Markus Andrews

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On Tuesday, Federal Reserve Chair Jerome Powell gave some hints about more interest rate cuts, mentioning the weakness in the labor market.
Bearing in mind an uncertain macroeconomic backdrop and potential rate cuts, investors can consider adding some dividend stocks to their portfolios to ensure stable income. The recommendations of top Wall Street analysts can help investors pick attractive dividend-paying stocks with strong fundamentals.

Here are three dividend-paying stocks, highlighted by Wall Street’s top pros as tracked by TipRanks, a platform that ranks analysts based on their past performance.
EOG Resources
This week’s first dividend pick is EOG Resources (EOG), a crude oil and natural gas exploration and production (E&P) company with reserves in the U.S. and Trinidad. The company recently announced a deal to buy Encino Acquisition Partners for $5.6 billion. The deal will be accretive to EOG’s free cash flow, supporting its commitment to shareholder returns.
EOG raised its quarterly dividend 5% to $1.02 per share, payable October 31. With an annualized dividend of $4.08 per share, EOG offers a yield of 3.8%.
Recently, RBC Capital analyst Scott Hanold reiterated a buy rating on EOG and raised his price target to $145 from $140. TipRanks’ AI Analyst has an “outperform” rating on EOG stock with a price target of $133.
Hanold updated his estimates, valuations and EOG stock price target to reflect higher oil price expectations. Notably, the 5-star analyst raised his earnings per share (EPS) and cash flow per share (CFPS) estimates for 2025 and 2026 due to his revised commodity outlook. Hanold now expects EPS of $10.07 and $9.46 for 2025 and 2026, respectively, up from the prior projections of $9.54 and $7.15. Hanold initiated EPS and CFPS estimates of $11.63 and $23.59 for 2027 and at $12.97 and $25.65 for 2028, respectively.

Hanold is bullish on EOG and expects it to outperform its peer group over the next 12 months. “The leading-edge technological approach, strong balance sheet, low-cost operations and capital efficiency should continue to drive meaningful value and make EOG a core E&P holding,” said Hanold.
Hanold ranks No. 79 among more than 10,000 analysts tracked by TipRanks. His ratings have been profitable 64% of the time, delivering an average return of 26.5%. See EOG Resources Hedge Fund Activity on TipRanks.
Coterra Energy
Another dividend-paying energy company is Coterra Energy (CTRA), an exploration and production company with operations focused in the Permian Basin, Marcellus Shale and Anadarko Basin. Coterra paid a quarterly dividend of 22 cents per share in the Q2 of 2025 and yields 3.4%.  
As part of his Q3 preview for oil & gas E&P companies, Siebert Williams Shank analyst Gabriele Sorbara reiterated a buy rating on Coterra, while cutting his price target to $32 from $35. By comparison, TipRanks’ AI Analyst has a “neutral” rating on CTRA stock with a price target of $26.
Given the ongoing macroeconomic uncertainty, Sorbara is more cautious and selective in the near term. Based on the recent stock performance, investor positioning and expectations, he said that Coterra is one of his “favorite names” heading into Q3 results.
Sorbara believes that investors will continue to focus on management’s oversight of the large oil production rampup in the second half of 2025 and its outlook for 2026. The analyst expects Q3 oil production to beat expectations, but lag estimates for EBITDA (earnings before interest, taxes, depreciation, and amortization) and free cash flow, likely due to “stale Consensus gas pricing.” Meanwhile, Sorbara sees upside to Q4 oil production expectations due to the potential for incremental upside from the Harkey remediation wells.
“We reaffirm our Buy rating, as we continue to find CTRA attractive on valuation (trading at an EV/EBITDA discount and above average FCF yield) with the potential for strong capital returns,” said Sorbara, referencing free cash flow.
Sorbara ranks No. 315 among more than 10,000 analysts tracked by TipRanks. His ratings have been successful 52% of the time, delivering an average return of 20%. See EOG Resources Financials on TipRanks.
AT&T
Wireless telecom giant AT&T (T) is this week’s third dividend pick. The company is scheduled to announce its third-quarter results on October 22. AT&T recently declared a quarterly dividend of 27.75 cents share, payable November 3. With an annualized dividend of $1.11 per share, AT&T yields 4.3%.
Heading into Q3 results, Citigroup analyst Michael Rollins reiterated a buy rating on AT&T with a base case price target of $32, calling the company a top-ranked pick. TipRanks’ AI Analyst also has an “outperform” rating on AT&T stock with a price target of $31.
Rollins expects AT&T to deliver a strong operating performance in Q3 across its strategic products and segments. Despite intense competition in wireless, the 5-star analyst expects AT&T to report 300,000 postpaid phone net additions in the Q3, with 2.5% year-over-year growth in wireless service revenue.
Further, Rollins estimates Q3 fiber net additions of 286,000 in a seasonally stronger quarter. He expects AT&T’s fixed wireless access (FWA) to continue to expand with net additions of 210,000. The analyst highlighted that his headline Q3 forecasts are slightly below the Street’s consensus estimates for revenue, EBITDA and EPS, and are in line with free cash flow expectations.
“Wireless churn, upgrades and gross adds are likely to have an upward bias in 3Q given the more active replacement rates,” noted Rollins. The analyst contends that AT&T’s broadband opportunity remains an under-appreciated component of the company’s annual financial growth prospects.
Rollins ranks No. 548 among more than 10,000 analysts tracked by TipRanks. His ratings have been profitable 62% of the time, delivering an average return of 11.7%. See AT&T Ownership Structure on TipRanks. More

