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Macroeconomic woes and geopolitical tensions have been weighing on investor sentiment, shaking up the major averages in the past week.
Investors seeking stability may want to turn to dividend-paying stocks.

They can follow the recommendations of Wall Street analysts, who conduct a thorough analysis of the financials of the dividend-paying companies and assess their ability to grow their dividends over the long term.     
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.
Enterprise Products Partners
This week’s first dividend stock is Enterprise Products Partners (EPD), a midstream energy services provider. The limited partnership has increased its cash distribution for 25 consecutive years at a compound annual growth rate of 7%.
On April 5, Enterprise Products announced a quarterly cash distribution of $0.515 per unit, payable on May 14. This payment reflects an increase of 5.1% year over year. EPD stock offers an attractive dividend yield of 7.1%.
Following the company’s investor update call held earlier this month, RBC Capital analyst Elvira Scotto reiterated a buy rating on EPD stock with a price target of $35. The analyst said that the call supported her view that the company is well-positioned to gain from its organic growth projects, which are expected to come online through 2026.

Scotto added that the company’s organic projects (like the Mentone West 2 natural gas processing plant in the Delaware) are mainly focused on the Permian Basin, where it expects consistent growth for at least another 10 years.
The analyst is confident about EPD’s ability to support its growth investments, thanks to a strong operations base and balance sheet. Further, she expects mid-single-digit growth in the company’s distributions.
“EPD remains comfortable returning 55-60% of its adjusted CFO (cash flow from operation) to investors through distributions and buybacks,” said Scotto.
Scotto ranks No. 84 among more than 8,700 analysts tracked by TipRanks. Her ratings have been profitable 64% of the time, with each delivering an average return of 17.8%. (See EPD Technical Analysis on TipRanks) 
Goldman Sachs
Let’s move to Goldman Sachs (GS), one of the leading investment banks in the U.S. The bank recently reported better-than-anticipated first-quarter results, driven by a rise in trading and investment banking revenue. A rebound in capital market activities helped it deliver solid performance.
In the first quarter, Goldman Sachs returned $2.43 billion of capital to shareholders through share repurchases worth $1.5 billion and dividends of $929 million. The bank declared a dividend of $2.75 per share, payable on June 27. GS stock offers a dividend yield of 2.7%
In reaction to the impressive Q1 print, Argus analyst Stephen Biggar upgraded his rating for Goldman Sachs to buy from hold with a price target of $465, saying that the results “demonstrated the considerable strengths of the Goldman franchise during an investment banking upturn.”
While there were some appearances of false rebounds in the investment banking space in 2023, the analyst thinks that the current recovery appears to have the power to persist. His optimism is supported by the encouraging sequential improvement in the equity and debt underwriting business. He is further encouraged by the high-teens year-over-year growth in industrywide announced M&A deal value in the first quarter.
Biggar expects these factors to drive improved revenues in the second half of 2024. He highlighted data from the Securities Industry and Financial Markets Association, which indicates a triple-digit year-over-year increase in capital formation in Q1 2024. Notably, the value of IPO issuance jumped 239%, while secondary issuance surged 110% in the first quarter.
Biggar ranks No. 603 among more than 8,700 analysts tracked by TipRanks. His ratings have been profitable 60% of the time, with each delivering an average return of 11.8%. (See Goldman Sachs Stock Buybacks on TipRanks)
Cisco Systems
Finally, let’s look at Cisco Systems (CSCO), a networking equipment maker. In the second quarter of fiscal 2024, the company returned a total of $2.8 billion to stockholders through share repurchases and dividends of 39 cents per share.
Cisco announced a roughly 3% increase in its dividend to 40 cents per share, beginning the payment in April 2024. The stock has a dividend yield of 3.3%.
On April 15, Bank of America Securities analyst Tal Liani upgraded Cisco Systems to buy from hold and increased the price target to $60 from $55, citing valuation and three catalysts: AI-related tailwinds, growth in the security business and synergies from the recently completed Splunk acquisition.
“We expect Networking to start normalizing and see renewed growth driven by Cisco’s share gains in Ethernet-based AI buildouts of hyperscalers,” said Liani.
While the analyst agrees that the next two quarters may continue to be under pressure, he contends that this downtrend is fully reflected in Wall Street’s expectations. He thinks that management’s guidance is adequately conservative.
Meanwhile, Liani expects the company’s security business growth to accelerate, driven by stabilization in the firewall space and its recently launched products.
Liani holds the 532nd position among more than 8,700 analysts tracked by TipRanks. His ratings have been successful 55% of the time, with each delivering an average return of 10.9%. (See Cisco Ownership Structure on TipRanks) More

