Last week, stocks continued the decline that began Wednesday of the week before, resulting in a down week for the week just ended. Not every day was a down day, but the down days exceeded the up days. However, the week ended Friday on an up day that exceeded any positive day seen since September 9, so perhaps the month will end on a high note. But considering the state of our politics, I wouldn’t count on it happening.

The following stocks on my lists will be going ex-dividend next week. The firms, ex-dividend dates, and yields, as of Friday’s close, are indicated below:

Main Street Capital (MAIN), 9/28/2020, yield 8.22%. This BDC pays monthly.

Chimera Investment (CIM), 9/28/2020, yield 14.13%.

AGNC Investment (AGNC), 9/29/2020, yield 10.39%. This MREIT pays monthly.

STAG Industrial (STAG), 9/29/2020, yield 4.87%.

Spirit Realty Capital (SRC), 9/29/2020, yield 7.45%.

Algonquin Power & Utilities (AQN), 9/29/2020, yield 4.37%. AQN is a diversified Canadian generation, transmission, and distribution utility company.

Prospect Capital (PSEC), 9/29/2020, yield 14.26%. This BDC pays monthly.

B&G Foods (BGS), 9/29/2020, yield 6.80%.

Annaly Capital Management (NLY), 9/29/2020, yield 13.17%. NLY is a long-time MREIT holding on my high-yield Tier3 list.

MFA Financial (MFA), 9/29/2020, yield 7.66%. MFA is another long-time MREIT on my lists, and was moved to Tier4 (not recommended) after dropping the dividend, which has now been partially restored. MFA remains on Tier4, because of the share price decline, which accounts for the high yield. It doesn’t take a high dividend to get a respectable yield when the stock price drops from the $7-$8 range to the $2 range.

National Health Investors (NHI), 9/29/2020, yield 7.53%.

Nucor (NUE), 9/29/2020, yield 3.56%.This steel company just keeps on paying out a nearly 4% dividend.

Owl Rock Capital (ORCC), 9/29/2020, yield 9.97%. This is a new BDC, which started up in mid-2019.

Goldman Sachs BDC (GSBD), 9/29/2020, yield 11.45%. The Golden Sachs name lends an element of respectability to this BDC, a group which is by definition high-yield and high-risk, and thus not held in high esteem as a group. I suspect GSBD is no worse than most, but perhaps no better, either. Any BDC can disappoint, but are those yields ever-sweet during the good times, and in at least some cases, better than most during the not-so-good times.

Ventas (VTR), 9/30/2020, yield 4.43%. The health-care REITs had been considered the safest REIT group, but the Covid crisis has affected this group disproportionally, with the two bellwether names in the group, VTR, and Welltower (WELL), both reducing dividends and suffering major share price declines, along with other REITs in this category.

Realty Income (O), 9/30/2020, yield 4.78%. O famously pays monthly, identifying itself as the “monthly dividend company”. While the share price has dropped from the pre-Covid highs, O has maintained the dividend, and it does not appear to be at risk, at least not anytime soon. Long-term changes in the commercial real-estate space will likely be putting pressure on O, along with many other REITs, as time moves on.

Two of the fifteen CEFs I track will be going ex-dividend this week, as follows:

AllianceBernstein Global High Income Fund (AWF), 10/1/2020, yield 7.47%. AWF pays monthly.

First Trust Intermediate Duration Preferred & Income Fund (FPF), 10/1/2020, yield 7.51%. FPF also pays monthly.

Only one of my stocks will be reporting earnings next week, Pepsico (PEP), on 10/1/2020. I expect a positive report, based on a fact that I have stated many times, which is that no one has ever lost money betting on Americans continuing to make terrible dietary choices!

Upgrades, downgrades, initiations or resumptions of coverage, and reiterations of ratings, as reported by E*Trade last week on my stocks, were as follows:

Greif (GEF) was upgraded from UnderPerform to Buy at Bank of America.

Southern Company (SO) was upgraded from Equal Weight to OverWeight at Barclays.

