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Target’s store in Harlem is one of nine locations that the retailer recently shuttered. It blamed the closures on high levels of theft and safety risks.
Melissa Repko | CNBC

Investors searching for a regular stream of income can give their portfolios a boost by adding attractive dividend stocks.
Given the large universe of dividend-paying companies, it can be difficult for investors to conduct an in-depth analysis and pick the right stocks. To this end, insight from the top analysts can help inform investors’ decisions.

Here are three attractive dividend stocks, according to Wall Street’s top experts on TipRanks, a platform that ranks analysts based on their past performance.
Energy Transfer
This week’s first dividend stock is Energy Transfer (ET), a master limited partnership or MLP. The midstream energy company operates more than 125,000 miles of pipeline and related energy infrastructure.
Earlier this year, Energy Transfer announced a quarterly cash distribution of $0.3150 per common unit for Q4 2023, reflecting a year-over-year increase of 3.3%. With an annualized distribution per unit of $1.26, ET stock offers an attractive yield of 8.4%.
Following the company’s fourth-quarter results, Stifel analyst Selman Akyol reiterated a buy rating on ET stock with a price target of $18 per share. The analyst noted that the Q4 2023 earnings before interest, taxes, depreciation and amortization surpassed Wall Street’s estimates, with the company guiding 2024 adjusted EBITDA between $14.5 billion and $14.8 billion.
Akyol highlighted that ET is operating at the lower end of its leverage range, with the management commenting that the company could continue to reduce its debt further to maintain some “dry powder” (or cash reserves), which would enable it to pursue additional M&A deals. Coming to the Crestwood acquisition, management expects annual synergies of $80 million by 2026, with $65 million expected in 2024. 

Management also intends to consider growing its distribution and conducting opportunistic buybacks. “We believe ET will generate well over $1 billion of FCF [free cash flow] after distribution in 2024, which could be geared towards incremental growth projects or potential unit buybacks,” said Akyol.
Akyol ranks No. 396 among more than 8,700 analysts tracked by TipRanks. His ratings have been successful 67% of the time, with each generating an average return of 6.9%. (See Energy Transfer Stock Charts on TipRanks)
Garmin
We move to the navigation device maker Garmin (GRMN). The company impressed investors by delivering better-than-anticipated fourth-quarter earnings and solid guidance, thanks to the strength in its auto and fitness businesses.
Garmin announced a quarterly dividend of 73 cents per share, payable on March 29. Further, it will propose a dividend hike of 2.7% to 75 cents per share at the upcoming annual shareholders meeting in June. The company also announced a new share repurchase program of up to $300 million through December 2026. GRMN stock offers a dividend yield of 2.1%.
Tigress Financial analyst Ivan Feinseth recently reiterated a buy rating on GRMN stock and raised the price target to $175 from $165. The analyst noted that the company’s Q4 2023 and full-year revenue gained from solid demand for its advanced smart wearables, several new launches, and momentum in the auto OEM (original equipment manufacturer) business.
Feinseth highlighted that the company’s strong balance sheet and cash flow enable it to invest in new product development, make strategic acquisitions and increase shareholder returns. The analyst added that the company is boosting its investment in automotive product development, focusing on OEM partnerships with prominent auto players and rolling out new automotive specialty products.
“GRMN’s diversified product lines and industry-leading products position it to benefit from new opportunities in all its key markets, including Aviation, Automotive, Fitness, Marine, and Outdoor pursuits,” he said.
Feinseth ranks No. 233 among more than 8,700 analysts tracked by TipRanks. His ratings have been successful 61% of the time, with each generating an average return of 12.1%. (See Garmin Insider Trading Activity on TipRanks)
Target
This week’s third dividend pick is Target (TGT), which delivered better-than-expected fourth-quarter revenue and earnings, even as macro pressures continue to weigh on the retailer’s business. Given a tough macroeconomic backdrop, the company is focused on improving its profitability through better inventory management and increased efficiency in its operations.
Target’s quarterly dividend of $1.10 per share reflects a 1.9% year-over-year increase and represents a dividend yield of 2.6%. Target has increased its dividends for 52 consecutive years.   
Impressed by the Q4 results, Jefferies analyst Corey Tarlowe reiterated a buy rating on TGT stock and boosted the price target to $195 from $170. Tarlowe noted that the retailer’s Q4 revenue benefited from a 10% rise in other revenue, thanks to solid growth in advertising. The analyst expects further gains, as Target is ramping up its advertising business.
The analyst stated that while Target slightly surpassed Q4 revenue expectations, investors were more impressed with the company’s operating margin beat of nearly 100 basis points. The analyst is encouraged by the improvement that Target has shown in its inventory management, shrink reduction, and in-store and supply chain efficiencies.   
Tarlowe remains bullish on Target’s long-term opportunity and concluded, “TGT has a clean inventory position and is continuing to lap temporary margin headwinds, which could result in margin recapture opportunities.”
Tarlowe holds the 399th position among more than 8,700 analysts tracked by TipRanks. His ratings have been successful 67% of the time, with each generating an average return of 17%. (See Target Ownership Structure on TipRanks) More

