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Scholastic Corporation (SCHL): An Overlooked Dividend Capture Opportunity in October

Scholastic Corporation (NASDAQ:SCHL) is included among the Best High Yield Stocks to Buy in October.

Scholastic Corporation (NASDAQ:SCHL) is the leading publisher and distributor of children’s books, magazines, and other educational materials. With so much of its business tied up with public schools, it’s dependent on local and municipal budgets. It said “funding uncertainties” in these institutions had weighed on its performance in the quarter ended July 31, with the education solutions unit hit hardest. That division’s revenue dropped 28% to slightly more than $40 million.

In spite of this uncertainty, Scholastic Corporation (NASDAQ:SCHL) maintained its FY guidance. The adjusted EBITDA is anticipated to be within a range of $160 million to $170 million, and revenue is expected to increase by 2% to 4% over the previous fiscal year.

Scholastic Corporation (NASDAQ:SCHL) announced a quarterly dividend of $0.20 per share on September 17th. It has been paying dividends for a long time, and its dividend record is impressive. The stock has a dividend yield of 2.9% as of September 27. SCHL will trade ex-dividend on October 31, 2023. If you own it on that date, you will be eligible to receive the dividend. This makes it one of the top plays to capture dividends.

While we acknowledge the potential of SCHL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SCHL and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 Cash-Rich Dividend Stocks to Buy Right Now and 10 Best Recession-Proof Dividend Stocks to Buy.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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