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Travel credit cards that offer premium rewards and perks charge annual costs that can range from $95 to upwards of $500, according to NerdWallet.
In addition to high annual costs, their interest rates can be higher than usual, experts say.
Here’s how to know if the cost is worth it, according to experts.

Oleksandra Yagello | Moment | Getty Images

As some popular travel credit cards boost annual fees and amend benefits, experts say it’s time to reassess which cards — if any — merit a spot in your wallet.
“Annual fees are not inherently bad; you just need to make sure that you’re getting value from [the card],” said Ted Rossman, an industry analyst at Bankrate. “It’s getting harder to maximize, though.”

In June, the Chase Sapphire Reserve card raised the annual fee to $795. That’s a 45% jump from $550, its previous annual cost.
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Other credit cards have been changing terms to access perks like airport lounges. Earlier this summer, Capital One announced that, starting in February, customers using its Venture X Rewards and Venture X Business cards — each of which have $395 annual fees — will no longer be able to bring guests to the lounges free of charge.
That follows news from American Express that travelers who have an American Express Platinum card — which costs $695 a year — must spend $75,000 in eligible purchases before they can bring up to two guests to an airport lounge. Previously, there was no minimum spend and cardholders could bring up to two guests for free, according to NerdWallet.
Here’s how to decide if a travel credit card is worth the investment.

One habit will ‘easily diminish’ travel card value

A travel rewards card isn’t likely to be a good value if you’re carrying a balance from month to month, experts say.
“Any interest that you owe will easily diminish the value of any of these benefits,” said Sally French, a travel expert at NerdWallet. 
It may also be harder to pay down debt. While the average annual percentage rate for credit cards is about 20.13%, the typical rate on premium travel cards can be closer to 25% to 30%, according to Rossman. 
“Generally speaking, rewards cards charge higher rates,” he said.

Decide: Broad travel card, or brand specific?

You’ll come across two kinds of travel credit cards. Co-branded credit cards are usually tied to specific airlines, hotels or even cruise chains, and provide benefits that are more valuable at that brand, French said.
If you frequently use a specific airline or tend to stay with a certain hotel chain, a co-branded credit card may be worth it, experts say.
An airline credit card, for instance, might have benefits like free checked bags, priority boarding, premium status tiers and sometimes discounts or points for spending at that airline.
“It’s only free check [checked?] bags on that airline,” said French. “Your Southwest credit card won’t get you anything on United.”
Some airlines belong to partnership networks such as Star Alliance, Oneworld or SkyTeam. If you’re looking at a brand-specific card, see if the company has partnerships that allow you to transfer points or miles to allied brands.

On the other hand, general travel credit cards are “really good for people who don’t want to be married to a specific brand,” as you can earn and use rewards more broadly, French said.
Some travel credit cards do not charge annual fees; for those that do, the cost can range from $95 to upwards of $500 a year, per NerdWallet. Keep in mind that travel credit cards with little to no fees may not offer the same level of benefits and rewards as paid cards.
Both kinds of travel cards tend to have a set of similar perks, including credits for TSA PreCheck and other pre-screening memberships, and big sign-on bonuses when you spend a certain amount of money on the card within a short period of opening it. As a frequent traveler, such benefits can help make the card fee worth the cost, experts say.
To assess the benefits of the card, look at a detailed list of the perks on the issuer’s website, said French. A card might charge an annual fee, but say it includes one free checked bag for you and a certain amount of guests. With just that perk, the card could pay for itself within a trip or two for a family.

How to know what card is best for you

While some of the perks and rewards can seem enticing, it’s important to consider your travel habits and lifestyle, said Rossman. Also consider what your credit habits are like, experts say. 
For those who do not travel often, a travel credit card without an annual fee is probably going to be the best option, said French.
“You don’t want to be paying an annual fee on a credit card that has benefits that you might not use,” she said. 

