Stocks were on track to post a positive week until Friday happened, when a huge selloff resulted after a series of tweets from you-know-who indicated the economic dispute with China was being escalated in a major way. Prospects for a deal with China seems more remote than ever, and the markets reacted accordingly.

Meanwhile, dividend announcements just keep on coming on stocks I follow. I will project ahead two weeks on this post, as I will be traveling next weekend, and will not post again until the week starting 9/9/2019. Stocks on my lists going ex-dividend in the next two weeks are listed below. Ex-dividend date and current yield are shown, based on Friday’s closing price. Assume frequency is the standard, quarterly, unless otherwise indicated. 

Johnson and Johnson (JNJ), 8/26/2019, 2.89%.

NextEra Energy (NEE), 8/26/2019, 2.26%.

AGNC Investment (AGNC), 8/29/2019, 12.08%. AGNC is a monthly payer.

CenturyLink (CTL), 8/29/2019, 8.64%.

STAG Industrial (STAG), 8/29/2019, 4.91%. STAG is a monthly payer.

Enerplus (ERF), 8/29/2019, 1.41%. ERF is a monthly payer also.

Barrick Gold (GOLD), 8/29/2019, 0.85%. This one is obviously a gold speculation, not a dividend play, and lately, is paying off, finally. GOLD has advanced from a mid-2018 low of $10 to $19 and change as of Friday’s close.  

Prospect Capital (PSEC), 8/29/2019, 10.78%. PSEC is a monthly payer.

Brookfield Renewable Partners LP (BEP), 8/29/2019, 5.55%. BEP is a new addition to my Tier2 list, which I have not updated yet to include it. I’ll update all my lists “soon”, when I have some time.

Realty Income (O), 8/30/2019, 3.72%. O is a monthly payer. The inadequate yield for this REIT reflects the popularity of O, which has been bid up from the $50’s to the $70’s since early in 2018.

Kellogg (K), 8/30/2019, 3.57%. I was contemplating K when it was below $55 just a few months ago, but passed, thinking the era of breakfast cereals was over. K closed above $63 Friday, pushing the yield below 4%.

Safety Insurance Group (SAFT), 8/30/2019, 3.70%. Up from below $60 in 2016 to $93 and change Friday, this solid payer now yields less than 4%.

Washington Prime Group (WPG), 8/30/2019, 29.59%. Yes, the yield exceeds 29%. Everyone and their dog has been predicting the demise of WPG for years now, and they likely will be proven right eventually. WPG is now on my Tier4 list, do not buy, but if it has been held to this point, one might as well keep holding and see what happens, bailing out now won’t get you much, with a stock price of $3.30 as of Friday’s close.

McDonalds (MCD), 8/29/2019, 2.11%. This “weighty” contributor to America’s obesity epidemic continues to outperform, proving once again that no one has ever lost money wagering on Americans continuing to make terrible food choices!

Gladstone Investment (GAIN), 9/3/2019, 7.05%. GAIN is a monthly payer.

Pepsico (PEP), 9/5/2019, 2.88%. Take what I said about MCD and double it, you have my analysis regarding PEP.  

Kimberly Clark (KMB), 9/5/2019, 2.91%.

Public Service Enterprise Group (PEG), 9/6/2019, 3.18%.

We really have a two-tier market these days, with perceived quality names bid up to extreme levels, forcing yields down lower than historical levels, while names perceived as vulnerable to the coming downturn, expected by nearly all pundits, are available at bargain prices. Certainly, considering the outlook, the natural tendency is to shift into quality, but my mode is, considering the miserable yields, I would just as soon hold a higher than usual cash level, admittedly earning zip, and await much better prices on the quality names.

Regarding the 15 CEFs I’m tracking, one has announced a dividend in the two-week look-ahead time frame, and another probably will likewise go ex-dividend in that time frame.

First Trust Intermediate Duration Preferred & Income Fund (FPF), 9/3/2019, 7.35%.

