Investing

Many financial planners complete Roth individual retirement account conversions around year-end.
Roth conversions typically require precise current-year income projections to avoid possible tax consequences.
However, some advisors also recommend Roth conversions during periods of stock market volatility to reduce upfront taxes.

Prasit photo | Moment | Getty Images

As the calendar winds down, some investors may be eyeing Roth individual retirement account conversions, depending on long-term goals. Experts say there’s good reason that now is the season for Roth conversions, with some exceptions.
The strategy transfers your pretax or nondeductible IRA funds to a Roth IRA to kickstart future tax-free growth. But the trade-off is you’ll owe upfront taxes on the converted balance.

Roth conversions are popular among younger retirees because they can often convert funds in lower income tax brackets than during their working years. Plus, earnings are typically reduced for retirees before claiming Social Security and starting required withdrawals.
There’s a reason year-end Roth conversions are popular: The strategy requires precise current-year income estimates, which can be more difficult before the fourth quarter. Conversions also often involve multi-year tax projections.

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Tax uncertainty in 2025

Many provisions of the 2017 Tax Cuts and Jobs Act were initially set to expire at the end of 2025. That left investors unsure about future tax brackets before Republicans enacted President Donald Trump’s “big beautiful bill” in July.
And now, many financial advisors are watching as Congress debates Affordable Care Act health insurance subsidies amid the government shutdown. The outcome is important for younger retirees considering a Roth conversion, since more income can impact eligibility for ACA premium subsidies.
Plus, many investors are still waiting for estimates for year-end mutual fund distributions, which typically hit brokerage accounts in November or December. 

“This is why we do tax planning at the end of the year,” said Tommy Lucas, a certified financial planner at Moisand Fitzgerald Tamayo in Orlando, Florida. His firm is ranked No. 69 on CNBC’s Financial Advisor 100 list for 2025.

Some advisors argue it’s better to complete Roth conversions earlier in the year to start tax-free growth sooner. But others say early-year conversions can be a mistake before you have a solid estimate of current-year income. 
“You have no idea what’s going to happen before December,” Lucas said.
Incurring more income than expected can be an issue because it could trigger phaseouts of other tax benefits. 

Look for other Roth conversion ‘opportunities’

While many advisors wait until year-end for Roth conversions, there can be other times when the strategy makes sense, according to Tyson Sprick, a CFP and managing partner at Caliber Wealth Management in Overland Park, Kansas.
For example, some advisors leverage a market downturn to convert a smaller balance and pay less upfront taxes. Investors can then see tax-free growth in Roth accounts when the market recovers. 
Sprick’s firm used this strategy amid tariff volatility earlier in 2025. For certain clients, they used about half of the year’s projected Roth conversions budget when the market dipped, with plans to finalize the remaining 2025 conversions in December.
“While we’re certainly not market timers or advocates of getting too cute, there are opportunities throughout the year,” he said. More

The Trump administration has agreed to forgive student debt under income-driven repayment programs it had partially blocked.
The outcome is the result of an agreement between the American Federation of Teachers and the U.S. Department of Education.
More than 2.5 million borrowers are in either the original Income-Contingent Repayment plan or the Pay as You Earn plan, according to an estimate by higher education expert Mark Kantrowitz.

U.S. President Donald Trump speaks with Secretary of Education Linda McMahon during an executive order signing ceremony in the Roosevelt Room of the White House on July 31, 2025 in Washington, DC.
Anna Moneymaker | Getty Images

The Trump administration has agreed to cancel student debt under programs it had partially blocked, reopening a path to student loan forgiveness for millions of borrowers.
The outcome is the result of an agreement reached on Friday between the U.S. Department of Education and the American Federation of Teachers, a union.

In the agreement, the Trump administration said it will again process student loan forgiveness for eligible borrowers in two income-driven repayment plans — the original Income-Contingent Repayment plan and the Pay as You Earn plan — as long as those programs remain in effect.
President Donald Trump’s “big beautiful bill” will phase out ICR and PAYE as of July 1, 2028.

