Rates drifted upward after the June — not because the central bank held rates steady, as widely expected, but because of the hawkish tone for future monetary policy in the updated summary of economic projections. The majority of policymakers now expect that a rate hike will be necessary later this year, not a rate cut, as rampant inflation stays well above the Fed’s 2% target.

Interest rates on home loans have risen since the beginning of the U.S. war in Iran in late February. The Middle East conflict put upward pressure on oil prices, which can make other items more expensive to manufacture and transport. Put simply, higher oil prices mean higher inflation — and higher inflation means higher interest rates.

Although a formal end to the war appears imminent, markets are still reacting to a one-two punch of stubbornly high consumer prices and resilient labor data. The May , released on June 5, found that U.S. employment grew by 172,000, outpacing expectations. Days later, May’s consumer price index report found that inflation grew by 4.2% annually, the highest pace of growth in more than three years.

Mortgage rates are likely to remain high amid robust employment and sticky inflation, even as the economic impacts of war wear off.

“Importantly, regardless of Fed action, mortgage rates are unlikely to fall meaningfully until inflation cools and long-term yields move decisively lower.”

— Selma Hepp, chief economist for the real estate analytics provider Cotality

Most experts expect over the next few years, stuck above 6% for the 30-year fixed term. Although there’s always the chance that something unexpected could happen in the U.S. economy that could send rates tumbling lower, it’s unlikely that rates will fall below 3% or even 4% in the foreseeable future.

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Current Mortgage Purchase Rates

Here are today’s interest rates for conforming purchase mortgages by loan term:

— : 6.549%

— : 6.469%

— : 5.726%

— : 5.375%

— 7-year ARM: 6.551%

— : 7.064%

— 3-year ARM: 8.25%

And here are the current government-backed and nonconforming mortgage rates by loan type:

— : 6.447%

— : 5.671%

— : 6.125%

Current Mortgage Refinance Rates

Here are today’s mortgage refinance rates:

— 6.649%

— 20-year fixed refi: 6.591%

— 5.683%

— 10-year fixed refi: 5.598%

Mortgage refinance rates tend to follow the same trends as mortgage purchase rates, although interest rates on a mortgage refinance are often a few basis points higher than on purchase mortgages.

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Mortgage Rate Trends in 2026 So Far

collects weekly mortgage rate data, which can help provide context for mortgage borrowers on how and why mortgage rates change over time. Since the mortgage giant began collecting data in 1971, the median mortgage rate is 7.23%.

The 30-year fixed rate of 2.65% in January 2021, driving up demand for purchase and refinance mortgages. Since then, mortgage rates rose to nearly 8% in October 2023 before coming down to around 6.5% currently. Still, that’s nothing compared with the record high of 18.63% recorded in 1981.

You can use the interactive mortgage rates graph below to see how 30-year fixed interest rates have changed so far in 2026, .

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Mortgage Monthly Payment Calculator

Your mortgage interest rate is just one aspect of your monthly housing payment. You’ll need to carefully consider how your home’s purchase price will impact your budget so you don’t buy more house than you can comfortably afford.

The mortgage term — or the length of your loan — will also significantly influence your monthly payments. Most borrowers opt for a 30-year fixed mortgage, which can keep monthly payments affordable because they are spread over a long repayment term. But if you can afford the higher monthly payments of a 15-year mortgage, it can save you tens of thousands of dollars in interest payments over time.

You’ll also need to consider property taxes, home insurance, homeowners association fees and , if applicable. You can use the calculator below to run the numbers for your financial situation.

How to Shop for a Mortgage

The mortgage rates we display on this page are national averages from lenders as provided to U.S. News by Zillow, not necessarily the exact rate you’ll receive. Mortgage rates fluctuate throughout the day, and some lenders may be able to offer more favorable pricing for your situation than others.

“As rates fluctuate, aspiring buyers should remember that by shopping around for the best mortgage rate and getting multiple quotes, they can potentially save thousands,” says Sam Khater, chief economist at Freddie Mac, in a statement.

Here are a few tips to help you shop for the lowest mortgage rate possible for your financial situation:

— Get your finances in order. Collect the documents you’ll need to apply for a mortgage using . You should also check your credit score and get a copy of your credit report to see where you stand.

— Apply through three to five lenders. Be sure to consider different loan types (such as ) as well as different types of lenders (like online lenders versus credit unions). Keep your rate shopping to a two-week window to minimize the negative impact to your credit score.

— Compare loan estimates. This document will outline the loan’s costs, including origination charges, lender credits, discount points, as well as the loan’s interest rate and or APR. The APR includes the interest rate as well as any fees, making it a holistic way to compare the cost of multiple loan offers.

Check out this from the Consumer Financial Protection Bureau to get a better idea of what to expect when comparing loan offers.

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Over Half of Americans Carry a Balance on Their Credit Card

Approximately 57% of consumers . Among these credit card debtors, 41% have a total balance of $1,001 to $6,000 across all their credit cards. How long consumers carry a balance varies greatly, however.

Most consumers who carry a balance do so for six months to one year (22%), followed by one to two years (19%) and five years or more (19%).

Optimistically, about 58% of consumers say they pay more than the minimum amount due on their credit cards. However, that number changes when parsed out by age.

Gen X consumers and Baby Boomers are more likely to pay more than the minimum amount due versus their younger counterparts. About 70% of Gen Z consumers (ages 18 to 24) and 53% of millennials (ages 25 to 44) pay the minimum amount due.

However, the majority of Americans (76%) say it will take them less than three years to pay off their credit card debt completely. In contrast, close to 10% fear they will always have credit card debt.

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How Are Americans Using Their Credit Cards?

We asked consumers what primary expenses contribute most to their credit card debt, and 56% say basic necessities such as gas, groceries, childcare or utilities. Emergency/unexpected expenses only made up 34% of credit card debt. This indicates Americans are no longer using credit cards as a safety net, but rather as a means to get by.

Other categories such as nonessential shopping, auto repairs and vacation/travel expenses were roughly the same at 22% each.

When asked if there were a purchase they regretted putting on their credit card, 26% of Americans say yes. Some regrets included clothing and shoes, groceries, rent or bills, and large items like furniture or electronics.

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How Americans Are Handling Their Credit Card Debt

About 54% of consumers say they have a plan to pay down their credit card debt. But 16% say they feel less confident in their ability to get out of debt now than they did last year.

This can be seen in trends such as how many Americans have recently maxed out their credit cards. Over a quarter — roughly 27% — of consumers have maxed out a credit card in the last 12 months.

We asked if inflation and rising costs have caused consumers to rely on their credit cards to make ends meet, and 57% say yes. That number changes when separated by gender.

Women are more likely than men to use their credit cards to make ends meet, with 62% of women saying they need to rely on their credit cards more versus 52% of men.

If faced with a $1,000 unplanned expense, 58% of Americans would need to rely on a credit card to cover it, indicating most Americans do not have an . Which isn’t surprising considering 60% say their credit card debt has limited their ability to create an emergency savings fund.

Other financial decisions impacted by consumers’ credit card debt includes buying a vehicle (35%), investing (31%) and buying a house (23%).

Finally, when asked if their credit card debt affects their overall mental health, 60% say yes. More specifically, 42% say their debt “somewhat” affects their mental health, while 18% say their debt “very much” affects their mental health.

_{This page was edited by and reviewed by .}

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While there are many reasons mental health concerns arise later in life, treatment can help your loved one maintain the best quality of life possible.

Still, as the adult child of an aging parent, what can you do if your parent is resistant to the idea of seeking help for a ?

Read on for what to know about this common problem and how best to navigate this challenging aspect of aging and for an older loved one.

[Read: ]

Why Older Adults Are Vulnerable to Mental Health Issues

Older adults are at particular risk for mental health concerns because of their experience of loss and decline later in life, explains Jennifer Szakaly, founder and CEO of Caregiving Corner, a care management and counseling firm in Charlotte, North Carolina.

Big changes, such as retirement or the loss of a spouse can trigger and other mental health issues.

“Once their career is gone, or their role as a spouse for decades is gone following the loss of a partner, they can easily begin to struggle with finding meaning and purpose in everyday life,” Szakaly says.

Giving up a driver’s license can also make an older adult more vulnerable to mental health issues, explains Shauna Buchmoyer, a licensed occupational therapist with United Disabilities Services Foundation, a Lancaster, Pennsylvania-based human services organization offering care solutions for people with physical and age-related disabilities.

“This can feel as if they are giving up their freedom which can significantly impact their mental health, as they feel like they must rely on others and often fear becoming a burden.”

Older adults also tend to experience more frequent losses as friends and contemporaries get sick and die. It’s enough to make anyone contemplate their own mortality, which can lead to and depression.

But subtler shifts associated with and changes in health status can also trigger a decline in mood. This can lead to changes in an older adult’s ability to socialize with others, and mobility changes can rob them of they once enjoyed. For example, worsening arthritis in the lower body can make golfing challenging, while in the hands and fingers can make knitting painful and less enjoyable.

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Mental Health Warning Signs to Watch Out For in Your Aging Parent

Tessa Lundquist, a board-certified geropsychologist with the Wolk Center for Memory Health at Hebrew SeniorLife in Boston, says that mental health can look different in aging parents versus younger populations. “Older adults may not have the vocabulary or knowledge to clearly state or identify that they are struggling with mental health.”

But if your parent starts to deviate from their normal self, it might be time to check in with them.

“Mental health struggle can look like them not taking care of themselves or the things around them — like their home, yard, etc. — the way they used to,” Lundquist says.

Other common signals can include:

— Loss of interest in activities that used to bring happiness

— Loss of motivation or purpose

— Refusal to try or learn anything new

— Distancing themselves from friends and family

— Increased negativity, irritability, restlessness or moodiness

— Changes in patterns and appetite

— Increased

— Neglecting personal hygiene

— Lack of energy or feeling tired all the time

— Trouble concentrating, making decisions or remembering things

Older adults also sometimes express mental health struggles in physical terms, Lundquist explains. “They may describe feeling ‘slowed down’ or fatigued when feeling depressed. Or they may describe having body aches and pains when they are stressed or emotionally struggling.”

