8%

Brookfield Infrastructure Partners L.P. is one of the largest global owners and operators of infrastructure networks, which includes operations in sectors such as energy, water, freight, passengers, and data.

Brookfield Infrastructure Partners is one of four publicly-traded listed partnerships that is operated by Brookfield Asset Management (BAM).

BIP has delivered 8% compound annual distribution growth over the past 10 years.

Source: Investor Presentation

BIP reported resilient results for Q4 2024 on 01/30/25. The diversified utility reported funds from operations of $646 million, up 3.9% year over year. FFO per unit was $0.82, up 3.8%.

For the full year, FFO per unit was $3.12, up 5.8% from the previous year. Normalized for the impact of foreign exchange, the FFOPU growth would have been 10%, which better reflects the business’s operational strength.

For the year, it achieved its target of $2 billion capital recycling proceeds. It also deployed +$1.1 billion across its backlog of organic growth projects and three tuck-in acquisitions, which should help contribute to growth. It also added ~$1.8 billion of new projects to its capital backlog.

Click here to download our most recent Sure Analysis report on Brookfield Infrastructure Partners (preview of page 1 of 3 shown below):

MLP ETFs, ETNs, & Mutual Funds

There are 3 primary ways to invest in MLPs:

1. By investing in units of individual publicly traded MLPs
2. By investing in a MLP ETF or mutual fund
3. By investing in a MLP ETN

Note: ETN stands for ‘exchange traded note’

The difference between investing directly in a company (normal stock investing) versus investing in a mutual fund or ETF is very clear. It is simply investing in one security versus a group of securities.

ETNs are different. Unlike mutual funds or ETFs, ETNs don’t actually own any underlying shares or units of real businesses.

Instead, ETNs are financial instruments backed by the financial institution (typically a large bank) that issued them. They perfectly track the value of an index. The disadvantage to ETNs is that they expose investors to the possibility of a total loss if the backing institution were to go bankrupt.

The advantage to investing in a MLP ETN is that distribution income is tracked, but paid via a 1099. This eliminates the tax disadvantages of MLPs (no K-1s, UBTI, etc.). This unique feature may appeal to investors who don’t want to hassle with a more complicated tax situation. The J.P. Morgan Alerian MLP ETN makes a good choice in this case.

Purchasing individual securities is preferable for many, as it allows investors to concentrate on their best ideas. But ETFs have their place as well, especially for investors looking for diversification benefits.

Final Thoughts

Master Limited Partnerships are a misunderstood asset class. They offer diversification, tax-advantaged and tax-deferred income, high yields, and have historically generated excellent total returns.

You can download your free copy of all MLPs by clicking on the link below:

 

The asset class is likely under-appreciated because of its more complicated tax status.

MLPs are generally attractive for income investors, due to their high yields.

As always, investors need to conduct their own due diligence regarding the unique tax effects and risk factors before purchasing MLPs.

The MLPs on this list could be a good place to find long-term buying opportunities among the beaten-down MLPs.

Additionally, MLPs are not the only way to find high levels of income. The following lists contain many more stocks that regularly pay rising dividends.

• The Dividend Aristocrats List: 69 stocks in the S&P 500 Index with 25+ years of consecutive dividend increases.
• The Dividend Kings List is even more exclusive than the Dividend Aristocrats. It is comprised of 54 stocks with 50+ years of consecutive dividend increases.
• The High Dividend Stocks List: stocks that appeal to investors interested in the highest yields of 5% or more.
• The Monthly Dividend Stocks List: stocks that pay dividends every month, for 12 dividend payments per year.

Earnings forecasts are robust, but are there blind spots? … low-income homeowners are on shaky ground … mounting delinquencies … tariffs are the wildcard

As we noted in last Friday’s Digest, our recently completed earnings season was strong, and earnings forecasts are robust.

Our economy appears to be in solid shape.

But as we’ve highlighted in numerous past Digests, we have a K-shaped economy. Higher-income Americans have done quite well in recent years as their assets float atop inflation. However, lower-income Americans have struggled to make ends meet as high prices continue to stretch budgets.

Do the struggles of lower-income Americans signal cracks in our economy that aren’t fully represented in robust earnings forecasts?

Let’s begin by looking at the housing sector.

Low-income homeowners are on shaky ground

In 2013, as part of the broader Ability-to-Repay (ATR) requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act, lenders targeted a debt-to-income (DTI) ratio threshold of 43% when evaluating qualifying borrowers.

A DTI above 43% was seen as increasingly risky since those borrowers have a harder time making payments if financial stress increases.

However, this underwriting standard loosened for loans eligible for purchase by government-sponsored enterprises like Fannie Mae and Freddie Mac. Unfortunately, this paved the way for a marked ramp-up in risky loans.

Here’s The Wall Street Journal:

In 2007, 35% of new FHA [Federal Housing Administration] borrowers had debt-to-income ratios above 43%.

By 2020, 54% did.