Tanger Factory Outlet Centers (SKT) was upgraded from UnderWeight to Sector Weight at KeyBanc. SKT eliminated the dividend and suffered a calamitous stock price collapse during the worst of the Covid storm, and it remains to be seen if any recovery will occur. An upgrade to “Sector Weight” is none too convincing, since the retail REIT sector is only slightly better than movie theater, casino, and hotel REITs, which have been devastated by the pandemic.

United Parcel Service (UPS) was upgraded from Neutral to OutPerform at Credit Suisse.

ONEOK (OKS) was downgraded from Sector OutPerform to Sector Perform at Scotiabank. Since the sector (energy) is performing terribly, this is not encouraging.

Public Service Enterprise Group (PEG) was upgraded from Neutral to Buy at Bank of America.

NextEra Energy (NEE) was initiated at Buy at Seaport Global. This long-term outperforming utility continues to amaze, as the yield drops below 2%, compliments of the ever-climbing stock price.

Greif (GEF) was upgraded from UnderPerform to Market Perform at BMO Capital.

STAG Industrial (STAG) was downgraded from OutPerform to Neutral at Baird.

Horizon Technology Finance (HRZN) was initiated at Neutral at National Securities.

Cisco Systems (CSCO) was resumed at Neutral at UBS.

ExxonMobil (XOM) was upgraded from Sector UnderPerform to Sector Perform at Scotiabank. The management team at XOM is betting on what has always worked in the past, which is finding and bringing to market new sources of fossil fuels. The market does not believe it will work in the new political reality we are into, hence the XOM share price plummet continues.

Freeport-McMoRan (FCX) was upgraded from Equal Weight to OverWeight at Morgan Stanley.  

Occidental Petroleum (OXY) was upgraded from Sector Perform to Sector OutPerform at Scotiabank. The much-maligned management team at OXY, for good reasons, is admittingly doing what they need to do if OXY is ever to recover from this same management team’s catastrophic mistakes of the past couple of years.

Chevron (CVX) was downgraded from Sector OutPerform to Sector Perform at Scotiabank. CVX has managed the energy sector collapse about as well as possible, with the result being CVX hasn’t collapsed as much as some other oil and gas stocks have, hence the rebound, if it ever comes, won’t be as dramatic as some in this sector.

Chevron (CVX) was initiated at Buy at MKM Partners, which may mean that they believe CVX has declined enough that a rebound has plenty of room to run.

General Mills (GIS) was upgraded from Neutral to OutPerform at Credit Suisse. The food stocks, as a group, have definitely outperformed during the pandemic crisis, until just lately, that is.

Plains All-American Pipeline (PAA) was upgraded from UnderWeight to OverWeight at Morgan Stanley. Energy transportation partnerships have been hammered more than any other energy group in the past two years of the “perfect storm” for fossil fuel stocks, and the “second tier” LP’s like PAA have been hammered more than the “first tier” stocks in this group, such as Enterprise Products Partners LP (EPD) and Magellan Midstream Partners LP (MMP). If PAA survives and maintains the reduced dividend, it will be a “bottom-fishing” acquisition that pays off handsomely. But I wouldn’t bet the ranch on this happening, even as I believe there is a chance it will.

Washington Real Estate (WRE) was downgraded from OverWeight to Equal Weight at Capital One.

No doubt the political drama will dominate the news flow over the next few weeks, as the economic news will take a back seat, as far as news-worthy interest. This is logical, because nothing is more important for stocks and investments, as well as everything else, than the outcome of the political struggles to come over the next several weeks.

JT

Last week, stocks continued the advance that started on Friday of the prior week through last Wednesday, then declined the final two days of the week. The end result was that the major averages ended the week about where they ended the previous week. The economy has managed a modest rebound from the lows of March, but the recovery is slowing down, with a long way yet to go to reach pre-pandemic levels. The political situation in the country is definitely going to get worse before it gets better again, if ever, as the passing of justice Ginsburg guarantees a monumental political battle over the timing of her replacement taking a seat on the court.