Medicare open enrollment, which lasts until Dec. 7, lets beneficiaries change their health coverage for 2026.
During this time, beneficiaries may switch from original Medicare to Medicare Advantage or vice versa, change Medicare Advantage plans or — provided they have original Medicare — find new Medicare Part D prescription coverage.
The federal government shutdown may affect timely access to information, one expert said.
Here’s why experts say individuals should take their time when considering plans.

Morsa Images | Digitalvision | Getty Images

Medicare open enrollment kicked off on Oct. 15, with one notable difference for beneficiaries who are considering updating their health insurance plans — the federal government has been shut down since Oct. 1.
Updates related to Medicare open enrollment — which runs through Dec. 7 — will continue during the government shutdown, according to the Centers for Medicare and Medicaid Services.

Because the federal shutdown may affect timely access to information, Philip Moeller, author of “Get What’s Yours for Medicare: Maximize Your Coverage, Minimize Your Costs,” suggests holding off on finalizing coverage decisions for 2026 until the government reopens.
“I’m advising people pretty strongly to wait to make their decision about next year’s coverage,” Moeller said.

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Even a change made on the last day of open enrollment will be effective starting Jan. 1, Moeller said.
“There should be no rush to make a decision,” he said.

How Medicare open enrollment works

Now through Dec. 7, Medicare beneficiaries can make changes to their coverage. Those options vary depending on your current enrollment — whether you have original Medicare, which typically includes Part A hospital insurance and Part B medical insurance, or Medicare Advantage, which are private plans approved by Medicare.

During this time, beneficiaries may switch from original Medicare to Medicare Advantage or vice versa, change Medicare Advantage plans or — provided they have original Medicare — find new Medicare Part D prescription coverage.

It always pays to shop because you just don’t know what you might be leaving on the table. Maybe your current plan is no longer going to offer you the best coverage at the lowest cost.

Juliette Cubanski
deputy director of KFF’s program on Medicare policy

Medicare beneficiaries may be tempted to set-it-and-forget-it when it comes to their existing plans. But it’s wise to evaluate how much coverage may change in the coming year, particularly regarding preferred doctors or necessary medications, that could affect out-of-pocket costs, according to Juliette Cubanski, deputy director of KFF’s program on Medicare policy.
Out-of-pocket health care spending by Medicare beneficiaries represented 39% of Social Security income per person on average in 2022, recent KFF research found.
“Open enrollment offers people an opportunity to evaluate the coverage that they currently have and other options in their area to see if they might be able to get a better deal,” Cubanski said.
While some Medicare carriers are expanding in certain markets, others are pulling back or even leaving selected areas, according to Moeller. “It’s particularly important for people to do their homework this year,” he said.

Government shutdown may affect access to information

The federal government shutdown may not affect Medicare open enrollment in a “big way,” according to Cubanski.
People who try to contact 1-800-Medicare for help sorting through their coverage options may experience some delays, Cubanski said.
Other resources are still open for business, like Medicare’s Plan Finder portal, Medicare Advantage or drug plans and Medigap carriers, she said.

I’m advising people pretty strongly to wait to make their decision about next year’s coverage.

Philip Moeller
author of “Get What’s Yours for Medicare”

However, the shutdown may make it more difficult to get specific answers to questions on information in the Plan Finder, Moeller said. Staffing shortages may prompt delays when using the 800 Medicare number, he said.
“Mission-critical activities and updates related to Medicare Open Enrollment will continue during the government shutdown,” states the Medicare.gov website, which is run by the Centers for Medicare and Medicaid Services. The agency did not return a request for further comment by press time on how the shutdown may impact open enrollment.
Because of those possible information constraints, Moeller said he has urged people to wait to make their decisions about next year’s coverage.