If you travel frequently in a given year and typically with a specific airline, a co-branded credit card can make sense, French said. 
If you currently hold a card with a high annual fee, but realize you’re not getting the most use out of it, you may be able to downgrade to a less expensive or free card offered by the issuer, Rossman said. 
Doing so will be better for your credit rather than closing out the card altogether, he said.  More

The Chevron logo is seen at a gas station on July 18, 2025 in Austin, Texas.
Brandon Bell | Getty Images

The Trump administration’s fluctuating trade policies add uncertainty into the economy, but investors seeking stable income can look at dividend stocks to bolster their portfolios.
To this end, the recommendations of top Wall Street analysts can help investors pick the dividend stocks that support consistent payments.

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

Chevron

The first dividend-paying company in this week’s list is energy giant Chevron (CVX). The company recently delivered market-beating earnings for the second quarter. However, earnings declined compared to the prior-year quarter due to lower oil prices. Meanwhile, Chevron expects the recently completed Hess deal to begin contributing to its earnings in the fourth quarter of this year.
In Q2, Chevron returned $5.5 billion of cash to shareholders via share repurchases of $2.6 billion and dividends of $2.9 billion. CVX stock offers a dividend yield of 4.4%.
Following the Q2 print, Morgan Stanley analyst Devin McDermott resumed coverage of Chevron stock with a buy rating and a price target of $174. TipRanks’ AI Analyst also has an “outperform” rating on CVX stock with a price target of $171.
McDermott highlighted Chevron’s Q2 earnings beat. The analyst said that the recent closing of the Hess acquisition removes a major overhang and strengthens CVX’s business. The Hess deal is expected to enhance Chevron’s growth and portfolio duration.

Additionally, the 5-star analyst noted that while Chevron has lagged peer Exxon Mobil (XOM) in recent years, the Hess deal, along with the Tengizchevroil (TCO) project and cost-cutting measures, is expected to close the gap on growth, at least over the next 2 to 3 years. “With a ~$12.5B cash flow inflection underway, CVX’s 2026 FCF [free cash flow] yield of 8% compares to XOM at 6% and COP at 7%,” said McDermott. 
McDermott ranks No. 406 among more than 9,900 analysts tracked by TipRanks. His ratings have been profitable 59% of the time, delivering an average return of 11.6%. See Chevron Statistics on TipRanks.

Rithm Capital

We move to Rithm Capital (RITM), an asset manager with significant experience in managing credit and real estate assets. The company recently announced better-than-expected second-quarter results. Rithm Capital paid a dividend of 25 cents per share for the second quarter of 2025. At an annualized dividend of $1 per share, RITM stock offers a dividend yield of 8.2%.
Reacting to the Q2 performance, RBC Capital analyst Kenneth Lee raised his price forecast on Rithm Capital stock to $14 from $13 while reaffirming a buy rating. In comparison, TipRanks’ AI Analyst has a “neutral” rating on RITM stock.
The top-rated analyst noted that Rithm Capital reported Q2 2025 earnings available for distribution (EAD) of 54 cents per share, surpassing RBC and the Street’s consensus estimate of 52 cents. Given the strong results, Lee raised his EAD per share estimate for 2025 to $2.24 from $2.21. He also raised his 2026 EAD per share estimate to $2.30 from $2.27.
“We favor RITM as it pivots towards being an alternative investment manager, with a fee-based, capital-light business model, over time,” said Lee.
Based on management’s comments, Lee noted that Rithm might not spin off or list its Newrez business and would rather focus on growing the earnings stream within the business. He views RITM’s renewed focus on growth and ROE (return on equity) enhancement positively. Lee also highlighted that Rithm Capital is seeing notable cost benefits through the implementation of initiatives related to artificial intelligence.
Lee ranks No. 22 among more than 9,900 analysts tracked by TipRanks. His ratings have been successful 74% of the time, delivering an average return of 18.7%. See Rithm Capital Hedge Fund Activity on TipRanks.

