Cash Income

Cash News and Opportunities

• Why not be like Warren? Berkshire Hathaway’s cash pile has soared to $189 billion, and last quarter, Buffett’s company earned $1.9 billion from interest income from its cash pile. Berkshire’s cash is primarily invested in short-term Treasury bills, which have generated the company $7 billion in interest income in the past year. Buffett recently commented about the lack of attractive deals, especially with cash yields at such attractive rates. (Bloomberg)

• On Wednesday, Federal Reserve Chair Jerome Powell made it clear that rate cuts will wait. The Federal Reserve will maintain a target federal funds rate of 5.25% to 5.50%, which is the highest in more than two decades. Recent inflation data has been higher than expected, challenging the Fed’s goal of getting inflation to 2%. The 10-year Treasury note yield has been climbing since January 2024, as investors and the markets have realized that rates will remain higher for longer. (Bloomberg)

• I Bonds: Last week, we mentioned that Series I Savings Bonds will undergo an inflation adjustment on Wednesday, May 1st, 2024. We now have the new rate and it aligns with our expectations. The new combined I-Bond rate is 4.28%, lower than than the previous 5.27% rate. If you haven’t purchased any I Bonds yet in 2024, you may want to consider waiting until October to see whether I Bond rates go higher. In the meantime, you can park cash in FRN ETFs, T-Bills, and money market funds, which pay well over 5%. I Bonds can only be bought on TreasuryDirect, and you can read this article for a refresher.

• CDs: We’ve updated the CD rates for May 2024 across all brokerages. Merrill and Vanguard currently pay the highest 6-month CD rates at 5.35%. Meanwhile, Schwab is offering a 5.46% 3-month CD, while E*Trade has a 5.50% 1-year callable CD available from JP Morgan.

• Ultra Short-term Treasury Bill and floating rate note ETFs still offer the best combination of yield and liquidity, with USFR and TFLO both offering a 5.32%. Starting on May 28, these ETFs will settle in one business day.

All brokerage cash guides and playbooks can be found on YieldAlley.com.

Dividend Stocks Income

Dividend Stocks News and Opportunities

• Apple’s board of directors has declared a cash dividend of $0.25 per share of the Company’s common stock, an increase of 4 percent. The dividend is payable on May 16, 2024 to shareholders of record as of the close of business on May 13, 2024. The board of directors has also authorized an additional program to repurchase up to $110 billion of the Company’s common stock. This buyback is the largest in history. (Company)

• The Top 5 Performing US Dividend Stocks in April 2024 are as follows:

  • Hasbro (HAS): Rose 9.7% in April and has gained over 8% in the last 12 months. Currently, the stock has a forward dividend yield of 4.57% and pays an annual dividend of $2.80 per share.

  • NRG Energy (NRG): Power producer NRG rose 8.0% in April, and has gained 117% in the last 12 months. The stock has a forward dividend yield of 2.24% and pays an annual dividend of $1.63 per share.

  • UGI (UGI): Natural gas and electric power distributor UGI rose 4.2% in April, but has seen its share price drop over 20% in the last 12 months. The stock has a forwarded dividend of 5.87% and pays an annual dividend of $1.50 per share.

  • Philip Morris International (PM): The tobacco conglomerate rose 3.6% in April but has been largely trading flat in the last twelve months. The company has a forward dividend of 5.48% and pays an annual dividend of $5.20 per share.

  • Avista (AVA): Energy and utility company Avista gained 2.7% in April but fell 14% in the last 12 months. It has a forward dividend yield of 5.27% based on current share prices and pays an annual dividend of $1.90 per share.

Bank Bonuses, Best CD and HYSA Rates

Certain people want to take advantage of bank bonuses, and promotional CD and high-yield saving account rates. Banks often tie these promotional rates with specific terms or fees and may change rates at any time. While we recommend passive investors who want to earn a yield to hold brokered CDs, money market funds, or floating rate ETFs, we list some of the best offers we discover here.

As always, we highly recommend reading the fine print with these offers. We earn no money from these offers. Please check past emails for older deals.

Bank Bonuses

• U.S. Bank — Bonus of up to $800 when you open a new Silver, Gold, or Platinum Business Checking account. Use promo code Q1AFL24. Must enroll In the U.S. Bank Mobile App or U.S. Bank Online Banking within 60 days of account opening. Earn $400 when you deposit $5,000, or $800 when you deposit $25,000

  • Availability: Nationwide except NY and FL.

  • Soft credit inquiry.

  • Offer here.

Promotional Bank CD and HYSA Rates

• MyBankingDirect – 5.55% APY high-yield savings rate with a $500 minimum deposit. Offer here.

• Poppy Bank – 5.50% premier savings. This rate is guaranteed for only three months and requires a minimum balance of $1,000. Offer here.

• Western Alliance – 5.36% high-yield savings with a $500 minimum deposit. Offer here.

Note on CD and HYSA rates: brokered CDs offer more flexibility than traditional CDs. If the brokered CDs are call-protected, they’ll pay a guaranteed rate compared to HYSA rates, which may change at any time.

Credit Card Bonuses and Offers

Credit card signup bonuses are one of the easiest ways to earn extra income, as long as you are vigilant in managing payments, your credit score, and claiming bonuses. We know some of our readers are interested in the latest credit deals.

As always, we highly recommend reading the fine print with these offers. We earn no money from these offers. Please check past emails for older deals.

• Nothing new this week.

Other Stuff

• Americans love tipping even when the service is bad.

• SpaceX is causing congestion at NASA spaceports.

• T-Bmile has completed its acquisition of Mint Mobile, the carrier partially owned by Ryan Reynolds.

• A look into Warren Buffett’s portfolio as of December 2023. Berkshire has begun selling off part of its stake in Apple, having sold 10 million shares since last December.