AllianceBernstein Global High Income Fund (AWF), expected ex-dividend date between 9/1/2019 and 9/5/2019, 6.98%.

Both of these CEFs are monthly payers.

Only two of my stocks will be reporting in the next two weeks, Smucker J M (SJM) on 8/27/2019, and Greif (GEF) on 8/28/2019. GEF is available at a true bargain price today, in my opinion, because the international packaging firm is expected to see a decline in revenue if the expected downturn hits. With a solid balance sheet and a 5.41% yield, I believe GEF will duplicate the performance of the last cycle, when it advanced from below $30 in early 2016 to $60+ in a little over a year. I rode this train then, but exited too early, it turned out. I re-boarded a little early this time, a couple of dollars higher than where GEF is currently trading, but I plan to stay on board longer, when it rises once again. If it really goes south from here, I will add to my position and reduce my average cost basis. One vote of confidence has been stock purchases at today’s levels by senior management, almost never a bad sign.

Rounding out my recap, following are upgrades / downgrades and so on regarding my stocks over the past week, as posted by E*Trade.

Ares Capital (ARCC) was upgraded from Market Perform to OutPerform at BMO Capital Markets. I have held ARCC since 2007, only 100 shares, and have received over $2000 in dividends, and while the stock price has not gained much since I acquired it, it has not declined, either. A winner no matter how you slice it!

Enlink Midstream LLC (ENLC) was downgraded from OutPerform to Neutral at Credit Suisse.

Chevron (CVX) and ConocoPhillips (COP) were both initiated at OverWeight at Barclays, while ExxonMobil (XOM) was initiated at Equal Weight by the ratings firm.

Chimera Investment (CIM) was downgraded from OutPerform to Neutral at Credit Suisse.

Chevron (CVX) was initiated at OutPerform at BMO Capital Markets, while ExxonMobil (XOM), Royal Dutch Shell (RDS.B), and Total S A (TOT) were all initiated at Market Perform by the ratings firm.

Kinder Morgan (KMI) was upgraded from UnderPerform to Peer Perform at Wolfe Research. Always glad to see the company paying me a pension receive an upgrade. KMI is slowly recovering from a dividend cut and a Canadian pipeline debacle in recent years, and remains a solid firm, in my opinion.

Kimco Realty (KIM) was downgraded from OutPerform to Sector Perform at RBC Capital Markets.

Altria (MO) was upgraded from UnderWeight to Equal Weight at Morgan Stanley. MO will likely keep on paying dividends for years to come, but I just can’t pull the trigger and acquire shares of a firm that is guaranteed to experience a decline in business in the coming years.  

Crestwood Equity Partners LP (CEQP) was upgraded from Sector Perform to OutPerform at RBC Capital Markets. As I have stated before, CEQP is a decent MLP now, but I have bad memories of a 5:1 reverse split that reduced my holdings from 150 shares to 30 shares a few years ago. I held on to the 30 shares, and I’m slowly getting back to even, but I have never forgiven the firm enough to add to my position.

Ares Capital (ARCC) was downgraded from Buy to Neutral at Compass Point.

The market remains extremely volatile just now, although the general state is as I have described, with a retreat to quality causing the prices of those names perceived as quality being bid up to extreme levels, while names not perceived as such are available at bargain prices in many cases. I have sold some stocks that I considered over-priced or at extreme risk, have sold covered calls on a number of others that I believe are close to a top, but that I didn’t want to part with, and just this week, I sold a put on ETF AMLP, which pays me to wait for a price decline before adding shares at a price lower than the market price at the point of the put sale. There is seldom a better deal available in the markets than a cash-covered put sale, but on the eve of a possible major decline, one must be very selective on initiating these positions. This is the only position of this type that I have open at this point. The afore-mentioned moves, plus a high cash position, is how I am positioning myself for a market decline, if it comes. If it never comes, at least not in the next year or two, I’ll be OK, and if it comes, I’ll still be OK. That’s what a hedge fund tries to accomplish, and that’s what I’m trying to accomplish. It’s not a “head for the hills” approach, nor is it an “ignore all danger signs” approach, but rather a compromise strategy to survive either extreme, plus do just fine if neither extreme comes to pass.