YOUR GUIDE TO NAVIGATING YOUR FINANCIAL FUTURE

In her upcoming book, “Financially Lit!: The Modern Latina’s Guide to Level Up Your Dinero & Become Financially Poderosa,” author Jannese Torres discusses how she became the first woman in her family to graduate from college, build a career and achieve what she believed were marks of success.
“Homeownership is one of those things where more people need to question if they have the personality, lifestyle, or the value system for this, or are you just wanting to do it because that’s what everybody else is telling you to do,” Torres said.

Jannese Torres is the founder of the blog Delish D’Lites and the podcast “Yo Quiero Dinero.”
Photo Jannese Torres

In her upcoming book, “Financially Lit!: The Modern Latina’s Guide to Level Up Your Dinero & Become Financially Poderosa,” author Jannese Torres discusses how she became the first woman in her family to graduate from college, build a career and achieve what she believed were marks of success.
Yet in her pursuit of the American dream, she realized that she didn’t know what to do with her financial success. She also realized certain milestones, such as homeownership, often aren’t so much achievements as a new set of challenges.

“It’s just important for people not to just feel this pressure to buy a home because you’re a certain age or you’ve reached a certain life milestone,” said Torres, a Latina money expert who hosts the podcast “Yo Quiero Dinero” and an entrepreneurship coach who helps clients pursue financial independence.

As part of its National Financial Literacy Month efforts, CNBC will be featuring stories throughout the month dedicated to helping people manage, grow and protect their money so they can truly live ambitiously.

CNBC spoke with Torres in early April about what drove her to write her new book, how she has worked through “financial survivor’s guilt,” and why pursuing the American dream can become a nightmare for some.
(This interview has been edited and condensed for clarity).

‘Nobody talks about the grief that comes with growth’

Arrows pointing outwards

“I wanted to write the book that I needed when I was graduating from high school and that could have saved me from making a lot of financial mistakes because I didn’t learn anything about money,” said Jannese Torres, author of “Financially Lit!: The Modern Latina’s Guide to Level Up Your Dinero & Become Financially Poderosa.”
Courtesy: Jannese Torres

Ana Teresa Solá: What drove you to write this book? 
Jannese Torres: When I was doing the market research for the book, one of the things that I did was look and see what the competitive market looked like out there, or if there is a reason that this book needs to exist. 

I couldn’t find a single book that was specifically marketed to the Latina community or Latinos in general being the majority minority in this country. 

Our families have told us to go and pursue the American dream, but we haven’t been given instructions for how to manage the emotions that come with it.

Jannese Torres

I felt like I wanted to write the book that I needed when I was graduating from high school and that could have saved me from making a lot of financial mistakes because I didn’t learn anything about money. The more that I’ve talked to folks through the podcast and through my social media platforms, that’s been a very common sentiment. We’re told to go to school, get a job and make money, but then that’s the end of the conversation. What do we actually do with it? 
ATS: Like many younger generations of Latinos in the U.S., you overcame many hurdles and achieved major goals. But you describe in the book that these milestones also come with a sense of guilt. Why is guilt tied to success? 
JT: I call it “financial survivor’s guilt” because this is one of those things that we have not been prepared for. Our families have told us to go and pursue the American dream, but we haven’t been given instructions for how to manage the emotions that come with it. Nobody talks about the grief that comes with growth. Nobody talks about what it feels like to be on the other side of the struggle when so many people that you love are still there and you feel powerless to help them all. 

Looking back at it now, it’s like I was making all these decisions because of what other people valued versus asking myself what I actually value.

Jannese Torres

It’s going to require folks to give themselves some compassion, and to be okay to feel those feelings. But don’t let them sabotage you. It’s going to require some boundaries that you learn to exercise and also being okay with feeling like you’re on this island by yourself. When you’re the first to do something, it’s always going to feel uncomfortable. But if we don’t have examples of people who can make it out, I think it’s going to be much harder for folks to believe that they can do it, too. 

‘I was over my head very quickly’

ATS: Walk me through the chapter or that point in time when you bought a house, but it wasn’t all you thought it would be. 
JT: Looking back at it now, I was falling victim to the American dream. As a first-generation kid, my parents didn’t invest. The only thing that we saw as examples of “making it” was when family members would buy homes: The sacrifices were worth it and this is the thing that you have to show for your success.

