Building Wealth with Dividend Investing: A Simple Guide

Top 5 Best Dividend US Stocks To Buy In June 2023

Top 5 Best Dividend US Stocks To Buy In June 2023 Exploring the Best Dividend US Stocks to Buy in June 2023: A Closer Look at the Economy and Top Picks Introduction: Now that the debt cycle debacle is presumably behind us, we can shift our attention back to the economy. Economic data is lackluster, and there is a split among economists on whether the Federal Reserve will raise rates during their…

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The dividend is the part of the profit which a company pays out in the form of a dividend to its shareholders either quarterly or half-yearly. The dividend yield is a great way of measuring the amount of return that an investor will be able to generate from its stock investment.

Dividend stocks can be a great choice for investors looking for regular income, retirees or risk-averse investors. The advantages of investing for dividends, particularly at times when the markets are down are:

Tax-free rate of return (in case of fully franked dividend) – When the fully franked dividend is declared, then the company pays tax on the entire dividend. Investors receive 100% of the tax paid on the dividend as franking credits.

Capital Gain – By investing in quality companies, there are high chances of making huge capital gains in the future, once the market revives.

While picking up stocks, investors need to do proper research to find out what has led to the fall in stock prices. It may be because of various other reasons like falling profitability, government regulatory policy, plant shutdown, etc. Keep in mind that the company pays dividends out of its profits. When profitability declines, sooner or later it will revise its dividend distribution strategy.

Dividend Yield is always been one of the best investments in stock market. Anybody looking for the top ten NZX dividend yield should follow our channel and get advantage for the investment purpose. It keep updating accordingly requirements as we come under the best stock market news providers in NXZ. You will also find information about top 10 stocks by dividend yield.

@raginrayguns said:

if a company was never going to pay dividends or do stock buybacks, the stock would presumably be worthless. It's hard to be sure because of nft's and bitcoin but presumably. This stock that you buy to sell it later, you're either selling a promise of a future share of profits, or... idk, the thing youre imagining doesnt really exist i think, or it's bitcoin can you name a specific stock that you think works like this?

oh! yes. great question. thank you for forcing me to specifics. TSLA! (circa 2021)

this valuation has to be what, 90+% speculation? theres no way anyone thinks that TESLA will be more profitable, produce more buybacks than the rest of the car industry combined. i think a huge portion of the stock market is like this. i reblogged a thing about this recently but i cant find it, the change in the stock market over the last 10 years is almost entirely the top 10 companies

Hello! Do you have tips, advices or any helpful resources on financial independence for beginners? Thankyou in advance!

Of course 💞

Generally, to gain financial independence you need to start by setting a goal. After you set a goal you need to write down your actual scenario as it currently standards. Then you brain map different strategies and actions you can take.

This is probably the easiest time to establish financial independence. It doesn’t matter if you’re 15 or 55, because of all of the tools available to us on the internet.

As a base:

Set a financial goal: Start by setting a specific financial goal that you want to achieve, such as paying off debt, saving for a down payment on a home, or building an emergency fund. Having a clear goal in mind will help you stay focused and motivated.

Create a budget: A budget is a crucial tool for achieving financial independence. Start by tracking your expenses and income, and then create a budget that allocates your income towards your financial goals and expenses. Consider using a budgeting app or spreadsheet to make this process easier.

Mint is budgeting app I use, it helps you track your expenses, set financial goals, and stay on top of your finances.

Reduce expenses: Look for ways to reduce your expenses, such as cutting back on unnecessary subscriptions or finding ways to save on utilities and groceries. This will free up more money to put towards your financial goals. Just like time, people don’t realize how much money they waste. Every bit counts and adds up. Make sure you’re investing your money on things that are absolutely needed- and not simply wasting money you can be using to make more money.

Invest for the future: investing your money in a retirement account or other long-term investment vehicle. Accounts that pay dividends. This can help you build wealth and achieve financial independence over time. This requires some capital and you should have some money saved before you consider starting.

Some authors I recommend would be:

1. Dave Ramsey: The Total Money Makeover

2. Robert Kiyosaki: Rich Dad Poor Dad. His YouTube channel is a gold mine. https://m.youtube.com/@TheRichDadChannel

3. JL Collins: The Simple Path to Wealth

4. Ramit Sethi: I Will Teach You to Be Rich

In order to achieve financial independence, it’s Important to build passive income streams. Passive income requires a smaller budget than what people may believe. If any, in some scenarios.