EV prices are being reduced amid weaker demand and lower-than-anticipated value in the used auto market, but early electric and hybrid vehicles have begun to draw interest from collectors.
Big factors in the collector car market are rarity, design and historical significance.
Power and beauty don’t hurt either, making the original Tesla Roadster and BMW i8 popular.

Elon Musk at a Tesla Motors press conference at the 2009 North American Auto Show.
James Leynse | Corbis Historical | Getty Images

The term “collectible vehicle” might conjure up images of an elegant convertible from the 1930s, or maybe a souped-up muscle car. But time moves on. A new crop of all-electric vehicles and hybrid cars have begun to draw interest from collectors despite big price reductions on new EVs and a volatile used marketplace where five-year-old EVs depreciate almost 50% and used hybrids hold their value better than every vehicle category except trucks.
So which EVs and hybrids may become collectible and possibly rise in value in the decades to come?

“What people like when they’re younger becomes collectible when they’re older,” said Daniel Strohl, former editor of the collector car publication Hemmings Daily. “We saw that with the muscle cars boomers collected, and we’re seeing it now with 1980s trucks and Japanese imports that are popular with younger collectors.”
The biggest factors to collectability are design, performance and historical significance, noted John Wiley, manager of valuation analytics at Hagerty, which offers collector car insurance and car valuation data, among other auto market services. “If the car did something important, looks great and is fun to use, it will be collectible.”

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Rarity and condition are also important factors, said Dietrich Hatlapa, founder of the Historic Automobile Group International, which tracks the market with several indexes. “Small production numbers help,” he said. “With mass-produced cars, usually only the most pristine examples with low miles are collectible.”
As with most things, power and beauty add to a car’s appeal. High-performance sports cars demand a premium over more pedestrian vehicles. “It’s about bragging rights, so cars that turn heads such as the Tesla Roadster and BMW i8 are getting interest,” Hatlapa said.

Early EV collectibles

Some early EVs and hybrids are already highly collectible. This includes the historic Owen Magnetic hybrid of 1915 to 1921 and the sleek 1996 to 1999 EV1 that General Motors made available to lessees around the turn of the millennia.

Here are some recent limited-production models from major automakers that meet all or most of the criteria for collectability cited by experts. A couple have already risen in value. The rest may, some day. 
Acura NSX (2017-2022)

The Acura NSX.

Honda’s original NSX, introduced for the 1991 model year, showed the world that exotic mid-engine sports cars can be reliable and comfortable enough for daily driving. These original cars are highly collectible and that bodes well for the second-generation, an all-wheel-drive hybrid with up to 600 horsepower sold from 2017 to 2022. This newer NSX can hit 60 miles per hour in only 2.9 seconds and kept the reputation of its forebear alive with a comfortable interior and intuitive controls. The hybrid NSX had an initial MSRP of $157,000, and has already exceeded $230,000 at auction.
BMW i8 (2014-2020)

The BMW i8.

The i8 was a plug-in hybrid offered as both a 2+2 coupe and a two-seat convertible. The i8 isn’t especially rare — BMW built more than 20,000 over seven model years — and a four-second 0-to-60 time was not especially quick considering its starting price was nearly $150,000. But the i8 has a couple of factors working in its favor: beauty and presence. It looks like a supercar with dramatic, “Lambo-style” butterfly doors. Plus, BMW is a storied enthusiast brand with a decades-deep lineup of cars that attract collector interest.
Cadillac ELR (2014 and 2016)

The Cadillac ELR coupe.