Tradeoffs between Medicare original and Advantage

As Medicare beneficiaries consider whether to opt for original Medicare or private coverage through an Advantage plan, experts say it is worth weighing the pros and cons.
Medicare Advantage plans are typically available for no additional premium beyond the cost of a Medicare Part B premium while also providing a host of supplemental benefits, Cubanski said.
But while an Advantage plan may offer dental benefits, for example, it’s important to understand exactly what that includes, she said. Does that include just one cleaning per year, or is the coverage more extensive, such as two annual cleanings and dentures?

To be sure, Medicare Advantage typically limits access to certain services or providers, Cubanski said. Moreover, those private plans also have more prior authorization requirements that can affect access to care, she said.
On the other hand, traditional Medicare has become “increasingly unaffordable” for some beneficiaries, Cubanski said. Individuals who need a lot of medical services may face higher costs in traditional Medicare coverage, she said.
What’s more, unlike Medicare Advantage, traditional Medicare doesn’t have an out-of-pocket cap on the cost of the medical services, Cubanski said.

More details available on Medicare Advantage plans

More information on Medicare Advantage plans is available as beneficiaries shop for plans this year, Moeller said. Medicare’s Plan Finder will include increased detail about the supplemental benefits offered by Advantage plans, such as vision, hearing and dental, he said.
Prospective Advantage enrollees will also have access to more information on doctors, hospitals and other care providers included in plan provider networks. That information will mostly be available on insurance websites, Moeller said.
The newly available information may have “some hiccups,” and beneficiaries may get the opportunity for a do-over come Medicare Advantage open enrollment, Moeller said. Medicare Advantage open enrollment lasts from Jan. 1 to March 31.

New changes may affect prescription drug costs

Beneficiaries covered by original Medicare plans have the option to purchase Medicare Part D to cover their prescription drugs. Those who have Medicare Advantage may find those benefits through their private plan.
Regardless, it is important to review your choices for next year to make sure your prescriptions will be covered.
“If a plan doesn’t cover all of your prescription meds, I would take it off my list,” Moeller said. “You want to make sure a plan does cover all your meds.”

More zero-premium Part D plans are available, Moeller said, which can curtail your monthly spending. However, annual deductibles for those plans are on the rise, he said. Co-pays may also move to more expensive tiers, he said.
“Don’t lose sight of the fact that it’s your overall annual costs that really should be the major basis for your decision,” Moeller said.
Notably, while more zero-premium Part D plans are available in some areas, the total number of plans overall is shrinking, Cubanski said.
The annual out-of-pocket maximum for Part D drugs will increase to $2,100 in 2026, from $2,000 in 2025. Notably, that cap only applies to prescription drugs that are covered by your plan, Cubanski said. So if you pay outside of your plan for certain treatments, that will not count towards the $2,100 out-of-pocket cap, she said.
“It always pays to shop because you just don’t know what you might be leaving on the table,” Cubanksi said. “Maybe your current plan is no longer going to offer you the best coverage at the lowest cost.”
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POLAND – 2024/12/08: In this photo illustration, the Keurig Dr Pepper company logo is seen displayed on a smartphone screen. (Photo Illustration by Piotr Swat/SOPA Images/LightRocket via Getty Images)
Sopa Images | Lightrocket | Getty Images

Company: Keurig Dr Pepper (KDP)
Business: Keurig Dr Pepper is a beverage company in North America that manufactures, markets, distributes and sells hot and cold beverages and single serve brewing systems. It has a portfolio of beverage brands, including Keurig, Dr Pepper, Canada Dry, Mott’s, A&W, Penafiel, Snapple, 7UP, Green Mountain Coffee Roasters, GHOST, Clamato, Core Hydration and The Original Donut Shop, as well as the Keurig brewing system. Its U.S. refreshment beverages segment is a manufacturer and distributor of liquid refreshment beverages. This segment manufactures and distributes concentrates, syrup and finished beverages of its brands and third-party brands, to third-party bottlers, distributors, retailers and end consumers. Its U.S. coffee segment is a manufacturer and distributor of single-serve brewers, specialty coffee (including hot and iced varieties), and ready-to-drink coffee. Its international segment includes sales in Canada, Mexico, the Caribbean and other international markets.
Stock Market Value: $36.11 billion ($26.59 per share)

Stock chart icon

Keurig Dr Pepper stock performance year to date

Activist: Starboard Value

Ownership: n/a
Average Cost: n/a
Activist Commentary: Starboard is a very successful activist investor and has extensive experience helping companies focus on operational efficiency and margin improvement. They are known for their excellent diligence and for running many of the most successful campaigns. Starboard has taken a total of 161 prior activist campaigns in their history and has an average return of 21.49% versus 13.81% for the Russell 2000 over the same period.
What’s happening
Starboard has taken a position in Keurig Dr Pepper and has held meetings with the company’s management.
Behind the scenes
Keurig Dr Pepper is a leading North American beverage company. The core of the company is its U.S. refreshment beverage segment (63.9% of revenue), which includes the manufacturing and distribution of branded concentrates, syrups, and finished beverages. The U.S. coffee segment (22.77%) includes goods relating to Keurig pods, single-serve brewers and accessories, with the remaining revenue deriving from the international segment (13.33%). In January 2018, Dr Pepper Snapple Group and Keurig Green Mountain announced a merger, providing investors unique exposure to the fastest growing hot and cold beverage markets and their respective retail channels. However, this merger did not come without its challenges, including certain synergistic uncertainties.