Jhanell Biggs, a certified professional retirement coach and founder and CEO of Moro, a retirement planning consultancy based in New York City, has seen many of these symptoms in her professional work, but also as the daughter and caregiver for aging parents.

“As someone who has cared for an aging parent, I know these changes happen gradually,” Biggs notes. “We may even discount them as just a phase because it’s hard to pinpoint, or we simply normalize the shift.”

But experiencing depression, anxiety or other mental health issues is not a natural ‘part of aging,’ Biggs notes. “We should always take note of changes in mood and behavior.”

You can look for context clues as well. For example, if you know that your aging parent has recently experienced something traumatic, such as losing a spouse, be on the lookout for , withdrawal from normal activities and sudden weight loss. These are all signs that the older adult either doesn’t have, or isn’t using, appropriate coping skills to get through the trauma and they need support immediately, Szakaly says.

Approaching the Mental Health Conversation

As the saying goes, if you see something say something. But letting an older loved one know you think they need help from a professional for mental health concerns can be a fraught experience.

Here are some tips and strategies for keeping the conversation on track to help your loved one.

1. Do some research.

Before you even open this conversation, Buchmoyer recommends doing some research so you have some ready to suggest. That way, if they surprise you by being open to the suggestion, you’ll have a plan ready to go.

But be forewarned they might not be happy about the conversation, Szakaly says. “Be prepared for them to be in denial or experience shame when you are trying to discuss this with them.”

Some will balk at the idea that they need help, and that can make for a delicate conversation.

[READ: ]

2. Be open, honest and compassionate.

To get around this tendency, let compassion and honesty be your guides. Good conversations involve open dialogue and active listening, rather than pushing or convincing, says Lina Supnet-Zapata, an aging life care manager and CEO of Mir Care Consultants Inc., in Austin. “When a parent resists help, pushing harder usually backfires.”

Biggs agrees that trying to convince your parent they need therapy can make the problem worse. “Adult children should realize that they can’t force their parents to accept help. The parent must want to do this for themselves, not to appease anyone else.”

3. Bring in an unbiased supporter.

Helping your parent understand your point of view can sometimes be helped by recruiting others into the conversation, such as your loved one’s , says Supnet-Zapata, who is also president-elect of the Aging Life Care Association.

“Sometimes it can be easier to accept help when it is recommended by a neutral third party rather than adult children who have so much emotion and history with their parent.”

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4. Reframe the issue.

Lundquist says it can be helpful to reframe the issue: Think about how it may not be that your parent doesn’t want to seek care or get support, but that they are scared and unsure what that would look like.

She notes that older adults were raised in a time when mental health was not openly discussed and it was typically not OK or safe to express emotional struggles. That stigma lingers for many.

“Approaching the conversation with understanding that they are resistant due to possible fear and discomfort can be helpful. Helping them understand what the process would be to getting mental health support can take away some of the unknowns they may be worried about,” Lundquist explains.

For Biggs, when her mother’s changed, she shared that she’d noticed a change. Her mom acknowledged it, but struggled to articulate why or what she was feeling.

The conversation moved on to discussing her mom’s fears and uncertainties about her impending retirement and what to do with her life after work. That gave them a starting point to work from in finding the right path forward.

5. Recast mental health care as health care.

Unfortunately, many people still have outdated ideas about what it means to get mental health care, but likening this action to getting treatment for a physical issue could help them understand that times have changed.

For example, if their knee was bothering them, they wouldn’t hesitate to talk to their doctor or a to get that pain addressed.

“With mental health struggles, you are getting your emotional health checked and accessing treatment to help that pain and regain functioning and a happier state of being,” Lundquist explains.

It’s also important to “assure your parent that identifying their mental health struggle and seeking treatment does not mean they are ‘crazy,'” she says.

6. Emphasize that you support them.

Emphasizing that your parent is not alone in their struggles can also be a , Lundquist says.

“I have encountered many older adults who do not realize that others experience depression or anxiety, and they just think that they are ‘crazy’ for struggling emotionally. Letting your parent know that others struggle too, and that they deserve a little extra support right now, can be effective.”

7. Ask for their advice.

Another strategy that can be effective is asking your parent to think about what advice they would offer a friend or loved one if they were experiencing mental health struggles, Lundquist says.

“Often times they will identify how they would want that person to get treatment, which can help them realize that they themselves could benefit from treatment too.”

8. Keep trying.

Convincing someone to get help can be a process.

“You may need to raise the issue, and then give your parent time to wrap their heads around it. Provide them the education to take away some of the unknowns, and then check in again about if they would be willing to try mental health treatment out,” Lundquist says.

When Biggs was helping her mom seek mental health support, they didn’t come to a resolution during a single discussion. But they kept talking.

“This conversation happened over a series of weeks. She needed time to get comfortable with the idea of about something she was experiencing but could not pinpoint the cause or source of.”

Who Can Help Me With My Aging Parent’s Mental Health Concerns?

An older adult’s primary care provider is a good first stop, Lundquist says. This is not only because they can connect you with local resources or in some cases manage the issue themselves; but it’s also important to rule out any possible underlying medical problems that could be triggering the mental health issue.

For example, can cause psychiatric symptoms in older adults. Treating the infection can resolve those symptoms.

But if there is no underlying medical issue, you can also seek help from a or aging life care manager who can walk you through locally available mental health resources.

Options may include:

— In-home counseling or therapy

— -based psychological or psychiatric care

— Office-based psychological or psychiatric care

— Inpatient psychiatric care facilities

Some practices and facilities are specifically geared toward treating and supporting older adults, and providers affiliated with such organizations often have specialized training in working with the aging population.

In addition, Lundquist recommends looking for community-based support groups or contacting a geropsychologist who’s specifically trained to provide therapy to older adults.

She also recommends checking out the , a publication of the E4 Center of Excellence for Behavioral Health Disparities in Aging affiliated with Rush University. “They have a plethora of community resources available, which provide education and tangible guides for navigating mental health support with older adults.”

Paying for Mental Health Care for Older Adults

The good news is, Medicare covers mental health care for beneficiaries. And in many cases, this care can be managed by your loved one’s primary care provider or in an office or telehealth setting.

Medicare also covers medically necessary under Part A, the hospital insurance part of Medicare. In these instances, meals, nursing care, therapy and medications are covered, but there are limits to coverage depending on the type of facility and the length of your stay. Plus, you’ll be responsible for copayments and deductibles, so it’s important to ask what’s covered and what’s not to avoid expensive surprises.

In addition, some mental health providers and psychiatric care centers do not accept Medicare as payment. In such cases, you’ll have to pay out of pocket for any services rendered, so be sure to check with the provider before booking an appointment to understand your financial responsibilities.

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She was named the 2025 Charles Schwab Money Matters Ambassador by the Boys & Girls Clubs of America and started college last fall at Columbia University, where she planned to major in financial engineering.

Juliana credited the Money Matters program with giving her a head start on financial skills such as budgeting and investing.

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When she turned 18, she could open a retirement account like a 401(k) or a Roth individual retirement account with earned income. One thing she learned about in the Money Matters program was the 50-30-20 rule for .

“It’s suggested that 50% of your income goes toward needs, 30% goes into internal wants and 20% goes into saving,” Juliana says. “This is a way for you to portion out how much you bring in weekly or biweekly. You can adjust it depending on your needs.”

Here are some more tips and resources for getting your teen interested in investing at an early age, or if you are a teen, reasons why you might want to prioritize getting a head start on :

— Not too early for retirement accounts.

— Start small, but get started.

— Start with familiar company brands.

— Take creative approaches to investing.

Not Too Early for Retirement Accounts

Mike Schultz, a wealth manager, research analyst and financial planner at Badgley Phelps Wealth Managers in Seattle, notes that teens younger than 18 can take advantage of tax-free compounding by having their parents open a custodial in their name.

As long as minors have reportable earned income in the form of taxable earnings or wages, they can contribute up to their yearly income or the annual contribution limit of $7,500 for 2026, whichever is lower, in this tax-advantaged account.

“The account will always be owned by the minor, but it will be controlled by the designated adult until the minor reaches adulthood,” Schultz explains.

He adds that Roth IRAs have significant flexibility, including tax- and penalty-free withdrawals that can be made after reaching age 59½.

“However, you can withdraw contributions at any time with no penalty or tax owed since they were made with after-tax money,” he says. “In addition, many investment companies offer Roth IRA accounts with no minimum investment and no commission on trades.”

Over the course of 40 years, an initial investment earning just 3% per year will more than triple in value, Schultz says. “At 6% per year, it will be worth more than 10 times the initial investment over that same time period,” he adds.

[Read: ]

Start Small, But Get Started

Putting away even a small amount each month gives teens a good start, Juliana says. “I know that there were a few students at my school who couldn’t put in a lot, but they’re just trying to put in $20 or $30 each month, just a section of their paycheck, because we need to start understanding what compound interest is,” she says.

That $20 or $30 can go a long way over time.

Teens may be intimidated that they can only put in $5 or $10, when maxing out is at $7,500, but “even a dollar can just compound, so just see what you can do, to the best of your ability,” Juliana says.

Start With Familiar Company Brands

Teen investors often need different motivation than adults who have retirement in their sights.

For example, within an IRA, teens can use to learn about investing and markets. That’s a different approach than most older investors should take, as too much single-stock risk can cause serious damage to a retirement nest egg.

“If you’re thinking about investing, researching the brands you love and use every day can be a great place to start,” says Victor Wang, CEO of San Francisco-based Stockpile, an app aimed at helping children and teens learn to save and invest.

“Maybe you’re a huge Nike fan or live by your favorite Spotify playlists. You can start investing just $5 in a few of your favorite companies and go from there,” Wang says.

Wang still advocates for , however. “For example, maybe you invest in a few stocks in tech, health care and entertainment. That way, if tech stocks aren’t doing so hot, the stocks in the other industries might be, helping your portfolio stay balanced,” Wang says.

Investing in a broad index like the S&P 500, which tracks large companies familiar to many Americans, can be done through an exchange-traded fund like the Vanguard S&P 500 ETF (ticker: ). “This can help you get exposure to a bunch of different companies at once,” Wang says.

Take Creative Approaches to Investing

Today’s teen investors can benefit from trading without fees, and from . These features, available at many brokerages, remove traditional barriers to entry, making it easier than ever for teens to get started.