The ELR coupe was based on GM’s mainstream Chevrolet Volt but featured more power and a seriously luxurious interior covered in leather, wood and carbon fiber. The initial run of ELRs featured 217 horsepower and 37 miles of electric range, increasing to 233 horsepower and 39 miles of range in 2016. Cadillac sold less than 3,000 in total, making it one of the brand’s rarest cars. This scarcity, along with its sleek styling, could appeal to future collectors. However, while originally listed for $76,000, used ELRs have depreciated heavily, and generally sell for less than $20,000 today.
Tesla Roadster (2008-2012)

The Tesla Roadster displayed during its production debut in the Tesla Flagship Store in Los Angeles on May 1, 2008.
Vince Bucci | Getty Images Entertainment | Getty Images

The Tesla Roadster was conceived back in 2003 by company founder Martin Eberhard. The targa-topped two-seater is not only beautiful, fast and rare, but it also has historical significance as the groundbreaking company’s first production car. The Roadster’s initial MSRP was $98,000, but well-kept examples have sold for more than $200,000 to collectors. With more than 200 miles of driving range and a 0-to-60 time as low as 3.7 seconds, the Roadster can still compete with more modern EVs. Fewer than 2,500 were produced through 2012.
Tesla has a new Roadster in the works that is due to begin delivery in 2025. The four-passenger coupe is expected to start at $200,000, and CEO Elon Musk says it will accelerate to 60 miles per hour in less than one second, which would make it the quickest road-legal car sold in the U.S., if true.
Volkswagen XL1 (2013-2016)

The Volkswagen XL1.
Volkswagen

Volkswagen is the largest automaker in the world, but it only built 250 of these spaceship-like hybrids. The XL1 remains the most efficient road car ever sold with a combustion engine. It could get more than 261 miles per gallon due to a unique diesel-electric plug-in hybrid system, extremely low weight and a highly aerodynamic shape. These sold for about $150,000 when new and can command more than $111,000 at auction. They were never imported to the U.S., but anyone wealthy enough to afford one might be able to swing it.

Hyper-expensive exotic EVs and hybrids

While six- and seven-figure cars do depreciate, it’s not uncommon for the rarest, fastest and most beautiful examples to become collectible and rise significantly in value over the long term. For instance, the 1992 to 1998 McLaren F1 sold for about $1 million when new, but has commanded up to $20.5 million at auction. It was the fastest production car of its day, topping out at over 240 miles per hour, and only 106 were produced.
The very top of the car market operates by its own rules, which promote collectability.
For instance, Ferrari has been known to have “invite-only” sales of special editions whereby only existing customers in good standing are allowed to make a purchase. That builds loyalty with existing customers, fuels envy among sales prospects and helps keep used Ferrari prices high. The Italian brand, along with other luxury makers such as Porsche and Aston Martin, also offers restoration and certification services for its classic cars. The business model works. Ferrari sold every one of the 1,398 SF90 XX Stradale plug-in hybrids it planned to produce prior to the car’s official launch last June.
Luxury automakers are also known to police their used sales, as seen last year when Rolls Royce threatened to blacklist any purchasers who flip its first all-electric vehicle, the Spectre coupe.

EV aging challenges

One problem with collecting older EVs can be keeping them on the road. Internal combustion engines have been ubiquitous for more than a century and mechanics everywhere know how to fix them. By contrast, EVs are still relatively rare, and repairing them can require specialized knowledge. In addition, battery, charging and computer technology is still evolving rapidly and parts can be hard to come by.
“Batteries aren’t designed to last more than 15 or 20 years, and the market for replacing or repairing (EV) batteries is only starting to develop,” Strohl said. “Plus, even if you can use a new battery in an older car, the software might not be compatible.”

People collect cars out of passion, nostalgia and to meet like-minded enthusiasts. These are all great things, but actually making money on a collector car is difficult. If financial gain is your main goal, you might be better off sticking with a diversified index fund. This holds true even with cars that have appreciated dramatically.
For instance, a well-kept 1997 Toyota Supra Turbo that listed for $39,067 when it was new sold for $230,000 at auction in 2022 — a profit of nearly $191,000, minus upkeep, insurance and other costs. If that Supra’s initial purchase price had instead been invested in an S&P 500 index fund at the beginning of 1997, it would have grown to $322,477 by the end of 2022, minus a few thousand in fees — a far larger profit of more than $283,000.
For another example, the McLaren F1 mentioned above may have appreciated more than 20 times since its debut, but the S&P 500 has gone up nearly as much — 1,900% growth from January 1992 — and without incurring the F1’s substantial additional insurance, storage, fuel and maintenance costs.
Of course, you can’t cruise around in an index fund, or show it off outside the corner coffee shop.  More

Kseniya Ovchinnikova | Moment | Getty Images

Company: Criteo SA (CRTO)