Moreover, as a result of the merger, JAB Holdings — the owner of Keurig — became the majority owner of the combined company, reducing Dr Pepper shareholders to a minority stake of just 13%, and flooding KDP’s board with JAB affiliates. This dynamic changed earlier this year when three JAB-affiliated directors resigned following a series of divestures that reduced JAB’s ownership to below 10% — now 4.4% following an additional block sale.
As JAB began to turn over control and shareholders regained influence, investors began to advocate for a reseparation of the beverage and coffee assets. And management has responded — though not in the way shareholders expected — announcing a merger with coffee and tea company JDE Peet’s, followed by a separation of the beverage and coffee assets, now including both Keurig and Peet’s in the coffee business.
Coincidentally, or not so coincidentally, JAB owns a controlling 68% stake in JDE Peet’s.
The move shocked investors and sent KDP shares down 25% upon the announcement. It is not that shareholders don’t want a separation, but more the structure and negative consequences of the transaction as structured.
The logical way to have accomplished this would have been through a spin out of the coffee business by KDP into JDE Peet’s using a tax-free Reverse Morris Trust. This would be simpler, economically better for shareholders and make more sense since Keurig is smaller than Peet’s.
Instead, KDP structured it as an all-cash acquisition with a large premium and using an $18.5 billion loan to finance it, causing a projected leverage-to-earnings ratio of greater than 5x in 2026. Just as the Reverse Morris Trust would have been favorable to KDP shareholders, the structure ultimately agreed upon was as favorable, if not more, to JAB.
Starboard has entered this engagement in an unusual position. In the case of a pending strategic transaction, we typically see activists emerge where they can help influence or block a bad deal for shareholders. But that is not happening here — this is a cash deal, leaving KDP shareholders without a vote.
Starboard certainly has had extensive success operationally and from a board level with consumer and retail companies, including Kenvue, Papa John’s and Darden Restaurants, and we can see them adding significant value here. But the better analogy may be to Starboard’s prior engagement in Ritchie Bros Auctioneer, now RB Global. In that engagement, Starboard also became involved shortly after the company’s announced merger with IAA – a deal met with similar shareholder opposition. Starboard entered into a $500 million securities purchase agreement with the company that removed certain roadblocks and opposition to the merger, allowing it to consummate.
Importantly, Starboard was also granted a board seat for its CEO Jeff Smith, restoring a great deal of investor confidence in the company. By the time Smith resigned from RBA’s board less than two years later, the company’s stock had more than doubled.
Given this track record, Starboard’s involvement at KDP likely reflects a similar constructive approach, seeking board representation through amicable settlement, leveraging the fund’s expertise to help guide KDP behind the scenes through this inflection point and helping restore investor confidence among this rightfully skeptical shareholder base.
Moreover, given the recent decline in KDP’s share price, Starboard likely sees this entry as an opportunity to invest at a compelling discount, similar to RBA, where short-term merger headwinds could provide significant upside for long-term and value-oriented shareholders like Starboard.
KDP’s nomination deadline is not until February, but we do not think that will be relevant here as meetings have already taken place between Starboard and management and we expect an amicable resolution before then.
Ken Squire is the founder and president of 13D Monitor, an institutional research service on shareholder activism, and the founder and portfolio manager of the 13D Activist Fund, a mutual fund that invests in a portfolio of activist investments. More

ETF Strategist

ETF Street
ETF Strategist

The exchange-traded fund market has surpassed $11 trillion, near a record high, with $511 billion of inflows during the first half of 2025, Cerulli Associates reported this week.   
Despite growing popularity, “we are seeing some common mistakes that can quietly erode long-term returns,” said certified financial planner Jay Spector.
As the ETF market soars and more products emerge, it’s important to understand how each asset could impact your financial goals, advisors say.

Prasit Photo | Moment | Getty Images

Demand for exchange-traded funds is soaring as investors shift to lower-cost, tax-friendly options that are easier to buy and sell. But many people don’t know what they are purchasing, and mistakes could hurt their returns, financial experts say.  
The ETF market has surpassed $11 trillion, near a record high, with $511 billion of inflows during the first half of 2025, Cerulli Associates, a financial services research firm, reported this week. 