“It can be relatively easy to pair one or more with several individually selected stocks and still have a portfolio to manage that doesn’t take undue risk for an individual with a very long investment time horizon,” Schultz says.

Families can use other creative ideas to get the investment ball rolling.

“A teen can start by creating a portfolio on paper and tracking it with no risk before purchasing any shares,” Schultz says. “This could even be turned into a stock-picking competition between family members, with the winner getting the initial investment money to fund their account.”

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I went to a new restaurant Wednesday night with a few friends, and the bill was $125. I left a 15% tip of $18 — or at least I thought I did. I looked at my account later and saw a tip of $78! What should I do? That isn’t what I agreed to.

Signed,

Tipped Out

Dear Tipped,

Yikes! Hopefully this is just an innocent mistake and your server misread your tip, thinking that “1” was a “7.” Either way, you have a couple of options. If a server added a tip to your bill without disclosing it, you should immediately bring it up with the restaurant right away. A server cannot add tips or service charges to your bill without disclosing them first.

This is different from automatic gratuity, which is considered a service charge rather than a tip. Think of it this way: If your bill discloses an automatic gratuity charge of 20% but you only planned to leave 15%, you’re out of luck.

[Read: ]

If there was no automatic gratuity disclosed on your bill, then these should be your next steps to deal with the issue:

— Gather evidence. Find the physical copy of your customer receipt if you can. This should have the total and correct tip on it.

— Contact the restaurant. Reach out to the restaurant’s manager and let them know the situation. Provide them with the transaction information and explain the discrepancy. Hopefully the manager will understand and void the charge on the spot.

— Dispute the charge. If the restaurant proves to be uncooperative, then you need to contact your issuer. This is why gathering evidence is so important, because you’ll have to present that information to your issuer to prove the amount you originally authorized.

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If the charge has already been posted, you’ll need to initiate a chargeback. Just know that most disputes need to be filed within 60 days of the original charge.

Hopefully it’s just an honest mistake on your waiter’s part, but the fix is relatively simple. You might just have to be on the phone for a little while. Good luck!

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One of the key points of opening a savings account for children is to put them on the path toward financial wellness as an adult.

Meg McIsaac, president of Massachusetts-based Bluestone Bank, suggests these tips for teaching kids about banking, based on their age:

— Kids 12 and under should be introduced to the concept of .

— Kids 13 to 15 should learn about , and compounded interest.

— Kids 16 to 18 should be taught how to , , use a mobile banking app and make .

[See: ]

What Is a Childrens Savings Account?

usually offer accounts for kids under 18 that provide features that differ from traditional . To start with, the account must be co-owned by an adult, usually a parent or perhaps a grandparent, other relative or guardian. Features to look for in a kids savings account include:

— Minimum opening deposit or minimum balance requirement that is low (maybe $25) or perhaps even zero

— No monthly maintenance fee

— Higher interest rate (although this may be limited to amounts under, say, $1,000)

— Access to online banking so the child can track savings

— ATM card

— Online tools to promote financial literacy

“With a little shopping around, free accounts and services can be found near where you live. If in-person service is important for your child to learn about financial services, avoid internet-only banks,” McIsaac says.

Trisha Menke, retail banking director at Bank Iowa, stresses the importance of doing business with a bank or credit union that’s committed to your child’s financial wellness. She says her bank demonstrates that commitment by, among other things, giving a copy of the book “Eleanor Saves the Day” to every kid who opens an account. The illustrated book, produced by Bank Iowa, centers on a young entrepreneur who wisely saves and invests her money.

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Here are four examples of kids’ savings accounts:

— Kids Savings Account. Alliant promotes this account as being ideal for kids 12 and under. The credit union covers the $5 initial deposit and waives monthly fees if you opt for electronic, rather than paper, statements. As of June 2026, the account paid a hefty annual percentage yield of 3.01% with an average daily balance of at least $100.

— Kids Savings Account. Capital One requires no minimum deposit or minimum balance for this account. Also, the account doesn’t charge monthly fees or maintenance fees. As of June 2026, the account’s APY was a respectable 2.50%.

— S is for Savings Account. There’s no minimum deposit to open one of these accounts, and the $5 monthly service fee is waived for those under 18. For account holders, the bank provides access to its Sesame Street-themed learning program. One drawback: As of June 2026, the APY sat at 0.01%.

— Simple Savings Account. This account eliminates the monthly maintenance fee and the minimum balance requirement if you’re 18 or under. Plus, there’s no minimum opening deposit. The APY isn’t all that attractive, though. It was 0.02% as of June 2026.

[Read: ]

Where Should You Open Your Kids Savings Account?

You may want to open the account at a bank or credit union that operates local branches because it could be part of the youngster’s financial education to visit the bank, from opening the account in person to visiting a teller to make deposits and withdrawals.

“It takes a lot of effort to change where you bank, so put effort into making the best choice. Many account holders remain with their original banks or credit unions for decades,” McIsaac says.

When you open the account with your child, you will need a government-issued ID for yourself, such as a driver’s license or passport, or perhaps other documents since your name will be on the account. For your child, you may need to present a birth certificate.

Keep in mind that if you’re opening an account at a credit union for the first time, you may need to meet membership requirements to join the credit union. Some online-only banks also offer kids’ savings accounts.

Menke says the choice of a bank or credit union now could carry long-term consequences for your child.

“Who your child banks with today may very well be who they bank with tomorrow,” Menke says. “(Fintech companies) are cool, but will they be around long enough to see your kid through those early financial milestones when their credit file is still thin, such as a car loan, student loan or even their first home?”

[Read: ]

How to Open a Kids Savings Account

Follow these steps to open a savings account for a child, either in person or online.

1. Choose a financial institution. Be sure to compare interest rates and monthly fees, as well as minimum opening deposit and minimum balance requirements at multiple banks or credit unions.

2. Select the account type. This may be a traditional savings account or a custodial savings account, for example. A custodial account offers tighter controls for adults than a traditional account does.

3. Bring your official ID. Make sure you have your government-issued ID, such as a driver’s license or passport.

4. Bring your child’s official ID. Grab a form of identification for your child, such as a birth certificate, Social Security card or school ID. In some cases, your child might not need to accompany you when you’re opening an account at a bank or credit union branch.

5. Have your personal information ready. Be prepared to supply personal information such as name, address, phone number, your Social Security number and your child’s Social Security number.

6. Sign the required documents.

7. Make an initial deposit. Some financial institutions might require an initial deposit of $25 to $100, for example, while other financial institutions might not require an initial deposit.

Are There Taxes on Kids Savings Accounts?

Interest earnings for a children’s savings account are subject to

if they exceed a certain amount.

If your child’s interest, dividends and other unearned income total more than $2,200 in one year, the unearned income for certain children might be hit with federal taxes. This income can be reflected on your child’s tax return or on your own tax return.

Because of these tax implications, it’s not wise to use a traditional savings account to put aside money for a child’s college education. Instead, you should consider a savings plan that’s dedicated to saving money for a child’s college expenses. This type of account is known as a .

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Automakers had spent hundreds of billions retooling factories, accelerating , expanding EV lineups and building out charging networks. That investment ran headlong into the One Big Beautiful Bill Act, signed into law in July 2025, which accelerated the phase-out of federal EV subsidies. Buyers balked at vehicles priced above $50,000 without government help. Investors stopped rewarding EV ambition and started demanding sustainable profits. The industry could not deliver both at once.

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Competition from Chinese Automakers

China compounded the pain. With lower production costs and aggressive pricing, Chinese automakers seized meaningful share in the world’s largest auto market. But as prices fell, so did margins, trapping the entire Asian auto sector in a relentless, self-cannibalizing price war. U.S. President Donald Trump’s tariffs then reshuffled the deck, catching Tesla Inc. (ticker: ) and General Motors Co. () in a relative tailwind while Xiaomi Corp. (OTC: XIACF) and BYD Co. Ltd. (OTC: BYDDY) shed a combined $45.8 billion in market capitalization. The Chinese firms responded with even deeper price cuts, a play that backfired badly.

Across the board, automakers doubled down on hybrids, widened powertrain choice and trimmed costs through innovation and supply-chain restructuring. Affordability and connectivity were supposed to define 2025. Survival has defined 2026. At the halfway point, Hyundai Motor Co. (OTC: HYMTF), Ford Motor Co. () and Porsche Automobil Holding SE (OTC: POAHY) have clawed their way back onto the leaderboard, displacing Maruti Suzuki India Ltd. (MARUTI.NS), Volkswagen AG (OTC: VWAGY) and Bayerische Motoren Werke Aktiengesellschaft (BMW.DE), better known as BMW, in the process.

Here are the 10 most valuable automakers by market capitalization in June 2026:

*As of June 23, 2026.

**Since last article update on Dec. 2, 2025.

10. Porsche Automobil Holding SE (OTC: POAHY)

Stuttgart, Germany-based Porsche’s legacy began with the 356 in 1948 and is defined by the legendary 911. Returning at No. 10, the company still trades below its 2022 initial public offering (IPO) valuation after group operating profits collapsed 92% in 2025 to $470 million. New CEO Michael Leiters cut to the chase: “Porsche has to make money with fewer cars.” However, his plan to shore up margins through job cuts and a focus on high-end models has not reassured analysts as to the path forward, especially to win back tech-savvy Chinese buyers. Brand strength endures as J.D. Power’s 2026 Customer Service Index ranks its dealerships No. 1 for the second-straight year. Meanwhile, Leiters has put any doubts to rest: “There will never be a fully electric 911.”

9. Mercedes-Benz Group AG (OTC: MBGYY)

Founded in 1886, Mercedes today spans the Benz, AMG, Maybach and G-Class brands. Down two spots to No. 9, the stock trades well below historic highs. Q1 2026 revenue fell 4.9% to $35.9 billion with earnings before interest and taxes, or EBIT, dropping 16.8% to $2.2 billion. Momentum includes a 34% surge in European battery electric vehicle (BEV) sales and a wave of 40-plus new models launching through 2027. The compact “Little G” baby G-Wagen arrives in 2027 in both EV and hybrid form. Mercedes continues to win customers back by paying attention to their needs, including small details such as restoring physical controls alongside its digital interfaces.