JT

Volatility increased last week from the already high levels of the prior couple of weeks, with a record setting drop on Wednesday, followed by two days of gains that reclaimed about half of the Wednesday drop. It appears that we are in for an extended period of extreme volatility for the time being.

One can more easily deal with these conditions if a steady stream of dividends are being posted to one’s account. Stocks on my lists going ex-dividend in the week ahead are listed below. Ex-dividend date and current yield are shown, based on Friday’s closing price. Assume frequency is the standard, quarterly, unless otherwise indicated. 

Equinor ASA (STOHF), 8/19/2019, 6.00%. The former Statoil is still the same Norwegian integrated oil company, and still pays a decent dividend, but in this space I prefer ExxonMobil (XOM) or Royal Dutch Shell (RDS.B) at this juncture.

Gladstone Investment (GAIN), 8/19/2019, 7.21%. I should have bought this monthly-paying BDC under $10 when it was available at that price, but alas, I just never got around to pulling the trigger. GAIN has been solid for the last 5 years, rewarding holders handsomely with monthly dividends and an increasing share price.

Main Street Capital (MAIN), 8/19/2019, 5.79%. What I just said goes double for MAIN, when you substitute $35 for $10 in the prior statement.

Kraft Heinz Co (KHC), 8/20/2019, 7.21%. This stock is a case study of how a great company with household-name brands can be destroyed by a disastrous business strategy, as the stock has gone from the $90’s to the $20’s since being formed by the merger of Kraft and Heinz in 2015, which was blessed by Warren Buffet. His disciples have to be wondering about this one. Reference my closing comments from last week, I did institute a protective put option on KHC, to go along with my covered call, which is essentially a short position. KHC can’t hurt me further now, but it definitely illustrates how a bargain price (under $50, then under $40) can turn out to be no bargain at all.

Wheaton Precious Metals (WPM), 8/22/2019, 1.35%. WPM has always been a speculation on silver, with the dividend not really that significant, although better than no dividend. After a long wait, WPM is now a winner for me, gaining over $10 since a low point in November 2018.

Pitney Bowes (PBI), 8/22/2019, 6.19%. I once thought PBI was worth a bet on a turn-around, as it was trying to become a global technology company, and be less dependent upon the mail equipment the firm is famous for. A decline from $25 to $5 since 2015 seems to say it isn’t happening. PBI is no longer recommended, having been banished to my Tier4 list, for obvious reasons.

Hershey Co (HSY), 8/22/2019, 1.99%.  HSY has been a big winner, going from under $100 to $155 and change since one year ago. The dividend has not kept pace, and with a yield under 2%, I can’t get too excited about this one now. If I had been smart enough to buy it a year ago, which I wasn’t, I would definitely sell it now and take the money and run.  

Johnson & Johnson (JNJ), 8/26/2019, 2.91%. Long-term holders of this healthcare giant certainly have nothing to complain about, but I can’t get excited about JNJ now, with a sub-3% yield, no real share price progress since mid-2017, numerous pending legal storm clouds, and considering the state of health care and government involvement in same in the US today. But if one has been a holder since, say, mid-2016, the opportunity to sell above $140 has come and gone. If I owned it now, I would probably sell anyway, I have a hard time envisioning JNJ above $140 again anytime soon. But one could justify holding, I suppose – at least it isn’t Boeing!

Of my 15 CEFs being tracked, 5 will go ex-dividend this week. All are monthly payers.

Eaton Vance Tax Managed Dividend Equity Income Fund (ETY), 8/22/2019, yield 8.70%.

Cohen & Steers MLP Income & Energy Opportunity Fund (MIE), 8/20/2019, yield 10.85%.