As housing prices and inflation surged, borrowers became more stretched.

The FHA kept insuring mortgages to borrowers who were increasingly leveraged. About 64% of FHA borrowers last year exceeded the 43% threshold.

The FHA loan portfolio is far riskier than it was before the 2008 housing crisis.

The WSJ article highlights American Enterprise Institute analysis that estimates that 79% of FHA first-time borrowers have one month or less in financial reserves. Given today’s inflation-elevated prices, this leaves little-to-no financial cushion for many of these borrowers to make their mortgage payments if household expenses rise.

Back to the WSJ:

No surprise, many are missing payments, especially recent borrowers.

About 7.05% of FHA mortgages issued last year went seriously delinquent—90 or more days past when a payment is due—within 12 months. That’s more than at the 2008 peak of the subprime bubble (7.02%).

According to the Mortgage Bankers Association, while the “seriously delinquent” rate for conventional loans climbed just 2 basis points over the year ending in Q4 2024, the “seriously delinquent” rate for FHA and VA loans exploded 70 basis points.

In February, the Intercontinental Exchange monthly report on the housing market concluded that FHA and Veterans Affairs loans delinquencies are “likely to serve as canaries in the coal mine for mortgage performance in this cycle.”

So, why haven’t these delinquencies been a major problem so far?

The WSJ has an answer:

Under the guise of Covid relief, the Biden administration masked the growing troubles in the housing market by paying off borrowers and mortgage servicers to prevent foreclosures.

Of the 52,531 FHA loans last year that went seriously delinquent within their first year, only nine resulted in foreclosure.

The FHA instituted a program that pays mortgage servicers to make borrowers’ missed payments for them. Missed payments are added to the loan’s principal, but without interest…

One result is that many FHA borrowers owe more than their original mortgage and more than their homes are worth. They are essentially trapped in their homes even if they want to sell and move…

Another result is that home prices keep increasing because borrowers who don’t pay their mortgages—and never should have qualified for loans—can’t get foreclosed on or be forced to sell their homes. 

Without these protective policies in place, we’d likely be seeing significantly more delinquencies, and potentially, foreclosures. Instead, these policies have masked growing weakness in this part of our K-shaped economy.

But we are seeing evidence of this weakness in many other areas.

Growing pain points for millions of Americans

Millions of Americans are having increasing trouble making their payments on…well, just about everything.

In March of 2020, President Trump initiated a student loan repayment pause under the CARES Act due to Covid-19.

President Biden extended that pause several times, even attempting to implement several initiatives aimed at reducing or eliminating many student loans. Altogether, his efforts targeted roughly 4.3 million borrowers with a loan amount of approximately $153 billion.

Most of those loan cancellations were struck down by the Supreme Court. And with the pause in student loans having ended last September, delinquency payments are back on the rise.

From Forbes, two weeks ago:

After the three-year pandemic pause and resumption of federal student loan repayments, delinquency rates have doubled in just a few months, according to Education Department data obtained by The Washington Post.

Millions of borrowers are struggling to keep up with their monthly bills now that payments are required again.

Roughly four million federal student loan borrowers are already behind on payments, a sharp spike in distress that has alarmed policymakers and advocates. 

Meanwhile, car loan delinquencies are rising.

Here’s Axios from January:

Americans are missing their car payments at the highest rate in decades, according to Fitch Ratings data…

Car costs, including loans and insurance, have soared in an economy where consumers are showing mounting signs of stress.

6.6% of subprime auto borrowers were at least 60 days past due on their loans as of January 2025.

This is the highest level since the agency began collecting data. The fall and winter of 2024 saw the next highest subprime delinquency rates.

Credit card delinquency rates are up too.

Here’s PYMNTS, last month:

Consumers loaded up on their credit cards in the fourth quarter of the year – which encompassed the holiday shopping season lasting through November and December.

Card balances surged by $45 billion, even while delinquency rates are, per the Fed’s language, “elevated” …

We haven’t seen these levels of delinquency in years — and in fact, not since the fourth quarter of 2011.

Let’s not forget home insurance premiums.

Insurance companies are getting hammered on claims as the last 12 months have brought a series of high-impact insurance events (hurricanes, floods, fires). And this means most homeowners are getting hammered on premiums – even if they don’t live in those high-impact areas.

Here’s CBC News:

The average homeowners insurance premium jumped 33% from 2020 to 2023, rising from $1,902 per year to $2,530, according to 2024 research from economists at the University of Pennsylvania’s Wharton School and the University of Wisconsin. By comparison, inflation rose about 18% during that same time period…

Yet even property owners in states considered less vulnerable to climate disasters are now grappling with increased insurance costs and dropped policies — issues that threaten to undermine property values…

“One thing that is surprising is that Kansas and Nebraska and these places in the middle of the country are also seeing these huge increases in insurance.”

Bottom line: Altogether, lower-income Americans are feeling increased financial pressure. Have we captured this risk fully in our earnings projections?