However, “we are seeing some common mistakes that can quietly erode long-term returns,” said certified financial planner Jay Spector, co-chief executive officer of EverVest Financial in Scottsdale, Arizona.  

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Investors could soon see even more ETFs after regulatory decisions from the U.S. Securities and Exchange Commission in late September. One of the rulings could spark a wave of new ETF share classes of mutual funds.
As the ETF market grows and more products emerge, it’s important to understand how each asset could impact your financial goals, advisors say.
In the meantime, here are some of the key ETF mistakes to avoid.

Following the ‘herd mentality’

One of the biggest ETF missteps is “chasing performance,” which often involves the “herd mentality” of following other investors by funneling money into rising assets, according to Spector.

In some cases, clients buy ETFs when they are performing well, without considering how the investment aligns with their long-term financial goals, he said. 

Chasing hot themes and ‘trend hopping’

Another common mistake is following the masses to hot ETF themes or “trend hopping,” said CFP Patrick Huey, owner of Victory Independent Planning in Portland, Oregon.  
“It’s tempting to jump into the newest AI, crypto, or thematic ETF after big headlines,” he said. “But these funds are often narrowly focused and volatile.”
If you buy when the ETF peaks and sell as it declines, “you’re missing the real benefit of steady, diversified exposure,” Huey said.

Ignoring ETF expense ratios 

Another big error is thinking all ETF costs are the same, according to CFP William Shafransky, a senior wealth advisor with Moneco Advisors in New York.
“I see this all the time with new client portfolios,” and many investors could own the same index, such as the S&P 500, at a lower expense ratio, he said.
Broad market index ETFs that track the S&P 500 often have an expense ratio under 0.05%, Morningstar reported in July. But some funds charge more.
“The [higher] cost may seem insignificant at first, but that extra fee drag on your return adds up over time and could translate into lost money,” Shafransky said. More

Democrats are pushing to extend enhanced subsidies for Affordable Care Act health insurance premiums as part of a deal to end the federal government shutdown.
Republicans say they want any deal on subsidies to happen outside shutdown-related legislation.
Middle- and high-income people in their 50s and 60s who aren’t yet eligible for Medicare face the largest increases in ACA premiums if enhanced subsidies disappear.
This is due to the reappearance of the so-called “subsidy cliff.”

Bill and Shelly Gall
Bill and Shelly Gall

Bill and Shelly Gall say they’d be rich if it weren’t for their medical bills.
The early retirees, who are on an insurance plan purchased through the Affordable Care Act marketplace, spent upwards of $20,000 on health-care expenses and insurance premiums in 2023 and in 2024, largely due to chronic health issues and emergency eye surgeries. The couple is on pace for a slightly smaller sum this year, if they’re lucky, Bill said.

But next year, the Galls, who live in Meridian, Idaho, are bracing for their costs to grow significantly.
Based on figures available through Idaho’s online insurance marketplace, Bill, 61, and Shelly, 60, expect to pay almost $1,700 in monthly health insurance premiums in 2026 if enhanced premium tax credits expire at the end of this year as scheduled. That sum — a nearly 300% increase from their current $442 premium — would add $15,000 a year to their household medical costs.
CNBC reviewed the Gall family’s household financial records, including tax returns and health and insurance documents.

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The Galls are among roughly 22 million ACA marketplace enrollees — about 92% of all enrollees — who face the prospect of higher premiums in 2026, according to KFF, a nonpartisan health policy research group.
Democrats are pushing Republicans to extend the enhanced subsidies that make enrollees’ health premiums cheaper, as part of a deal to end the federal government shutdown that began Oct. 1. Republicans have said they want to negotiate any extension of ACA subsidies outside of legislation that would reopen the government.

‘Most vulnerable’ to cost hikes

Early retirees such as the Galls face a bigger financial hit than most if Congress doesn’t act.
The average ACA marketplace enrollee faces a 114% increase in premium payments without the enhanced subsidies, according to KFF.
But older middle- to high-income adults who are too young to qualify for Medicare face the largest dollar increases in premium payments, according to analyses by KFF.
They are perhaps “the most vulnerable population” when it comes to expiring subsidies, said Lynne Cotter, senior health policy research manager at KFF.