Passive income can be for example:

Dividend Stocks

Affiliate marketing

Selling digital products

Royalties

Real estate investing

Side hustles can also be passive income steam, and/or have the ability to replace your current main income stream.

I can give you a ton of side hustle ideas. Hundreds. That you can do using your computer. If you give me niches that interest you, I can list recommendations.

The most important aspect however, is mindset. Having a positive mindset when it comes to money and wealth. Your mindset will either drive you to take actions or hold you back. Your thoughts and beliefs about money can have a profound impact on your financial success. Learn how to develop a mindset of abundance and to think creatively about how they can increase their income and build wealth.

Lula Irks Investors in Bid to Spur Brazil Growth, Boost Approval

Inside Brazil’s presidential palace, angst is mounting as the economy sputters along, churning out tepid growth figures month after month. President Luiz Inacio Lula da Silva is ratcheting up the pressure on his top aides to boost spending, gin up faster growth and turn around his sinking approval ratings.

This, people close to him say, helps explain the decision this month to order state-run oil company Petroleo Brasileiro SA to withhold a $9 billion dividend to investors. And it explains the push to oust the head of mining giant Vale SA. The government can have Petrobras pump that $9 billion into priority energy projects instead, the thinking goes, and it can slide in a new leader at Vale who’s more focused on creating jobs and less on shareholder returns.

The moves have shocked investors. In 2023, Lula’s first year in office since he left power a decade earlier, they had gotten used to a measured, even cautious president who resisted temptations to swell the budget.

So when word on the Petrobras dividend got out, they pushed the stock down 11% in a matter of hours. The bigger question being asked on Sao Paulo trading desks now is whether these moves augur a new, riskier policy approach or whether Finance Minister Fernando Haddad will manage to convince Lula to stick to the more cautious stance that stoked rallies in Brazilian stocks, bonds and currencies in 2023. 

Continue reading.

Four Investments That Are Very Profitable Right Now in 2023

The most profitable investments in 2023 are a matter of opinion, but some of the top contenders include:

1. High yield savings accounts offer much higher interest rates than traditional savings accounts. This makes them a good choice for investors who want to get a higher return on their money, but also want to keep their money safe and accessible.

2. Short-term certificates of deposit (CDs) offer similar interest rates to high-yield savings accounts, but they come with the added benefit of locking in your interest rate for a set period of time. It can be a good choice for investors looking to protect their money from market volatility.

3. Series I bonds, government bonds that offer variable interest rates linked to inflation. This makes it a good choice for investors looking to protect their money from the effects of inflation.

3. Short-term corporate bond funds invest in corporate bonds with maturities of less than one year. These funds offer higher yields than traditional bonds, but also carry more risk.

4. Dividend stock funds invest in stocks that pay dividends to their shareholders. Dividends are a way for companies to share their profits with their shareholders, and they can provide a steady stream of income for investors.

It is important to note that all investments carry a certain level of risk. Investors should carefully consider their investment objectives and risk tolerance before making any investment decisions.

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This is maybe a weird thing to focus on and I don’t know if it’ll even be addressed in season 4 but I’m super curious as to how both Tom and Shiv would be impacted financially by a divorce. Unlike Kendall and Roman, Shiv’s take-home as a political consultant would have been 6 figures, tops (probably no more than 100k), whereas Tom’s take-home both at Parks and ATN would be in the tens of millions (his annual salary as chairman of ATN is probably ~35 million). Shiv is a shareholder and receives dividends from Waystar, which would likely be substantial. Tom has likely also bought shares, I think, but he would have nowhere near as many shares as Shiv, since she received a massive chunk of voting stock as a member of the Roy family.