AT&T

Finally, let’s look at telecom giant AT&T (T). The company delivered better-than-anticipated second-quarter earnings, topping market expectations for wireless postpaid subscriber additions. AT&T offers a quarterly dividend of $0.2775 per share. At an annualized dividend of $1.11 per share, AT&T’s dividend yield stands at about 4%.
In reaction to the Q2 results, RBC Capital analyst Jonathan Atkin reiterated a buy rating on AT&T stock with a price target of $31. In comparison, TipRanks’ AI Analyst has a “neutral” rating with a price target of $30.
Atkin explained that AT&T’s Q2 revenue beat was driven by higher-than-expected Wireless equipment revenues. Furthermore, adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) exceeded expectations, thanks to the strength in the company’s Wireline business, which offset softer Wireless profits.
The analyst noted that AT&T’s revised 2025 guidance reflects cash tax benefits, the improved trajectory of the Wireline business, and a more competitive Wireless backdrop. Atkin added that the company’s free cash flow outlook was revised to the low-to-mid $16 billion range compared to the previous guidance of more than $16 billion, which implies that most of the cash tax benefit will be reinvested into fiber capex and pension funding.
The 5-star analyst stated that while estimates for revenue, EBITDA, and EPS for 2026 and 2027 remain unchanged, AT&T’s free cash flow outlook was increased by $1 billion for both years to reflect cash tax benefits, net of incremental investments. Atkin stated that he supports management’s decision to prioritize capital investments that are expected to drive long-term growth, and “highlight the company’s traction in switching off legacy networks.”
Atkin ranks No. 234 among more than 9,900 analysts tracked by TipRanks. His ratings have been successful 67% of the time, delivering an average return of 11.3%. See AT&T Insider Trading Activity on TipRanks. More

As President Donald Trump’s tariffs threaten to hike prices, some states are offering sales tax holidays to boost spending and provide relief.
Eligible items vary by state, but can include categories like back-to-school shopping or supplies for disaster preparedness.
For 2025, 19 states have held or will hold sales tax holidays, which matches the number from 2024, according to the Tax Foundation, as of July 22. 

Sales tax free week at the Connecticut Post Mall, in Milford, Conn. Aug. 19, 2024.
Connecticut Post/hearst Newspapers | Hearst Newspapers | Getty Images

Every year, a handful of states offer shoppers a temporary tax break to encourage spending. This year, some of those “sales tax holidays” are happening as President Donald Trump’s tariffs threaten to hike prices.
These holidays waive state sales tax (and sometimes local levies) on certain purchases for a set period. While eligible items vary by state, many include categories like back-to-school shopping or supplies for disaster preparedness.

“Sales tax holidays are politically popular because everyone likes tax relief,” said Katherine Loughead, a senior policy analyst and research manager with the Center for State Tax Policy at the Tax Foundation, where she has researched the topic.
But “it’s not as good a deal” as policymakers and consumers expect, she said.
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While sales tax holiday supporters claim the policy boosts economic growth, some research suggests that consumers simply shift the timing of their essential purchases, Loughead said.
“Wealthier taxpayers are often best positioned to benefit from a temporary exemption” because they have the flexibility to choose when to make purchases, Miles Trinidad, a state analyst for the Institute on Taxation and Economic Policy, wrote in a July blog post.

However, some middle- to lower-income families do plan for yearly sales tax holidays, particularly for bigger purchases like back-to-school shopping, experts say.

Shelly Werger, 49, with her family in Iowa.
Courtesy: Shelly Werger

Shelly Werger, a mother of seven in Guttenberg, Iowa, says she tracked the timing of her state’s Aug. 1-2 sales tax holiday. “Everything is just getting so expensive right now that I am doing everything I can to save money here and there,” she said.
However, in Iowa, the exemption only covers clothing and footwear under $100 and not school supplies, computers or sports equipment — “we get a little bit of savings but not a lot,” Werger said.

Which states have sales tax holidays for 2025

“A lot of states are offering sales tax holidays again this year,” Loughead said. “Some of them have gotten more generous, while others have been trimmed back.”
For 2025, 19 states have held or will hold sales tax holidays, which matches the number from 2024, according to the Tax Foundation, as of July 22. 
Here’s a breakdown of the dates for 2025, eligible items and price limits.