When you’re the first to do something, it’s always going to feel uncomfortable. But if we don’t have examples of people who can make it out, I think it’s going to be much harder for folks to believe that they can do it, too. 

Jannese Torres
Latina money expert and entrepreneurship coach

I definitely felt the pressure to keep up with the Joneses in that respect. I was turning 30 years old and I saw friends buying homes, getting married, doing all those things that are on the successful adult checklist of life. When I decided to purchase the home, it was coming from a place of, “Well, I need to do this too, because this is just what everybody does.”
I quickly realized that I bought a home in a place that I didn’t even want to live in. 
Looking back at it now, it’s like I was making all these decisions because of what other people valued versus asking myself what I actually value. The freedom to have that flexibility that comes with renting is something that I valued much more.
But I felt like I was falling victim to that narrative that says, “You’re wasting money if you rent, and successful adults purchase homes.” It took a lot of unlearning of those narratives and realizing that just because something works for one person doesn’t mean that it’s universally applicable. 
Homeownership is one of those things where more people need to question if they have the personality, lifestyle, or the value system for this, or are you just wanting to do it because that’s what everybody else is telling you to do. 

Jannese Torres
Courtesy: Jannese Torres

ATS: What would you tell someone who’s financially comfortable or has reached certain benchmarks where they could potentially invest in a property but are still wary about it? 
JT: One of the things that made me realize I was over my head very quickly was the fact that two weeks into moving into the home, I discovered that the basement would flood. The sewer line was blocked, and that was not something that we checked during inspection. I ended up having to spend $4,000 on replacing the pipe in the basement two weeks after moving in. That pretty much depleted the little money that I had left over after closing costs. 
I ended up having to take a 401(k) loan to pay for repairs and putting things on credit cards. It’s important to realize that closing costs, the fees and the down payment are just the beginning.

There’s this narrative where if you get a mortgage, then you’re going to be paying the same amount of money forever and that’s why you should buy a home instead of renting. And I’m like, “Absolutely not.” Your property taxes and insurance will increase. You’re not going to be able to predict when things go wrong in the home and when you need to fix something. 
You have to make sure you can afford the maintenance costs and the things that will inevitably come with homeownership. And from a value perspective, you have to really be honest with yourself: “Does this suit my lifestyle? Do I want to stay in this place for like a decade or more? … Or do I want the flexibility to give my landlord 30 days’ notice and be able to move somewhere else? Are you in a job that feels like it’s something you want to do long term? Or do you want to make a career pivot?”

‘The American dream is more of an illusion’

ATS: Do you think the American dream has changed? 
JT: I definitely do think that the American dream is in the process of being redefined because it has become so inaccessible, especially to the newer generations. I think there was this path to “success” where you could go to school, you could buy a home with a regular job, and previous generations were not saddled with the level of student loan debt and the cost of living was not as high. There’s factors in play that are making the American dream obsolete or at least inaccessible to people. 
We are seeing sort of this questioning of it and this shift. I think that the Great Recession was a big impetus for people starting to wonder. It feels very much like the American dream is more of an illusion for a lot of folks, and I am curious to see where it goes. More

In this photo illustration a Kao Corporation logo seen displayed on a smartphone. 
Igor Golovniov | SOPA Images | Lightrocket | Getty Images

Company: Kao Corp (4452.T)

Business: Japan-based Kao Corp manufactures and sells consumer and chemical products. It operates in five business segments. The hygiene and living care segment provides fabric, kitchen, home, sanitary and pet care products. The health and beauty care segment offers facial, body, hair, oral care, hair styling and color products, as well as salon, in-bathroom health care and warming products. The life care business offers health drinks and hygiene products for commercial use. The cosmetics business provides counseling and self-selection cosmetic products. Finally, the chemical business segment features oleo chemicals, fat and oil derivatives, surfactants, fragrances and other specialty chemical products.
Stock Market Value: 2.92 trillion Japanese yen (6,273 yen per share)

Activist Commentary: Oasis Management is a global hedge fund management firm headquartered in Hong Kong with additional offices in Tokyo, Austin and the Cayman Islands. Oasis was founded in 2002 by Seth Fischer, who leads the firm as its chief investment officer. Oasis is an authentic international activist investor, doing activism primarily in Asia (and occasionally Europe). The firm has an impressive track record of prolific and successful international activism. It has as many arrows in its quiver as any activist and has been successful in getting seats on boards, opposing strategic transactions, advocating for strategic actions, improving corporate governance and holding management accountable.