Now, let’s add tens of thousands of Americans who are, or will be, out of jobs as DOGE trims the federal workforce

The good news is that the unemployment rate remains relatively low. The bad news is that employers aren’t eager to hire. Last December, a Bank of America analyst referred to today’s market situation as a “low-hire, low-fire environment.”

What’s going to happen when tens of thousands of now-fired federal workers enter this “low-hire” labor pool?

What are the knock-on effects for their mortgage payments… student loans… credit card bills… and overall monthly budgets?

The uncertainty of our escalating trade war

As we’ve been highlighting in today’s Digest, lower-income Americans are running out of room to absorb additional financial pressure. But it appears that’s what’s on the way with tariffs.

As I’ve noted before, if tariffs are a brief tool used to negotiate lower reciprocal tariffs from other nations, that’s one thing. But the longer that tariffs remain in effect (and/or the threat of tariffs), the greater the risk of meaningful economic damage.

We’re running long today, so I’ll let former President Ronald Reagan make this point.

From Reagan in 1987:

At first, when someone says “let’s impose tariffs on foreign imports, it looks like they’re doing the patriotic thing by protecting American products and jobs. And sometimes, for short while it works. But only for a short time…

High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars. The result is more and more tariffs. Higher and higher trade barriers and less and less competition.

Soon, because of the prices made artificially high by tariffs that subsidize inefficiency and poor management, people stop buying.

Then the worst happens.

Markets shrink and collapse, businesses and industries shut down, and millions of people lose their jobs…

Over the long run, [tariffs] hurt every American worker and consumer.

To be clear, we’re not predicting this grim outcome.

But the U.S. consumers in the lower half of our K-shaped economy are running out of financial breathing room. So, tariff-related economic damage doesn’t need to be severe to push these consumers over the proverbial cliff-edge, impacting corporate profits…our economy…and our portfolios.

For everyone’s sake, let’s hope we avoid this.

We’ll continue to monitor these developments in the Digest.

Shifting gears, a quick reminder before we sign off…

This Thursday is Nvidia’s “Quantum Day.” It’s going to bring together industry leaders, developers, and partners to explore the future of quantum computing.

Legendary investor Louis Navellier believes Nvidia will also announce a big move into quantum computing – and potentially, a partnership with one specific small-cap quantum company. If this happens, Louis believes that this company’s small-cap stock has 50X-return potential.

Last week, Louis held a live event to fill in the details. If you missed it, you can catch the free replay right here.

From Louis:

This Thursday,I believe Nvidia will stake its claim in the quantum computing space. And when it does, this little-known top pick could erupt overnight.

Last week, I revealed everything you need to know about Q-Day – including details on my No. 1 stock pick that could explode in the wake of NVIDIA’s announcement.

I’m telling folks about it before Nvidia’s Q-Day on March 20.

My goal for this briefing is to get you AHEAD of the crowd… AHEAD of the news outlets…

Here’s the link again for Louis free briefing.

Have a good evening,

Jeff Remsburg

In the second part of Global Finance’s conversation with former US Secretary of Commerce Wilbur Ross—who served during President Trump’s first term—the discussion shifts to the impact of Trump’s tariffs and trade policy on CEOs, CFOs, and key trading partners like Canada, Mexico, and India.

Global Finance: What would you recommend to CEOs and CFOs navigating this climate of uncertainty due to US tariffs and trade policy as they determine their near- and long-term strategies?

Wilbur Ross: Yes, reshoring and nearshoring were some things that would develop momentum in any event. President Trump is going to accelerate that.

Whatever plan people had for relocating production, it would be wise to accelerate it. Now, whether that means moving operations to Mexico or the US, that’s another question. But the days when a company could make one component in one country, a second in another, and a third in yet another—then bring them all to a fourth country for assembly—are ending.

Therefore, it should be more of a question of to what degree you relocate facilities and whether or not to do so, and to a degree where to relocate them. The rules of origin will be much more important to Canada, but particularly to Mexico, than before. So, as long as one incorporates that into their thinking, I think relocation is the wise move to make.

GF: Is the message different for CEOs and CFOs outside the US?

Ross: Yes, it could be if they adopt policies similar to Trump’s. We are moving toward an era where what has been called “protectionism” becomes much more of a centerpiece of everyone’s trade policy. But what Europe must do to be effective is to deregulate some. The regulatory burden that European governments impose on their companies is a real impediment to reshoring. Europe has become too intrusive in the business community.

Trump has also said he will require his cabinet members to cancel an even higher ratio of existing regulations relative to any new ones they implement—higher than what we had the first time. The first time, you were required to cancel two for each one you put in. He may be pushing for as many as eight, but certainly more than two. That’s one thing.

Tax policy is the other thing. You have to look at Trump’s trade activities in the context of what he is doing overall. Between deregulation and reducing corporate taxes, he’s changing the economic attractiveness of being in the U.S. regardless of tariffs. And then when you load on top of that, a bit sturdier tariff policy, you have a combination of factors that will prove very powerful.