A money-saving tool for shoppers

Any money-saving opportunity, particularly ahead of the peak back-to-school shopping season, can be a benefit for families squeezed by higher costs.
A survey conducted last year by ParentsTogether, a national parenting organization, found that 75% of parents said back-to-school shopping causes significant stress, and 47% reported cutting back on food to afford school supplies.
More recently, a report from Intuit Credit Karma found that 39% of parents said they were unable to afford back-to-school shopping this year, up from 34% in 2024. Many of them started shopping earlier than usual to prepare for tariff-related price hikes and to take advantage of sales tax holidays along with other summer sales, the report found. 

“Families are kicking off their back-to-school shopping earlier this year and are keeping an eye out for key ways to save, including retailer sales and deals as well as events like tax-free holidays,” said Katherine Cullen, the National Retail Federation’s vice president of industry and consumer insights.
While skipping the state tax could save up to 7% in some places, “the even bigger impact is when you combine that discount with other savings strategies,” advised Ted Rossman, Bankrate’s senior industry analyst.
For example, “you can combine that with a store promotion — maybe they give 30% off. You could use a rewards credit card for 5% cash back. And let’s say you use an online shopping portal… for another 10% cash back,” Rossman said. “Something that would have cost you $100 (inclusive of sales tax) now might cost about half that.” More

President Donald Trump’s “big beautiful bill” includes a section called “no tax on tips.” 
The deduction is worth up to $25,000 for qualified workers — and it phases out, or gets smaller, once earnings exceed $150,000.
While the provision was recently signed into law via Trump’s spending package, questions remain about how it will play out and who qualifies.

Bartender Athena Young cleans glasses while speaking to the Review-Journal about the “no tax on tips” policy at Atomic Kitchen in Las Vegas, Wednesday, July 31, 2024.
Las Vegas Review-journal | Tribune News Service | Getty Images

Maddy Lopez, a bartender in Los Angeles, has spent 25 years working in the restaurant industry, where tips can make up a significant portion of a worker’s income. 
When she heard about President Donald Trump’s “big beautiful bill,” which includes a section called “no tax on tips,” she said her first reaction was: “It’s a little too good to be true.”

Lopez said that in her experience, tax breaks often seem to include “a catch,” and she isn’t sure the benefit will be as generous as some workers expect.
It’s a reasonable question, experts say: Some key details of the provision — including which occupations and kinds of gratuities may qualify — are still unclear. There’s also some confusion among workers about how the tax break works.
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T. Cooper, a hair and makeup stylist in New York City, said that the measure is “being perceived incorrectly” among tipped workers she knows. 
“A lot of people don’t understand that you will still have to pay the tax on tips,” she said.

How ‘no tax on tips’ works

Both Republicans and Democrats floated the “no tax on tips” idea during the 2024 presidential campaign.
The “no tax on tips” provision in Trump’s “big beautiful bill” provides a deduction worth up to $25,000. This tax break, which is available even if you don’t itemize deductions, reduces taxable income.
The deduction phases out, or gets smaller, once modified adjusted gross income exceeds $150,000. The law is also temporary; the tax break is available from 2025 through 2028.
However, “you’re still likely paying state taxes” on tip income, and you’ll owe payroll levies for Medicare and Social Security, said Ben Henry-Moreland, a certified financial planner with advisor platform Kitces.com, who analyzed the legislation.

A lot of people don’t understand that you will still have to pay the tax on tips.

a hair and makeup stylist in New York City

Deductible tips must appear on information returns from your employer, such as Form W-2 or 1099. But the agency’s reporting rules for tip income remain unclear, experts say. For example, questions remain about how employers need to report tips on Forms W-2 or 1099 to qualify for the deduction.
Currently, workers who make $20 or more per month in tips must report those earnings to employers, according to the IRS. Tips can include cash directly paid by customers, payouts from tip-sharing structures among employees and credit card payments.
The IRS is expected to clarify which occupations qualify for the tax break in early October, per the agency.

What counts as ‘qualified tips’

According to the provision, “qualified tips” include cash or gratuity paid by credit card, as well as earnings from a sharing arrangement.
But it also says tips must be paid voluntarily by the customer. That puts automatic service charges — like mandatory gratuity charges restaurants impose on larger parties — in question, experts say.
Adding to the reporting confusion, it’s not unusual for those kinds of mandatory gratuities to mix with other tip income and simply appear as tips on tax forms, Lopez, the bartender, said of her experience. 