What’s happening

On April 8, Oasis Management announced that it owns over 3% of Kao Corp. Days earlier, the firm rolled out its “A Better Kao” presentation, proposing an overhaul at the company.

Behind the scenes

Kao Corp is a global fast-moving consumer goods company with a diversified portfolio of products spanning from hair and skin care to cosmetics and chemicals. The company operates across five segments, but hygiene and living care (33%), health and beauty (25%), cosmetics (15%) and chemicals (23%) are their four key segments generating nearly all of Kao’s 1.53 trillion yen in revenue in 2023. The company has a stable of brands (including Curél, freeplus, Jergens, Bioré, Oribe and Molton Brown) that has deeply underperformed its peers. As of the issuance of its campaign presentation, Oasis points out that Kao shares were down 22.9% since 2021 while peers were up between 1.7% to 100.4% during the same period. In addition, while peers have recovered their consumer products sales, Kao has failed to return to pre-pandemic levels and has some of the worst operating profit margins in the industry. Despite the push from the Tokyo Stock Exchange for companies to improve return on equity, Kao’s ROE has been on a steady decline to sub-5% in 2023 from approximately 20% in 2017. Operating margins are on a similar trajectory as well, declining to 4% in 2023 from 14% in 2019.
Oasis details what it thinks are the company’s issues in its “A Better Kao” campaign presentation. Oasis thinks the company: (i) is too reliant on Japan, generating 65% of revenue in its domestic market and 35% in the rest of the world, which is a distribution nearly inverse to their peers, (ii) is not in the optimal distribution channels, (iii) is not focused enough on marketing – while peers spend between 20% and 35% of its revenue on marketing and advertising, Kao has consistently only paid 10% to 11% of its consumer goods revenue. Oasis also said that Kao has a bloated brand portfolio with too many subscale domestic brands; the company has nearly 80 brands, but generates the same revenue as peers with 10 to 30.
Oasis does offer several solutions to the company to jumpstart growth such as: (i) reversing its opposition to international expansion and distribution in order to unleash the potential of its stable of globally beloved brands, which have been artificially constrained to domestic and regional markets; (ii) reviewing its brand portfolio, prioritizing focus and investment in high-growth areas, expand gross margins through product premiumization, streamline its bloated brand and SKU portfolio and focus particularly on rationalization in its cosmetics and health and beauty segments; and (iii) embracing marketing by onboarding a CMO with global experience as well as refreshing the board with similarly experienced directors. These are wholesale changes to Kao’s business, geographical footprint, distribution channels and product mix that would usually require an in-depth analysis of costs, demand, competitive landscape and chance of success. Oasis provides none of that.

Oasis does cite Beiersdorf’s turnaround as the analog for what is possible at Kao. Suffering many of the same problems, Beiersdorf had underperformed peers, poorly allocated marketing spend and lagged on premiumization. Investors had also lost confidence in management. The company refreshed its CEO overhauled its corporate culture and growth strategy and refocused on key brands and gross margin expansion. Since doing so, Beiersdorf’s share price has outperformed the rest of its European consumer goods peers. However, Oasis had absolutely nothing to do with that turnaround and is not recommending any of the executives from Beiersdorf for positions at Kao. It is hard to see what relevance Beiersdorf has here besides just being a peer.
Oasis states that the board has no directors with expertise in international consumer goods marketing or branding, and the firm makes good points regarding gender and demographics of the board. Oasis has proven to be a value-creating activist in many situations and would likely be a valuable board member here, but this is not a typical Oasis activist campaign. First, until 2023, the firm had never engaged a cosmetics company. Since then, this is Oasis’ third engagement of a Japanese company in the cosmetics, health and consumer goods category. The other two have not gone so well. Kusuri No Aoki and Tsuruha are both drugstore operators, engaged in the sale of pharmaceuticals, cosmetics and other consumer goods. At both companies, Oasis ran proxy fights and was defeated by management. Second, if Oasis is even remotely correct about the issues at Kao, fixing them would require a total reconstitution of the board and replacement of management. That is not something that is typically done at Japanese companies nor something Oasis has a lot of experience in. In Japan, Oasis and other activists have been successful in creating shareholder value just by engaging companies without getting their activist agenda implemented. That is something that can happen in Japan, but generally when the recommendations are minor such as capital allocation, selling down cross-shareholdings and corporate governance improvements. In this case, Oasis would have to implement its activist agenda and do some heavy lifting to create value at a company with the issues it claims this company has.
That does not seem to be part of the Oasis plan here. Oasis CIO Seth Fischer did not rule out submitting shareholder proposals to Kao, but even that seems like using a flyswatter on an elephant. Additionally, a settlement here is very unlikely. Oasis had been privately meeting with management since 2021, so if management was inclined to work with them, it would have happened already, and Oasis would not have had to go public with its campaign. On the contrary, the day after Oasis launched its campaign, Kao stated that the firm lacked sufficient understanding of its portfolio management and restructuring plans. 
As of the date of its presentation, Oasis projected between 76% to 97% upside for the stock, or nearly 10,000 yen per share if their proposals are adopted. However, the investor has also been engaging privately with the company since June 2021 during which time growth has slowed, margins had declined, ROE has plummeted and the stock has slid. So, I would take the firm’s predictions and chances of success with a grain of salt.
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