The following stocks on my lists will be going ex-dividend next week. The firms, ex-dividend dates, and yields, as of Friday’s close, are indicated below:

Gladstone Investment (GAIN), 9/22/2020, yield 9.04%. This BDC pays monthly.

Getty Realty (GTY), 9/23/2020, yield 5.37%.

Phillip Morris (PM), 9/23/2020, yield 6.15%.

Total SE (TOT), 9/23/2020, yield 7.93%. Note that the yield is before payment of 30% of the dividend as tribute to France, the home country of TOT.

Covanta Holding (CVA), 9/24/2020, yield 3.86%. CVA is now on my T4 list, compliments of a dividend cut. I no longer recommend it, but I still own some, and I recommend holding for now, if that is your situation regarding CVA.

General Electric (GE), 9/25/2020, yield 0.58%. The yield reflects the laughable one penny per share per quarter dividend, which is the reason GE is on my T4 list. The story of GE’s decline from the glory days of Jack Welch’s tenure as CEO is well known. It will be a long wait before GE regains respectability, if ever.

Main Street Capital (MAIN), 9/28/2020, yield 8.07%. MAIN pays monthly. This highly-rated BDC has yet to recover the share price it held prior to the Covid meltdown in March, but the dividend has held steady, making MAIN one of the best stocks available in this minimal interest rate environment.

Chimera Investment (CIM), 9/28/2020, yield 13.22%. CIM remains on my T3 list, in spite of a dividend cut and accompanying major price drop. The MREIT sector is mostly holding up, and as the yield indicates, it is worth holding, for the time being, at least.

Two of the fifteen CEFs I follow will be going ex-dividend next week, and are listed following:

Eaton Vance Tax-Managed Diversified Equity Income Fund (ETY), 9/22/2020, yield 9.04%. ETY pays monthly.

Miller Howard High Income Equity Fund (HIE), 9/22/2020, yield 7.57%. HIE pays monthly.

Only one of my stocks will be reporting next week, General Mills (GIS) on 9/23/2020.

Upgrades, downgrades, initiations or resumptions of coverage, and reiterations of ratings reported by E*Trade last week on my stocks were as follows:

Kimco Realty (KIM) was upgraded from Equal Weight to Over Weight at Morgan Stanley. KIM completely eliminated the dividend during the March crisis, and was demoted from my Tier2 to Tier4. The dividend, while substantially reduced, has been reinstated, and KIM likely will be promoted back to at least Tier3 on my next review of my stocks.

Total SE (TOT) was downgraded from OutPerform to Neutral at Credit Suisse.

Mid-America Apartment Communities (MAA) was resumed at OutPerform at Baird.

Digital Realty (DLR) was upgraded from Market Perform to OutPerform at BMO Capital Markets.

Kraft Heinz (KHC) was upgraded from Sell to Neutral at Guggenheim. Not exactly a ringing endorsement, but it counts as an upgrade. KHC’s fall from grace began in 2017, and KHC actually has fared better than most stocks during the pandemic, as “Big Food” was viewed as a safe haven. I note that both GIS and KHC, two primary members of this group, have dropped in the last couple of weeks, however.

Cisco Systems (CSCO) was downgraded from OutPerform to Peer Perform. CSCO and Intel (INTC) are now considered as “Old Tech”, and are viewed as value stocks now. They are both on my lists, as they sport reasonable dividends, rare in the tech sector.

The next few weeks are going to be politically tumultuous, as the battle lines take shape regarding the new Supreme Court vacancy. My recommendation is to get your popcorn and cola (or perhaps something stronger) on hand to be ready for the show. As far as stocks are concerned, I say hold on to your cash, if things get really wild, there may be some buy opportunities turn up.

JT

Stocks continued the decline from the prior week on Tuesday, but then mostly churned in place for the remainder of the week. The political season continues, and the strangest football season seen in many years commenced this weekend. This football season doesn’t seem like normal, but it’s better than nothing, I suppose.  