Customers are tipping less

In some industries, tipping has decreased as consumer sentiment declines. During the second quarter of 2025, the average tip across restaurants, cafes and bars was at 14.99%, down from 15.17% the prior quarter, according to a new report by Square, a technology services company.
“As consumer confidence in the economy shifts and tips fall, workers are taking home less,” Ming-Tai Huh, head of food and beverage at Square, wrote in the report.
Some consumers are also experiencing “tipping fatigue.” About 41% of Americans said that “tipping is out of control” in 2025, up from 25% last year, according to a Bankrate report.

Miodrag Ignjatovic | E+ | Getty Images

Some workers say higher service costs and reduced consumer spending have contributed to these tipping trends.
In the hair industry, prices typically rise every year as the cost of materials, rent and services go up, said Cooper. 
“So it’s not that people have an issue with tipping,” she said. “The service overall has just become way more expensive.”
In restaurants and bars, it’s not unusual to see smaller checks these days, Lopez said, which makes your tip average decline.
For example, previously, a $200 tab could earn $40 in tips. But nowadays, a typical tab could be $100, she said, and “you’re only making $20 on the same guest.” More

Roughly 23% of polled consumers have used buy now, pay later loans for concerts or festivals, according to a survey by LendingTree.
Buy now, pay later loans and credit cards both have advantages and disadvantages for ticket purchases.
“Carve out money in your budget as your ‘Beyoncé fund’ or your ‘Taylor Swift fund,'” said Matt Schulz, chief credit analyst at LendingTree.

Fans enjoy Taylor Swift’s performance during The Eras Tour at SoFi Stadium in Inglewood, California, Aug. 7, 2023.
Allen J. Schaben | Los Angeles Times | Getty Images

Many Americans have become accustomed to breaking up big purchases with buy now, pay later loans — including tickets for concerts and other live events.
Going to a live concert is not cheap: Tours of big-name artists including Taylor Swift, Beyoncé and Coldplay have in part spurred a rise in ticket prices for live events in recent years, a trend economists call “funflation.”

Admission fees to movies, theaters and concerts were up 3.9% in the 12 months through June, according to the latest Bureau of Labor Statistics figures. And while the Federal Trade Commission changed a rule in May to make ticket pricing more transparent, experts say the move won’t make costs go down.
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Almost a quarter, 23%, of respondents in a new survey by LendingTree said they have used buy now, pay later loans for concert or festival costs.
Rates are higher among younger generations, with 37% of Generation Z and 35% of millennials saying they’ve used the loans for these purposes. The site defined Gen Z as adults ages 18 to 28, and millennials as those ages 29 to 44.
To compare, 19% of Gen Xers, which the site defines as adults ages 45 to 60 — said they’ve used buy now, pay later loans for concerts, followed by 3% of baby boomers, those ages 61 to 79.

Carve out money in your budget as your ‘Beyoncé fund’ or your ‘Taylor Swift fund.’

Matt Schulz
chief credit analyst at LendingTree

LendingTree said it surveyed 2,050 adults in the U.S. in mid-June. Of those, 1,047 said they plan to attend a concert or festival in the summer or fall.
It’s not unusual to see Gen Zers and millennials leading the use of buy now, pay later loans, said Matt Schulz, chief credit analyst at LendingTree.
Young Americans are most familiar with the form of payment, and their use of it for concerts and festivals speaks to the “time of life” they’re in, he said.
“Part of the reason why I ended up in credit card debt in my 20s was because I was going to concerts and seeing my favorite bands,” Schulz said.

If concerts and other live events are important to you, he said, work the expenses into your budget and create a savings fund specifically with them in mind.
“Carve out money in your budget as your ‘Beyoncé fund’ or your ‘Taylor Swift fund,'” Schulz said.
If you do need to stretch out the cost of attending a concert, here’s what to know about buy now, pay later loans versus credit cards.