Such ACA enrollees who opt to keep their insurance plans might pay 30% of their total annual household income toward health premiums alone, Cotter said.
For comparison, the average household with employer-sponsored coverage spent about 2% of its annual income on premiums in 2024, according to an analysis by KFF and the Peterson Center on Healthcare. That same year, ACA premiums were capped at 8.5% of a household’s income.
“People like us, we need insurance,” said Bill, a civil engineer who retired in 2022.
If the Gall family’s health insurance premiums jump and their medical expenses remain steady, the tally would likely represent more than a quarter of their annual income.
With significantly higher health premiums, the couple said, they would have to make tough financial and lifestyle decisions: pulling more money from retirement savings; claiming Social Security earlier than planned, which would lock in a lower lifetime benefit; putting off non-mandatory medical care; and traveling less.
“If there are no subsidies, we’ll pay the difference. We’ll be out there paying the $1,700 a month,” Bill said. “You do the math. It’s a lot.”

How ACA enhanced premiums work

Subsidies — also known as premium tax credits — have been available since the early days of the Affordable Care Act.
They were originally available for households with incomes between 100% and 400% of the federal poverty level. For a family of two, that equates to an annual income of $21,150 to $84,600 in 2025, according to federal guidelines.
Initially, ACA enrollees whose income went even one dollar over the 400% income threshold weren’t eligible for premium tax credits — a point known as the “subsidy cliff.” In this case, they’d pay the full unsubsidized cost of insurance premiums on the marketplace.

U.S. House Minority Leader Hakeem Jeffries (D-NY) speaks during a press conference at the U.S. Capitol on the third day of a partial government shutdown, on Capitol Hill in Washington, D.C., U.S., October 3, 2025.
Nathan Howard | Reuters

In 2021, the American Rescue Plan Act, a pandemic relief law, raised the value of the premium tax credits and expanded the group of households eligible for them.
These “enhanced” subsidies became available to households with incomes exceeding 400% of the federal poverty line. A household’s financial obligation for premiums was also capped at 8.5% of its income.
In 2022, the Inflation Reduction Act extended the enhanced subsidies and made them available through 2025.
The enhanced tax credits meant families like the Galls qualified.
The couple had a modified adjusted gross income of about $123,000 in 2023 and $136,000 in 2024, mostly from pensions and some from individual retirement account withdrawals, according to their tax returns. Modified adjusted gross income is an income measure used to calculate eligibility for premium tax credits.

U.S. House Speaker Mike Johnson (R-LA) holds a press conference weeks into the continuing U.S. government shutdown in Washington, D.C., U.S., Oct. 15, 2025.
Elizabeth Frantz | Reuters

Enrollment in the ACA marketplace more than doubled since the introduction of the enhanced credits, to 24 million people from about 12 million, according to KFF.
While the percentage of Americans who have ACA marketplace health insurance is small, the share could be large enough to swing a close election, KFF reported in October.
Most ACA marketplace enrollees — 57% — live in congressional districts represented by Republicans, according to the KFF report. At least 10% of residents in all of the congressional districts in Florida, Georgia, Mississippi and South Carolina, and almost all of the districts in Texas and Utah, have Marketplace plans, according to KFF.
The KFF report said that in the 10 most competitive districts in the last election, the margin of victory was fewer than 6,000 votes and that there are at least 27,000 enrollees in each of these districts. 

Why early retirees face higher premiums

Extending the enhanced subsidies would cost $350 billion over 10 years, according to the Congressional Budget Office. That’s an average of about $35 billion a year.
If Congress opts to let the enhanced subsidies lapse, many households would still be eligible for premium tax credits, though they’d receive less assistance.
The subsidy cliff would also return, meaning families like the Galls wouldn’t qualify for any premium tax credits.
Without enhanced subsidies, the average 60-year-old couple making $85,000 a year — 402% of the federal poverty line — would see their premiums increase by about $1,900 per month, according to a KFF analysis. Their annual premiums would rise by nearly $23,000 in 2026, KFF found.

About 51% of ACA market enrollees with incomes exceeding the threshold of four times the poverty level are ages 50-64, according to KFF.
Bill, who worked for more than 31 years in local and state government in Nevada and Idaho, said he expects their household to get pension income of about $127,000 in 2026, exceeding the 400% threshold.
The KFF analysis also accounts for the general growth in health-care premiums from year to year; KFF expects a median increase of 18%.
Insurers can generally raise costs more for older adults than younger ones due to the practice of age rating, KFF’s Cotter said. Older people tend to have more health conditions and use their insurance more often; insurers in all states except New York are allowed to charge them higher premiums, she said.

Coping with higher premiums

Bill Gall has what he calls “old eyes”: He’s had more than 10 eye surgeries over the past decade and is now blind in one eye, he said.
Shelly has had two spinal fusion surgeries and suffers from chronic pain, which has prevented her from working full-time since 2015, the couple said. Before that, she had various roles at banks and then in state employment, interspersed by time outside the workforce raising their three sons.