Cohen & Steers Quality Income Realty Fund (RQI), 8/20/2019, yield 6.59%.

CBRE Clarion Global Real Estate Income Fund (IGR), 8/21/2019, yield 7.95%.

Miller Howard High Income Equity Fund (HIE), 8/22/2019, yield 13.01%.

Only one of my stocks will be reporting next week, Hoegh LNG Partners LP (HMLP), on 8/22/2019.

Upgrades/Downgrades on my stocks from last week, as reported by E*Trade, were as follows:

ONEOK (OKE) was upgraded from Neutral to Buy at UBS.

Exelon (EXC) was upgraded from Equal Weight to OverWeight at Barclays.

Barrick Gold (GOLD) was upgraded from Hold to Buy at Argus.

NextEra Energy (NEE) was downgraded from OverWeight to Equal Weight at Barclays, a value-based downgrade if I ever have seen one. NEE is a great utility, but the stock price is just too high right now, resulting in a yield barely above 2%, far below what I expect from a utility.

Emerson Electric (EMR) was downgraded from Buy to Hold at Argus, probably because a business downturn that many expect is starting now will impact EMR in the months ahead.

Public Service Enterprise Group (PEG) was initiated at OverWeight at Barclays.

Darden Restaurants (DRI) was initiated at Neutral at MKM Partners.

Intel (INTC) was initiated at Hold at Loop Capital.

McDonalds (MCD) was initiated at Buy at MKM Partners.

GlaxoSmithKlein (GSK) was resumed at Neutral at JP Morgan.

Sanofi (SNY) was upgraded from Neutral to Buy at UBS.

Pattern Energy Group (PEGI) was downgraded from OutPerform to Market Perform at Wells Fargo.

Crown Castle International (CCI) was reiterated at Buy at Bank of America.

Paychex (PAYX) was downgraded from Equal Weight to UnderWeight at Morgan Stanley.

Kimco Realty (KIM) was initiated at Neutral at Compass Point.

Cisco Systems (CSCO) was reiterated at OutPerform at RBC Capital Markets.

Intel (INTC) was upgraded from UnderPerform to Market Perform at Northland Capital.

Walmart (WMT) was upgraded from Accumulate to Buy at Gordon Haskett.

Merck (MRK) was initiated at OutPerform at SVB Leerink.

Walmart (WMT) was reiterated at OutPerform at Telsey Advisory Group, and at Buy at Bank of America.

The markets are definitely in turmoil right now, with conflicts everywhere, on the geopolitical stage, and also on the domestic political stage. Many are predicting a recession soon, with the usual doomsayers predicting that much worse is coming. I personally believe the markets have topped out, and I am initiating covered calls against many of my positions, a step that risks losing out on future gains in return for receiving cash now, and is ill-advised unless one believes stocks have topped out, which I in fact do believe. But, as anyone who has much experience with the market will certainly admit, I could be wrong! And in fact, for some of my holdings that I believe are under-valued at present, I’m passing on covered calls in these cases. I also am not putting on any short put trades, which can have one buying stock above the market if a precipitous decline should occur. I rarely use long puts to protect positions, since these cost money and eat into returns, and the protection only extends to the expiration date of the put. But, as noted, it may be advisable in certain situations, such as my current KHC holding, as described in this post and the prior week’s post.

To sum up my current strategy, it is to be prepared for a major storm, but not the end of the world, which would probably be pointless to prepare for anyway.

JT

Volatility has definitely returned to the market, even as the week just ended saw a couple of major positive days, which has put most of the major averages only slightly behind where they were one week prior. There seems to be a consensus among market pundits that more downside is coming, with some doomsayers predicting a 2008 style collapse.

Meanwhile, my dividend payers continue to perform, at least for now. Stocks on my lists going ex-dividend in the week ahead are listed below. Ex-dividend date and current yield are shown, based on Friday’s closing price. Assume frequency is the standard, quarterly, unless otherwise indicated.  

Exxon Mobil (XOM), 8/12/2019, 4.80%.