Business: Criteo SA is a France-based company specializing in digital performance marketing. Its solution consists of the Criteo Engine, the company’s data assets, access to inventory, as well as its advertiser and publisher platforms. The Criteo Engine consists of various machine-learning algorithms, including prediction, recommendation, bidding and creative algorithms. The Criteo Engine delivers advertisements through multiple marketing channels and formats, including display advertising banners, native advertising banners and marketing messages delivered to opt-in e-mail addresses. The company operates in approximately 90 countries through a network of over 30 international offices located in Europe, the Americas and the Asia-Pacific region.
Stock Market Value: $1.84B ($33.39 per share)

Stock chart icon

Criteo SA’s performance over the past year

Activist: Petrus Advisers

Percentage Ownership:  5.60%
Average Cost: n/a
Activist Commentary: Petrus Advisers, a Europe-based activist investor founded in 2009, is focused on developing a deep, fundamental understanding of the public companies it invests in, paired with active engagement both publicly and behind the scenes. The firm focuses exclusively on European countries where it can invest like the “locals” and within industries in which it’s an expert.

What’s happening

On Feb. 22, Petrus sent a letter to Criteo’s chair of the board Rachel Picard and CEO Megan Clarken, calling for the execution of the following actions: (i) prepare an investor day as soon as possible to explain the company’s retail media strategy and a new mid-term plan; (ii) accelerate the existing share buyback by means of a substantial self-tender of up to $150 million; (iii) initiate a comprehensive strategic review no later than Q4 2024; and (iv) refresh the company’s board by adding independent candidates whom Petrus will propose.

Behind the scenes

Criteo SA is a global advertising technology company incorporated and domiciled in France with a primary American depositary receipt listing on the Nasdaq. The company leverages commerce data and artificial intelligence to connect brands, retailers and customers through their Criteo ad platform. Criteo operates across three segments – marketing solutions, retail media, and Iponweb – but generated 83% of its $1.95 billion of revenue in 2023 from the marketing solutions segment. Criteo is a market leader in the space and has access to some of the best technical talent in France. The company is profitable and has expanded gross profit margins over the past four fiscal years from 33% to 44%. However, since its peak in 2018, it has suffered top-line contraction to $1.95 billion from $2.3 billion, and the stock price has fallen to $33 from $44 in 2021.

Historically, Criteo’s marketing solutions segment has been a “cookie monster” with their key tech and revenue generation coming from cookie data-based applications for digital advertising. However Alphabet’s Google said late last year that starting in January 2024, it will start phasing out the use of cookies and expects to phase them out for 100% of Chrome users by Q3 2024. To many in the investor community, this was the death knell for cookies leading to uncertainty for Criteo’s largest segment. However, Criteo believes it has the technical capabilities and product suite in AI ad-tech to use algorithms that will replace 60% to 70% of the revenue loss associated with the end of cookies. Additionally, the company’s retail media segment is a very appealing and growing business using software as a service for e-commerce companies.
Accordingly, during its 2022 investor day on Oct. 31 of that year, the company presented a 2025 net revenue target (defined as contribution ex traffic acquisition costs (“TAC”)) of $1.4 billion and a plan to triple its retail media business, with retail media net revenue projected to grow at a compound annual growth rate of 45% to 50% between 2022 and 2025. But about a year later, on Nov. 2, 2023, Criteo stated that the ambition to achieve $1.4 billion in net revenue was “not expected to materialize within the 2025 time frame” sending the stock down nearly 12%. A quarter later, the company disclosed surprisingly upbeat results of total net revenue growth of 10% year over year and retail media growth of 29%, sending shares higher. The volatility in this stock is influenced by a management team that could stand to improve its communications with the market. That not only creates unnecessary volatility but also a lack of investor confidence in management guidance, which can have a significant ability to suppress a stock, particularly when Criteo’s largest segment is at an inflection point and investors need to believe management when they say that they can replace 60% to 70% of the revenue.
This situation reminds me of a story from the great basketball coach Frank Layden, in which he said to a young, talented player not reaching his potential: “Son, what is it with you? Is it ignorance or apathy?” To which the player responded: “I don’t know, and I don’t care.”
The good news is that the biggest problem facing this company is communications, not operations; and that can be solved with the addition of experienced directors to the board with capital market knowledge as proposed by Petrus. Additional value can be created through better capital allocation. Criteo is sitting on over $400 million of net cash and $150 million of earnings before interest, taxes, depreciation, and amortization. As a result, Petrus is calling upon Criteo to take four key actions: (i) refresh the company’s board by adding independent candidates whom Petrus will propose; (ii) prepare an investor day as soon as possible to explain the retail media strategy and a new mid-term plan; (iii) accelerate the existing share buyback by means of a substantial self-tender of up to $150 million; and (iv) initiate a comprehensive strategic review no later than Q4 2024.
Petrus will likely nominate outside directors to the board as they rarely propose Petrus insiders for board seats. Petrus is the kind of investor that likes to work with management to create shareholder value, but this management team has not shown a great willingness to work with others. In a rational world, this would settle quickly. If it does not settle, Petrus has shown that they are willing to take a proxy fight to a vote. But this one should not go that far as it is relatively easy for both Petrus and Criteo to know where they stand in a potential proxy fight. There is a very concentrated shareholder base with the top ten shareholders — including Petrus — owning 68.48% of the stock. Even better for Petrus, these are not the normal index fund owners but investors like Neuberger Berman, AllianceBernstein and Cadian Capital Management, who are more likely to support a shareholder on the board.
But Petrus is also calling for a comprehensive strategic review no later than Q4 2024. This is not because Petrus is being a short-term minded shareholder looking for a quick bump on a sale. They take positions like this because they believe in the company and the CEO. But if management cannot reinvigorate the equity story, they need to find a suitor. And there have been reports that suitors are interested. As early as February 2021, Bloomberg reported, citing people with knowledge of the matter, that Criteo is “attracting takeover interest from strategic and financial investors.” Then, in February 2023, Reuters reported, citing people familiar, that Criteo is “making a new attempt to sell itself” and hired Evercore to assist in that endeavor. However, on a Feb. 8, 2023 conference call, management dismissed the Reuters article as speculation, making some wonder whether management is genuinely exploring strategic alternatives or not.
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 13D investments.  More