Bill decided to retire early so the couple could enjoy nonworking years together while they’re still in relatively good health, they said.
The couple said they’re limited in their choice of health plan on the ACA marketplace. For example, their various doctors don’t accept certain plans that might be cheaper, they said.
They are enrolled in a high-deductible health plan, with a $12,500 annual deductible and a $15,000 out-of-pocket maximum. They generally budget for that maximum, and reached that ceiling in 2024.
If they lose the enhanced subsidies and their financial load becomes too challenging, Bill could try to find part-time work, he said.
“I don’t want to,” he said. “I have one eye, and it doesn’t work very great.”

Ultimately, Bill said he expects Congress to extend the enhanced subsidies at the last minute.
But he said he worries about the damage it could cause if lawmakers wait too long. People in most states can start signing up for 2026 health-care coverage through the ACA marketplace on Nov. 1.
People may choose not to sign up if lawmakers were to pass an extension far beyond this date, according to analysts.
The Center on Budget and Policy Priorities, a nonpartisan research and policy institute, said in a Sept. 22 report that if the tax credit enhancements are extended before ACA open enrollment begins, people who visit the ACA Marketplace site to shop for coverage will see accurate premium estimates for 2026. If they see the higher premiums that will kick in if the credits are not extended, many will decide coverage is financially out of reach, and getting them to return to the site will be difficult, the report said.
But the Galls are cautiously hopeful.
“I think we’ll get the subsidy,” Bill said. If that doesn’t happen, “it would be a significant cost to us,” he said. More

Nearly half of American households have credit card debt and pay more than 20% in interest on their revolving balances.
Even when the Federal Reserve cuts rates, those high APRs don’t fall much.
Credit card interest rates are set in a very competitive market, according to the American Bankers Association.

Americans may feel somewhat removed from the Federal Reserve, but the central bank’s moves have a ripple effect on many types of consumer products, most notably the credit cards in their wallet.
Nearly half of American households have credit card debt and pay more than 20% in interest, on average, on their revolving balances — making credit cards one of the most expensive ways to borrow money.

“For millions of American households, credit card debt represents their highest-cost debt by a wide margin,” said Ted Rossman, senior industry analyst at Bankrate. 
Since most credit cards have a variable rate, there’s a direct connection to the Fed’s benchmark. When the Fed cuts rates, the prime rate lowers, too, and the interest rate on that credit card debt is likely to follow within a billing cycle or two.
And yet, credit card APRs aren’t falling much at all.

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Consumers hoping for “an automatic, proportional drop” in their credit card interest rates “may be disappointed,” according to a new report by CardRatings.com.
When the Fed cut rates in the second half of 2024, lowering its benchmark by a full point by December, the average credit card rate fell by only 0.23% over the same period, CardRatings found.

The central bank lowered its benchmark rate by a quarter point again last month. Yet the average credit card rate in the CardRatings survey was 24.22% for the third quarter, down just 0.09% from the previous quarter.
The correlation between the Fed funds rate and credit card rates is often “weaker” than expected, said Jennifer Doss, CardRatings.com’s executive editor. Credit card rates are also “heavily influenced by credit conditions and individual credit scores,” she said.

‘A highly competitive market’

“If the Fed continues to lower interest rates, consumers will likely see some declines in credit card APRs, but that may take some time and could vary depending on the type of card and individual issuer,” said Jeff Sigmund, a spokesman for the American Bankers Association.
“Credit card interest rates are set in a highly competitive market,” he said.

Generally, card issuers have several ways to mitigate their exposure to borrowers who could fall behind on payments or default. For example, issuers may trim back the lower end of the APR range (what’s charged to more creditworthy borrowers) but not the high end, said Rossman.
For some retail credit cards, APRs are even rising, despite the Fed’s moves, according to a Bankrate survey. Banks that issue store-branded credit cards have said maintaining higher APRs was necessary following a Consumer Financial Protection Bureau rule limiting what the industry can charge in late fees.
But even after bank trade groups succeeded in killing the CFPB rule earlier this year, some credit card companies, including Synchrony and Bread Financial, said they would not roll back the hikes.

Even if your credit card rate were to fall by a full quarter point, in lockstep with the Fed’s latest cut, it might go from 20.12% to 19.87%, Rossman said, “that’s still very high-cost debt.”
At these rates, there isn’t much in the way of relief for consumers. “We’re talking a difference of $1 a month for someone making minimum payments toward the average balance,” Rossman said.
Of course, only consumers who carry a balance from month to month feel the pain of high APRs. 
“The real consumer benefit lies in making your personal credit card rate 0%, either by paying in full — if you can — or signing up for a 0% balance transfer card,” Rossman said of cards offering 12, 15 or even 21 months with no interest on transferred balances.
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A union lawsuit against Trump officials regarding blocked student loan forgiveness is on hold due to the government shutdown.
The stay on the American Federation of Teachers’ legal challenge could further prolong the long wait times borrowers are already facing to access certain income-driven repayment plans and buyback options for Public Service Loan Forgiveness, consumer advocates say.
A law shielding student loan forgiveness from taxation expires at the end of 2025, meaning borrowers who get the relief after that point may be hit with a bill from the IRS.