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“This is a tremendous win for borrowers,” said Winston Berkman-Breen, the legal director for Protect Borrowers, which served as the AFT’s counsel. “The U.S. Department of Education has agreed to follow the law and deliver Congressionally mandated affordable payments and debt relief to hard-working public service workers across the country.”
The Education Department did not immediately respond to a request for comment.
More than 2.5 million borrowers are in either ICR or PAYE, according to an estimate by higher education expert Mark Kantrowitz.

Why student loan forgiveness was blocked

The AFT, which represents some 1.8 million union members, filed a lawsuit against Trump officials in March, accusing them of blocking federal student loan holders from programs mandated in their original borrowing terms.
Earlier this year, the Trump administration had paused student loan forgiveness under some income-driven repayment plans, and said that it was doing so in response to court orders. IDR plans set a borrower’s monthly bill at a share of their discretionary income and cancel any remaining debt after a certain period, usually 20 years or 25 years.

The Education Department under Trump said that a court order that halted the Saving on a Valuable Education, or SAVE, plan — a Biden administration era program — had implications for other IDR plans.
Consumer advocates had argued that that was too broad a reading of the court order. And it left borrowers with just one repayment plan available that led to student loan cancellation: the Income-Based Repayment plan, or IBR. For a period, the Trump administration also paused IBR loan cancellation, though it has since resumed processing that aid.
In the agreement with the AFT, the Trump administration also clarified that borrowers who become eligible for student loan forgiveness in 2025 won’t owe federal taxes on the relief. A law that provides tax-free treatment on the federal level for canceled education debt expires at the end of this year. More

Comfort Colors has seen demand take off for its shirts in recent years.
The Gildan-owned brand is planning an expansion to other categories such as hats and bags.

Comfort Colors t-shirts are seen on Oct. 16, 2025.
Danielle DeVries | CNBC

When looking through Wyatt Cannon’s T-shirt collection, there’s a common theme: the Comfort Colors label.
Growing up, Cannon would often find Comfort Colors apparel when looking for souvenirs during family trips. In college, Cannon convinced his a cappella group to screen print on the company’s blank shirts. When the 24-year-old has made tie-dye T-shirts for himself, it’s with Comfort Colors product.

“I’ve loved this brand my whole life,” said Cannon, who estimates around half of his shirts are Comfort Colors. “This kind of material and texture and vibe of T-shirt should just be more of the standard.”
Cannon is part of a loyal and growing base of consumers driving demand for the half-century-old, Gildan-owned shirt brand. The label’s ballooning success in recent years can help explain Gildan’s stock outperformance and has led to plans for an expansion into additional product categories.

Comfort Colors t-shirts.
Courtesy: Watt Cannon

Gildan is tight-lipped about specific brand performance and declined to share Comfort Colors’ sales data with CNBC. But company executives have said Comfort Colors took off, especially over the last year, and has become a leading brand within Gildan, which also sells apparel under its namesake label and American Apparel.
“Comfort Colors is probably the fastest-growing fashion brand,” Glenn Chamandy, Gildan’s co-founder and CEO, said during a call with analysts earlier this year. “When you walk into a souvenir store today, you’ll see Comfort Colors on every single one of those tables where you used to see fashion brands before.”

‘Knocking it out of the box’

Gildan acquired Comfort Colors for around $100 million in 2015 in hopes of expanding within the basics category of North America’s printwear market, according to a press release announcing the deal. At the time, Gildan called the Vermont-based apparel maker “one of the most recognized brands” in places like college bookstores and resorts.

The brand publicizes that its shirts are 100% cotton from the U.S. Its “pigment pure” dyeing system creates the shirts’ “signature faded look” and requires less energy and water use than other comparable processes, Gildan says.
Comfort Colors’ popularity exploded in 2024 with around 40% year-over-year growth, company executives have said on earnings calls. That helped drive sales in Gildan’s broader activewear category up 6% in the same period.
Chamandy told analysts in late July that Comfort Colors is “knocking it out of the box again this year” and helped drive the activewear category up 12% in the second quarter. The brand is planning to expand into hats, bags and women-specific clothing in 2026 as it rings in its 50th anniversary, Howard Upchurch, marketing and merchandise chief at Gildan, said in a statement to CNBC.
Gildan, which announced earlier this year it was acquiring Hanesbrands as it further builds out its basic apparel business, is expected to report earnings at the end of this month.
U.S.-listed shares of Gildan, which is a Canadian-based company, have surged more than 175% over the last five years. That’s almost double the widely followed S&P 500’s return over the same period.