It’s tricky to figure out what this would mean practically, but - we know from 1.03 that Waystar stock typically sits above $130/share. Since Waystar is so massive I think it’s safe to assume that it has ~100 million shares. Assuming Shiv, like Caroline, has 4% voting stock, that’s about 4 million shares. The average dividend right now is 1.7%, which means shareholders are annually paid out 1.7% of their initial investment. For Shiv, this means she’s likely getting about 9 million annually from her Waystar stock - maybe a bit more, since I’m being conservative with the numbers. She and Tom likely both have other investments as well which provide them with passive income, since that’s what you do when you have that kind of wealth, but I have no way to calculate those. So, I’d hazard a guess that in terms of annual income, both active and passive combined, Tom is bringing in significantly more than she is. The prenup was clearly written to protect her wealth, but I think it’s likely that it’s mostly concerned with her inheritance, which is a massive chunk of wealth she’ll receive in the near future but doesn’t have right now - both in terms of a sizeable increase in voting stock and also whatever material assets + liquidity she and her siblings inherit. Her net worth would likely take a massive jump, from something in the tens or hundreds of millions (where it is now) to in the billions, so that’s where the prenup would become necessary for her.

I think it’s extremely unlikely anyone in the writers room has actually thought all this through, so it’s not something that will ever be addressed, but it’s still interesting food for thought

The text of an email I received from Bernie Sanders about the Senate refusing to vote in favor of paid leave for the railroad workers.

Yesterday was a day of both victory and defeat on the floor of the Senate as we addressed the looming crisis in the rail industry. The good news is that we took on the incredible greed of the railroad corporations and managed to get every Democrat (except Joe Manchin) and six Republicans to vote to secure paid sick leave for rail workers. The bad news is that, because of the absurd rules of the Senate, despite having a majority of senators we needed 60 votes to pass the amendment. (The House had passed it the day before.) With the failure of the Senate to pass my amendment on paid sick leave, I voted against final passage of the bill.

Let me be clear. This struggle for justice for rail workers is not over.

At a time of record-breaking profits for the rail industry, it is disgraceful that workers there do not have one single day of paid sick leave. As a member of the Senate Health, Education, Labor and Pensions Committee, I will do everything I can to make sure that rail workers in America are treated with dignity and respect. They deserve that benefit as does every worker in our country.

But right now, I'd like to share with you what is going on in the railway industry today, and why Congress got involved in this labor-management conflict under the Railway Labor Act.

The American people are increasingly disgusted by the outrageous level of corporate greed they are seeing. While working families are struggling to keep their heads above water, we are seeing unprecedented income and wealth inequality and soaring corporate profits. While the rich get richer everyone else struggles. There is no better example of that greed and that reality than what is occurring in the railway industry.

The rail industry has seen huge, record-breaking profits in recent years. In the first three quarters of this year, the rail industry made $21 billion in profits. Further, the profits are so high that the industry spent $25 billion this year not to improve rail safety or address the supply chain crisis. No. They spent $25 billion to buy back its own stocks and hand out huge dividends to its wealthy stockholders.

Since 2010 the rail industry has spent over $183 billion on stock buybacks and dividends. On top of all of that, the CEOs of many of these railway companies are enjoying huge compensation packages. While workers struggle, last year the CEO of CSX made over $20 million in total compensation. The CEOs of Union Pacific and Norfolk Southern made over $14 million each.

In other words, in the railway industry corporate profits are soaring and CEOs have never had it so good. But, in the midst of all of that, what is going on for the workers?

Right now, if you are a rail worker – and this is a job that is hard and dangerous – you are entitled to a grand total of zero sick days. Let me repeat that. You are entitled to ZERO sick days if you work in the freight rail industry.

What this means is that if you get sick, or if your child or your spouse gets sick and you need to take time off of work, not only will you not get paid, you will get reprimanded and could get fired.

What the freight rail industry is saying to its workers is that it doesn't matter if you have COVID, or if you're lying in a hospital bed because of an emergency. If you do not come into work no matter what the reason, the rail industry wants the right to punish you or even fire you.

It is hard to believe these conditions still exist in America in the year 2022.

At a time when the railroads made over $21 billion in profits so far this year it turns out that guaranteeing 7 paid sick days to workers would cost the industry $321 million a year. That is less than 2 percent of their overall annual profits. This is what greed is all about.

The United States, sadly, is the only major country on Earth that doesn't guarantee paid sick days. Pathetic. In a modern civilized society, it should be a no- brainer that if you or your family gets sick, you should have paid sick leave. End of discussion.