GF: Which means that you also think this will be the outcome of the current situation?

Ross: Okay, well, there will naturally be a lag. You can’t build a new facility of any size in 10 minutes. There may be some near-term dislocation as we face higher tariffs, but we don’t yet have the increased production to offset them.

Now, that’s not a universal problem. Many of our industries operate at only 70–80 percent capacity. Therefore, not only will they be able to meet increased demand, but this will also help them absorb part of the tariff on imported components. When production increases from 70 or 80 percent capacity, the marginal costs are very small. You’ll have that factor and probably another factor—currency readjustment. How that plays out will have an important impact on how well industries do globally in each area.

To that end, if U.S. Federal Reserve Chairman Jerome Powell is slow to reduce interest rates while Europe moves at a faster pace, that will clearly have implications for currencies.

One of my concerns for Europe is that if they lower interest rates too quickly relative to the U.S., it could have real impacts on their currency. That would hurt imports but help exports. If I were a European manager, I would be more eagle-eyed than ever about the outlook for currency fluctuations.

GF: Looking at the various industry sectors, are there sectors that deserve tariffs? Are there also sectors that should not see tariffs in these negotiations?

Ross: Well, I have focused more on those who might need it than those who might not. However, pharmaceuticals are a big import to the U.S. Since U.S. drug prices are already higher than others, I don’t think hefty tariffs on pharmaceuticals would be particularly well-fitting to our economy.

But they’re going in on the really big item—the automobile. Automobile manufacturing has caused a fair degree of factory expansion here and in Mexico. In the automotive industry, you must look at the U.S. and Mexico combined because of the concept of rules of origin. In those areas, it’s inevitable. So, I think you’re right—it will vary somewhat by industry. But for the most part, most manufacturing businesses probably don’t expect there will be more tariff burdens.

GF: Would large U.S. exporters, such as technology manufacturers, be affected negatively by this?

Ross: Well, Europe doesn’t have the technological content we have so far. The giant companies in Europe are not comparable to what we call “The Magnificent Seven” over here. Europe’s response seems to have been antitrust and tax complaints, trying to hold back American companies rather than doing things that would effectively build up a European champion.

GF: What of those U.S. industry sectors geared more toward exports? Are they at risk because of tariff reciprocity in the near term?

Ross: Well, apparel is a significant import from Asian countries, and it wouldn’t surprise me if that were to continue. Some of those brands, such as the European brand Zara, have become very, very powerful players in the US. It’s a Spanish company, but it mainly produces its material in Turkey. Meanwhile, Vietnam and Mexico have become big competitors in what we used to call sneakers. So, some things will remain there that will not be affected by the tariffs.

But remember, the real purpose of the tariffs—and one that I hope will be achieved long term—is to let the rest of the world know exactly what they must do to bring our tariffs down, namely, to bring down their own tariffs. The unexpected result of the new US tariff policy could very well be lower tariffs in the long term.

Take India, for example. India’s tariffs are extremely high on most products. Prime Minister Narendra Modi wants to industrialize India. It’ is a logical place to be competitive with China if they can meet their infrastructure needs, because Indians have very good quality manufacturing skills, technological skills, and engineering skills. They have a large population base, so there’s no reason they can’t compete. What’s been holding them back has been the need for more roads and railroads. You need things like that in the way of transportation infrastructure to be much more highly developed for India to flourish. There’s a good chance that PM Modi will do that.

Vietnam has already benefited greatly from the pressures being put on China, which will probably continue. However, Vietnam has a much smaller economy and population base, so it can’t remotely replace China.

Read Part 1 of Global Finance‘s interview with Wilbur Ross:

Updated on March 17th, 2025 by Bob Ciura

The appeal of growth stocks is that they have the potential for huge returns. Consider the massive rally by Tesla, Inc. (TSLA); in the past five years, the stock has generated total returns over 500%.

That’s a lifetime of returns for some investors; Tesla has done this in a relatively short period of time.

The downside of growth stocks is that volatility can work both ways. Also, growth stocks can generate strong returns but also carry the burden of high expectations due to their sky-high valuations.

Right now, Tesla does not pay a dividend to shareholders. As a result, we believe income investors looking for lower volatility should consider high-quality dividend growth stocks.

The Dividend Aristocrats are a group of 69 stocks in the S&P 500 Index with 25+ consecutive years of dividend growth.

You can download an Excel spreadsheet of all 69 Dividend Aristocrats (with metrics that matter, such as dividend yield and P/E ratios) by clicking the link below:

 

Over time, any company – even Tesla – could make the decision to start paying dividends to shareholders if it becomes sufficiently profitable.

In the past decade, other technology companies, such as Apple, Inc. (AAPL) and Cisco Systems (CSCO), have initiated quarterly dividends.

These were once rapidly growing stocks that matured, and Tesla could follow the same way one day.