The following stocks on my lists will be going ex-dividend next week. The firms, ex-dividend dates, and yields, as of Friday’s close, are indicated below:

PotlatchDeltic (PCH), 9/14/2020, yield 3.73%.

Ares Capital (ARCC), 9/14/2020, yield 10.98%.  

Digital Realty (DLR), 9/14/2020, yield 3.08%.

Crown Castle International (CCI), 9/14/2020, yield 3.02%.

Coca Cola (KO), 9/14/2020, yield 3.21%.

Iron Mountain (IRM), 9/14/2020, yield 8.30%.

Altria (MO), 9/14/2020, yield 7.89%.

Occidental Petroleum (OXY), 9/14/2020, yield 0.39%.

Oaktree Specialty Lending (OCSL), 9/14/2020, yield 8.45%.  

Oxford Square Capital (OXSQ), 9/15/2020, yield 16.22%. OXSQ pays monthly.

Monroe Capital (MRCC), 9/15/2020, yield 13.23%.

Greif (GEF), 9/16/2020, yield 4.91%.

Solar Capital LTD (SLRC), 9/16/2020, yield 9.85%.

Horizon Technology Finance (HRZN), 9/16/2020, yield 9.95%. HRZN pays monthly.

Washington Real Estate (WRE), 9/18/2020, yield 5.84%.

Apollo Investment (AINV), 9/18/2020, yield 13.57%. AINV has a regular dividend of $.31 per share, plus a supplemental dividend of $.05 per share, both with the same ex-dividend date. The yield delivered by the E*Trade “snapshot” only includes the regular dividend. The effective yield including the supplemental dividend is 14.11%. Note that this assumes the supplemental dividend is annually only.

Eleven of the fifteen CEFs I follow will be going ex-dividend next week, and are listed following:

BlackRock Debt Strategies Fund (DSU), 9/14/2020, yield 8.50%. DSU is a monthly payer.

Dividend and Income Fund (DNI), 9/14/2020, yield 8.98%. DNI is a quarterly payer.

Nuveen Dow 30SM Dynamic Overwrite Fund (DIAX), 9/14/2020, yield 8.27%. DIAX is a quarterly payer.

BlackRock Enhanced Equity Dividend Trust (BDJ), 9/13/2020, yield 8.02%. BDJ is a monthly payer.

Nuveen Real Asset Income and Growth Fund (JRI), 9/14/2020, yield 10.41%. JRI is a monthly payer.

BlackRock Energy and Resources Trust (BGR), 9/14/2020, yield 11.79%. BGR is a monthly payer.

Cohen & Steers MLP Income & Energy Opportunity Fund (MIE), 9/15/2020, yield 10.11%. MIE is a monthly payer.

Cohen & Steers Quality Income Realty Fund (RQI), 9/15/2020, yield 8.53%. RQI is a monthly payer.

The Gabelli Utility Trust (GUT), 9/15/2020, yield 7.81%. GUT is a monthly payer.

The Gabelli Dividend & Income Trust (GDV), 9/15/2020, yield 7.11%. GDV is a monthly payer.

CBRE Clarion Global Real Estate Income Fund (IGR), 9/18/2020, yield 9.85%. IGR is a monthly payer.

None of my stocks are scheduled to report earnings in the week ahead.

Upgrades, downgrades, initiations or resumptions of coverage, and reiterations of ratings reported by E*Trade last week on my stocks were as follows:

Duke Energy (DUK) was upgraded from Neutral to Buy at Bank of America.

Intel (INTC) was upgraded from Hold to Buy at Standpoint Research.

Occidental Petroleum (OXY) was upgraded from Neutral to Buy at MKM Partners. As noted earlier, with a penny per share dividend, you won’t be paid much while waiting for the recovery. OXY has fallen from the $80’s in mid-2018 to $10 and change currently.

Verizon (VZ) was upgraded from Hold to Buy at Argus Research.

Ventas (VTR) was downgraded from Buy to Hold at Argus.