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Gildan vs. S&P 500, 5-year chart

Though Gildan has touted Comfort Colors as a success story within its larger empire, consumers haven’t necessarily made the connection.
Cannon said he views Comfort Colors as “crunchy” and “granola,” while Gildan feels like the “peak of consumption capitalism.” The Connecticut-based marketing manager said Comfort Colors’ unique tag of woven fabric is one quality that makes the brand feel more “homey.”

A ‘good spot’

On Etsy, printers hawk Comfort Colors shirts with various designs and some even allow shoppers to upload their own. The brand has also gotten a boost from TikTok, where content creators share videos of their Comfort Colors products that viewers can purchase via the platform’s shopping feature.
Relative search volume for Comfort Colors in the U.S. spiked to all-time highs on Google this year, underscoring the brand’s growing awareness among consumers. On the other hand, Gildan has tumbled in search popularity from a peak in 2023.

Comfort Colors has amassed a “very loyal” base made up particularly of Gen Z customers, according to Sheng Lu, an associate professor at the University of Delaware whose research focuses on the apparel industry.
These young shoppers value comfort and vintage flair, both of which align with Comfort Colors’ products, Lu said. Comfort Colors’ emphasis on sustainability can also bode well with a customer base that’s conscious of their environmental footprint.
“This brand definitely is in a very good spot,” Lu said.
Comfort Colors’ rise is particularly interesting given that the brand focuses more on selling in bulk than directly to consumers, unlike other T-shirt makers like Nike, Lu said. He explained that since Comfort Colors is mainly selling product via middlemen who can screen print on them, the shirts end up appearing more unique — which is another desirable quality for Gen Z shoppers.
Behind the scenes, Gildan is likely benefiting from Comfort Colors’ sourcing in the Western Hemisphere, Lu said. While countries in this region have been hit by President Donald Trump’s tariffs, the levies have typically been less steep than those slapped on Asia, he said.
Because shoppers tend to view T-shirts as a staples, these items may show stability even when consumer sentiment falls, Lu said.

Frats to folk

Plus, across the country, Comfort Colors shirts are outfitting social groups and sitting on merchandise stands at events. Musical acts including Maggie Rogers and Mumford & Sons printed tour merchandise on Comfort Colors shirts. Brands ranging from Coors Light to Star Trek sell its apparel, as do local bars and eateries. Women’s soccer team Gotham Football Club has several official Comfort Colors spirit wear shirts.
When Chelsea Green opened The Yard Milkshake Bar, she already knew of Comfort Colors from seeing the brand on college campuses. She said it’s the most popular type of merchandise for The Yard Milkshake Bar, particularly with younger shoppers who are familiar the brand and sometimes use the shirts for sleepwear or as beach coverups.
“I knew that I had Comfort Colors T-shirts already in my closet,” Green said. “I was like, ‘that’s what I want.’ I didn’t even research it.”

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To be sure, Green acknowledged that the shirts can be pricier than some competitors’ and she at times ran into supply shortages during the Covid-19 pandemic. However, the color options and quality have made overcoming these obstacles worthwhile, she said.
Social organizations such as Cannon’s collegiate a cappella group have also turned to Comfort Colors. Similarly, fraternity Sigma Chi and sorority Pi Beta Phi each sell dozens of Comfort Colors shirts in their online shops.
On a fraternity-focused Reddit forum, a user asked what T-shirt brands people used for screen printing. One respondent said Comfort Colors is their “go-to.” Use Comfort Colors, another said, “or you’re at risk of getting tar and feathered.” More

Budrul Chukrut | SOPA Images | Lightrocket | Getty Images

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)

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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