Welltower (WELL), 8/14/2019, 3.96%.

Exelon (EXC), 8/14/2019, 3.19%.

Smucker JM Co (SJM), 8/15/2019, 3.10%.

Emerson Electric (EMR), 8/15/2019, 3.23%.

3M Co (MMM), 8/15/2019, 3.51%.

Duke Energy (DUK), 8/15/2019, 4.23%.

Royal Dutch Shell (RDS.B), 8/15/2019, 6.51%.

Pan American Silver (PAAS), 8/16/2019, 0.81%.

United Parcel Service (UPS), 8/16/2019, 3.27%.

Southern Co (SO), 8/16/2019, 4.26%.

Chevron (CVX), 8/16/2019, 3.86%.

Horizon Technology Finance (HRZN), 8/16/2019, 9.90%. HRZN pays monthly.

Gladstone Investment (GAIN), 8/16/2019, 9.90%. GAIN also pays monthly.

Main Street Capital (MAIN), 8/19/2019, 5.76%. MAIN is another monthly payer.

Earnings Season is winding down, with just a few stocks on my lists scheduled to report next week, listed as follows.

Barrick Gold (GOLD), 8/12/2019.

Cisco Systems, 8/14/2019.

Walmart (WMT), 8/15/2019.

Upgrades/Downgrades on my stocks from last week, as reported by E*Trade, were as follows:

Williams Companies (WMB) was downgraded from OutPerform to Market Perform at Bernstein.

Blackstone Group (BX) was initiated at OverWeight at Barclays.

Medical Properties Trust (MPW) was upgraded from Sector Weight to OverWeight at KeyBanc.

Apollo Investment (AINV) was downgraded from OutPerform to Market Perform at Wells Fargo.

Vodafone Group PLC (VOD) was initiated at OverWeight at Morgan Stanley.

CenturyLink (CTL) was upgraded from UnderPerform to Market Perform at Raymond James, and was downgraded from Neutral to UnderWeight at JP Morgan. These two ratings firms are not on the same page as regards CTL, it seems.

Omega Healthcare Investors (OHI) was upgraded from OutPerform to Strong Buy at Raymond James. With a yield approaching 7%, OHI is enticing, compared to Welltower (WELL) or Ventas (VTR), in the healthcare REIT subgroup. Unlike what is usually the cause of a higher yield than peers, OHI is not a laggard, the share price is very close to a five year high.

Williams Companies (WMB) was downgraded from Buy to Hold at Argus.

Cisco Systems (CSCO) was resumed at Equal Weight at Barclays.

Kraft Heinz (KHC) was downgraded from Neutral to Sell at Guggenheim. KHC is a troubled firm, no doubt, and was demoted some time ago from my Tier2 list to Tier3, highly speculative. If things don’t get better soon for KHC, the high dividend will be at risk of being cut or eliminated.

The market turmoil of the last couple of weeks is, I believe, a precursor of what’s coming. It shouldn’t be as bad as the 2008 meltdown, I don’t think, but once panic sets in, anything is possible. I am decreasing basis and adding to cash by selling options on many of my stocks, long-dated (LEAPs) where available. I sold a long-dated call against my Kraft Heinz (KHC) shares on 8/6/2019, strike price $32.50, which resulted in $350 (less commission) being credited to my account. KHC opened down $4 on Thursday, 8/8/2019, and I could close out the trade with a buy back of the option for about half of what I received if I wanted to. I don’t, I believe KHC holders are due for still more pain in the coming weeks. Since I plan to keep holding KHC, I will likely buy a put for protection against further declines. I normally only sell (ie, go short) options, going long puts or calls in hopes of a big move is usually a losing game, but a long option can be a good move as part of an overall strategy for a given holding, which would apply here. Frankly, I was not expecting the big drop that occurred with KHC Thursday, but sometimes you just get lucky.

