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Three dividend-paying rare earth funds to buy as demand for those elements climbs high.
The competitiveness of the industry gained attention when China's Commerce Ministry announced on Monday, June 22, that 10 U.S. rare earth and drone companies producing military and non-military applications would be added to its export control list. While it is possible that the new sanctions could ultimately hinder feedstock supply, the Chicago-based investment firm William Blair & Co. wrote in a research note that China’s export restrictions are "ultimately positive" for Las Vegas-based MP Materials (NYSE: MP) and Stillwater, Oklahoma's USA Rare Earth (NASDAQ: USAR), among others.
The attention from China reinforces both companies’ strategic importance as leading U.S. rare earth suppliers, according to William Blair's research note. By explicitly naming MP and USA Rare Earth on the export control list, China signals that these firms have become central rare earth competitors, likely strengthening U.S. government support through funding, policy incentives and defense partnerships, the investment firm continued.
To avoid overreliance on a select few companies, one strategy worth considering is to invest in funds that include dozens of holdings. Certain funds not only include rare earth element companies, but also defense or other sectors to broaden their focus.
Three Dividend-paying Rare Earth Funds to Buy: China's Sanctions
"Rare-earth elements (REE) are necessary components of more than 200 products across a wide range of applications, especially high-tech consumer products, such as cellular telephones, computer hard drives, electric and hybrid vehicles and flat-screen monitors and televisions," according to the U.S. Geological Survey. "Significant defense applications include electronic displays, guidance systems, lasers and radar and sonar systems. Although the amount of REE used in a product may not be a significant part of that product by weight, value or volume, the REE can be necessary for the device to function. For example, magnets made of REE often represent only a small fraction of the total weight, but without them, the spindle motors and voice coils of desktops and laptops would not be possible."
The new Chinese sanctions may heighten urgency among automakers, defense contractors and policymakers to secure non-China supply agreements, with a goal of boosting long-term demand, pricing power and contract visibility for non-Chinese rare earth companies as they scale domestic mining, processing and magnet manufacturing capabilities, William Blair opined. China imposed export restrictions under its new order, prohibiting foreign institutions and individuals worldwide from transferring or providing Chinese dual-use goods to these companies.
The Chinese government also is requiring that ongoing export transactions be suspended immediately. Due to China’s dominance in producing roughly 90% of global light rare earth elements and refining more than 98% of Heavy Rare Health Elements (HREs), the restrictions highlight the significant geopolitical leverage that the Asian country holds.
China's action further raises the risk of renewed trade tensions, particularly as recent U.S.-China discussions have failed to secure reliable supply agreements and as G7 nations push to diversify sourcing and reduce reliance on any single country, William Blair opined.
An alternative source outside China may be Australian-based rare earth companies, said Bryan Perry, who leads the Hi-Tech Trader service and the Cash Machineinvestment newsletter. He acknowledged researching one of them.
That Australian-based miner, with its primary extraction at the world-class Mount Weld mine, operates in Australia and Malaysia, completely outside of China’s direct jurisdiction, Perry advised. As China exerts strict export bans on rare earth shipments to strategic regions like Japan, international buyers are aggressively pivoting to find other sources to "de-risk" their supply chains, he added.
Three Dividend-paying Rare Earth Funds to Buy: REMX
There is an exchange-traded fund (ETF) available, VanEck Rare Earth and Strategic Materials (REMX), for investors who want to spread out the exposure to the sector rather that just an individual company, counseled Bob Carlson, a retired pension fund chairman who heads the Retirement Watch investment newsletter and is the creator of a proprietary IRA Calculator that he recently updated.
It owns 35 stocks, with 61% of the fund in the 10 largest positions, Carlson continued. Top holdings recently were PLS Group (ASX: PLS), Albemarle Corp (NYSE: ALB), Lynas Rare Earths ADR (OTCMKTS: LYSDY), China Northern Rare Earth (SHA: 600111) and Xiamen Tungsten (SHA: 600549). REMX also offers a 1.31% dividend yield.
The fund gained 155.53% in the last 12 months, 31.62% for the year to date, 23.00% in the last three months and 0.49% in the last four weeks.
Three Dividend-paying Rare Earth Funds to Buy: Woods' Wisdom
"When it comes to adding portfolio exposure to a theme such as rare earth metals, I like to 'bet the field,'" said Jim Woods, editor of Forecasts & Strategies and Tactical Trader. "At this stage in the sector's development, nobody really knows which company is going to vault ahead of the others. That's why I like the VanEck Rare Earth and Strategic Metals ETF (REMX)."
REMX holds a market-weighted basket of the best-of-breed miners, refiners and processors. "As the rare earth theme blooms, planting a bit of risk capital in REMX may well lead to blossoming profits," said Woods.