As Congress ends this session, it is clear that we have an enormous amount of work in front of us next year. Not only do we have to address the situation in the rail industry, not only do we have to guarantee paid sick leave to all Americans, we must move forward to create an economy that works for all, and not just the few. It is not acceptable that 60 percent of American workers live paycheck to paycheck, that 85 million are uninsured or underinsured, that parents cannot afford childcare, that young people cannot attend college because of the cost and that almost 600,000 of our people are homeless. It is clearly imperative that we address the existential threat of climate change.

Bottom line. There is an enormous amount of work to be done. Let’s do it together.

In solidarity,

Bernie Sanders

Best investment style for investors looking to invest in stocks with high dividend yield should be – Whenever these dividend-paying companies to become available at discount or below certain target price that you have in mind, buy few stocks of these companies with a view to holding on to them forever. In this way, you will slowly and gradually build a portfolio of well-established dividend stocks.

We believe that investing in high dividend yield stocks which, if done with discipline could prove to be an excellent way of making extraordinary returns from stock markets. Particularly in the current scenario, when there is a slowdown in the economy and the stock markets are so uncertain.

Most Popular Dividend Stocks That are Appealing

Investors ordinarily search for the right mix of investments to turn out a steady and repeating income stream. And keeping in mind that investors will generally rush to the absolute most well known dividend stocks available, there are other, underrated Dividend Stocks in Canada that are similarly engaging.

Let’s Take a Look at Such Stocks:

The month to month income earner

Finding an incredible income stock that gives a steady and repeating dividend can be an overwhelming task for investors. Furthermore, finding one that pays out month to month is significantly more extraordinary. That is where Trade Pay Enterprise (TSX:EIF) becomes an integral factor.

Exchange income is procurement focused. The organization possesses more than twelve subsidiary organizations, which broadly fall into the aviation or assembling section. These organizations are one of a kind in that they offer essential support inside a separated specialty market. The way that they're in specialty markets means there is almost no competition.

Perfect examples of this incorporate giving passenger and freight services to Canada's far off north on the avionics side. Going to assembling, an interesting model incorporates a business that is liable for the installation of cell phone towers.

The other unique element of these subsidiary organizations is that they generate cash for Trade and exchange income. This thusly, converts into the juicy month to month dividend on offer. The current yield on that dividend works out to a liberal 5.94%. This means that a $40,000 interest in EIF will turn out a monthly income of $198.

Imminent investors ought to likewise take note that exchange income has given knocks to its profit throughout the long term, the latest of which came this previous summer.The main company that you've won't ever know about.

Saskatoon-based Nutrient is the biggest yield info and service provider in the world. The organization produces an incredible 27 million tons of phosphate, nitrogen, and potash items. The organization likewise flaunts a broad agricultural retail network compromising above and beyond 500,000 grower accounts.

Nutrien is one of a handful of the organizations available that has taken off this year. Year-to-date, the stock is up an incredible 25%, while the market is down almost 13%.

As far as results, in the latest quarter, Nutrient saw its sales surge 45% to US$14.5 billion, though profit took off 224% to US$3.6 billion. Part of the reason for the organization's ascent this year originates from the unavoidable vulnerability in the market.

Apart from the effect of the war in Ukraine, Nutrient is affected by rising fuel and energy costs, as well as progressing worldwide stock issues. The organization is additionally heading into its high season, as farmers collect their yields, and buy fertilizer for the next year. These factors have helped push the stock higher this year, and likewise, prompted Nutrient knocking its profit. Nutrient's quarterly dividend presently conveys a decent yield of 2.5%, making it a strong underrated Dividend Stock TSX to consider for passive income.

Will you Purchase These Dividend Stocks?

No investment is without risk, and that applies to both Exchange Income and Nutrient. Luckily, the two stocks work in extraordinary sections of the market where there is little contest and a lot of potential gains, even in this volatile market.

As I would like to think, either of these underrated Dividend Stocks Canada should form a small part of each and every very much expanded portfolio.