Kraft Heinz (KHZ) was upgraded from Hold to Buy at DZ Bank.

Park Hotels (PK) was upgraded from UnderWeight to Equal Weight at Wells Fargo. PK was a high-yielding REIT before the Covid crash, when this hospitality REIT eliminated the dividend and dropped drastically. It may survive and resume the payout someday, but it will likely be awhile.

Southern Company (SO) was downgraded from Neutral to UnderPerform at Goldman.

ExxonMobil (XOM) was initiated at Buy at MKM Partners.

MPLX LP (MPLX) was initiated at Buy at Goldman.

ExxonMobil (XOM) was upgraded from Hold to Buy at Standpoint Research.  

PotlatchDeltic (PCH) was downgraded from Buy to Neutral at Bank of America.

Stocks probably won’t move much until after the election, barring some major event. There are two main imponderables hanging over the market, the election and the pandemic. Either has the potential to send stocks into a major tailspin, the former if the results are compromised or contested, the latter if the number of cases spikes and the re-opening of the economy is derailed. Until we get past these two uncertainties, investors should be prepared for another major downswing.

JT

After finishing out the month of August with record-breaking gains, which continued into the first two days of September, stocks hit the wall on Thursday, with the largest one-day drop since March, and continued the decline on Friday. But while the Friday drop initially looked like it was going to be huge as well, stocks managed a comeback that recovered much of the Friday decline, indicating that the bulls might not be dead yet. Certainly, it could go either way next week, anyone who “knows” what is going to happen and says so is very likely to be proven 100% wrong!

One thing I know that will happen, which is at least 99% reliable, is that the following stocks on my lists will be going ex-dividend next week, and will subsequently be paying out the promised payments. In 20 years of tracking stocks and dividends, I have only had one instance of a stock I had been tracking failing to make good on a dividend that had been previously announced. The firms, ex-dividend dates, and yields, as of Friday’s close, are indicated below:

Public Service Enterprise Group (PEG), 9/8/2020, yield 3.73%.

Kimco Realty (KIM), 9/9/2020, yield 3.20%. The REIT had suspended the dividend, but has reinstated it, albeit at a lower yield, as rent collections improved.

Newmont Mining (NEM), 9/9/2020, yield 1.53%.

Ladder Capital (LADR), 9/9/2020, yield 10.47%. Like many firms, the high yield is compliments of a drastic decline in the share price that prevailed prior to the Covid epidemic.

Medical Properties Trust (MPW), 9/9/2020, yield 5.85%. This hospital REIT has maintained the dividend for now.

Williams Companies (WMB), 9/10/2020, yield 7.73%. This Tulsa, Oklahoma pipeline company has been listed as at risk of a dividend cut by some pundits.

PotlatchDeltic (PCH), 9/14/2020, yield 3.58%. PCH has recovered all the March losses and then some, which places it in rare company, especially for a non-tech company. PCH is a timberlands REIT.

Ares Capital (ARCC), 9/14/2020, yield 11.36%. ARCC is one of the most successful BDCs available.

Digital Realty (DLR), 9/14/2020, yield 3.02%. A look at this Data Center REIT’s stock chart tells you it was a great investment these past few years. Buying in at today’s price is unlikely to generate comparable results.

Crown Castle International (CCI), 9/14/2020, yield 2.97%. With a chart that resembles DLR’s, this Wireless Tower REIT likewise has been terrific. The same prognosis as DLR’s applies.

Coca Cola (KO), 9/14/2020, yield 3.21%. KO, like many food and beverage firms, is handling the Covid situation very well.

Iron Mountain (IRM), 9/14/2020, yield 8.17%. IRM has a lock on the document and storage business, and is moving into digital records management. Unlike the previous two firms, the company may be a bargain, with a high yield now, and some price appreciation potential. IRM has been considered a paper storage and document destruction firm, with minimal growth prospects, but if it can leverage itself further into digital records management, it may prove to be a great buy at today’s price.