Stocks are at a sort of “wait-and-see” moment regarding the Iran war ceasefire and what that might look like in the days ahead, Woods wrote to his Forecasts & Strategies and Tactical Trader subscribers.
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Three Dividend-paying Rare Earth Funds to Buy: EART
The Global X Rare Earth & Critical Materials ETF (NASDAQ: EART) seeks to invest in companies producing rare earth components, metals and other raw or composite materials that are pivotal to the expansion of critical technologies, such as electric vehicles, energy storage, robotics and radar systems. Companies that fit this category are involved in the exploration, mining, production and/or enhancement of Rare Earth Elements, Zinc, Platinum & Palladium, Nickel, Manganese, Lithium, Graphene & Graphite, Copper, Cobalt and Carbon Fiber.
The fund has 50 holdings and offers a modest dividend yield of 0.48%. Demand for rare earth and critical materials is rising as they become essential to support global growth of next-generation technologies.
Global supply of rare earth and critical materials will likely need to expand significantly as demand rises, constrained by long mine development timelines and geographic concentration, fund officials indicated. The universe of companies involved in the supply of rare earth and critical materials defies traditional categorization, they added. EART seeks to invest accordingly, with global exposure across multiple sectors and industries.
Three Dividend-paying Rare Earth Funds to Buy: WEPN
Another fund to consider is relatively new and includes significant exposure to defense holdings. The Nicholas Defense and Rare Earth Income ETF (NYSE Arca: WEPN) is an actively managed fund that officially launched and began trading on the NYSE Arca on March 3, 2026.
WEPN combines defense and aerospace equities, strategic metals and an income-generating options overlay, fund officials indicated. The fund targets long-term capital appreciation and weekly distributions by capitalizing on global security and critical mineral supply chains.
It further provides exposure to the price returns of U.S.-listed exchange-traded funds and/or exchange-traded products that offer strategic metals and minerals that include elements chemical such as Aluminum, Copper, Uranium, Lithium, Cobalt and Platinum. The fund also provides exposure to steel.
Direct exposure to rare earth elements through dividend-paying funds is rare, since the mining and refining companies in the industry reinvest heavily in capital to spur growth. As a result, such funds generally offer modest dividend yields or may not pay out regularly. With WEPN's limited track record, investors may want to watch the fund's performance for now. If it shows promise, a direct investment may seem less risky in the months ahead.
Three Dividend-paying Rare Earth Funds to Buy: Geopolitical Risk
The three dividend-paying rare earth funds to buy offer exposure to a growing industry. With the importance of rare earth elements to support technology advances generally and artificial intelligence innovations specifically, China's sanctions show its leaders want to restrict access by U.S. companies that could support military applications or become tough competitors. The growing importance of rare earth elements should help to support and lift the share prices of related funds in the future.
Paul Dykewicz is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, Seeking Alpha, GuruFocus and other publications and websites. Paul is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is the editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul also is the author of an inspirational book, "Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain", with a foreword by former national championship-winning football coach Lou Holtz. Follow Paul on Twitter @PaulDykewicz.
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SpaceX Mania Is Creating a Buying Opportunity in Costco Stock
Posted On Jun 18, 2026 by Chris Markoch
When the most hyped IPO in stock market history hits, money has to come from somewhere. On June 12, SpaceX made its Nasdaq debut under the ticker SPCX, raising $75 billion in what became the largest IPO on record — and roughly $15 billion of that haul came directly from retail investors, an allocation described by Nasdaq President Nelson Griggs as “larger than most IPOs.”
Table of Contents
That’s a staggering amount of cash that had to be liquidated from somewhere. One likely source: premium-priced holdings investors were sitting on — exactly the kind of stocks that look expensive on a spreadsheet but have proven themselves over decades. Costco Wholesale (NASDAQ: COST) fits that description perfectly.
The chart tells the story. COST peaked near $1,096 in May before dropping sharply heading into the SpaceX IPO window. More telling than the price action is the Chaikin Money Flow (CMF) oscillator, which has plunged to -0.30, a reading that signals unusually heavy distribution. Shares are now trading around $965, sitting below their 50-day moving average of $1,002, and the selling pressure looks more institutional and situational than fundamental.
The word “overpriced” gets thrown at Costco regularly. Technically, it’s not wrong. But there’s a difference between a stock that’s expensive and a stock that’s a bad investment. Costco has spent 25 years proving it belongs in the former category. If the SpaceX frenzy is dragging COST lower, long-term investors may want to treat it as a gift.