Watch Daily: Monday – Friday, 3 PM ET

Dado Ruvic | Reuters

The Bitcoin network on Friday night slashed the incentives rewarded to miners in half for the fourth time in its history.
The celebrated event, which takes place about once every four years as mandated in the Bitcoin code, is designed to slow the issuance of bitcoins, thereby creating a scarcity effect and allowing the cryptocurrency to maintain its digital gold-like quality.

There may be some speculative trading on the event itself. JPMorgan said it expects to see some downside in bitcoin post-halving and Deutsche Bank said it “does not expect prices to increase significantly.” However, the impact may be bigger months from now, even if bitcoin continues its trend of diminishing returns from its halving day to its cycle top. Two key things to watch will be the block reward and the hash rate.

“While the upcoming Bitcoin halving will create a supply shock as the previous ones had, we believe its impact on the cryptocurrency’s price could be magnified by the concurrent demand shock created by the emergence of spot bitcoin ETFs,” said Benchmark’s Mark Palmer.
The bigger immediate impact will be to the miners themselves, he added. They’re the ones that run the machines that do the work of recording new blocks of bitcoin transactions and adding them to the global ledger, also known as the blockchain.
“Miners with access to inexpensive, reliable power sources are well positioned to navigate the post-halving market dynamics,” said Maxim’s Matthew Galinko in a note Friday. “Some miners, many that are not public, could exit the market with a combination of poor access to power, efficient machines, and capital. Miners with capital and relatively expensive power will likely find opportunities in the wake of potential consolidation and disruption driven by the halving.”
The block reward
Miners have two incentives to mine: transaction fees that are paid voluntarily by senders (for faster settlement) and mining rewards — 3.125 newly created bitcoins, or about $200,000 as of Friday evening, when the mining reward shrunk from 6.25 bitcoins. The incentive was initially 50 bitcoins.

Arrows pointing outwards

The reduction in the block rewards leads to a reduction in the supply of bitcoin by slowing the pace at which new coins are created, helping maintain the idea of bitcoin as digital gold — whose finite supply helps determine its value. Eventually, the number of bitcoins in circulation will cap at 21 million, per the Bitcoin code. There are about 19.6 million in circulation today.
“Miners utilize powerful, specialized computer hardware to validate transactions on the Bitcoin network and record them permanently on the blockchain,” Deutsche Bank analyst Marion Laboure said. “This process, known as mining, rewards miners with newly minted bitcoins. But with each halving, the reward to mining is decreased to maintain scarcity and control the cryptocurrency’s inflation rate over time.”

The hash rate

Historically after a halving, the Bitcoin hash rate – or the total computational power used by miners to process transactions on the Bitcoin network – has fallen, pricing some miners out of the market. It generally recovers in the medium term, however, Laboure pointed out.
The network hash rate has been hitting all-time highs for months as miners tried to take market share ahead of the halving. Growth in the Bitcoin hash rate dilutes individual miners’ contribution to the network hash rate.
“In the past three halvings, the network recovered its pre-halving hash rate levels within an average of 57 days,” she said. “It is also likely that the current elevated prices of bitcoin may limit this short-term dip in the hash rate, as bitcoin miners enjoy record high profits in the lead-up to the halving.”
Palmer said the impact of the halving on bitcoin miners’ economics could be “more than offset over time” if bitcoin’s price rallies keep pushing the cryptocurrency to new highs in the months ahead.