However, the ability of a company to pay a dividend depends on its business model, growth prospects, and financial position.

Even with Tesla’s huge run-up in share price, whether a company can pay a dividend depends on the underlying fundamentals.

While many growth stocks have made the transition to dividend stocks in recent years, it is doubtful that Tesla will join the ranks of dividend-paying stocks any time soon.

Business Overview

Tesla was founded in 2003 by Martin Eberhard and Marc Tarpenning. The company started out as a fledgling electric car maker, but has grown at an extremely high rate in the past several years.

Tesla’s current market capitalization is above $800 billion, making it a mega-cap stock.

Amazingly, Tesla’s current market capitalization is more than nine times the combined market caps of auto industry peers Ford Motor (F) and General Motors (GM).

Tesla has a growing lineup of different models and price points and is looking into expanding that lineup further to become a full-line automaker.

Since going public in 2010 at a split-adjusted price of $1.13 per share, Tesla has produced almost unbelievable returns for shareholders in hopes of massive future growth, as well as tremendous growth that has already been achieved.

Since then, it has grown into the leader in electric vehicles and business operations in renewable energy. Tesla produced about $97.69 billion in revenue in 2024.

In January, the company reported fourth-quarter revenue of $25.71 billion, which missed analyst estimates by $1.42 billion. Adjusted earnings-per-share of $0.73 missed estimates by $0.04 per share.

Total revenue increased 2% year-over-year for the fourth quarter, while adjusted EPS rose 3% year-over-year. Gross margin of 16.3% contracted by 138 basis points from the same quarter the previous year.

For 2024, revenue increased 1% while adjusted EPS declined 22% from 2023 levels.

Growth Prospects

Tesla’s primary growth catalyst is to expand sales of its core product line, and generate growth from new vehicles. The company’s S/X platform, which gave it the first bout of solid growth, but Tesla is now focused on ramping up its 3/Y platform.

Indeed, the 3/Y platform accounted for ~95% of all deliveries last quarter.

In addition, Tesla is continuing to develop new models, with a pickup truck, a semi-truck, and even a cheaper, more attainable model than the 3.

The company has begun delivering its semi-truck as production of that new vehicle begins to ramp up. It will be some time before that’s a meaningful source of revenue, but it’s a totally new product line that could boost revenue growth.

Tesla is also ramping up vehicle production. It now operates “Gigafactories” in Nevada, New York, Texas, Germany, and China, with more to come to support rising demand.

Tesla’s competitive advantage stems mainly from its best-in-class software and other technologies, including full self-driving mode.

Source: Investor Update

Tesla’s revenue growth has been very strong in the recent past. It grew revenue at an annual rate of 25% in the four-year period from 2020-2024.

That level of growth is difficult to find, which is why Tesla’s shares have performed so well.

Whether Tesla can continue to maintain its high growth rate is another question.

Such a strong growth rate bodes well for the company’s future potential. Some investors may view the guidance of Tesla as too aggressive, but we note that electric vehicle sales are growing at a high rate.

Electric vehicles are the clear path forward for automobiles, and Tesla is the leader in the space.

In addition, more than any other automaker, Tesla has delivered outstanding growth year after year. With an expanding product line, we believe the growth outlook for the company is bright.

Will Tesla Pay A Dividend?

Tesla has experienced rapid growth of shipment volumes and revenue in the past several years. But ultimately, a company’s ability to pay dividends to shareholders also requires sustained earnings growth.

While Tesla has been the epitome of a growth stock through its top-line growth and huge share price gains, its profitability is still small in relation to its market cap. TSLA stock is currently trading at more than 130 times its expected 2025 EPS of $2.56.

Without reaching consistent profitability, a company cannot pay dividends to its shareholders.

Tesla lost money since it became publicly traded back in 2010, up until 2020. It goes without saying that a money-losing company needs to raise capital to continue to fund operations.

To that end, Tesla has sold shares and issued debt to cover losses and fund expansion in recent years, both of which make paying a dividend even more difficult.

However, since 2020, Tesla has rapidly expanded its profitability and produced just over $7 billion in GAAP net income in 2024. The company also generates positive free cash flow, making it easier to service its debt obligations and avoid future dilutive share issuances.

Furthermore, the company does not pay any net interest expense, as its interest income exceeds its interest expense.

We see the improvement in profitability and free cash flow, as well as the improved balance sheet, as supportive of the company’s ability to eventually pay a dividend.

However, Tesla is still very much in high-growth mode, and we expect any dividend that may be paid to be many years away. In other words, it is much more profitable for Tesla to reinvest its earnings in its business than to distribute it to shareholders.

Even if Tesla decided to initiate a dividend, it would likely be very low.

For instance, if Tesla were to distribute 30% of its expected 2025 EPS in the form of dividends (a standard payout ratio for growth stocks that pay dividends), the stock would only yield ~0.2%.

Such a yield will be immaterial for the shareholders, but the dividend would deprive the company of cash that could be utilized for higher-return growth projects.