An imminent turning point in the stock market could double your money on a move greater than any we've seen yet this year. This move has occurred 100% of the time over the last 15 years — according to the fintech CEO who called the 2025 crash and rally 3 months before it unfolded.
The macro hand-wringing about consumer health is real. Credit card delinquencies are elevated. Lower-income households are stretched. Sentiment surveys are grim. And yet the actual spending data keeps coming in stronger than expected — and Costco keeps printing numbers that make the pessimists look wrong.
In its fiscal third quarter of 2026, Costco reported net sales of $69.15 billion, up 11.6% year over year, with comparable sales growing 9.8%. May’s monthly comparable sales then accelerated further to 12.5% growth, with total net sales reaching $24.01 billion — a 14.5% year-over-year increase.
The key insight here is that Costco doesn’t rely on the lower leg of what economists call the K-shaped economy. Its membership model — with worldwide renewal rates of 89.7% and U.S. and Canadian renewal rates at 92.2% — draws disproportionately from middle- and upper-income households. These are consumers who are still spending, still traveling, and still renewing their $65 or $130 memberships without a second thought.
In an environment where value perception matters more than ever, Costco’s proposition actually gets stronger. When consumers trade down from specialty grocers or department stores, they frequently trade sideways into Costco. The bulk-buy model becomes a feature, not just a habit. That’s a competitive moat that doesn’t show up cleanly in any single earnings line — but it shows up quarter after quarter.
The Dividend Nobody Talks About
Costco’s headline yield is easy to dismiss. The trailing twelve-month dividend payout stands at $5.20 per share, translating to a yield of roughly 0.52% at current prices. Against a 10-year Treasury, that looks laughable.
But that framing misses how Costco actually returns capital. The company paid a $12-per-share special dividend in January 2026 — a single payment totaling approximately $5.3 billion, continuing a tradition of extraordinary capital returns. That’s on top of the regular quarterly dividend, which has compounded at a growth rate of roughly 13% annually over the past five years.
The pattern is consistent: Costco uses its regular dividend for steady, predictable income growth, and then periodically drops a special dividend when the balance sheet allows. For investors who bought at lower prices and held, the special payout in early 2024 amounted to a one-time yield of 2.4% for shareholders who bought just before the announcement — more than double what the average S&P 500 company pays in two years. With the stock now pulling back toward the $960s, the yield-on-cost math for buyers at these levels looks incrementally better — and another special dividend remains well within Costco’s capital allocation playbook.
What the Chart Is Actually Saying
COST’s technical picture deserves more attention than a simple “it pulled back” summary. The stock recently made an all-time high above $1,096 in mid-May, then reversed sharply. That kind of move, from a 52-week high that coincides exactly with the SpaceX IPO window, is not coincidental.
The CMF oscillator, which tracks the flow of money into and out of a security over a rolling 20-day period, has collapsed to -0.30 — one of the deepest negative readings on the chart over the past year. Extreme CMF readings like this tend to resolve when the technical selling pressure exhausts itself, particularly when the underlying business hasn’t changed.
The 50-day SMA at $1,002 is now acting as overhead resistance, but a stock with Costco’s fundamental consistency doesn’t tend to stay far below that line for long. The selling here looks transactional, not a verdict on the business. Investors who can tolerate near-term volatility may see an attractive entry point.
The Stock Split Question
One piece of Costco mythology worth addressing: the idea that a stock split would be a meaningful catalyst. Costco’s management has publicly stated that a stock split is not a priority, citing the widespread availability of fractional share investing. The company’s last split occurred in January 2000, and management has historically cited deep institutional ownership as a reason splitting carries less economic necessity in today’s market.
With roughly 66% institutional ownership, that argument holds up. The investors who move COST don’t need psychological accessibility — they’re buying $50 million blocks at a time.
The contrarian take is that Costco might be wise to consider a split while it’s still a nice-to-do rather than a have-to-do. When a share price crosses $1,000 and dips back below it — as is happening right now — the narrative around accessibility starts to build on its own. The counterargument: with comps accelerating and the membership model intact, Costco doesn’t need a split to attract attention. The business is doing that just fine.
The Bottom Line
Costco isn’t a bargain in any traditional sense. At roughly 50x earnings, you’re paying a premium for one of the most durable retail franchises ever built. But the SpaceX IPO created a rare window where situational selling — not fundamental deterioration — has pushed shares meaningfully lower.
With year-to-date net sales up 9.6% through 36 weeks and the membership renewal engine running at near-record levels, nothing has changed about the underlying business. The question isn’t whether COST is cheap. It isn’t. The question is whether you want to own one of retail’s best long-term compounders at a price that wouldn’t exist without Elon Musk’s rocket company. For patient investors, the answer looks like yes.
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