JT

Stocks posted losses for the week just ended, initially because of disappointment with the quarter point cut to begin with, exacerbated by the Fed Chairman’s comments accompanying the announcement. Then, the very next day, concerns about trade and tariffs came to the fore as the President threatened additional tariffs on Chinese imports if no deal is reached soon. The venerable Dow Industrials stock average posted a loss of over 700 points for the week, an attention-getting decline even for a 27000 point stock average, and the other major averages posted similar percentage declines.

When share prices are going down, nothing soothes the nerves like a steady stream of dividends pouring into the brokerage account. Stocks on my lists going ex-dividend during the week ahead are listed following, with ex-dividend date and current yield shown, based on Friday’s closing price. Assume frequency is the standard, quarterly, unless otherwise indicated.  

ONEOK (OKE), 8/5/2019, 5.01%.

Energy Transfer LP (ET), 8/5/2019, 8.53%.

NuStar Energy LP (NS), 8/6/2019, 8.41%.

NGL Energy Partners LP (NGL), 8/6/2019, 10.39%.

Martin Midstream Partners LP (MMLP), 8/6/2019, 16.47%.

Crestwood Equity Partners LP (CEQP), 8/6/2019, 6.47%.

Intel (INTC), 8/6/2019, 2.55%.

Entergy (ETR), 8/7/2019, 3.40%.

Walmart (WMT), 8/8/2019, 1.94%. The price has outpaced the dividend, driving yield below 2%. Normally I consider a sub-2% yield a disqualifier, but for now, WMT remains on my Tier1 list.

American Electric Power (AEP), 8/8/2019, 3.02%.

GlaxoSmithKline (GSK), 8/8/2019, 4.89%. GSK has been the highest yielding “Big Pharma” stock for a long time. Predictions of an imminent cut have proven wrong, thus far, but anytime a stock has a yield far above its peers, one has to wonder how long that situation will last.

Hercules Capital (HTGC), 8/9/2019, 9.95%.

Exxon Mobil (XOM), 8/12/2019, 4.80%. XOM is the foremost member of “Big Oil”, a much maligned group, and the result is a yield approaching 5%. Right now, the energy sector is significantly under-valued, compared to the prior 5 years or so. Unless you really believe that alternative energy strategies will supplant fossil fuels in the near future, this is the most attractive sector right now for new money seeking a decent yield.

None of the fifteen CEFs I follow will be going ex-dividend next week. One of the fifteen that was not listed last week did go ex-dividend on 8/1/2019, AllianceBernstein Global High Income Fund (AWF). The fund pays monthly, and currently yields 6.86%.

Earnings Season continues, with a number of my stocks reporting next week, as the quarterly ritual is now fully underway. Stocks on my lists scheduled to report are listed by date, as follows:

8/5/2019

Realty Income (O).  

8/6/2019

Duke Energy (DUK), Emerson Electric (EMR), Pattern Energy Group (PEGI), Apollo Investment (AINV), Frontier Communications (FTR), Omega Healthcare Investors (OHI), Plains All American Pipeline LP (PAA).

8/7/2019

MFA Financial (MFA), CenturyLink (CTL), Energy Transfer LP (ET), Pan American Silver (PAAS).

8/8/2019

National Health Investors (NHI), NGL Energy Partners LP (NGL), NuStar Energy LP (NS), Senior Housing Properties Trust (SNH), Main Street Capital (MAIN), Wheaton Precious Metals (WPM).

8/9/2019

Enerplus (ERF).

Note that, per my practice, I continue to follow firms I no longer recommend, as long as they continue to exist. Firms reporting this week in that sad category are Frontier Communications (FTR), a destroyer of capital if there ever was one, and Enerplus (ERF), an empty shell of a company being all that remains of a once highly valued Canadian Energy Trust. Also, Senior Housing Properties Trust (SNH), a REIT laid low by over-exposure to a single tenant.   

Upgrades/Downgrades on my stocks from last week, as reported by E*Trade, were as follows:

Public Service Enterprise Group (PEG) was downgraded from Buy to Neutral at Citigroup.