Smart Tax Planning

President Biden has proposed a “mortgage relief credit” of $5,000 per year for two years for middle-class, first-time homebuyers.
He is also calling for a one-year credit of up to $10,000 for middle-class families who sell their “starter homes” to another owner-occupant.
However, experts have mixed opinions about whether the policies will help the country’s housing affordability issues.

Cavan Images | Cavan | Getty Images

President Joe Biden has floated plans to address the country’s affordable housing issues, including new tax breaks for first-time homebuyers and “starter home” sellers. However, experts have mixed opinions on the proposals.
“I know the cost of housing is so important to you,” Biden said during his State of the Union speech Thursday night.

“If inflation keeps coming down, mortgage rates will come down as well. But I’m not waiting,” he said.

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How the homebuyer, ‘starter home’ sale credit works

Biden has proposed a “mortgage relief credit” of $5,000 per year for two years for middle-class, first-time homebuyers, which would be equivalent to lowering the mortgage interest rate for a median-price home by 1.5 percentage points for two years, according to an outline released by the White House on Thursday.
The administration is also calling for a one-year credit of up to $10,000 for middle-class families who sell their “starter homes” to another owner-occupant. They define starter homes as properties below the median price for the seller’s county.

U.S. President Joe Biden delivers the State of the Union address in the House Chamber of the U.S. Capitol in Washington, D.C., on March 7, 2024.
Pool | Getty Images News | Getty Images

“Many homeowners have lower rates on their mortgages than current rates,” the White House said. “This ‘lock-in’ effect makes homeowners more reluctant to sell and give up that low rate, even in circumstances where their current homes no longer fit their household needs.”
However, it’s difficult to predict whether Biden’s proposal will progress during a presidential election year, especially with a split Congress, experts say.

Interest rates still near ‘multidecade highs’

With soaring home prices and mortgage interest rates, 2023 was the least affordable year for homebuyers in more than a decade, according to a report from Redfin.
In 2023, those making the median U.S. income of $78,642 would have spent 41.4% of earnings by purchasing a median-price home at $408,806, up from 38.7% in 2022, the report found.

While rates have fallen from 2023 peaks, the average interest rate for 30-year fixed-rate mortgages was still hovering around 7%, as of March 7.
“We’re close to multidecade highs for mortgage rates,” said Keith Gumbinger, vice president of mortgage website HSH.
“Unless [Biden’s proposed credit] counts as qualifiable income, it’s not going to actually make it easier for homebuyers to qualify for mortgages,” he said.

There’s a ‘housing supply crisis’

Of course, higher mortgage interest rates are only one piece of the country’s affordable housing puzzle.
“The housing supply crisis has been building, really, since the Great Recession,” said Janneke Ratcliffe, vice president for housing finance policy and leader of the Housing Finance Policy Center at the Urban Institute.

The housing supply crisis has been building, really, since the Great Recession.