Don’t miss these stories from CNBC PRO: More

A majority of new retirees claim Social Security retirement benefits before age 65, according to new research from the Alliance for Lifetime Income.
Waiting another five to eight years would result in higher lifetime benefits, experts say.
When deciding the right time to claim Social Security, retirees should consider not only the size of their monthly benefits but also their lifetime benefits.

Sporrer/Rupp | Image Source | Getty Images

The largest and final cohort of the baby boom generation — 30.4 million Americans — will turn 65 by 2030.
And more than half of that group will rely primarily on Social Security for income, according to new research from the Alliance for Lifetime Income.

When to claim Social Security retirement benefits is a high-stakes decision. Generally, the longer you wait, the larger your monthly checks will be.
Eligibility for retirement benefits starts at age 62. But full retirement age – generally age 66 or 67, depending on an individual’s birth year — is when retirees may receive 100% of the benefits they’ve earned.
For each year you wait past full retirement age up to 70, you may receive an 8% benefit boost.
“Everyone should know that you have a penalty if you collect before 70,” said Teresa Ghilarducci, a professor at The New School for Social Research and author of the book “Work, Retire, Repeat: The Uncertainty of Retirement in the New Economy.”
Yet a majority of new retirees claim benefits before age 65, according to the Alliance for Lifetime Income’s new research, even though waiting another five to eight years would result in higher lifetime benefits.

How to know your full retirement age

To gauge when to claim, you first should know your full retirement age — the point when you’re eligible for 100% of the benefits you’ve earned.
Today, a new higher full retirement age of 67 is getting gradually phased in.
“For most of the people retiring today, their full retirement age is somewhere between 66 and 67,” said Joe Elsasser, a certified financial planner and president of Covisum, a Social Security claiming software company.
If you were born between 1943 and 1954, your full retirement age is 66.  The full retirement age increases gradually if you were born from 1955 to 1960 until it reaches 67. If you were born in 1960 or later, your full retirement age is 67.

Social Security full retirement age

Year of birth
Social Security full retirement age

1943-1954
66

1955
66 and two months

1956
66 and four months

1957
66 and six months

1958
66 and eight months

1959
66 and 10 months

1960 and later
67

Source: Social Security Administration

Why it pays to delay retirement benefits

Claiming at age 62 comes with significant penalties, experts say.
For people who are turning 65 this year, early claiming would have resulted in a 30% benefit cut. Instead of $1,000 per month at their full retirement age, 66 and 10 months, they would be receiving around $700 per month had they claimed at age 62.
Most people know that early claiming will result in reduced benefits, a Schroders survey from 2023 found. However, many respondents still planned to start their monthly checks early.
Using the word “early” to describe claiming at 62 may lead people to feel there is an advantage to claiming then, Shai Akabas, executive director of the economic policy program at the Bipartisan Policy Center, said during a presentation by Alliance for Lifetime Income.

Instead, that could be called the “minimum benefit age” to help people understand there are benefit reductions for claiming then, he said.
A bipartisan group of senators has called for making that change, as well as changing “full retirement age” to “standard benefit age.” Age 70, the highest claiming age, would be called the “maximum benefit age.”
When deciding the right time to claim Social Security, retirees should consider not only the size of their monthly benefits, but also their lifetime benefits, longevity protection and immediate needs, according to the Bipartisan Policy Center.
It also helps to consider how a claiming decision will affect a spouse or dependents who may also receive benefits based on a worker’s record.
Research has found only about 8% of beneficiaries delay until age 70, the highest possible age to claim benefits, according to Ghilarducci. Because Social Security benefits are one of the few sources of guaranteed income for many retirees, having smaller monthly checks can make them more financially vulnerable.
Those who can’t delay their Social Security benefits for years can still increase their lifetime benefit income by delaying for just a few months, Ghilarducci said.
“Do whatever you can to bridge to a higher Social Security benefit amount,” Ghilarducci said. More

The number of centenarians in the U.S. is poised to quadruple over the next three decades.
By 2054, Americans over 100 years old will represent 0.1% of the population, up from 0.03% today, according to a Pew Research Center analysis.
Many Americans will likely have to work past age 65 to fund longer retirements, experts said. Households should also save as much and as early as possible.

