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Trump Signed 4 Executive Orders in ONE DAY — All Pointing Here |
And he didn't stop there. |
Trump ordered the U.S. to begin rebuilding the domestic supply chain behind this critical American energy source after decades of growing dependence on foreign countries. |
There's just one problem: |
America produces only a fraction of the critical material it consumes. |
But one tiny U.S. company reportedly controls more than 30 million pounds of it. |
Even more interesting? |
The U.S. government has already bought from this company before. |
And today, its shares trade for around $1.50. |
Now Trump's massive energy push could put this overlooked company squarely in the spotlight. |
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π‘️ Give future spending an inflation adjustment |
Tuesday's rates-and-bonds note: a TIPS payment has two moving parts worth understanding. |
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π TONIGHT'S NUMBERS |
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The real yield at September 17's TIPS reopening, for a security maturing in July 2036. |
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That security's fixed coupon rate, applied to principal that changes with measured consumer inflation. |
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Sponsored |
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A fixed interest check buys less when the price of your regular shopping basket rises. Treasury Inflation-Protected Securities, or TIPS, address that problem by adjusting the amount on which interest is calculated. At the September 17 auction, a TIPS maturing July 15, 2036 carried a 2.653% real yield. Its fixed coupon was 2.375%. Those figures describe different things: the yield reflects the auction price and remaining payments, while the coupon determines interest on adjusted principal. For money assigned to spending years from now, that inflation adjustment offers a concrete alternative to a conventional Treasury's fixed face value. The government borrows your money and pays according to those terms. |
Suppose $10,000 of TIPS principal receives a hypothetical 3% inflation adjustment over a year. It would become $10,300, before considering the bond's purchase price or taxes. At a 2.375% coupon, six months of interest on that adjusted amount would be about $122.31. The same calculation on an unchanged $10,000 principal gives $118.75. Actual payments depend on the index ratio at each payment date, so this isolates the mechanism rather than forecasting your year's return. Treasury Secretary Robert Rubin announced the first $7 billion inflation-indexed offering on January 21, 1997. That launch gave savers a federal security designed around purchasing power, a useful purpose to keep beside the latest auction result. |
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Your grocery basket will differ from the consumer price index used for TIPS, and the adjustment can reverse during deflation. Treasury repays at least the original principal at maturity, but that floor does not protect a premium you paid. Selling before July 2036 also exposes this particular security to market-price changes. In a taxable account, principal increases can create federal tax before you receive that money. I would begin with Treasury's payment and tax terms, then match a maturity to a future spending need. Keep near-term bill money accessible while you investigate. Inflation protection earns its place when it serves a dated expense you actually expect to have. |
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Sponsored |
Meet the companies supplying power and equipment for AI |
A data center needs electricity, cooling and connections before it can serve customers. StockEarnings profiles nine public companies involved in that infrastructure. The report outlines their businesses and the growth catalysts its analysts are watching, alongside investment risks. Use the company list to investigate who could receive the spending behind expanded AI capacity. |
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By clicking the link above, you agree to receive emails from StockEarnings and our affiliates. You can opt out at any time. |
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The next company and fund payments still need their own dates, even when part of a portfolio adjusts for inflation. |
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π΅ INCOME WATCH |
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No new declarations dated September 21–22 appeared in the 58-symbol dividend watchlist sweep. |
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SCHD: September 23 ex/record date, September 28 payment on Schwab's schedule. Amount unverified, dates subject to change. |
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SCHD indicated $1.0466 annually / September 21 close $33.72 = 3.10%. Ten-year Treasury: 5.01%, September 18. Stock distributions vary and carry equity risk. |
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Exxon's payment record offers a separate source of income, whose amount depends on company decisions and energy-market conditions. |
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π§Ύ THE STEADY · XOM |
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Verified payments from Q2 2006 through Q3 2026. |
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Annualized dividend, about 2.60% at September 21’s $158.30 close, versus the ten-year Treasury’s 5.01% on September 18. |
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Quarterly payout reached $0.95 in late 2023, $0.99 in late 2024, $1.03 in late 2025. |
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Position in the $110.385–$176.41 range over 52 weeks through September 21. |
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The dividend can change and the share price fluctuates with an energy business, so these yields carry different risks. |
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Tomorrow's scheduled rate figures provide another observation for comparing bond choices after you have identified the spending date. |
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If you have used TIPS, what made the payment mechanics clear? I would welcome your experience. |
— Randy Cole, Editor |
P.S.: Most of what moves a session is on a calendar. Good Morning Alerts sends it before the open. |
(From Good Morning Alerts) |
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