When stocks fall big and suddenly without warning, investors should exercise greater caution.
Last week, Cleveland-Cliffs (CLF) broke down from a $13 - $14.50 trading range set in the last month. The company faced selling pressure after pricing an offering that would raise $964 million.
The iron ore producer is offering 75 million shares. Underwriters have the option to buy 11.25 million additional shares. Cleveland-Cliffs needs the proceeds to repay its debt and for general corporate purposes. Investors who thought that the firm was a rare earths miner have other stocks to consider instead. That includes MP Materials (MP).
In the dividend income segment, Altria (MO) underperformed markets since August. Shares peaked at $68.60. Last week, it lost 12.82%. Despite increasing its 2025 EPS guidance and pledging to buy $2 billion of its stock, MO stock fell.
In the last quarter, adjusted EPS grew by 3.6%. On! PLUS, the next-generation oral product, launched in the quarter. In addition, the firm announced a new collaboration with KT&G to explore and innovate on smoke-free products.
Altria is an attractive income holding. But just as Philip Morris (PM) is on a downtrend (that began in July), British American Tobacco (BTI) is trading lower, too. Wait for the selling pressure to ease. Consider all three tobacco stocks to hold for their dividend income.