5 Reasons to Invest in Gold Mining Stocks

Gold has always been among the most sought after components because of its head mix of beauty, extraordinariness, and its unrivaled status as a technique for trade for as far back as hundreds of years. Gold Mining Stocks make incredible investment assets as costs are currently reaching up to $1,400 for each official ounce. There visit site here are a few experts who predict gold costs to be esteemed as high as $2,500 per ounce before long. Gold mining stocks, particularly inside the Canadian Stock Market, are one of the simplest ways of investing in gold that anyone could hope to find.

Like some other product market, the cost of gold is driven by supply and request conduct. For a very long time, there were a lot of public banks all around the world which offered their gold reserves in the market to cover significant underlying shortfalls between the market interest and mined supply. Here are a portion of the top reasons why you ought to integrate mining stocks into your Abundance The executives methodology in gold mining stocks now.

The development of gold is diminishing. Gold is a mineral that has been created less throughout the course of recent years. The reason might be very obvious and simple-the world reserve for gold is just running out. Gold will always be available to satisfy request, however in the long run populace will surpass gold creation, and this implies that a bullish gold market probably anticipates ultimately. Since the world is running out of gold reserves, all that is left correct now are definitely significant. Also, the vast majority of the gold reservoir locales are as of now claimed by a few gold mining organizations.

Demonstrated and Likely Gold Reserves. Demonstrated gold reserves are gold mines underground that have been demonstrated by research while plausible gold reserves, as its name suggests, are dubious. Most gold mining organizations usually trade with demonstrated reserves and plausible ones at a variable rebate. The higher gamble you take, the more you will be compensated if things turn out well for you. Gold Mining Stocks might be a 'high stakes' down, yet are definitely worth the time invested.

Gold stocks usually offer dividends. By having dividend stocks under your name, you can produce a decent pay even without selling those possessions. In simpler terms, you should simply sit and earn!

Gold Mining Firm Unions. Gold mining stocks are accepted to be 'weighty on assets'. Gold stocks are likewise considered remarkable investments so that they dissipate in time since they are at last mined. Also, when the world runs out of gold reserves, gold mining firms will undoubtedly go wiped out. The answer for this issue is a bigger number of acquisitions.

A Barbenheimer Assumption (Strikes and Stocks)

The top headlines today are *still* barbenheimer. It's been four months since its release. These are the only *two* movies that will be remembered this year, obviously; With the exclusion of some hidden gems that will be rediscovered a few years from now.

This means the only drawdown on cinema stocks are the lack of new movies.

So here's my assumption; The studios don't want to negotiate because their financial departments have made some poor investments and are hoping for a certain negative sentiment to be realized.

"Keep out of the rabbit holes Melin"

So let's turn to dividend producing stocks; since the whole market is gonna see turbulence, and the automotive industry is facing strikes, a rise in repossessions, and a drop in used car prices, it's likely they'll have to tighten their own belts.

This means a drop in dividend payouts. Which means a drop in dividend producing stock prices and people start to divest from them. That means it's a good time to be watching bluechip stocks.

Remember; A blue chip stock *only means* that the company is well-known and established. [Investopedia Link]

These are your billion$ market cap companies. Your monopolies. The industry leaders. This means that while they might pivot their core business practices; there is a high chance they'll weather the storm (99.9%) barring some sort of black swan which will happen during the storm. So keep an eye out for them, unlike what Plotkin thinks a "black swan event" is, one that happens during a market downturn can and will take out a company as short interest dogpiles.

Out of 1000 companies, 99.9% means 10 of those companies are likely to fail in such an event. So you need to keep on your toes.

Blue chips with Dividends are good to own and best to buy during/after a market down turn. They're the kind of chips with a long shelf life. They're not invulnerable as we've seen with Sears, but they're the best bang for your buck and can get you the 1% returns on your yearly investment (while also appreciating in value.)

What we're looking for in media terms; people excessively blaming welfare recipients, industry workers, anybody middle class or below, teachers, migrants, refugees, immigrants, and this time: Autistic Redditors. (More so than they had earlier this year.)

They'll be doing that because they'll be facing their own belt tightening and their money machines drying up. (Being unable to pay workers AND make a profit)

Just remind them; there are no sure bets.

Different Ways to Earn Money: Unleashing Financial Success

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Introduction In the modern world, achieving financial stability and independence is a top priority for many individuals. Whether you want to supplement your income or embark on an entrepreneurial journey, there are numerous opportunities available to help you reach your financial goals. This article explores a diverse range of proven strategies, both traditional and online, to earn money effectively. By leveraging these methods, you can unlock your potential for financial success and secure a brighter future.