Not all buy now, pay later plans are the same

Beyoncé performs onstage during the Renaissance World Tour at SoFi Stadium in Inglewood, California, Sept. 1, 2023.
Kevin Mazur | Wireimage | Getty Images

Buy now, pay later plans have certain advantages, but they might not offer the same protections as credit cards, especially if things go wrong with the concert or live event, experts say.
The loans became a popular option because they allow consumers to spread the total cost over installment payments in a short time frame, often without interest, said Greg McBride, chief financial analyst at Bankrate.
However, the form of payment has evolved to the point where not all buy now, pay later plans are “cut from the same mold,” he said.
Most plans consist of four installment payments, but others have longer repayment terms. Those may charge an annual percentage rate, or interest, of up to 36%, according to NerdWallet. 
Some plans also charge fees for late or rescheduled payments, which can cost up to $15 or even 25% of the purchase value, according to NerdWallet.

Credit cards can be pricier than buy now, pay later, experts say, but they have other advantages.
Like some buy now, pay later plans, credit cards charge late fees and interest on unpaid balances. While some cards offer new cardholders brief interest-free offers on purchases, the average credit card interest rate is just over 20%, according to Bankrate.
But most cards typically offer purchase protections that you might not get from a buy now, pay later plan, said McBride.
“Paying with a credit card can make it easier to get your money back if the concert gets canceled,” he said.
Some cards offer rewards such as cash back, points or miles on purchases. About 65% of those who plan to attend a concert or festival this year said they will use credit card rewards to help pay for their costs, according to LendingTree’s report.  More

Viasat offices are shown at the company’s headquarters in Carlsbad, California, on March 9, 2022.
Mike Blake | Reuters

Company: Viasat Inc (VSAT)
Business: Viasat is a global communications and defense technology company that operates at the intersection of secure communications, global connectivity, as well as aerospace and defense technology. The company operates in two business segments: Communication Services and Defense and Advanced Technologies (DAT). The Communications Services segment encompasses Viasat’s fixed broadband, government, maritime and inflight communications services. The DAT segment offers defense-technology platforms for information security and cyber defense, space and mission systems, tactical networking and advanced technologies.
Stock Market Value: $3.44B ($25.62 per share)

Stock chart icon

Viasat in 2025

Activist: Carronade Capital Management LP

Ownership: 2.60%
Average Cost: n/a
Activist Commentary: Carronade Capital is a multi-strategy investment firm that focuses on process-driven investments in catalyst-rich situations. Carronade was founded in 2019 by Dan Gropper as primarily a credit investor. But, four people on the firm’s seven-person investment team, including Gropper, have spent considerable time working at Elliott Management: They have experience with shareholder activism and are not afraid to use it.
What’s happening
On July 31, Carronade sent a letter calling on Viasat to separate its Defense and Advanced Technologies (“DAT”) business through a spin-off or initial public offering.
Behind the scenes
Viasat operates in two businesses segments: Communications (73% of revenue and 80% of earnings before interest, taxes, depreciation and amortization) and Defense and Advanced Technologies (“DAT”) (27% of revenue and 20% of EBITDA). Communications is Viasat’s legacy satellite business, with offerings of fixed broadband, government, maritime and inflight communications (IFC). DAT offers defense-technology platforms for information security and cyber defense, space and mission systems, tactical networking and other advanced technologies. This is a newer but rapidly growing business, with high to mid-teens revenue growth. Despite the company’s strong strategic positioning, prior to Carronade’s engagement, Viasat’s share price had significantly underperformed, down 21.12%, 51.56%, and 57.98% over the past 1-,3-, and 5-year periods, respectively.