Tesla’s Stock Dividend

Tesla’s CEO, Elon Musk, said in early 2022, that he wants Tesla to “increase in the number of authorized shares of common stock … in order to enable a stock split of the Company’s common stock in the form of a stock dividend.”

Essentially, a stock dividend is where a company splits its stock, and the impact on shareholders is that the company’s value doesn’t change, but the share price is lower because there are more outstanding shares.

Indeed, Tesla implemented a 3-for-1 split on its stock, which came into force on August 25th, 2022. As a result, its outstanding share count rose from 1.155 billion to 3.465 billion post-stock dividends, and the stock price adjusted from about $900 before the split to about $300.

A stock dividend is not necessarily a material event for shareholders because their relative stake in the company remains the same; they have more shares at a lower price.

However, investors tend to view stock dividends and splits as bullish events; thus, stock dividends can trigger rallies in the share price.

Final Thoughts

Tesla is one of the premier growth stocks in the stock market. Shareholders who had the foresight to buy Tesla in its early years have been rewarded with enormous returns through a soaring share price.

However, investors looking for dividends and safety over the long run should probably continue to take a pass on Tesla stock. The company seems committed to using all the cash flow at its disposal to improve its operations’ profitability and invest in growth initiatives.

While there is always a possibility that Tesla’s massive share price rally could regain steam, it is also possible that the stock could fall. Investors should remember that volatility can work both ways.

More defensive investors, such as retirees, who are primarily concerned with protecting principal and dividend income, should instead focus on high-quality dividend growth stocks, such as the Dividend Aristocrats.

It is unlikely that Tesla will ever pay a dividend, or at least not for many years.

If you are interested in finding more high-quality dividend growth stocks suitable for long-term investment, the following Sure Dividend databases will be useful:

The major domestic stock market indices are another solid resource for finding investment ideas. Sure Dividend compiles the following stock market databases and updates them monthly:

The designs for the 2026-, 2027-, and 2028-dated American Platinum Eagles in proof finish appear to be finalized. These three coins will be part of the United States Mint’s upcoming “Charters of Freedom” series, inspired by the Declaration of Independence, the U.S. Constitution, and the Bill of Rights.

Proof American Platinum Eagles debuted in 1997 and have undergone multiple theme and design changes. Each coin is struck from 1 ounce of 99.95% fine platinum at the U.S. Mint’s West Point facility and carries a $100 face value – the highest denomination for any U.S. legal tender coin.

Since 2018, proof American Platinum Eagles have featured a common reverse design of an eagle in flight carrying an olive branch, while the obverse has showcased unique, annually changing designs. The Charters of Freedom series will continue this tradition with new obverse designs representing foundational American documents.

Last October, the U.S. Mint presented candidate designs for the series to the Citizens Coinage Advisory Committee (CCAC) and the Commission of Fine Arts (CFA). Out of three design sets proposed, both committees recommended Set 01.

A design was selected for the 2026-dated platinum coin, while slight modifications were suggested for the 2027 and 2028 designs to enhance the set’s cohesiveness. These refinements included standardizing the sun’s rays across all years to match the 2026 design, adjusting the tree in the 2027 design to appear younger and still developing, and modifying the child in the 2028 design to differentiate it from previous Mint coins featuring children. The CFA also identified misaligned date placements on the 2027 and 2028 designs, requiring correction. Additionally, a CCAC member suggested adding a 14th star to the 2028 Bill of Rights design to accurately reflect the number of states at its ratification, a recommendation the CFA also supported.

In February, both panels reviewed the U.S. Mint’s revisions and formally approved the updated designs, as detailed above and below.

Along with additional images, the following are the U.S. Mint’s official design descriptions for the selected designs.

SET 01 employs the symbolism of Nature to chronicle America’s journey through its founding documents. Through a carefully crafted progression of environmental motifs, it traces the transformational impact of each charter, together illustrating a living embodiment of our American democracy. (Image shown above.)

PTP-01-D-01A depicts sun rays beginning to emerge through storm clouds, representing the dawn of a new nation arising from the turmoil of revolution, as well as the Enlightenment ideas that influenced the Declaration of Independence. A quill symbolizing the Declaration sweeps over the landscape, marking the nation’s founding and the power of revolutionary ideas to 2 catalyze change. This design features 13 stars representing the original 13 colonies in the border. The additional inscription is “DECLARATION OF INDEPENDENCE.”

PTP-01-C-01 shows the storm clouds receding and the sunlight growing stronger, marking the nation’s transition to self-governance. In place of the quill, a young tree has taken root, representing the U.S. Constitution as a living framework in this American landscape. Its form echoes the shape of the quill, a visual reminder that this new system of government is informed by and built upon the values and ideals set forth in the Declaration of Independence. Thirteen stars representing the 13 colonies frame the scene. The additional inscription is “UNITED STATES CONSTITUTION.”