Janneke Ratcliffe
Vice president for housing finance policy at the Urban Institute

Since the economic crisis, there has been a “perfect storm” of issues for the country’s housing supply, including declines in new home construction, she said.
“What we don’t need today in the market is more demand,” said Gumbinger. “We have plenty of demand, but we don’t have adequate supply.”
Still, Ratcliffe said she was pleased to see housing affordability highlighted during the State of the Union speech. “I think this is a great starting point,” she said.

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The winner of November’s presidential contest may determine the future of Social Security and Medicare as the programs face funding issues.
In the State of the Union address on Thursday, President Joe Biden promised to protect benefits by requiring the wealthy to pay their ‘fair share.’

U.S. President Joe Biden delivers his third State of the Union address in the House Chamber of the U.S. Capitol in Washington, D.C., on March 7, 2024.
Shawn Thew | Via Reuters

President Joe Biden urged lawmakers to “stand up for seniors” in his annual State of the Union address on Thursday, while pledging to protect Social Security and Medicare.
“If anyone here tries to cut Social Security or Medicare or raise the retirement age, I will stop them,” Biden said.

The president’s vow comes as he will likely face off with former president Donald Trump at the polls in November. While Trump has said he doesn’t plan to touch Social Security, former Republican candidate Nikki Haley suggested raising the retirement age on the campaign trail.
Social Security and Medicare face crucial inflection points. The trust funds Social Security relies on are due to run out within 10 years, or by 2034, at which point 80% of benefits will be payable, the program’s trustees have projected. Medicare’s hospital insurance fund, which is dedicated to Medicare Part A, may be depleted in 2031.
To fix Social Security’s funding, Biden on Thursday suggested lifting the annual payroll tax cap — currently limited to $168,600 in wages — to “make the wealthy pay their fair share.”

Workers with $1 million in gross annual wage income stopped paying into Social Security on March 2 after reaching the taxable maximum for the year, a recent analysis from the Center for Economic and Policy Research found. Most workers have Social Security payroll taxes deducted from their paychecks throughout the year.
“Working people who built this country pay more into Social Security than millionaires and billionaires do,” Biden said. “It’s not fair.”

Democrats have bills that call for applying the Social Security payroll tax to earnings over $250,000 or over $400,000 in separate proposals, while also raising taxes on investment income.
“It’s time to act, it’s time to vote, not only to protect Social Security, but to expand benefits that haven’t been expanded in more than 50 years,” Rep. John Larson, D-Conn., said in a post-State of the Union speech.
Larson’s bill, the Social Security 2100 Act, currently has 183 Democratic co-sponsors in the House.
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Biden has not proposed a specific plan to address Social Security’s solvency as president. However, his campaign platform called for applying the payroll tax to wages over $400,000 while making benefits more generous, particularly for those with lower incomes.
The White House has proposed increasing the Medicare tax rate for incomes above $400,000, while also closing loopholes that allow certain high-income individuals and business owners to avoid paying those taxes.

Efforts to create a commission

During the State of the Union address, Biden also took a swipe at Republicans’ alleged intentions for the programs.
“Republicans will cut Social Security and give more tax cuts to the wealthy,” Biden said.
Ahead of the State of the Union, House Republicans advanced a 2025 budget that calls for the creation of a bipartisan fiscal commission to evaluate Social Security and Medicare solvency issues.
The Committee for a Responsible Federal Budget praised the move to create a commission to “address the unsustainable growth of the national debt.”
Yet, advocates for Social Security and Medicare worry that the process may lead to benefit cuts.
“The commission is designed to slash vital earned benefits through a fast-track, closed-door process, intended to allow Republicans to avoid political accountability,” Nancy Altman, president of advocacy group Social Security Works, said in a statement.
Biden also took the opportunity on Thursday to tout other initiatives to help seniors, including efforts to increase the number of medications subject to Medicare negotiations from a current target of 20 per year to 50 per year and to establish minimum staffing levels for nursing homes.
“In tonight’s State of the Union address, President Biden put himself unequivocally on the side of American seniors and the programs they rely on,” Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare, said in a statement.

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“Wages keep going up and inflation keeps coming down,” Biden said in his State of the Union address.
Inflation has cooled while wages have ticked higher, but many households are still struggling to keep up with the increased cost of living.
While inflation remains above the Federal Reserve’s 2% annual target, getting over the final disinflationary hurdle will be a challenge without curtailing economic growth and risking recession, some economists say.

In his State of the Union address, President Joe Biden celebrated his administration’s progress in the fight against inflation.
“Wages keep going up and inflation keeps coming down,” Biden said in the annual speech before Congress.