Embark on a Freelance Career Freelancing has become increasingly popular, providing flexibility and independence in work life. Platforms like Upwork, Freelancer, and Fiverr connect freelancers with clients globally, offering opportunities in various fields such as writing, graphic design, programming, and virtual assistance. Building a strong portfolio, delivering high-quality work, and maintaining good client relationships are key to earning a substantial income as a freelancer.

Monetize Your Blog Blogging allows you to share your passions and expertise while generating income. Choose a niche that interests you and create valuable content to attract readers. Once your blog gains traction, you can monetize it through affiliate marketing, sponsored posts, advertising, and selling digital products. Consistency, engaging content, and effective promotion are crucial for success in the blogging world.

Become an Online Tutor If you have expertise in a particular subject or skill, consider becoming an online tutor. Platforms like VIPKid and Tutor.com connect tutors with students globally, providing opportunities to teach subjects such as languages, math, science, and music. Tutoring not only allows you to earn money but also enables you to make a positive impact on others' academic success.

Launch an E-commerce Store The rise of e-commerce has opened up avenues for aspiring entrepreneurs to start their own online stores. Platforms like Shopify, WooCommerce, and Etsy provide user-friendly interfaces to set up and manage your e-commerce business. Select products that align with your interests and market them effectively to attract customers. Building a solid brand, providing exceptional customer service, and utilizing digital marketing strategies are crucial for success in the competitive e-commerce landscape.

Invest in Stocks and Dividends Investing in the stock market can be a profitable way to grow your wealth over time. Conduct thorough research, follow market trends, and make informed investment decisions. Additionally, dividend investing allows you to earn passive income by investing in companies that regularly distribute a portion of their profits to shareholders. It is essential to diversify your portfolio and stay informed about market fluctuations to maximize returns.

Explore the World of Affiliate Marketing Affiliate marketing offers an opportunity to earn a commission by promoting other people's products or services. Join affiliate programs such as Amazon Associates, ClickBank, or Commission Junction and promote their offerings through your website, blog, or social media platforms. As your audience grows, so does your potential for earning. Building trust with your audience and selecting relevant, high-quality products are key to success in affiliate marketing.

Offer Professional Services on Online Marketplaces

Online marketplaces like TaskRabbit, Thumbtack, and Freelancer.com provide opportunities to offer professional services such as handyman work, graphic design, writing, and marketing. Creating a compelling profile, highlighting your skills, and delivering exceptional service are essential for gaining positive reviews and attracting more clients. Providing outstanding customer service and establishing a strong reputation can lead to recurring business and referrals.

Participate in Online Surveys and User Testing Companies are constantly seeking consumer feedback to improve their products and services. Websites like Swagbucks, Survey Junkie, and UserTesting offer rewards for participating in surveys, testing websites, and providing valuable insights. While the earnings may not be substantial, participating in online surveys and user testing can be an easy and convenient way to earn some extra cash.

Create and Sell Online Courses If you possess knowledge in a particular field, consider creating and selling online courses. Platforms like Udemy and Teachable provide the infrastructure to design and publish courses on various subjects. Effective marketing, high-quality content, and engaging course materials are crucial for attracting students and generating income. Continuously updating and expanding your course offerings can help you stay competitive in the online education market.

Write and Publish an E-book Self-publishing an e-book has become increasingly popular, thanks to platforms like Amazon Kindle Direct Publishing and Smashwords. Share your expertise, tell a compelling story, or provide valuable insights in your e-book. With effective marketing, professional editing, and an eye-catching cover, you can generate passive income from book sales. Building a loyal reader base and receiving positive reviews can further enhance your e-book's success.

Conclusion Earning money in today's world offers a plethora of opportunities, both traditional and online. By exploring these diverse strategies, you can find a path that aligns with your skills, interests, and goals. Remember that success requires dedication, perseverance, and continuous learning. Whether you choose freelancing, starting an online business, or investing in the stock market, consistency and delivering quality are crucial. Embrace the digital landscape, leverage your expertise, and be willing to adapt to changing market dynamics. With determination and a strategic approach, you can unlock your financial potential and pave the way to a prosperous future.