As Carronade describes in its letter, this is a “materially misunderstood” business. Carronade believes that the reason why this company is trading down is simple: Viasat has been treated by the market as a small-cap legacy satellite company that has been marked for death due to new high-profile entrants like Starlink. This narrative is two pronged: (i) that Starlink and similar entrants will make Viasat’s Broadband business obsolete and (ii) that they are encroaching on Viasat’s IFC market dominance. It is true that the broadband business is declining, as revenue is down over 27% year over year, but this is only a piece of the Communications business and the worst piece with the lowest margins. The Communications segment also has three other businesses: (i) Government, which is growing approximately 25% year over year; (ii) IFC, with 22% growth; and (iii) Maritime, which is growing at 11%. The second part of this narrative – the market threat in IFC – is greatly exaggerated. Viasat’s IFC business is not going anywhere. The company’s customers have long-term contracts (five to 10 years) and face high switching costs as they would need to replace their entire connectivity systems. Viasat presently has customers with 4,120 planes and a backlog of another 1,600 planes from just those existing customers. And this is a very nascent market with only approximately one third of airplanes globally having Wi-Fi, so there is a huge untapped market, which Viasat should get a large piece of despite competition from Starlink and other competitors. Additionally, Viasat is aware of the Broadband drag and is actively pivoting out of it to double down on the growth businesses with better margins. Exiting the broadband business over time while the other businesses continue to grow could be a plus for the company as it will no longer be viewed as a sleepy broadband communications business.
But that isn’t even the biggest misunderstanding of Viasat’s business. The DAT business has been buried under the legacy business and its accompanying negative sentiment. DAT is a hidden gem, with best-in-class EBITDA margins of 28%, double-digit revenue growth, and significant exposure to hot button next-generation defense and dual-use technologies such as the Golden Dome, next-generation encryption, drones, device-to-device (D2D) and low Earth orbit. While Carronade highlights how each of these translates into promising growth avenues, perhaps the best illustration of DAT’s mis-valuation lies in its D2D platform services, which is designed to enable global connectivity directly to unmodified smartphones and other Internet of Things devices. DAT has $1.22 billion of revenue and $285 million of EBITDA. The peer comps to DAT – companies like AeroVironment, Kratos, Mercury Systems and Redwire all have lower margins and weaker growth profiles, yet trade at multiples ranging between the mid-20s to above 80-times EBITDA. Viasat currently trades at approximately six-times EBITDA.
Carronade’s proposed solution is simple but compelling: spin-off or IPO the DAT business to unlock this intrinsic value and eliminate the drag caused by the narratives orbiting the satellite business. Carronade models 20-times to 51-times (comp median) valuations for this business giving it a value of $6.3 billion to $16.2 billion, versus a present enterprise value for the entire company of approximately $8 billion. This leaves the Communications segment with $3.3 billion of revenue and $1.2 billion of EBITDA. Applying a conservative 4-times value to this business creates another $4.9 billion of value, and there is another $1 billion of value from the upfront and long-term annual payments pursuant to a recent legal settlement with Ligado Networks. According to the Carronade analysis, this gives Viasat a total valuation of anywhere from $48.93 per share to $112.49 per share or a 76% to 304% return.
Carronade is a multi-strategy firm that focuses on investing in non-traditional, undervalued debt instruments. Viasat is highly levered, and its investment base is filled with creditors, so we imagine Carronade likely entered its position (currently approximately 2.6% of shares outstanding) in a similar fashion. The firm’s analysis almost seems too good to be true, but there is not a lot of focus on small-cap companies in today’s market and this lack of focus is exacerbated when you have companies like Starlink greatly winning the PR battle against companies like Viasat. This is how a company can go from $34 per share to $16 per share (prior to Carronade’s engagement) over two years despite revenue increasing from $2.6 billion to $4.5 billion and EBITDA growing from $344 million to $1.4 billion. Fortunately for Viasat shareholders, Carronade’s involvement should help bring the market’s attention to this strong value case. While Carronade is not known for confrontational activism, that is OK, because this is a situation where no more than a nudge should be needed and Carronade’s best weapon is the power of the argument. Moreover, management has already signaled that they have been considering selling some of the DAT business, suggesting that they may already recognize Carronade’s value proposition and are headed in the right direction.
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. Viasat is owned in the fund. More

A record number of Americans are now reaching retirement age.
CNBC.com wants to know: Is your retirement reality matching your expectations?
If you’d be willing to share your experiences for a future story, please reach out.