Inflation has cooled while wages have ticked higher, but households are still struggling to keep up with the increased cost of living.
More from Personal Finance:Why gas is so expensive in CaliforniaCredit card users face ‘consequences’ from falling behind‘Last mile’ of inflation fight may be more challenging
“Factually, the president is, of course, correct,” said Mark Hamrick, senior economic analyst at Bankrate.com. 
However, “it is difficult to tell people that inflation isn’t so bad as it was, given that it has taken about one-fifth of purchasing power away from people,” he said.
The consumer price index, a key inflation barometer, has fallen gradually from a 9.1% pandemic-era peak in June 2022 to 3.1% in January. 

But regardless of the latest economic reports, many Americans are living paycheck to paycheck in the face of sky-high prices for everyday items, and most have exhausted their savings and are now leaning on credit cards to make ends meet.
Lower-income families have been particularly hard hit, said Tomas Philipson, a professor of public policy studies at the University of Chicago and former acting chair of the White House Council of Economic Advisers.
Further, reports show wage gains and consumer confidence have only notched recent improvements, he said.
The Biden administration “is like a football team that’s down 10 points at half time but then scores a field goal and claims they are a winning team,” Philipson said.

‘The last mile problem’ in the inflation fight

Then there is the “last mile problem,” said Sung Won Sohn, a professor of finance and economics at Loyola Marymount University and chief economist at SS Economics.
While inflation remains above the Federal Reserve’s 2% annual target, getting over the final disinflationary hurdle will be a challenge without curtailing economic growth and risking recession, some economists say.
“Much of the decline in the inflation rate in the past came from the easing of the supply bottlenecks, which are behind us,” Sohn said.
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In his State of the Union address, President Joe Biden touted his work to forgive the student debt of nearly 4 million people.
Biden cited income-driven repayment plans and Public Service Loan Forgiveness. Here’s what to know about those programs.

US President Joe Biden delivers the State of the Union address in the House Chamber of the US Capitol in Washington, DC, on March 7, 2024. 
Shawn Thew | Afp | Getty Images

1. Income-driven repayment plans

Income-driven repayment plans, which date to 1994, set borrowers’ monthly payments based on a share of their discretionary income. Those payments are typically lower than under standard repayment, and can be zero under some plans. Borrowers get any remaining debt forgiven after a set period. There are four different plans.
Yet many borrowers paid into the system for decades without getting that promised cancellation, said higher education expert Mark Kantrowitz.

“The loan servicers weren’t keeping track of the number of qualifying payments,” Kantrowitz said in a previous CNBC interview.

The Biden administration has been evaluating millions of borrowers’ loan accounts to see if they should have had their debt forgiven. So far, more than 930,000 people have benefited, receiving over $46 billion in debt cancelation.
Most people with federal student loans qualify for income-driven repayment plans, and can review the options and apply at Studentaid.gov.
Recently, the Education Department also announced it would cancel the debts of those who have been in repayment for a decade or more and originally took out $12,000 or less. To qualify, borrowers need to be enrolled in the administration’s new Saving on a Valuable Education, or SAVE, plan.

2. Public Service Loan Forgiveness

Navigating the Public Service Loan Forgiveness program has been famously difficult. 
The program, signed into law by former President George W. Bush in 2007, allows employees of the government and certain not-for-profit entities to have their federal student loans discharged after 10 years of on-time payments.
The Consumer Financial Protection Bureau in 2013 estimated that one-quarter of American workers may be eligible.
However, after getting wrong information from their servicers about the program’s requirements, millions of borrowers hit walls. People frequently found that some or all of their qualifying payments didn’t count because they had a loan or were enrolled in a payment plan not covered under the initiative.

The Biden administration has tried to reverse the trend of borrowers being excluded from the relief on technicalities. It has broadened eligibility and allowed people to reapply for the relief, as long as they were still working in the public sector and paying down their debt.
About 790,000 public servants have gotten their debt erased as a result, amounting to more than $57 billion in relief.
With the PSLF help tool, borrowers can search for a list of qualifying employers under the program and access the employer certification form. They can also learn about all the program’s requirements at Studentaid.gov.
The remaining loan forgiveness of the $138 billion total has gone to borrowers who attended schools of questionable quality, to those who qualified through the Borrower Defense Loan Discharge and to disabled borrowers under the Total and Permanent Disability Discharge.

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In an increasingly digital world, the specter of financial fraud looms large, especially for older adults.
By some accounts, women are more likely to be victims.
Americans 60 and older lost $3.1 billion to cyberfraud in 2022, FBI data shows, with an average loss of $35,101 per victim.