8. Ford Motor Co. ()

Henry Ford’s 123-year-old company, featuring Ford and Lincoln, returns to the leaderboard at No. 8. A 2025 Novelis aluminum plant fire disrupted F-Series production and contributed to a full-year net loss of $8.2 billion despite record revenue of $187.3 billion. Q1 2026 snapped back sharply: Revenue rose 6% to $43.3 billion with adjusted EBIT more than tripling to $3.5 billion. The F-Series holds its title as America’s best-selling truck for the 49th consecutive year. Ford’s new Universal Electric Vehicle platform targets a $30,000 midsize electric truck, while Ford Energy, a battery storage business, diversifies revenue well beyond the traditional auto cycle.

7. Ferrari NV ()

Founded in 1939 by Enzo Ferrari in Maranello, Ferrari produces fewer than 15,000 cars annually yet earns an eye-watering $192,221 per vehicle sold, reflecting a model resembling high-end fashion houses more than traditional automakers. Q1 2026 revenue rose 3% to $2.1 billion with a 39.1% EBITDA margin, and the order book extends to late 2027. The defining moment is the Ferrari Luce, the brand’s first EV co-designed with Jony Ive’s LoveFrom studio, which debuted in Rome on May 25 to a divisive reception over whether its four-door, five-seat saloon design honors Ferrari’s supercar identity. Priced at $625,000 with 1,035 horsepower and more than 310 miles of range, deliveries begin in Q4 2026.

6. General Motors Co. ()

Founded in 1908 by William C. Durant and revitalized under CEO Mary Barra, GM generated $43.6 billion in Q1 2026 revenue alone, yet it trades at a modest valuation reflecting its painful EV pivot. With Chevrolet, Buick, GMC and Cadillac brands, GM took $7.1 billion in EV-related charges across 2025 and Q1 2026, scaling back Factory Zero and pausing Ultium battery plants. Despite the headwinds, Q1 adjusted EBIT reached $4.25 billion and full-year guidance was raised to $13.5 billion to $15.5 billion, supported by truck and SUV margins and OnStar digital services revenue growing 20% year over year. (A favorable U.S. Supreme Court decision regarding certain tariffs paid under the International Emergency Economic Powers Act, and an anticipated refund, was also a primary catalyst for the higher outlook.) An $888 million investment in Buffalo’s Tonawanda plant will revive small-block V8 production in 2027, and the Ultium plants will be fully online in mid-2026.

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5. Xiaomi Corp. (OTC: XIACF)

Founded in 2010 by Lei Jun, Xiaomi entered EVs in 2021 with a $10 billion commitment that briefly paid off spectacularly before the market turned. Its valuation peaked at $174.8 billion in August 2025, then shed more than half amid rising chip costs, with Goldman Sachs warning Q2 net profit could also halve. Q1 2026 deliveries grew 6.6% to 80,856 vehicles, but the division posted a $431 million operating loss, reversing its landmark first-ever quarterly profit in Q3 2025. Xiaomi targeted 550,000 deliveries for 2026, but so far it has reached only 150,317 through May. Its boldest move: scoring regulatory approval to build extended-range EVs under a new sub-brand, Skynomad, targeting family SUV buyers with the Kunlun N3 starting around $27,800 and ranging into a higher pricing tier.

4. Hyundai Motor Co. (OTC: HYMTF)

Founded in Seoul in 1967, Hyundai returns to the leaderboard at No. 4, rewarding investors with strong profitability and competitive manufacturing costs across more than 190 countries under Hyundai, Genesis and Kia. Q1 2026 delivered record revenue of $33.3 billion, though operating profit fell 30.8% to $1.8 billion due to $620 million in U.S. tariff costs.

Hybrids hit an all-time quarterly high of 173,977 units. The centerpiece is the Hyundai Motor Group Metaplant America in Ellabell, Georgia, a $7.6 billion facility capable of producing 500,000 vehicles annually, backed by a $26 billion total U.S. investment commitment through 2028. The Georgia group is also partnering with Waymo on autonomous Ioniq 5 vehicles.

3. BYD Co. Ltd. (OTC: BYDDY)

Founded in 1995 in Shenzhen by Wang Chuanfu, BYD is the world’s largest builder of plug-in electric and hybrid vehicles. After generating $111.8 billion in revenue from 4.6 million vehicles in 2025, BYD’s Q1 2026 was a gut punch: Revenue fell 11.8% to $20.9 billion and net profit plunged 55% to $569 million due to curtailed Chinese EV incentives, intensified domestic price wars and a $280 million foreign-exchange loss. Overseas is the saving grace, with exports surging 55.8% to 321,165 units representing 46% of total sales. The U.S. Pentagon added BYD to its Chinese military companies list in June 2026, cementing its American market exclusion. New frontiers include a and the flagship Dynasty-D SUV.

2. Toyota Motor Corp. ()

Founded in 1937 by Kiichiro Toyoda in Toyota City, Japan, the brand known for reliability has lost roughly $62 billion in market cap since December 2025. U.S. tariffs alone cost $8.9 billion in FY2026, and operating income fell 21.5% to $25.1 billion on record revenue of $337.9 billion. FY2027 guidance calls for a further decline to $20 billion in operating income alongside foreign-exchange headwinds and overall rising costs. Yet electrified vehicle (an umbrella term that includes hybrid and full electric) sales surged 106.5% to 4.73 million units, validating Toyota’s multi-pathway strategy. A $912 million investment across five U.S. hybrid plants and $1 billion for EV production in Kentucky and Indiana signal what one Bernstein analyst called “the starting point for Toyota’s full electric shift.”

1. Tesla Inc. ()

Incorporated on July 1, 2003, by Martin Eberhard and Marc Tarpenning in San Carlos, California, Tesla under CEO Elon Musk has transformed the automotive industry while expanding into energy storage, solar power, AI and autonomous driving. Its $1.43 trillion market cap as of mid-June far exceeds the combined value of the other nine automakers on this list, giving it the undisputed No. 1 position among the world’s largest automakers by market capitalization.

has made Musk the wealthiest person in history, arguably the most performance-dependent fortune ever accumulated. TSLA shares have ranged from a 52-week high of $498.83 to a low of $288.77. That spiral was driven by backlash over Musk’s involvement in the Trump administration’s Department of Government Efficiency, two consecutive years of softening quarterly growth and Wall Street skepticism over cash burn. The stock also fell 6% on June 23 after the National Highway Traffic Safety Administration opened a federal probe into a fatal Model 3 crash.

Q1 2026 deliveries of 358,023 missed expectations of 370,000, though European registrations have surged 85% to 90% year over year (through May) and Goldman Sachs raised its Q2 forecast to 420,000 units. Cybercab production is underway at Gigafactory Texas, and Optimus factories aim to scale to 1 million robots annually.

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But looking at the $2.3 billion Invesco Solar ETF (ticker: ) and its return of 73% over the past 12 months, the sector is going strong. What’s more, persistent upward pressure on oil prices due to the war in Iran has created an incentive for alternative energy sources that could continue to feed a tailwind for solar stocks going forward.

Here you’ll find several leading solar companies with a variety of market capitalizations that represent some of the most interesting plays out there — both at home and overseas:

Array Technologies Inc. ()

Array provides technology solutions that ensure maximum exposure for solar panels by tracking the sun as it moves across the sky. This includes both physical hardware as well as proprietary software such as its OmniTrack and SmarTrack offerings. It’s a very specialized business, and one that is smaller than some of the entrenched panel manufacturers on this list, but it is growing fast. Specifically, revenue hit about $920 million in fiscal 2024 and is forecast to top $1.4 billion in fiscal 2026 and then $1.6 billion in FY2027. ARRY represents the kind of fast-growing secondary play on solar that many investors love, but keep in mind that it may be more volatile than entrenched players at the top of the food chain.

Enphase Energy Inc. ()

A unique solar play, Enphase is best known for pioneering microinverter systems for residential solar installations. These microinverters optimize power production at the individual panel level, improving performance and reliability to make solar power more financially attractive on a small scale. The company has also expanded beyond solar hardware to include , energy management software and electric vehicle charging solutions. Enphase’s integrated home energy ecosystem allows homeowners to generate, store, monitor and manage electricity through a unified platform — making it a one-stop shop for households that want to use solar for energy security, price certainty or a little bit of both.

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First Solar Inc. ()

First Solar is a leading American solar manufacturer specializing in thin-film photovoltaic modules. The company focuses primarily on large-scale solar projects for utilities, independent power producers and commercial customers — making it much more stable than some solar companies that rely on home installation trends. Headquartered in Arizona, First Solar has invested heavily in domestic manufacturing. In fact, the stock has jumped more than 70% in the last year, in part because of growing interest in U.S.-made renewable energy products that are free from global supply chain disruptions or . Its vertically integrated approach and large scale make it one of the most prominent solar companies in North America and a natural domestic choice for those who want to prioritize the U.S. solar sector over major players in Asia.

JinkoSolar Holding Co. Ltd. ()

JinkoSolar is a solar integration firm that services solar power generation projects and energy storage systems across China, but also worldwide. The firm boasts customers from Australia to the Middle East and even the U.S. At the end of 2025, the firm’s total energy capacity of almost 340 gigawatts across its solar cells, modules and related technology made it the global leader in solar shipments. A firm with close ties to the government in Beijing, JKS is a risky play in the solar sector. Shares are actually down over the last year compared with big winners in the U.S. However, the company strong growth prospects, and it could be a way to get in on the ground floor of alternative energy.

NextPower Inc. ()

A stock that has outperformed even its high-flying peers, NextPower has surged almost 90% in the last year thanks to its dominant position in utility-scale solar infrastructure and energy technology. Beyond the megatrend of renewable energy as a way to cut costs and reduce emissions, the company has seen particular interest due to power-hungry , which are driving demand for solar-plus-storage plants. With expertise spanning advanced structural engineering, smart-tracking software and newly integrated utility-scale battery energy storage systems (BESS), NextPower offers an inclusive platform that energy developers need to scale up capacity quickly.

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It may help explain why Americans are increasingly delaying or forgoing having children. The provisional number of births in the United States in 2025 was 3.6 million, a decrease of 1% from 2024. Before that, births declined by an average of 2% per year from 2015 through 2020.