PTP-01-B-01 reveals a maturing tree, its canopy offering shelter and protection – a powerful metaphor for the rights and freedoms guaranteed to citizens in the Bill of Rights. Beneath it, a child gazes forward, representing the people whose rights are safeguarded now and the protection provided to future generations. The scene is now fully illuminated by sunlight, suggesting the powerful influence of these founding documents on our nation. Fourteen stars reflecting the number of states at ratification encircle the design. The additional inscription is “BILL OF RIGHTS.”

Novo Nordisk (NVO) shares rose Monday as the company said it would present new data on the ability of semaglutide, the active ingredient in its weight-loss drugs Ozempic and Wegovy, to lower heart risks.

The Danish drug developer is slated to take part in the American College of Cardiology Scientific Session and Expo, which runs March 29 to 31. Its presentations “will provide new information about semaglutide medicines to reduce cardiovascular risk,” focusing on conditions including type 2 diabetes, obesity, peripheral arterial disease, and chronic kidney disease. 

Shares of Novo Nordisk were up more than 3% in intraday trading Monday, recovering some of the stock’s losses last week following disappointing results from a phase 3 trial of its in-development weight loss drug CagriSema. Novo reported the average weight loss among patients taking the drug was 15.7% of their body weight after 68 weeks, whereas the drugmaker had reportedly been aiming for 25%. 

Despite Monday’s gains, shares of Novo Nordisk are down about 7% for the year so far, and have lost 40% of their value in the past 12 months.

During these busy times, it pays to stay on top of the latest profit opportunities. And today’s blog post should be a great place to start. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Stock Grader recommendations for 133 big blue chips. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.

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Article printed from InvestorPlace Media, https://investorplace.com/market360/2025/03/20250317-blue-chip-upgrades-downgrades/.

©2025 InvestorPlace Media, LLC

Written by the Market Insights Team

Contrasting trade war tactics

Kevin Ford – FX & Macro Strategist

Last week, the Mexican peso traded below the 20 level for the first time since November. Mexican President Claudia Sheinbaum chose to continue negotiations with the Trump administration rather than retaliate with tariff hikes against the U.S., delaying any response to U.S. tariffs on steel and aluminum imports. Commerce Secretary Howard Lutnick commended the Mexican President for avoiding tit-for-tat tariff escalations, contrasting this approach with that of the Canadian government. The Mexican peso has gained 4.8% against the USD year-to-date, approaching the 200-day SMA as net short positions unwind.

In contrast, the Loonie has remained flat against the USD year-to-date. Following a tariff-driven 25 bps rate cut by the Bank of Canada, the central bank expressed concerns about an impending crisis, not only due to steel and aluminum tariffs but also because of Canadian countermeasures. Also, as noticed by B.C. Premier David Eby, Canada may not afford to be caught in a trade war with both the United States and China—its two largest trading partners.

Because of this, bearish positioning against the USD/CAD remains historically short.

The USD/CAD reached a high of 1.4521 and a low of 1.434 last week, with significant intraday swings highlighting strong resistance above 1.45 and no signs of easing below 1.43. The Loonie remains above the 20-, 40-, and 60-day SMAs, while implied volatility has dropped significantly. April 2^nd will be a key date to assess the broader trajectory of U.S. trade policy and its impact on the Canadian economy. President Trump’s advisors have distinguished between tactical tariffs, used as negotiation tools, and structural tariffs, such as the reciprocal tariffs set to be unveiled in early April, aimed at reshaping U.S. trade policy long-term.

Central bank actions will take center stage this week. After 100 bps of rate cuts in late 2024, the Fed is expected to keep rates unchanged for a second consecutive meeting on Wednesday. On Thursday, the Bank of England is also expected to hold rates steady at 4.5%, while Sweden’s Riksbank is anticipated to maintain rates at 2.25%.

Stocks rebound despite stagflation signs

Boris Kovacevic – Global Macro Strategist

Markets ended the week on a volatile but positive note as investors weighed weaker consumer sentiment versus the lack of news on the tariff front against each other. Despite rebounding initially on Friday, the US dollar remains in a clear downtrend, with investors questioning the long-term effects of tariffs. The University of Michigan survey revealed a sharp drop in US consumer sentiment to a more than two-year low in March. Despite this slowdown and weaker subjective employment prospects, inflation expectations jumped to 4.9% from 4.3%, reflecting growing concerns over President Trump’s incoming tariff plans. This stagflationary mix—weakening growth but rising price expectations—adds to uncertainty in the economic outlook.

US equities ended another week in negative territory, with the S&P 500 plunging 10% in just 16 sessions before staging a Friday rebound. Credit markets echoed growth fears, as junk bond spreads widened. The US dollar is now down about 6% from its January peak and is on track for its worst post-inauguration performance since Nixon’s second term in 1973. Investors are assessing the impact of tariffs, which could support the currency through safe-haven demand but also weigh on sentiment and economic growth, limiting the potential of a recovery.