Universal Parcel Service (UPS) was downgraded from Buy to Hold at Stifel.

Coca Cola (KO) was initiated at OverWeight at Atlantic Equities.

McDonalds (MCD) was initiated at Buy at Goldman.

Pepsico (PEP) was initiated at OverWeight at Atlantic Equities.

Kinder Morgan (KMI) was downgraded from OutPerform to Market Perform at BMO Capital Markets.

Pfizer was downgraded from Buy to Neutral at Bank of America, and from OverWeight to Equal Weight at Morgan Stanley.

Crestwood Energy Partners LP (CEQP) was upgraded from Hold to Buy at Stifel.

Total S A (TOT) was downgraded from OverWeight to Equal Weight at Morgan Stanley.

PotlatchDeltic (PCH) was downgraded from OutPerform to Sector Perform at RBC Capital Markets.

Crown Castle International (CCI) was upgraded from Neutral to OverWeight at JP Morgan.

Iron Mountain (IRM) was upgraded from UnderPerform to Neutral at Baird.

NuStar Energy LP (NS) was initiated at Neutral at Mizuho.

My thesis from last week turned out to be correct, re: “It is hard to envision a market surge when a rate cut is widely expected. And if the announcement disappoints investors, it will be a “look out below” moment”. It will be interesting to see what happens this week. The doomsayers have been predicting a 10% or more decline for so long, they have been mostly ignored. Sooner or later, they will be proven right. Will August 2019 be the date the decline started? No one knows. Stay alert, conserve cash, and be ready, is my advice.

JT

Stocks marked time on Monday, advanced substantially on Tuesday, gave most of it back the next two days, then finished out the week with a modest gain on Friday. The full week’s result was a gain on all the major averages that I follow. The market was influenced by earnings reports, as we are into the height of earnings season, while the tepid Mueller testimony was widely panned, and did nothing to change the poisonous atmosphere in Washington.

The atmosphere regarding upcoming dividends on my stocks, by contrast, is much improved from last week. There are so many that I will list them by ex-dividend date, as follows.  

7/30/2019

Enterprise Products Partners LP (EPD), yield 5.83%.

Kinder Morgan (KMI), yield 4.86%.

Plains All American Pipeline LP (PAA), yield 5.81%.

Tanger Factory Outlet Centers (SKT), yield 8.52%.

Stag Industrial (STAG), yield 4.77%. This REIT pays monthly.

Omega Healthcare Investors (OHI), yield 7.20%.

AGNC Investment (AGNC), yield 11.16%. This MREIT also pays monthly.

Prospect Capital (PSEC), yield 10.70%. This BDC pays monthly as well.

Enerplus (ERF), yield 1.47%. The one-time high yielding Canadian Trust continues to pay monthly, as it did in the glory days, but these days, at under a penny per share, no one cares.  

Alliant Energy (LNT), yield 2.88%.

7/31/2019

Hoegh LNG Partners LP (HMLP), yield 9.81%.

Realty Income (O), yield 3.95%. The “Monthly Dividend Company” pays monthly. O is a great company, but the yield reflects that O may be “over-loved” by investors.

Paychex (PAYX), yield 2.90%. Another example of a popular dividend stalwart that is currently bid up to full value, if not more.

8/1/2019

Eaton (ETN), yield 8.23%.

Pfizer (PFE), yield 3.37%.

8/2/2019

HCP Inc (HCP), yield 4.66%.

8/5/2019

Energy Transfer LP (ET), yield 8.23%.

ONEOK (OKE), yield 5.19%. The yield on the new ONEOK C-Corp is about as high as the discontinued ONEOK MLP, without the MLP complications.

Only one of the 15 CEFs I’m tracking goes ex-dividend next week, First Trust Intermediate Preferred and Income Fund (FPF), on 8/1/2019. FPF pays monthly, and yields 7.37%.