While you may never fully feel financially ready to have a baby, you can enter this new phase of life with greater confidence by preparing in advance. Here are some of the key items that should be on your baby financial checklist.

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You’ve Integrated Child-Related Expenses Into Your Budget — and Created a Financial Cushion

The cost of having a baby in 2026 can vary depending on where you live and the lifestyle choices you make. Regardless of your situation, it can be helpful to add estimated child-related costs to your current budget and set aside that money to build a small financial cushion before your baby arrives.

Using the last available data from the (released in 2017), the cost of raising a child born in 2015 through age 18 averaged $233,610. Adjusted for inflation, that cost jumps to $334,984 as of May 2026, based on from the U.S. Bureau of Labor Statistics.

Living on a tighter budget may require some sacrifices. At a minimum, experts recommend that couples planning to start a family create a plan to pay down debt and save at least three to six months’ worth of expenses in an .

You Have Made a Plan for Child Care Costs

Child care will likely be a family’s biggest expense during the first three to four years of a child’s life.

Start by considering whether you have support from family members, whether you and your partner can work staggered schedules and how many hours of paid care you may need.

“Family budgets are tight, and that’s especially true for parents and families that have young children,” Anne Hedgepeth, senior vice president of policy and research at Child Care Aware of America, says. “Part of what’s driving that is child care. It’s one of the most expensive, but also one of the most necessary expenses a family faces.”

The average annual cost of child care was $13,184 nationally in 2025, according to a by Child Care Aware of America. The organization’s data also shows that center-based infant care costs more than in-state public college tuition in 38 states.

Costs can vary significantly depending on where you live. In California, for example, the average annual cost of center-based infant care was $17,301, while in Arkansas it was $9,727.

Partnering with community organizations across the country, Child Care Aware America offers a on its website to help parents find child care and identify available financial assistance. “There are people out there to help you navigate the system,” Hedgepeth says.

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You Reviewed Employer Policies … and Your State’s Leave Laws

The United States is one of only a few United Nations member countries that does not require paid parental leave by law.

Still, many employers offer paid leave for primary caregivers, and some also provide paid leave for secondary caregivers that families can use during the first weeks and months of a child’s life.

“Make sure to explore your company’s benefits such as paid time off, paternity/maternity leave programs,” Brian Eder, managing partner and wealth advisor with OnePoint BFG Wealth Partners in Minneapolis, wrote in an email.

He also recommended becoming familiar with your state’s leave laws. For example, Minnesota implemented a paid family and medical leave program beginning Jan. 1, 2026, that can provide up to 20 weeks of combined leave benefits.

“Certain forms of disability insurance also allow for supplementing income during leave,” Eder wrote.

You’ve Evaluated Adequate Insurance Coverage

Couples need to budget not just for the hospital costs associated with having a baby, but also regular prenatal visits and pediatrician visits.

New parents should also and disability insurance to help protect their family’s financial security in the event of an unexpected illness, injury or death.

How Much Does It Cost to Have a Child?

According to Eder, labor and delivery hospital costs typically range from $15,000 to $20,000, although costs can vary depending on a family’s health insurance coverage and whether complications arise.

“With health insurance, out-of-pocket costs can range from $2,500 to $3,500 on average,” he wrote.

As a result, experts recommend reviewing health insurance options — particularly if a couple can choose between employer-sponsored family plans — to help minimize future costs.

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You Can Balance Long-Term Savings Goals

Many couples must balance goals such as buying a home and saving for retirement with the costs of starting a family. A budget can help support those priorities while also making room for new goals, such as saving for a child’s education.

“If you plan to pay for your child’s education, consider starting a college savings account, such as a 529 plan, to help prepare for the cost of tuition and other education-related expenses,” Eder wrote. “The earlier you start, the better.”

Parents whose children are born before Dec. 31, 2028, may also be eligible to open a , a tax-advantaged investment account created through the One Big Beautiful Bill Act. Eligible newborns can receive a one-time government contribution of $1,000.

Every family’s financial goals are different, but covering the basics and creating a budget early can help parents manage the costs associated with this major life transition.

“The best time to prepare, save money, get proper insurance and write a will is in the months leading up to welcoming your new child,” Eder wrote. “You will never have as much time to complete these important tasks as you do before your new baby arrives home.”

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Rates drifted upward after the June — not because the central bank held rates steady, as widely expected, but because of the hawkish tone for future monetary policy in the updated summary of economic projections. The majority of policymakers now expect that a rate hike will be necessary later this year, not a rate cut, as rampant inflation stays well above the Fed’s 2% target.

Interest rates on home loans have risen since the beginning of the U.S. war in Iran in late February. The Middle East conflict put upward pressure on oil prices, which can make other items more expensive to manufacture and transport. Put simply, higher oil prices mean higher inflation — and higher inflation means higher interest rates.

Although a formal end to the war appears imminent, markets are still reacting to a one-two punch of stubbornly high consumer prices and resilient labor data. The May , released on June 5, found that U.S. employment grew by 172,000, outpacing expectations. Days later, May’s consumer price index report found that inflation grew by 4.2% annually, the highest pace of growth in more than three years.

Mortgage rates are likely to remain high amid robust employment and sticky inflation, even as the economic impacts of war wear off.

“Importantly, regardless of Fed action, mortgage rates are unlikely to fall meaningfully until inflation cools and long-term yields move decisively lower.”

— Selma Hepp, chief economist for the real estate analytics provider Cotality

Most experts expect over the next few years, stuck above 6% for the 30-year fixed term. Although there’s always the chance that something unexpected could happen in the U.S. economy that could send rates tumbling lower, it’s unlikely that rates will fall below 3% or even 4% in the foreseeable future.

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Current Mortgage Purchase Rates

Here are today’s interest rates for conforming purchase mortgages by loan term:

— : 6.582%

— : 6.492%

— : 5.77%

— : 5.375%

— 7-year ARM: 6.734%

— : 7.168%

— 3-year ARM: 8.25%

And here are the current government-backed and nonconforming mortgage rates by loan type:

— : 6.494%

— : 5.769%

— : 6.125%

Current Mortgage Refinance Rates

Here are today’s mortgage refinance rates:

— 6.674%

— 20-year fixed refi: 6.64%

— 5.74%

— 10-year fixed refi: 5.598%

Mortgage refinance rates tend to follow the same trends as mortgage purchase rates, although interest rates on a mortgage refinance are often a few basis points higher than on purchase mortgages.

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Mortgage Rate Trends in 2026 So Far

collects weekly mortgage rate data, which can help provide context for mortgage borrowers on how and why mortgage rates change over time. Since the mortgage giant began collecting data in 1971, the median mortgage rate is 7.23%.

The 30-year fixed rate of 2.65% in January 2021, driving up demand for purchase and refinance mortgages. Since then, mortgage rates rose to nearly 8% in October 2023 before coming down to around 6.5% currently. Still, that’s nothing compared with the record high of 18.63% recorded in 1981.

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Mortgage Monthly Payment Calculator

Your mortgage interest rate is just one aspect of your monthly housing payment. You’ll need to carefully consider how your home’s purchase price will impact your budget so you don’t buy more house than you can comfortably afford.

The mortgage term — or the length of your loan — will also significantly influence your monthly payments. Most borrowers opt for a 30-year fixed mortgage, which can keep monthly payments affordable because they are spread over a long repayment term. But if you can afford the higher monthly payments of a 15-year mortgage, it can save you tens of thousands of dollars in interest payments over time.

You’ll also need to consider property taxes, home insurance, homeowners association fees and , if applicable. You can use the calculator below to run the numbers for your financial situation.

How to Shop for a Mortgage

The mortgage rates we display on this page are national averages from lenders as provided to U.S. News by Zillow, not necessarily the exact rate you’ll receive. Mortgage rates fluctuate throughout the day, and some lenders may be able to offer more favorable pricing for your situation than others.

“As rates fluctuate, aspiring buyers should remember that by shopping around for the best mortgage rate and getting multiple quotes, they can potentially save thousands,” says Sam Khater, chief economist at Freddie Mac, in a statement.

Here are a few tips to help you shop for the lowest mortgage rate possible for your financial situation:

— Get your finances in order. Collect the documents you’ll need to apply for a mortgage using . You should also check your credit score and get a copy of your credit report to see where you stand.

— Apply through three to five lenders. Be sure to consider different loan types (such as ) as well as different types of lenders (like online lenders versus credit unions). Keep your rate shopping to a two-week window to minimize the negative impact to your credit score.

— Compare loan estimates. This document will outline the loan’s costs, including origination charges, lender credits, discount points, as well as the loan’s interest rate and or APR. The APR includes the interest rate as well as any fees, making it a holistic way to compare the cost of multiple loan offers.

Check out this from the Consumer Financial Protection Bureau to get a better idea of what to expect when comparing loan offers.

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Getting approved has gotten easier, but carrying a balance hasn’t gotten any cheaper, as annual percentage rates remain at historic highs.

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Why Banks May Be Approving More Cards Now

Large banks have slightly loosened credit standards, and experts suggest they’re capitalizing on profitable growth while APRs are high and underwriting technology makes subprime approvals easier.

Extending more credit usually means banks are confident they can make money on it, says Nick Avila, founder of United Debt Relief.

“Easier approvals aren’t charity,” says Avila. “They’re a signal that the math works in the lender’s favor.”

The APR for general-purpose cards is 24.1%, and it’s 31.3% for private-label cards, according to the Federal Reserve report.

“A bank doesn’t need every borrower to pay on time to come out ahead when the interest is that high,” says Avila.

Technology has made it easier for banks to evaluate applications. Banks can use recent payment behavior and spending patterns to look beyond credit scores when evaluating potential cardholders.

Fair credit borrowers with credit scores below 660 made up 17.8% of new accounts, up 1.2 percentage points from a year earlier.

“Banks are dipping deeper into higher-risk segments as it offers higher yield,” says Terisa Roberts, global solution lead for risk modeling and decisioning at data and artificial intelligence provider SAS. “With the use of AI and real-time data, the cost of underwriting is lower than it has ever been.”

How Expanded Credit Access Can Help Consumers

More available credit is helpful for cardholders who are building credit or keeping balances low.

