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Insightful Investment: Best Income Stocks to Consider Best Income Stocks to Consider

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By Ronald Tech

Before discussing these three stocks with solid income characteristics, let’s consider the historical context.

Silicon Motion Technology Corporation (SIMO)

Silicon Motion Technology Corporation, a solid-state storage solutions provider, has recently seen its Zacks Consensus Estimate for next year earnings surge by 4.4% over the last 60 days. This Zacks Rank #1 company offers a dividend yield of 3.1%, notably higher than the industry average, providing an attractive opportunity for income-focused investors. The upward momentum in earnings estimate underscores the company’s strong potential for delivering consistent returns to its shareholders.

Price and Consensus:

Considering the price and consensus for Silicon Motion Technology Corporation, we observe a positive trajectory that aligns with its robust income characteristics.

H&E Equipment Services, Inc. (HEES)

H&E Equipment Services, Inc., an integrated equipment services company, is another compelling option. With the Zacks Consensus Estimate for its next year earnings on the rise by 1.7% over the past 60 days, this Zacks Rank #1 company offers a dividend yield of 2%, surpassing the industry average of 1.7%. The company’s ability to increase its earnings estimate augurs well for its income potential, making it an interesting prospect for investors seeking sustainable returns.

Price and Consensus:

Examining the price and consensus for H&E Equipment Services, Inc. underscores its robust income characteristics and potential to provide steady income for investors.

Acushnet Holdings Corp. (GOLF)

Acushnet Holdings Corp., known for its golf products, has experienced an increment of 0.3% in the Zacks Consensus Estimate for its next year earnings over the previous 60 days. As a Zacks Rank #1 company, it boasts a dividend yield of 1.2%, exceeding the industry average of 0.0%. This promising trajectory in earnings estimates positions Acushnet as a worthy consideration for income-seeking investors who value stability and potential returns.

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Acushnet Dividend Yield (TTM):

The dividend yield for Acushnet Holdings Corp. further underlines its potential to provide investors with stable income, making it a stock to watch in the income segment.

For a more comprehensive list of top-ranked income stocks and premium screens to further enhance your investment prospects, visit the Zacks website.

Investment Opportunity in Semiconductor Stocks

As we navigate the investment landscape, it is essential to recognize the burgeoning potential within the semiconductor industry. With a projection for global semiconductor manufacturing to surge from $452 billion in 2021 to $803 billion by 2028, there are significant growth opportunities in this sector. Investors searching for long-term prospects should consider the forthcoming potential within the semiconductor industry, driven by the expanding customer base and robust earnings growth. This is an area endowed with immense potential for those seeking to benefit from the rapid advancements in Artificial Intelligence, Machine Learning, and Internet of Things.

Discover the Outstanding Semiconductor Stock Now

For those seeking the latest recommendations from Zacks Investment Research, access the free report on the 7 Best Stocks for the Next 30 Days.

For additional insights, head over to Zacks.com.

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Wealth Tax: Debating the Top Tax Bracket

Debate Over the Wealth Tax

Are the wealthy getting away with not paying their fair share of taxes, or are they carrying an unfair burden? The debate over the top tax bracket rages on as concerns about income inequality and the concentration of wealth at the top of the economic ladder continue to make headlines. Senators Bernie Sanders and Elizabeth Warren have both proposed a wealth tax on the ultra-rich, while even multi-billionaire Warren Buffett has vocally expressed support for the idea, suggesting that it is fair for wealthy Americans to be taxed at a higher rate.

Currently, the top federal income tax rate stands at 37%, applicable to incomes of $539,000 and higher for single taxpayers and $647,850 and higher for couples filing jointly. However, historical data reveals that the top marginal tax rate has been significantly higher in previous eras. In 1944 and 1945, it peaked at a staggering 94%, and in the late 1980s, it hit a low of 28% under former President Ronald Reagan.

Historical Context and Present Day

The taxation of the wealthy has fluctuated significantly throughout U.S. history, demonstrating both higher and lower levels of taxation than the current status. This historical perspective adds complexity to the ongoing debate regarding whether the rich are paying their fair share of taxes. Despite the disputes, recent data from the IRS sheds light on the current tax scenario.

Top 1% Tax Contributions

In 2020, the top 1% of taxpayers—those earning $561,351 or more—contributed a significant 42.3% of the total tax revenue collected. This translates to the top 1% paying more income taxes than the bottom 90% combined. Astonishingly, the top 1% paid a staggering $723 billion in income taxes, while the bottom 90% collectively contributed $450 billion.

State-Level Analysis

Examining the tax burden on the wealthiest individuals at the state level yields interesting findings:

Alabama

  • Minimum income to be considered 1%: $404,560
  • Average income of the 1%: $1,107,769
  • Average income tax paid by the 1%: $263,845
  • Average tax rate of the 1%: 23.82%

Alaska

  • Minimum income to be considered 1%: $466,905
  • Average income of the 1%: $999,772
  • Average income tax paid by the 1%: $253,754
  • Average tax rate of the 1%: 25.38%

Arizona

  • Minimum income to be considered 1%: $485,146
  • Average income of the 1%: $1,464,848
  • Average income tax paid by the 1%: $369,426
  • Average tax rate of the 1%: 25.22%

Arkansas

  • Minimum income to be considered 1%: $387,666
  • Average income of the 1%: $1,483,925
  • Average income tax paid by the 1%: $313,266
  • Average tax rate of the 1%: 21.11%

California

  • Minimum income to be considered 1%: $726,188
  • Average income of the 1%: $2,430,790
  • Average income tax paid by the 1%: $655,180
  • Average tax rate of the 1%: 26.95%

Colorado

  • Minimum income to be considered 1%: $609,919
  • Average income of the 1%: $1,799,148
  • Average income tax paid by the 1%: $465,284
  • Average tax rate of the 1%: 25.86%
Analysis of Minimum Income of the Wealthiest 1% and Average Tax Rates by State Analysis of Minimum Income of the Wealthiest 1% and Average Tax Rates by State