Artur Debat | Moment | Getty Images

The number of centenarians in the U.S. is poised to balloon in coming decades. That longevity poses a big financial challenge for households.
By 2054, there will be an estimated 422,000 Americans age 100 and older — more than four times the 101,000 in 2024, according to a Pew Research Center analysis of U.S. Census Bureau data.

Centenarians make up 0.03% of the total U.S. population today, a share expected to reach 0.1% three decades from now, the analysis found.
What’s more, the centenarian population has nearly tripled in the last three decades alone, according to Pew.

Irving Piken during his 111th birthday celebration at the Laguna Woods Community Center in California on Dec. 20, 2019. Piken, who passed away in February 2020, was believed to be the oldest man living in the U.S. 
Mark Rightmire/MediaNews Group/Orange County Register via Getty Images

Meanwhile, even if Americans don’t reach age 100, more of them will live to 90 and 95 years old, said John Scott, director of retirement savings at The Pew Charitable Trusts.
That demographic shift will put enormous stress on the traditional notion of financing retirement, experts said.
More from Personal Finance:Why women turning ‘peak 65′ may be financially vulnerableAmericans think they need almost $1.5 million to retireWhat’s wrong with TikTok’s viral savings challenges

“If people still retire in their 60s, it means the funding for retirement needs to go on for decades,” said Barry Glassman, a certified financial planner and founder of Glassman Wealth Services.
 “If retirement is going to last that long, then savings needs to last that long as well,” said Glassman, a member of CNBC’s Advisor Council.

Working longer may be necessary …

Among the best ways to hedge against outliving one’s savings is by working longer, according to retirement experts.
It’s already happening.
By 2032, 25% of men and 17% of women age 65 and older are expected to be in the labor force, up from 24% and 15%, respectively, in 2022, according to Population Reference Bureau.
That may be more necessary as employers have offloaded responsibility for retirement savings onto workers’ shoulders, by shifting from pensions to 401(k)-type retirement plans. Workers must choose how to invest and how much money to save with each paycheck to ensure for a comfortable retirement.

But even delaying retirement by a few years — to 68 years old from 65, for example — can financially “move the needle significantly,” Glassman said.
“People need to be prepared to work longer,” he said.
Doing so yields more years of income, and generally allows people to save for a longer time, delay drawing down their nest egg and defer claiming Social Security benefits.
Social Security, unlike 401(k) plans, provides guaranteed income for life. By delaying claiming to age 70, retirees can maximize their monthly checks.

If they have the resources, retirees can also consider buying an annuity with a portion of their savings to generate a monthly guaranteed income stream like Social Security, Pew’s Scott said.
Retirees can still work part time so they have some additional cash flow, Glassman said.
He sees more clients doing this, with professionals who become consultants upon retirement, or radiologists who can work remotely and read health scans, he said.
“There is a demand for labor in this country,” Scott said.
Staying up to date with skills may help retirees find some work later if they need to supplement income, he said.

… and more possible in the future

Of course, working longer won’t be possible for everyone.
People may have physically taxing jobs that require them to retire relatively early, or suffer health complications that require early retirement, for example. Others may not be able to do jobs on a part-time basis.
Retirement is likely to be full of many more “healthy, vibrant” years in coming decades due to advancements in technology and health care, for example — meaning the notion of working longer, even in physical jobs, isn’t far-fetched, Glassman said.

He pointed to marathon statistics as an example: 441 people age 70 and older finished the New York City Marathon in 2023, about 0.9% of all runners. That’s up from 144 people two decades earlier, or roughly 0.4% of the total runners.
Aside from work, Americans should try to save as much as they can, and start as early as they can, Scott said. Those who get an employer 401(k) match at work should strive to save enough to get the full match, which is essentially free money, he said.
Responsibilities like paying student loans, saving for a house and spending on caregiving needs for children does make saving difficult, but even saving a little bit now will help in the long run, he said.
“Over time, that will add up,” Scott said.

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The annual rate for newly purchased Series I bonds could fall below 5% in May, which is lower than the current 5.27% on new purchases through April 30.
Short-term investors may have more competitive options for cash, such as Treasury bills, money market funds or certificates of deposit.
However, the I bond’s fixed rate may still appeal to long-term investors looking to preserve purchasing power.

dowell | Moment | Getty Images

While the annual rate for newly purchased Series I bonds could fall below 5% in May, the assets may still appeal to long-term investors, experts say.
Investors currently earn 5.27% annual interest on new I bonds purchased before May 1. Some experts predict the new rate could drop to around 4.27% based on inflation and other factors.