“For someone with no credit history, a card is one of the few on-ramps to a score, and that score touches everything from apartment applications to car insurance rates,” says Avila. “Used right, meaning the balance gets paid in full, a card is basically a free credit-building tool.”

A higher credit limit can lower your if your spending stays the same. Cards can also offer benefits, including fraud protection, rewards and travel insurance. A or a can be used to save on interest, as long as you pay off the balance before the introductory period expires.

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Why Higher Limits Can Be Risky

Experts caution against treating new cards or higher limits like more money in your budget.

“A higher credit limit is not the same thing as having more money,” says Ashley F. Morgan, a debt and bankruptcy lawyer in Virginia. “It is simply access to more debt.”

Avila says a new card or higher limit is only helpful if you can take your balance to zero every month. Otherwise, he says, interest charges quickly compound and can quietly turn into long-term debt.

The interest rate doesn’t matter if you pay your credit card in full each statement period. But can keep debt around for years — and .

“Too many people focus on sign-up bonuses, points or cash back while ignoring the interest rate,” says Morgan. “Earning 2% or 3% back does not matter if someone is carrying balances at 25% or 30% interest rates.”

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Should You Apply for a New Credit Card?

A new card can make sense when you know how you’ll use it and have a plan to avoid interest — for example, building credit by making a few small purchases that you pay off when your statement is due each month. Using a 0% offer with a payoff plan can help you save on interest, and earning rewards or accessing benefits that outweigh the annual fee can help you come out ahead.

“A new card is a smart move when you pay in full, you’re building or protecting your score, or you have a real 0% window with a payoff plan that beats the deadline,” says Avila.

But opening a new card or getting . Before applying, review the APR, fees and promotional terms, and calculate whether the value of rewards or benefits is worth the cost. If you already carry balances, a new card could make room for more debt.

“I regularly talk to people who have never missed a payment, have credit scores in the 700s, but are carrying significant balances and have little to no emergency savings,” says Morgan. “Those consumers may still appear creditworthy even though they are under enormous financial pressure.”

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That public debut has opened the door for everyday investors to participate in one of the most talked-about growth stories on Wall Street. But some investors aren’t satisfied with simply buying common shares of SPCX stock. They want more upside potential — or a way to profit if the stock falls after an undoubtedly hyped-up IPO. That’s where leveraged and inverse SpaceX ETFs come in.

What Are Leveraged and Inverse ETFs?

For those unfamiliar with these risky products, use complex financial derivatives and sometimes aggressive borrowing to amplify gains. It is critical to understand the basics before looking for leveraged or inverse SpaceX ETFs, and it is equally important to understand your own risk tolerance before placing a trade.

The stated goal of most leveraged ETFs is to provide 2x or 3x the daily return of an underlying asset. But these funds come with elevated risk as well as the potential for double or triple the gains. Beyond the obvious challenge that 3x the gains also means 3x the losses when the market moves against you, there’s also the very costly nature of leveraged strategies: fees and expenses that add up quickly to amplify losses or offset gains.

Inverse ETFs are funds that perform the opposite of an underlying asset, meaning they go up when the investment goes down, and vice versa. These strategies also aren’t perfectly 1-to-1, as underlying instruments like futures and options often come with elevated fees or varied time horizons. Some inverse funds also deploy leverage, meaning a 3x inverse ETF could go up 9% on a day when the underlying asset drops by 3%.

Because these funds reset daily, their long-term performance can differ significantly from what investors might expect. But if you can get comfortable with the risk or just want to make a big single-day trade, these leveraged and inverse funds are an option for aggressive investors.

SpaceX Leveraged ETF Choices

Since SpaceX’s IPO, ETF issuers have rushed to launch products designed specifically around the stock. Among the major bullish leveraged ETFs, the current offerings include:

— ProShares Ultra SpaceX (), which targets twice the daily performance of SpaceX shares.

— Defiance Daily Target 2X Long SpaceX ETF (), which seeks 200% of SpaceX’s daily return through swaps and options.

— GraniteShares 2x Long SpaceX Daily ETF (), another product designed for investors with a bullish short-term outlook on the stock.

— Leverage Shares 2x Long SPCX Daily ETF (), which also targets twice the stock’s daily movement.

For investors who believe SpaceX may be overvalued or due for a pullback, several inverse funds have also launched:

— Leverage Shares 2x Short SPCX Daily ETF (), which seeks to deliver -2x the stock’s daily performance.

— GraniteShares 2x Short SpaceX ETF (), another vehicle designed to benefit from declines in SpaceX shares.

Additional products from other providers are currently working through regulatory approval processes, so there may be more leveraged SpaceX ETFs and inverse SpaceX ETFs in the weeks ahead.

It’s also worth noting that current asset values for these funds remain low, in part because of reporting delays given the very recent IPO. Eventually, funds with chronically low assets may have to close up shop — but for now, it’s too soon to tell which funds will stay popular and which ones might fall away.

What Investors Can Expect From Leveraged SpaceX ETFs

Given the big debut of SpaceX, it’s not unrealistic to imagine a quick rise of 10% for shares over the course of a single trading day. A 2x leveraged ETF like the GraniteShares 2x Long SpaceX Daily ETF would theoretically gain about 20%. That’s before fees and tracking differences, of course, but while the gains won’t be exactly 2x, they will nevertheless be quite impressive.

Conversely, if SpaceX falls 10%, a 2x inverse ETF like the Leverage Shares 2x Short SPCX Daily ETF could gain roughly 20% before expenses and tracking variance.

These funds have obvious appeal for active traders who don’t need a margin account or access to options trading to deploy these strategies. But it’s worth remembering these funds are tracking daily 2x returns.

For round numbers, consider a scenario in which SpaceX is trading at $200 and rises 10% one day to $220. If it falls 10% the next day, the stock would not be back to even but down to $198 ($220 – $22). With ETFs that magnify gains and losses, that dynamic magnifies: A 2x bullish ETF would see shares rise 20% on the first day and fall 20% on the second, which leaves the investor with a 4% loss — not the 1% loss suffered by investors who just held SpaceX stock. What’s more, the high costs of leveraged ETF strategies are layered on top of that.

This phenomenon of compounded risk, called “volatility decay,” means leveraged ETFs can lose significant value over time even when the underlying asset ends up roughly flat. And the more volatile the stock, the greater the potential impact.

Keep this in mind before looking at any SpaceX ETFs. For , leveraged and inverse ETFs are almost always too risky — and even for those with the appetite, they should be viewed as tactical tools for tight windows of time rather than long-term investments.

But if you have a strong short-term conviction about SpaceX’s direction and none of the disclaimers bother you, there are several options out there already — and likely more to come in the weeks ahead as everyone on Wall Street seems to be watching this innovative stock after its record IPO.

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The rule of 72 has been used for centuries because it provides a quick and reasonably accurate estimate without requiring a calculator or financial software. Whether you are evaluating an investment opportunity or planning ahead, understanding this rule can help you make more informed financial decisions.

What Is the Rule of 72?

The rule of 72 is a mathematical shortcut used to estimate the number of years required for an investment to double in value at a fixed annual rate of return.

Instead of performing a detailed compound interest calculation, investors can simply divide 72 by the expected annual return rate. The result is the approximate number of years needed for an investment to double.

For example, if an investment earns 8% annually: 72 ÷ 8 = 9

According to the rule of 72, it would take approximately nine years for the investment to double.

The rule can also work in reverse. If you know how long you want it to take for your money to double, you can divide 72 by the desired number of years to estimate the required rate of return.

The Formula

The rule of 72 formula is straightforward:

Years to double = 72 ÷ annual rate of return

Or:

Required rate of return = 72 ÷ years to double

Because of its simplicity, the formula is easy to remember and can be used almost anywhere.

The Rule of 72 in Action

The following chart illustrates the rule’s results across a wide range of annual return rates:

*As estimated by the rule of 72.

This chart highlights the dramatic impact of higher returns. An investment earning 6% annually takes about 12 years to double, while one earning 12% doubles in roughly half that time.

Based on the above, you would need to earn 10% per year to double your money in a little over seven years.

How the Rule of 72 Works

The rule of 72 is based on the mathematics of compound interest.

Compounding occurs when investment earnings are reinvested, allowing future returns to be generated not only on the original principal but also on previous gains. Over time, this creates exponential growth.

The exact calculation for determining when an investment doubles requires logarithms and compound interest formulas. Most investors do not want to perform these laborious calculations for everyday decision-making.

The rule of 72 simplifies the process by providing a close approximation. The number 72 was selected because it has many factors that make mental calculations easier. For example, it can be divided evenly by 2, 3, 4, 6, 8, 9 and 12, which covers common investment return assumptions.

Although it is not mathematically perfect, it is remarkably effective for quick estimates.

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Who Came Up With the Rule of 72?

The origins of the rule of 72 can be traced back more than 500 years.

The earliest known reference is often attributed to Luca Pacioli, an Italian mathematician and Franciscan friar. In 1494, Pacioli published “Summa de Arithmetica,” a comprehensive mathematics text that included a version of the doubling-time calculation using the number 72.

Pacioli is frequently referred to as the “Father of Accounting” because of his work documenting double-entry bookkeeping practices. While he may not have invented the concept, his writings helped popularize it and preserve it for future generations.

How Accurate Is the Rule of 72?

For most everyday investing situations, the rule of 72 provides surprisingly accurate estimates.

The rule tends to be most accurate for annual returns between approximately 6% and 10%. Within that range, the estimate is often very close to the actual doubling time, which is a level of accuracy more than sufficient for many planning discussions.

For example:

— At an 8% return, the rule of 72 estimates 9 years.

— The actual doubling time is about 9.01 years.

However, the rule becomes less precise at very low or very high interest rates. For example, at 2% or 20%, the difference between the estimate and the actual result becomes more noticeable.

Even so, the rule of 72 remains one of the most effective mental math tools available to investors.

Downsides of Using the Rule of 72

While useful, the rule of 72 has limitations that investors should understand:

— It provides only an estimate. The rule is intended to offer a quick approximation rather than an exact answer. Investors seeking precise projections should use a financial calculator, spreadsheet or planning software.

— It assumes annual compounding and doesn’t consider contributions or withdrawals. Most investors’ portfolios in the real world will typically include these varying factors. These factors would delay doubling, causing the rule to predict a much shorter doubling time than is reasonable.