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In an increasingly digital world, the specter of financial fraud looms large, especially for older adults. My experience with an 81-year-old client offers a stark illustration.
While assisting “Emma” (not her real name) with email issues, I witnessed her vulnerability to scams firsthand. Despite my repeated warnings over the years, she had readily shared personal information with unknown senders, believing she was being conscientious or supporting noble causes.

This behavior soon led her into a fraudulent scheme, where she nearly lost $4,500 to a scammer masquerading as a computer services provider. This incident was not the first Emma had experienced, but it was the most brazen.
Emma’s story is not unique. It reflects a growing trend of elder fraud, which is both sophisticated and damaging.

More from Women and Wealth:

Here’s a look at more coverage in CNBC’s Women & Wealth special report, where we explore ways women can increase income, save and make the most of opportunities.

Elder fraud is becoming common — and expensive

Elder fraud is an escalating problem in the United States, with scammers becoming increasingly cunning. They prey on older people, often exploiting their loneliness, social isolation and sometimes declining cognitive abilities.
These individuals are most vulnerable, as it turns out. A recent study from the University of Michigan suggests that older adults who report feeling lonely or isolated are more susceptible to fraud than those who report feeling satisfied with their lives and social circles. Meanwhile, the National Library of Medicine has published research linking cognitive decline to a greater predisposition to scams.
Yet, these criminals aren’t just targeting the very old; individuals much younger than 80 are also at risk. In 2022 alone, more than 88,000 adults over 60 fell victim to financial scams, according to the most recent FBI Elder Fraud Report.

Women are more likely to be victims of elder fraud, according to the Women’s Institute for a Secure Retirement, because there are more women than men over age 65, and older women are more likely than older men to live alone and to live in poverty.
Americans 60 and older lost $3.1 billion to cyber fraud in 2022, FBI data shows, with an average loss of $35,101 per victim. More than 5,000 older adults lost more than $100,000 apiece.

Recognizing the signs of fraud

Elder fraud schemes are diverse, ranging from email phishing to impersonation scams, each designed to deceive and manipulate their targets into handing over sensitive personal and financial information. As fraud tactics become more sophisticated, avoiding them can be challenging for those who don’t recognize the warning signs, which often include:

Suspicious emails. Scam email addresses often have misspellings or odd characters and prompt the receiver to click on links. These links may lead to phishing sites that mimic a legitimate website and trick the user into entering sensitive information or could initiate the download of malware, adware, or scareware onto the user’s computer.

Vague email signatures. Email signatures from scammers are usually simple, sometimes just a first and last name. Legitimate businesses provide detailed, verifiable contact information, including company name, address, website URL, and phone numbers.

Urgency and threats. Phishing attempts typically convey a false sense of urgency or threaten dire consequences to coerce action.

Requests for personal information. Scammers want personal information to hack into a person’s financial accounts. No legitimate business will ask for credit card numbers, log-in credentials, or Social Security numbers over the phone or via email.

Out-of-character behavior. Some scammers pretend to be family members or friends who urgently need funds — a feat made easier with the dawn of artificial intelligence.

Proactive measures to protect a loved one

For older adults, especially those in isolation or experiencing cognitive decline, habitual caution may not suffice. Establishing a support network of trusted individuals who can step in when financial decisions become confusing is crucial. Consider the following proactive measures:

Early planning. Begin organizing a support network around age 70, particularly for those without extensive family networks or who have a history of cognitive decline. For example, another of my clients preemptively engaged a professional in-home care management team to address her lack of local family support.

Security audits by adult children. Adult children can help by auditing spam filters, setting up password managers, and automating bill payments.

Legal preparations. Establishing critical legal documents and setting up trusts can safeguard against the inevitable challenges posed by cognitive decline. For example, a durable power of attorney for finances designates a trusted individual to manage the financial affairs of someone experiencing diminished capacity, while a successor trustee can manage and distribute trust assets on their behalf according to the trust agreement. These legal tools are essential for maintaining financial autonomy and security, even when direct management becomes impractical or impossible.

Facing the digital challenge

Research from TransUnion reveals that the volume of suspected digital fraud attempts globally increased by 80% from 2019 to 2022, mainly due to an increasing reliance on digital transactions during the Covid-19 pandemic. As our financial activities become more intertwined with digital platforms, the opportunities for scammers will likely grow exponentially.
Although financial institutions are becoming more adept at detecting and preventing fraud, awareness and vigilance remain key in the ongoing battle against elder fraud. By recognizing the signs of scams, establishing protective legal and personal measures, and fostering a supportive community, we can help safeguard the financial well-being and independence of our older loved ones.

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