Earnings Season continues, with a number of my stocks reporting next week, as the quarterly ritual is now fully underway. Stocks on my lists scheduled to report are listed by date, as follows:

7/29/2019

Sanofi (SNY), PotlatchDeltic (PCH), Transocean LTD (RIG).

7/30/2019

Altria (MO), Ares Capital (ARCC), Crestwood Equity Partners LP (CEQP), Eaton (ETN), Merck (MRK), Pfizer (PFE), Procter & Gamble (PG), Public Service Enterprise Group (PEG), Digital Realty (DLR), ONEOK (OKE), Stag Industrial (STAG).

7/31/2019

Chimera Investment (CIM), Entergy (ETR), Enterprise Products Partners LP (EPD), General Electric (GE), Southern Co (SO), Annaly Capital Management (NLY), Ensco Rowan PLC (ESV), HCP Inc (HCP), Mid-America Apartment Communities (MAA), Park Hotels Resorts (PK), Tanger Factory Outlet Centers (SKT), Welltower (WELL), Williams Companies (WMB).

8/1/2019

Buckeye Partners LP (BPL), Consolidated Communications Holdings (CNSL), Exelon (EXC), Iron Mountain (IRM), Kellogg (K), Magellan Midstream Partners LP (MMP), Medical Properties Trust (MPW), Royal Dutch Shell (RDS.B), Verizon (VZ), Alliant Energy (LNT), B&G Foods (BGS), Hercules Capital (HTGC), Noble Corp PLC (NE).

8/2/2019

Chevron (CVX), Enbridge (ENB), Exxon Mobil (XOM).

That is quite a line-up. Note that, per my practice, I continue to follow firms I no longer recommend, as long as they continue to exist. The offshore drillers RIG, ESV, and NE will all be reporting next week. Thus far, they have offered nothing since I gave up on them that would lead me to believe I should have given them more time. I don’t expect their next round of earnings reporting to be any better than it has been.

Upgrades/Downgrades on my stocks from last week, as reported by E*Trade, were as follows:

Hershey Co (HSY) was upgraded from Sell to Neutral at UBS.

Intel (INTC) was initiated at UnderWeight at Atlantic Equities.

Digital Realty (DLR) was downgraded from OutPerform to Market Perform at Cowen.

Intel (INTC) was initiated at Hold at The Benchmark Co.

Darden Restaurants (DRI) was initiated at OverWeight at KeyBanc.

Kimberly Clark (KMB) was upgraded from UnderWeight to Neutral at Atlantic Equities.

Medical Properties Trust (MPW) was upgraded from Hold to Buy at Stifel.

Coca Cola (KO) was reiterated at Buy at Bank of America.

AT&T (T) was upgraded from UnderPerform to Neutral at Credit Suisse.

Freeport-McMoRan (FCX) was upgraded from UnderPerform to Sector Perform at RBC Capital Markets.

United Parcel Service (UPS) was upgraded from Neutral to Buy at Bank of America.

Roche Holdings LTD (RHHBY) was upgraded from Neutral to Buy at UBS.

Hershey Co (HSY) was reiterated at Buy at Bank of America.

Intel (INTC) was reiterated by just about everyone following the stock, after INTC reported. Few changed their minds, apparently, with the ratings ranging widely. INTC was reiterated at Buy at Cascend Securities, Deutsche Bank, Bank of America, SunTrust, and Mizuho. Morgan Stanley reiterated INTC at OverWeight. An UnderPerform rating was reiterated at RBC Capital Markets, Northland Capital, and Wedbush. Baird reiterated INTC at OutPerform. Finally, Citigroup reiterated INTC at Neutral.

Barring major developments on the political or international fronts, the main focus for investors next week will be the FOMC announcement on Wednesday. It is hard to envision a market surge when a rate cut is widely expected. And if the announcement disappoints investors, it will be a “look out below” moment. No one knows what the announcement will be, nor what the market reaction will be. Taking any position in anticipation of the market direction after the announcement is absolutely nothing more than a gamble.

JT