— It assumes a constant rate of return. The formula assumes the investment earns the same annual return every year. In reality, fluctuate. An investment may gain 15% one year and lose 10% the next. The rule of 72 does not account for that sort of variation.

— Taxes and fees are ignored. Investment expenses, advisory fees and taxes can significantly affect actual returns. The rule assumes returns are fully compounded without any reductions.

— Inflation is not included. An investment may double in nominal value while losing purchasing power because of inflation. Investors should consider real returns, which account for inflation, when evaluating .

— Less accurate at extreme rates. The rule of 72 performs best within a moderate range of returns. Accuracy declines as rates move substantially lower or higher.

Alternatives to the Rule of 72

Several alternatives exist for investors seeking either greater precision or a better fit for specific return ranges:

— The rule of 69.3. Mathematically, 69.3 is more precise because it is derived directly from the natural logarithm of two. Some financial professionals use the rule of 69.3 when working with continuously compounded growth rates. However, it is more difficult to calculate mentally and is rarely used in everyday investing discussions.

— The rule of 70. The rule of 70 is another shortcut commonly used in economics. It often works well for lower growth rates.

— The rule of 73. Some analysts prefer the rule of 73 for higher interest rates because it can produce slightly better approximations in certain situations.

— Exact compound interest calculations. For the highest level of accuracy, investors can use the : future value = present value × (1 + r)^n.

Financial calculators, spreadsheet software and online investment calculators can determine exact doubling periods under various assumptions.

The Rule of 72 and Inflation

The rule of 72 is not limited to investment growth. It can also help investors understand the

on purchasing power.

By dividing 72 by the annual inflation rate, you can estimate how long it will take for the value of money to be cut in half. For example, if inflation averages 4% per year: 72 ÷ 4 = 18

This means that in approximately 18 years, a dollar’s purchasing power would be reduced by half. In practical terms, something that costs $100 today could cost about $200 in 18 years.

This application highlights why investors often seek returns that outpace inflation. Growing wealth is important, but preserving purchasing power may be even more critical to achieving long-term financial goals.

Final Thoughts

The rule of 72 remains one of the most useful and enduring tools in personal finance. With a simple division problem, investors can estimate how long it will take their money to double and gain a deeper appreciation for the power of compound growth.

Although it is not perfect, the rule offers a practical way to evaluate investment opportunities, compare return assumptions and understand the long-term impact of saving and investing. For DIY investors and financial professionals seeking a quick and effective financial shortcut, few tools have stood the test of time as successfully as the rule of 72.

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Today’s leading are still generating substantial earnings. The concern, however, is that earnings growth is not the same thing as free cash flow generation, particularly when companies are engaged in one of the largest capital spending cycles in corporate history.

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According to CNBC, cumulative AI-related spending from the Magnificent Seven technology companies is expected to approach $700 billion for 2026. That spending has already begun weighing on free cash flow. Amazon.com Inc. (ticker: ), for example, is expected to generate negative free cash flow of $17 billion, according to Morgan Stanley estimates.

Big Tech is well aware of the scale of the investment required and has already begun raising capital to support it. Alphabet Inc. (, ) recently announced an $80 billion equity capital raise tied to its AI ambitions, while Nvidia Corp. () plans to raise approximately $20 billion through an investment-grade corporate bond offering. Yet despite the unprecedented spending, meaningful evidence that AI investments are generating proportional economic returns remains limited.

Valuations are adding to investor concerns. One closely watched measure is the cyclically adjusted price-to-earnings ratio, or CAPE. As of late June, the CAPE ratio stood at 40.9, approaching the highest reading in history. The only higher reading occurred in December 1999, when the ratio reached 44.2. For context, the long-term average CAPE ratio is 17.4, while the historical median is 16.1.

While no metric can predict the exact timing of a market correction, the combination of elevated valuations, aggressive capital spending and uncertain AI monetization has prompted some investors to adopt a more defensive stance with their portfolios.

That being said, investors concerned about these risks do not necessarily need to follow prominent short sellers such as and bet against the market. In many cases, it may make more sense to remain invested while allocating a portion of a portfolio towards a hedge.

“Hedging against a crash usually fails on timing, not on the hedge itself,” explains Matt Kaufman, senior vice president and global head of ETFs at Calamos Investments. “Many investors de-risk too late and then have to contend with the other half of the decision, which is when to get back in.”

Here are seven of the best exchange-traded funds, or ETFs, to hedge against a potential stock market crash:

Alpha Architect Tail Risk ETF ()

Tail risk refers to the possibility of rare but severe market events that sit on the extreme ends of a normal return distribution. One of the biggest challenges with tail-risk hedging is that when those events fail to occur, investors can steadily lose money, much like paying insurance premiums year after year without ever filing a claim. More sophisticated ETFs attempt to reduce that drag, and CAOS is one example.

The fund combines a strategic allocation to S&P 500 put options with financing from put spreads and box spreads. Despite its relatively high 0.63% expense ratio, CAOS has historically maintained positive long-term price appreciation while simultaneously providing meaningful protection during periods of market stress, such as the COVID-19 pandemic and the April 2025 “Liberation Day” tariff sell-off.

Fidelity Hedged Equity ETF ()

A put option gives its owner the right, but not the obligation, to sell an asset at a predetermined price. Investors buy put options as a form of downside protection, but that protection comes at a cost, both from the upfront premium paid and the option gradually losing value as expiration approaches. Some ETFs address this challenge through laddered hedging programs, and FHEQ is one example.

The fund combines an actively managed portfolio with sector characteristics similar to the S&P 500 and a ladder of put options that provide convexity, meaning losses can accelerate in the investor’s favor during a sharp market decline. The trade-off is that in strong bull markets, FHEQ may lag broader equities due to its 0.48% expense ratio, a lower 0.55% 30-day SEC yield and the ongoing cost of maintaining the hedge.

ProShares VIX Short-Term Futures ETF ()

The CBOE Volatility Index (VIX) measures the market’s expectation of future volatility using S&P 500 put and call option prices. When investors rush to buy downside protection during periods of fear, option prices rise and the VIX typically spikes alongside market sell-offs. Investors cannot buy the VIX directly, but they can gain exposure through futures-based products such as VIXY.

VIXY currently holds July and August 2026 VIX futures contracts. When volatility declines, VIXY will generally lose value as its futures positions roll forward. During sharp market sell-offs, however, the fund can exhibit powerful convexity as volatility surges and futures prices rise. That potential downside protection comes with significant costs, including a relatively high 0.85% expense ratio.

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ProShares UltraPro Short QQQ ()

Some ETFs are specifically designed to profit when major market benchmarks decline, and SQQQ is one of the most well-known examples. The fund seeks to deliver three times the inverse daily performance of the Nasdaq-100 index, meaning a 1% decline in the benchmark on a given day should translate into roughly a 3% daily gain for SQQQ before fees and tracking differences.

However, SQQQ is generally not recommended as a long-term holding. The Nasdaq-100 has appreciated significantly over time, causing the ETF’s value to steadily erode, while its daily leverage reset means longer-term returns can diverge substantially from the advertised negative three-times index exposure. Investors must also contend with a relatively high 0.95% net expense ratio that adds extra drag.

Calamos Laddered S&P 500 Structured Alt Protection ETF ()

“The idea behind CPSL is to take timing decisions off the table,” Kaufman says. “It holds a laddered portfolio of our 100% downside-protected S&P 500 ETFs spanning all 12 monthly outcome periods, so an investor maintains protection that is continuously in place and rolling.” CPSL charges a 0.79% expense ratio and remains fairly liquid for an alternative ETF, with a 0.1% 30-day median bid-ask spread.

“The cost of that full protection is a limit on the upside — you give up some gains in exchange for taking the downside off the table,” Kaufman explains. On Calamos’ website, investors can find metrics showing how much upside participation each of the 12 underlying ETFs in CPSL has left. However, investors can also buy CPSL’s individual monthly structured alt protection S&P 500 ETFs directly if desired.

Calamos Laddered Bitcoin Structured Alt Protection ETF ()

Equity markets may not have crashed over the past year, but Bitcoin certainly has, falling roughly 45% over the period. In contrast, CBOL has remained comparatively resilient. The fund employs the same laddered fund-of-funds, 100%-downside-protection approach used by CPSL, but applies it to Bitcoin-linked exposure instead of the S&P 500. CBOL charges the same 0.79% expense ratio as CPSL.

“The limitation of any single option collar is that it commits you to one outcome period — one floor, one cap, one reset date — so the result depends heavily on when you buy,” Kaufman explains. “CPSL and CBOL address that by laddering 12 monthly ETFs and rebalancing to keep them equally weighted — that is what smooths out the hardest decision in hedging, which is when to put the protection on.”

State Street SPDR Bloomberg 1-3 Month T-Bill ETF ()

Investors who prefer to avoid complex hedging strategies and higher fees may find value in simply allocating a portion of their portfolio to cash equivalents. BIL provides exposure to short-term U.S. and currently offers a competitive 3.5% 30-day SEC yield after deducting a 0.1353% expense ratio. The ETF has low price volatility and minimal sensitivity to interest rate changes.

“In 10 of the worst monthly returns for S&P 500 over the last 20 years, one to three-month U.S. Treasury bills averaged a 0.1% return versus an average 10% loss for the S&P 500 index,” explains Matthew Bartolini, managing director and global head of research strategists at State Street Investment Management. BIL is also very liquid thanks to a low 0.01% 30-day median bid-ask spread.

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For some investors, however, dividend stocks are not an afterthought for volatile markets; they are a core investment strategy, regardless of market conditions. These are investors who use the passive income from dividend stocks to supplement current income, build an emergency fund or reinvest for more compounding.

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If you are an income-oriented investor, you need to understand how to create a dividend stock strategy that helps you meet your target.

Here are some ways to create such a strategy, using the example of an investor who wants to earn $1,000 passive monthly income from dividend stocks. By understanding this strategy, you can carefully recreate it for yourself, depending on what your passive income goal is.

Earn $1,000 per Month From Dividend Stocks as a Passive Investor

If you are a passive investor who doesn’t have the time or skills to select individual stocks, you are better off investing in index funds or exchange-traded funds (which I prefer for their greater liquidity and transparency). In this case, the aim is to find dividend ETFs that will pay you $1,000 per month.