The upcoming week will feature the Fed’s rate decision, where policymakers are expected to stay on hold. With no immediate rate move anticipated, attention will shift to the Fed’s projections and Powell’s press conference for clues on future policy direction. With rising trade tensions, a weakening labor market, and shifting Fed expectations, volatility is likely to remain elevated heading into the new week. Investors will be closely watching upcoming inflation data, Fed speak, and trade policy developments to gauge the direction of the US economy and the dollar’s next move.

Establishing a higher bottom?

Boris Kovacevic – Global Macro Strategist

The euro extended its gains on Friday, rallying against major peers as a breakthrough in German fiscal policy negotiations lifted sentiment. The deal, which includes sweeping borrowing rule changes and a €500 billion infrastructure fund, is seen as a potential boost to Germany’s economy and broader Eurozone growth. The next Chancellor Friedrich Merz secured the Greens’ backing for the fiscal package, clearing a major political hurdle. The agreement is expected to pass through the outgoing parliament this week.

The common currency has now posted a second straight week of gains against the dollar, pound, and franc. The fiscal revival in Germany could continue to be a tailwind for the euro. However, it will need to be followed by improving sentiment and hard data along the way to secure its potential for another leg higher.

Industrial production actually beat expectations in January, rising by 2% on the month, and reversing a 1.5% fall from the month prior. Wholesale prices rose as well and are now displaying growth rate that is well in positive territory. Markets are still questioning the resolve of the ECB to cut interest rates aggressively this year. The German fiscal package, rising goods and food inflation and tariff risks will be weighted against rapidly falling wage expectations and services inflation.

EUR/USD has been range-bound for about two years now, fluctuating between $1.02 and $1.12 since January 2023. A stabilization around the $1.07 – $1.08 level would be a good sign that we are making higher lows, which could set the pair up for another leg higher. However, this would need to be accompanied by stronger European data or increasing recession risks in the US. For now, markets are watching out for sentiment data and the upcoming Fed meeting.

Resilient sterling awaits BoE decision

George Vessey – Lead FX & Macro Strategist

Despite the downwardly revised UK GDP outlook following a bout of weaker data and ongoing tariff uncertainty, the British pound is holding up relatively firm against its major peers. GBP/USD remains above its 5-year average rate of $1.29, whilst GBP/EUR lingers close to €1.19 – which appears fair value based on real rate differentials. Signs of a rebound in UK inflation likely outweigh the cooling in economic activity, meaning we expect the Bank of England (BoE) to keep rates unchanged this week.

As a risk-sensitive currency, we think the pound is vulnerable to a deeper correction in equity markets, but it’s also likely to be supported by a rebound in risk appetite if Russia-Ukraine ceasefire talks gain traction. No news is also good news when it comes to Trump’s tariff threats, and sterling could be primed for a test of the $1.30 handle depending on whether the euro accelerates higher towards $1.10 versus the US dollar, due to the strong positive correlation between GBP/USD and EUR/USD. All eyes are also on the BoE’s meeting this week though. We expect the BoE to hold Bank Rate at 4.5% on Thursday, stressing heightened uncertainty and data evolving broadly as it expected since February. Markets have not ramped up expectations for BoE easing as much as for the Fed, hence the elevated UK-US yield spread adds to GBP/USD’s constructive backdrop.

The cut-hold tempo by the BoE has become well established and renewed concerns about supply weakness mean it’s very unlikely there will be more than two or three votes for back-to-back rate cuts. Although Catherine Mann, the arch-hawk-turned-dove, may have caught all the headlines last month with her vote for a 50bp rate cut, UK wage growth is at 6%, and services inflation is at 5%, meaning the rest of the committee will likely want to tread cautiously when it comes to cutting.

Safe havens yen and franc on backfoot

Table: 7-day currency trends and trading ranges

Key global risk events

Calendar: March 17-21

All times are in ET

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*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.

Chinese tech giant Baidu (BIDU) said it has launched two artificial intelligence (AI) models, including the ERNIE X1, which it claims delivers the same performance as DeepSeek R1 “at only half the price.”

Baidu said in a statement Sunday that it had released ERNIE 4.5—its native multimodal foundation model—and ERNIE X1, the “deep-thinking reasoning model with multimodal capabilities” that the company says rivals DeepSeek’s super-efficient open-source AI model. Both models, the Chinese company said, are free for individual users of its chatbot.

ERNIE X1, Baidu said, “possesses enhanced capabilities in understanding, planning, reflection, and evolution.” The deep-thinking reasoning model, Baidu said, excels in areas including dialogue, logical reasoning and complex calculations.

DeepSeek threw markets in disarray earlier this year when the Chinese startup released its own open-source AI model that performed as well as OpenAI’s ChatGPT and were built at a fraction of the cost using less advanced chips. 

Baidu’s U.S.-listed shares are up around 1% in premarket trading Monday and have lost almost 10% of their value in the 12 months through Friday.