But there’s still a chance to lock in six months of the 5.27% yearly rate for new I bonds before May 1, assuming you haven’t exceeded the purchase limit for 2024.
More from Personal Finance:Series I bonds are ‘still a good deal’ despite an expected falling rate in MayWomen who are turning ‘peak 65’ may be financially vulnerable, research findsNational Park Week is coming up — and that means free entry for visitorsThe U.S. Department of the Treasury adjusts I bond rates — with a variable and fixed-rate portion — every May and November.
Based on the last six months of inflation data, the variable portion will fall from 3.94% to 2.96% in May. The fixed-rate portion is harder to predict, but experts say it could stay close to 1.3%.
The 1.3% fixed rate makes I bonds “very attractive” for long-term investors because the rate stays the same after purchase, said Ken Tumin, founder of DepositAccounts.com, which closely tracks these assets.  
By contrast, the variable rate stays the same for six months after purchase, regardless of when the Treasury announces new rates. After that, the variable yield changes to the next announced rate.

It’s a ‘better bet’ to buy I bonds now

If you want more I bonds, “it’s probably a better bet to buy before the end of April and lock in that higher rate for six months,” according to David Enna, founder of Tipswatch.com, a website that tracks Treasury inflation-protected securities, or TIPS, and I bond rates.
If you buy I bonds now, you’ll receive 5.27% annual interest for six months and the new May rate for the following six months. He suggests buying a few days before April 30.
Enna expects the fixed rate will be 1.2% or 1.3% in May, based on the half-year average of real yields for 5- and 10-year TIPS.
However, long-term investors could be disappointed if they purchase in April and the Treasury announces a higher fixed interest rate in May.

I bonds no longer a ‘slam dunk’ for short-term investors

While long-term investors may be eyeing the I bond fixed rate, short-term investors may have better options for cash elsewhere, experts say.
“They’re not a slam dunk anymore compared to an online [certificate of deposit] or compared to an online savings account,” Tumin said.

They’re not a slam dunk anymore compared to an online [certificate of deposit] or compared to an online savings account.

Founder of DepositAccounts.com

As of April 19, the top 1% average one-year CDs were paying about 5.5%, and the top high-yield savings accounts were paying around 5%, according to DepositAccounts.   
Experts say short-term investors may also consider U.S. Treasurys or a money market fund.
As of April 19, most Treasury bills were paying well over 5%, and two-year Treasury notes were around 5%. Meanwhile, some of the largest money market funds were paying close to 5.4% as of April 19, according to Crane Data. 
“You just don’t know where short-term rates are going to go,” Enna said. “That’s why I like the idea of locking in a year if you’re going to buy a short-term investment. More

The path to 2% inflation is “more difficult” in 2024, Federal Reserve Bank of Chicago president Austan Goolsbee said on Friday.
Inflation has dropped significantly since its pandemic-era peak of 9.1%, but it remains above the Fed’s target.
Goolsbee said the Fed needs “more sniffing” before it can start cutting interest rates.

Chicago Federal Reserve Bank President Austan Goolsbee speaks at the Council on Foreign Relations in New York, U.S., February 14, 2024. 
Staff | Reuters

“If you take a broad view, inflation got way above where we were comfortable with and it’s down a lot,” he said.
The first three readings for this year indicate covering the remaining distance to 2% “may not be as rapid,” he added.
That “stalling” merits further investigation on the direction of the economy before the Fed moves to cut rates, said Goolsbee, who is a nonvoting member this year of the rate-setting Federal Open Market Committee.
He described himself as a “proud data dog,” and pointed to what he says is “the first rule of the kennel.”

“If you are unclear, stop walking and start sniffing,” he said. “And with these numbers, we need to do more sniffing.”
“We want to have confidence that we are on this path to 2[%],” he said. “That’s the thing we have got to pay attention to.”

Housing inflation is a key area to watch, Goolsbee said.
“That’s the one that has not behaved as we thought it would,” he said.
Shelter costs, which make up about one-third of the weighting in the CPI, rose 5.7% in March from a year ago. 
“The market rent inflation is well down, but it hasn’t flowed through into the official measure,” he said. “If it doesn’t — I still think it will — but if it doesn’t, I think we’re going to have a hard time. It’s definitely going to be more difficult to get to 2% overall if we do not see progress.”

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