Search for an ETF With a High Dividend Yield

A quick way to do this is to look for the dividend stock ETF with the highest dividend yield. This is because the higher the dividend yield, the lower the amount you need to invest to meet your target income.

Note: The dividend yield used in this article is the indicated yield. This is calculated as the most recent dividend paid multiplied by the number of dividends issued each year and then divided by the current share price. For a company that pays monthly dividends, this is the last monthly payment multiplied by 12 (number of months in a year), then divided by the current market price.

At the time of this writing in mid-June, Invesco KBW High Dividend Yield Financial ETF (ticker: ) has the highest dividend yield (14.25%) of equity ETFs (excluding those with a derivative strategy). KBWD focuses on stocks in the financial sector with high dividend yields.

For the year 2025, it paid an average monthly dividend of 14 cents per share.

To earn $1,000 per month from this ETF, you will need to have 7,143 shares. At the current price of $12.35, this will require an investment of $88,216.

Find a More Diversified Dividend ETF

Looking for more diversified exposure? KBWD is a sector-focused ETF. If you prioritize diversification, you may prefer a broad-based ETF that offers exposure across multiple sectors.

As of mid-June, JPMorgan Nasdaq Equity Premium Income ETF () was the broad-based ETF (excluding derivative-based ETFs) with the highest dividend yield, at 10.29%.

JEPQ pays an average monthly dividend of 56 cents per share. To earn $1,000 per month, you will need 1,786 shares. At the current price of $59.49, you will need to invest $106,249.

Look for an Even More Diversified ETF

If you prefer more , the S&P 500 might be a better option than the Nasdaq-100. Of all S&P 500 ETFs, JPMorgan Equity Premium Income ETF () has the highest dividend yield (8.22%).

With an average monthly dividend of 39 cents per share, you will need 2,564 shares to earn $1,000 per month, which requires an investment of $143,071 at the recent market price of $55.80.

Dividend Consistency: An Important Consideration

If you want to earn $1,000 per month for the foreseeable future rather than just for a year, then dividend consistency is an important consideration. You want an ETF that can consistently pay high dividends for many years ahead.

Morningstar has an index (called the Dividend Leaders Index) that tracks 100 stocks with the highest dividend yield from a list of stocks that have consistently paid dividends and possess the capacity to keep it up.

First Trust Morningstar Dividend Leaders Fund () tracks this index. This ETF has a dividend yield of 3.62% at the time of writing, and it pays an average quarterly dividend of 40 cents per share.

To earn $3,000 in quarterly dividends, you would need to hold 7,500 shares of this ETF. At a share price of $50.68, this translates to an initial investment of $380,100.

Dividend Consistency and Growth: How to Get the Best Value

A better approach is to focus on ETFs that track stocks with high dividend yield that also pay dividends consistently while increasing their dividend payout ratio regularly.

These can be Dividend Aristocrats (S&P 500 companies that have increased dividend payout over the past 25 years), Dividend Kings (companies of all market caps that have increased dividend payout over the past 50 years), and Dividend Achievers (increased dividend every year over the past 10 years).

Among the ETFs that track such stocks, FT Vest S&P 500 Dividend Aristocrats Target Income ETF () has the highest dividend yield — 7.04% at the time of writing.

KNG pays an average monthly dividend of 34 cents per share. To get $1,000 every month, you will need to purchase 2,941 shares of this ETF. At a market price of $49.87, this will require an initial outlay of $146,668.

Of course, you can decide to create a diversified portfolio of ETFs. This can mean having ETFs that track developed markets, emerging markets, and the broad U.S. market, among others.

In this case, you must divide up the $1,000 among all these stocks, then calculate the investment outlay required to meet the monthly income needed from each ETF. (See below for an example of how this works for individual stocks.)

The downside of this approach is that you will require a greater investment outlay than the options we have provided above, since these are the ones with the highest dividend yields. Thus, if you are using this approach, it must be because there are other portfolio objectives you are trying to achieve.

Earn $1,000 a Month From Dividend Stocks as an Active Investor

If you are an active investor, you want the freedom to do your research and select your stocks. In this case, the focus is on individual stocks rather than ETFs.

The simplest approach is to find a list of the dividend stocks with the highest dividend yield, select those you want from among them, decide what portion of the $1,000 you want to receive from each of them, and then calculate the initial outlay required.

For example, let’s say you want a portfolio of five stocks; you can select five of the stocks with the highest dividend yields.

However, it is better to embrace caution and filter for stocks that have paid dividends for at least five years. This removes the risk of purchasing stocks that pay dividends once in a blue moon or new companies that will pay high dividends to attract buyers and then stop paying once the stock price shoots up.

At the time of writing, Investcorp Credit Management BDC Inc. () (39.67%), Oxford Square Capital Corp. () (30.43%), Icahn Enterprises LP () (27.03%), PennantPark Investment Corp. () (25.33%) and Runway Growth Finance Corp. () (21.67%) have the highest dividend yields among stocks with at least five years of dividend payments.

If you want $200 monthly from each, then the initial outlay and the number of shares is as follows:

— Investcorp Credit Management. Over the past seven years, ICMB has paid an average annual dividend of 67 cents. To get $2,400 in annual dividends, you will need to have 3,582 shares, for an initial investment of $4,334 at the current price of $1.21.

— Oxford Square Capital. OXSQ paid 42 cents in annual dividends in 2023, 2024, and 2025. To get $2,400 in annual dividends, you will need 5,714 shares. At the current price ($1.38), this requires an investment outlay of $7,885.

— Icahn Enterprises. Since the last quarter of 2024, IEP has paid 50 cents in quarterly dividends. To receive $600 in quarterly dividends, you will need 1,200 shares. At the current price ($7.40), you will require an outlay of $8,880.

— PennantPark Investment Corp. In 2026, PNNT paid monthly dividends of 4 cents per share. To receive $200 in monthly dividends, you will need 5,000 shares for an investment of $18,950 at a market price of $3.79.

— Runway Growth Finance Corp. RWAY pays a regular quarterly dividend of 33 cents. To receive $600, you will need 1,818 shares. This will require an investment of $11,072 at a market price of $6.09.

In all, you would need an initial outlay of $51,121. This is lower than anything we calculated using the passive investing strategy.

Look for Diversification to Reduce Risk

Active investors also seek diversification to reduce portfolio risk. If you are such an active investor, you can modify the approach above in three ways.

First, you can expand the list to include the top 10 or 15 dividend stocks by dividend yield. Second, you can choose the stock with the highest dividend yield in each sector so that the result will be well diversified. Third, you can try to achieve broader diversification by identifying large-cap, and small-cap stocks with the highest dividend yields and then filtering the list so that all the major sectors are represented.

Let’s exemplify how that second approach will work. The following are the dividend stocks with the highest dividend yield in 10 popular sectors and industries:

— Finance: Runway Growth Finance Corp. ()

— Transport: United Maritime Corp. ()

— Retail trade: Sun Art Retail Group Ltd. (OTC: SURRY)

— Energy minerals: Icahn Enterprises LP ()

— Consumer services: Transcontinental Inc. (OTC: TCLAF)

— Consumer non-durables: Natural Health Trends Corp. ()

— Technology services: Autohome Inc. ()

— Utilities: Aker Solutions ASA (OTC: AKRYY)

— Process industries: CVR Partners LP ()

— Industrial services: Western Midstream Partners LP ()

If you want to earn equal amounts of dividends from each, that will require a monthly dividend of $100 per month or $1,200 per year. Using the format above, you can derive the initial outlay required for each stock and sum them up.

Dividend Consistency: Another Important Factor

One way to factor in dividend consistency to your selection is to look at the individual constituents of the Morningstar Dividend Leaders Index, filter them based on dividend yields, decide on the number of stocks you want in your portfolio, and select them in descending order from the filtered list.

As of mid-June, the top 10 stocks by dividend yield in this index are:

— Pfizer Inc. (): 6.57%

— United Parcel Service Inc. (): 6.04%

— Verizon Communications Inc. (): 6.03%

— Altria Group Inc. (): 5.94%

— Comcast Corp. (): 5.51%

— T. Rowe Price Group Inc. (): 4.8%

— Oneok Inc. (): 4.8%

— Eversource Energy (): 4.6%

— Bristol-Myers Squibb Co. (): 4.53%

— PepsiCo Inc. (): 4.12%

Notice that none of the stocks with the highest dividend yield make this list. This shows why should be a concern for the dividend investor. It’s not enough to provide a high dividend yield in one year; it is the ability to do it consistently over the years that matters.

Once you have the list, the rest of the process is just as before: Determine what portion of the $1,000 monthly dividend you want from each stock, calculate the initial outlay required for each stock, and sum up the initial outlay for all the stocks in the portfolio.

Dividend Consistency and Growth: How to Get the Best Value

The first step is to decide if you are focusing on Dividend Aristocrats, Dividend Kings or Dividend Achievers. Once you have selected one, identify all the stocks in the list, filter them based on dividend yield, determine the number of stocks you want in the portfolio, and then select from the filtered list in descending order.

Let’s focus on Dividend Aristocrats to exemplify this process. There are about 66 stocks across 10 sectors in this list. The top 10 by dividend yield at the time of writing are as follows:

— Amcor PLC (): 6.51%

— Realty Income Corp. (): 5.25%

— Clorox Co. (): 5.05%

— Kimberly-Clark Corp. (): 5.04%

— T. Rowe Price Group Inc. (): 4.80%

— Hormel Foods Corp. (): 4.79%

— Eversource Energy (): 4.60%

— Kenvue Inc. (): 4.59%

— Genuine Parts Co. (): 4.16%

— Franklin Resources Inc. (): 4.15%

Again, you can complete the process by determining what portion of the $1,000 monthly dividend income you want to get from each stock, calculating the initial outlay for each stock, and summing them up to get the overall required investment.

Bottom Line

The research above has highlighted general approaches to earning $1,000 per month from dividend stocks for both passive and active investors.

However, since the financial situation of one investor is not the same as another’s, you will need to take this information and then discuss the best approach to adopt with your .

In this way, you can develop a personalized strategy that will provide you with the income you need.

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