Workers walk through the crypt of the US Capitol in Washington, DC, US, on Wednesday, Oct. 8, 2025.
Valerie Plesch | Bloomberg | Getty Images

With a union lawsuit against the Trump administration on hold during the government shutdown, borrowers’ wait times for student loan forgiveness may get even longer.
The American Federation of Teachers’ legal challenge against Trump officials will be stayed until Congress restores appropriations to the U.S. Department of Justice, U.S. District Judge Reggie Walton said in an Oct. 4 filing. The government shuttered on Oct. 1 after Democrats and Republicans failed to agree on a spending deal.

In its lawsuit, the AFT accused the U.S. Department of Education of denying federal student loan borrowers their rights to an affordable repayment plan and to the debt forgiveness opportunities mandated in their loan terms.
The stay on the union’s legal challenge could further prolong the long wait times borrowers are already facing, consumer advocates say. What’s more, a law shielding student loan forgiveness from taxation expires at the end of 2025, meaning borrowers who get the relief after that point may be hit with a bill from the IRS.
“We are very concerned that, without judicial intervention, borrowers will not get their cancellation processed this tax year and could potentially incur thousands of dollars of tax liability,” said Persis Yu, deputy executive director and managing counsel at Protect Borrowers, which is serving as AFT’s counsel.

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The Education Department requested the stay earlier this month, in part because its Justice Department attorneys are prohibited from working during the government shutdown. The plaintiffs did not oppose the request.
“However, if the shutdown does not resolve before Friday, we reserved the right to request that [the] briefing resume,” Yu said.

The Education Department did not respond to a request for comment on the loan forgiveness actions. A CNBC reporter’s email to a spokesperson at the agency was met with an automated message, saying, “I will respond to emails once government functions resume.”
Here’s what borrowers need to know about the paused lawsuit.

Lawsuit focuses on borrower backlog

The AFT, a union with some 1.8 million members, filed its lawsuit against the Trump administration in March, accusing officials of blocking borrowers from student loan repayment plans mandated by Congress, as well as a popular loan forgiveness program for government and nonprofit workers. In September, the union amended its complaint to seek claaction status.
“Borrowers are unable to access affordable monthly payment plans, some borrowers are being thrust into default on their debt, and some public service workers are being denied their statutory right to lower their monthly payment and earn credit towards Public Service Loan Forgiveness,” the lawsuit said.

As of the end of August, the Education Department had a backlog of 1,076,266 income-driven repayment plan applications, September court records show. That means more than a million people are waiting to get into a new income-driven repayment plan. Those plans cap a borrower’s monthly bill at a share of their income and lead to debt cancellation after a certain period.
Meanwhile, there are more than 74,000 pending applications from borrowers hoping to qualify for the Public Service Loan Forgiveness Buyback program. PSLF offers debt forgiveness to certain public servants after a decade.
“The backlog provides evidence that the U.S. Department of Education is not adequately fulfilling the statutory requirements” to offer those relief programs, higher education expert Mark Kantrowitz told CNBC in September.

Clock is ticking for borrowers to avoid tax bill

AFT said in its lawsuit that many of the borrowers in the backlog may already be due for loan forgiveness, but that if the loan discharges occur after December, those borrowers could face a huge tax bill.
The American Rescue Plan Act of 2021 made student loan forgiveness tax-free at the federal level through the end of 2025. But Trump’s “big beautiful bill” did not extend or make permanent that broader provision.
The tax bill on student loan forgiveness can be substantial.
The average loan balance for borrowers enrolled in an IDR plan is around $57,000, said Kantrowitz.
For those in the 22% tax bracket, having that amount forgiven would trigger a tax burden of more than $12,000, Kantrowitz estimates. Lower earners, or those in the 12% tax bracket, would still owe around $7,000.
The difficulty accessing student loan relief programs comes at a challenging time for borrowers.
More than 5 million people are in default on their federal student loans and another over 4 million are in “late-stage delinquency,” or between 181 and 270 days late on their payments, according to an analysis last month by the Congressional Research Service.
“The effect of the shutdown on student loans is just another blow to college graduates with huge student debt burdens who need access to affordable monthly payment plans,” said AFT President Randi Weingarten. “Each day of delay means more stress, more uncertainty, and more people slipping through the cracks.” More