Patchareeporn Sakoolchai | Moment | Getty Images

CNBC.com is looking to hear from retirees on how they are doing financially in today’s economy.
A large surge of Americans will reach “Peak 65,” with more than 4.1 million individuals turning 65 each year from 2024 through 2027, according to the Alliance for Lifetime Income. Factors like tariffs and inflation may affect those retirees and aspiring retirees differently.

If you’ve reached that life stage, are you living the retirement that you had envisioned? If so, how did you do it?
Are there ways in which you could be doing better financially? If so, what could be better, and how do you want it to change?
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Historically, the Standard Plan — which divides the debt into fixed payments over 10 years — was the quickest way for federal student loan borrowers to pay down their debt.
But President Donald Trump’s ‘big beautiful bill’ made the plan’s repayment term longer for those with larger balances.
As a result, many borrowers will pay more in interest charges over the life of the loan.

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President Donald Trump’s “big beautiful bill” overhauled the so-called Standard Repayment Plan for federal student loan borrowers.
Next year, millions of current borrowers will have access to the changed program. For new borrowers, it will be one of just two options available to pay back their debt.

That may not be to their benefit, experts say: For some borrowers, the new Standard Plan will keep them in debt longer and add tens of thousands of dollars to the total they must repay.
“The design of the new plan, in which a borrower’s payment term is scaled up in five-year increments based on arbitrary thresholds, means some borrowers will face a problematic ‘cliff effect,'” said Michele Shepard Zampini, senior director of college affordability at The Institute For College Access & Success.
“A small difference in their balance will tip them into the next tier and extend their term,” Zampini said.
Here’s what to know about the changes to the Standard Plan.

Repayment terms stretch from 10 up to 25 years

The current Standard Plan is fairly simple: Borrowers typically have their debt divided into fixed payments over 10 years.

It’s often the fastest option for people to pay off their student debt, compared with the U.S. Department of Education’s other income-driven repayment plans. Historically, IDR plans cap a borrowers’ monthly bill at a share of their discretionary income, and lead to loan cancellation after a certain period — typically 20 years or 25 years. (But the recent law makes changes to those plans, too. )

We anticipate an explosion of senior debtors.

Astra Taylor
co-founder of the Debt Collective

The new Standard Plan will spread a borrower’s debt into fixed payments over one of four timeframes, depending on what they owe.
Those who’ve borrowed up to $24,999 will still have a 10-year repayment term. But those who owe between $25,000 and $49,999 will pay their debt back over 15 years; a balance ranging from $50,000 to $99,999 will be paid back over 20 years; and a debt over $100,000 will lead to a 25-year repayment term.
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The longer timelines will force people to carry debt later into their lives, when they should be preparing for retirement, said Astra Taylor, co-founder of the Debt Collective, a union for debtors.
“We anticipate an explosion of senior debtors,” Taylor said, in an earlier interview with CNBC.

Longer repayment times add to borrowers’ cost

Under the new Standard Plan, some borrowers with higher balances may have lower monthly bills than under the current plan because their repayment term is longer, said Zampini.
“However, many such borrowers will pay more in total over the life of the loan, as compared to the current Standard Plan,” Zampini said.
Indeed, a borrower who took out $100,000 in federal student loans would repay around $125,000 over 10 years under the current Standard Plan, according to an analysis by Kantrowitz. (He assumed a 5% interest rate.)
But under the revised plan, that same borrower would be required to pay back more than $175,000 during their 25-year term — a difference of nearly $50,000.

Some borrowers face ‘a world of two choices’

The modified Standard Plan will be available by July 1, 2026, according to the Education Dept.
That plan will be one of just two repayment options available to borrowers who take out student loans after that date, along with Republicans’ new IDR plan, called the Repayment Assistance Plan, or RAP.
Borrowers with loans taken out before July 1, 2026 will maintain access to some existing repayment plans, including Income-Based Repayment, or IBR, and the current 10-year Standard Plan.

But keep in mind: Even borrowers with old loans who take out a new one after July 1, 2026, will lose the existing options for that loan, said Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers.
“If you borrow again, you will be in the world of two choices,” Buchanan said. More