After BP’s big results announcement today, it’s clear that major questions remain about Rishi Sunak’s windfall tax. The oil giant registered profits of $8.2bn (£7.1bn) over the past three months, almost triple the profit it made for the same period last year. While BP reports it expects to pay about £700m in windfall tax on its North Sea operations this year, it also plans to spend more than three times that much on a $2.5bn (£2.17bn) share buyback programme, handing surplus cash back to its shareholders instead of using it for renewable investment or lowering prices.

Sunak introduced the tax when he was chancellor, promising to redistribute the extraordinary profits of oil and gas companies to households and businesses in the form of cost of living support. Thanks to extremely generous loopholes – which provide tax breaks in return for investments, such as drilling oil in the North Sea – the energy profits levy looks set to miss out on vital revenues. Shell has made more than $30bn (£26bn) in net income since the start of the year, and still hasn’t paid a single penny in additional tax from the levy in the UK.

As prime minister, Sunak is once again looking at ways to raise tax revenues for the government. Rather than return to the public service cuts of the austerity era, he may turn his focus back to the behaviour of the companies he first targeted in May.

Companies producing oil and gas have been making eye-watering profits this year while average energy bills have doubled since last October, even with the government’s energy price cap holding down costs. This is no coincidence: their windfall profits are the result of sharp increases in the wholesale price of energy and represent direct cash transfers from the pockets of households and businesses.

But instead of channelling all of their profits into productive investments, energy companies have transferred most of their extra cash straight to shareholders in the form of dividends and “buybacks”. Dividends are the primary means of paying shareholders when the company makes a profit, while buybacks reward shareholders by inflating the value of a company’s stock. Share buybacks were illegal in the UK until 1981 because they were considered by many to be a form of market manipulation.

Despite aiming to invest billions in the UK’s “energy system” by 2030, Shell and BPhave transferred more than $28.6bn to shareholders through buybacks this year. The prediction by BP’s chief executive last year that rising oil prices would turn the company into a “cash machine” for its investors was proven right again this morning when it announced the latest round of buybacks. As IPPR and Common Wealth recently showed, in the first half of this year BP spent 10 times as much on transferring cash to shareholders through buybacks as it invested into renewable energy. Shell spent seven times as much on buying back its own shares as it invested into renewables in the same period.

Oil and gas giants are among the most extreme examples of this practice, but they aren’t anomalies. Cash transfers to shareholders have increased across the UK economy since the pandemic ended. Shareholder payouts, which slumped to record lows during Covid, are now 30% higher than they were pre-pandemic. Buybacks have rebounded 20-fold since their lowest point during the pandemic and are now twice as high as their previous peak in 2018.

Astonishingly, shareholders pay less tax on the wealth they earn from owning stocks than working people do on their wages and salaries. Dividends and buybacks are taxed at consistently lower rates than income tax, allowing asset owners to accumulate wealth while paying less tax than workers.

These payouts overwhelmingly benefit the wealthiest members of society. Recent analysis by Common Wealth shows that the top 1% of households overwhelmingly dominate the direct ownership of UK shares. This means that while households struggle with the cost of living crisis, profits are being channelled into the hands of wealthy asset-owners. This situation is unjustifiable. Taxes on shareholder payouts should be raised to ensure that companies are not channelling profits to their investors at a time of national economic crisis.

The Biden administration recently introduced a small tax on share buybacks to fund renewable energy projects and reduce the US government’s deficit. Analysis by IPPR and Common Wealth shows that if the UK government followed suit, it could raise £225m a year. Alternatively, a “windfall” tax on share buybacks could raise up to £11bn in a year, more than half coming from the buybacks of Shell and BP alone. A higher tax would also encourage companies to reinvest their profits into the economy and in the process boost growth, innovation and job creation.

At the same time, the government could close the loopholes that allow shareholders to pay less tax than workers. Bringing taxes on dividends in line with income tax levels would raise £6bn a year.

Targeting the imbalance between growing shareholder payouts and falling household income would allow the government to continue supporting households and businesses without returning to austerity. It’s vital that we prioritise these progressive revenue-raisers over the failed spending cuts of the past.