Altria (MO), 9/14/2020, yield 7.91%. Investors in MO are betting the decline in tobacco use will stay high enough to allow MO to continue to pay out for years to come. I consider smoking to be the scourge of the 20^th Century, and as we move further into the 21^st Century, if anything, the decline will accelerate.

Occidental Petroleum (OXY), 9/14/2020, yield 0.33%. OXY made an ill-advised acquisition at almost exactly the wrong time, but prior to Covid and the catastrophic drop in demand for fossil fuels, it had been punished enough that it seemed to be a good bet, as it worked its way out of the hole it had dug itself into. We all know what happened next. OXY may yet survive, but there won’t be much in the way of payments coming in while you wait, as the dividend now stands at one cent per share per quarter.

Monroe Capital (MRCC), 9/14/2020, yield 13.99%. MRCC has rebounded modestly since the March lows, and is still paying out, at least for now. It is on my Tier4, not recommended, but I actually have a small position, so I’ll be holding for now. With cumulative dividends, if I sold now, I would have a net loss of around $300.

Oaktree Specialty Lending (OCSL), 9/14/2020, yield 8.54%. Formerly Fifth Street Finance (FSC), another Tier4 “fallen Angel”, or should I say “Fallen BDC”. Another small position I’m holding. With cumulative dividends, if I sold now, I would have in this case a gain of around $500.

My strategy on high risk BDCs is thus summed up by these two examples, as a gamble on collecting long enough to offset the inevitable loss. It actually has worked more often than not, and in some cases, such as ARCC, it has worked terrifically well.

Golub Capital BDC (GBDC) went ex-dividend 9/4/2020, and was overlooked last week, when it should have been reported. It yields 8.99%.

Six of the fifteen CEFs I follow will be going ex-dividend next week, and are listed following:

BlackRock Debt Strategies Fund (DSU), 9/14/2020, yield 8.50%. DSU is a monthly payer.

Dividend and Income Fund (DNI), 9/14/2020, yield 8.74%. DNI is a quarterly payer.

Nuveen Dow 30SM Dynamic Overwrite Fund (DIAX), 9/14/2020, yield 8.12%. DIAX is a quarterly payer.

BlackRock Enhanced Equity Dividend Trust (BDJ), 9/14/2020, yield 8.02%. BDJ is a monthly payer.

Nuveen Real Asset Income and Growth Fund (JRI), 9/14/2020, yield 10.23%. JRI is a monthly payer.

BlackRock Energy and Resources Trust (BGR), 9/14/2020, yield 11.15%. BGR is a monthly payer.

None of my stocks are scheduled to report earnings in the week ahead.

Upgrades, downgrades, initiations or resumptions of coverage, and reiterations of ratings reported by E*Trade last week on my stocks were as follows:

AT&T (T) was downgraded from Sector Perform to Sector UnderPerform at Scotia Bank.

Healthpeak Properties (PEAK) was resumed at Buy at Stifel.

Medical Properties Trust (MPW) was resumed at Buy at Stifel.

National Health Investors (NHI), Ventas (VTR), and Welltower (WELL) were all resumed at Hold at Stifel.

United Parcel Service (UPS) was downgraded from Hold to Sell at Berenberg.

NextEra Energy (NEE) was initiated at OverWeight at Atlantic Equities.

McDonalds (MCD) was reiterated at OutPerform at Telsey Advisory Group.

My strategy remains as stated last week, which is to husband my cash and maintain a watch list of solid firms with reasonably safe dividends, and be ready to buy when the next big decline occurs. Just in case it doesn’t, I am holding on to stocks that I own, including some that have declined that I expect to recover, especially those that are still paying out. If I had to look back at the last six months, and list what I would change if I could, I would respond that I wish I had bought more in mid-March than I did, when there were bargains available everywhere. I was ready, and I did take advantage to make some terrific buys, but I was too cautious, thinking that the market had further to fall. I do believe there is trouble ahead, and that I may get another chance. If so, I have my watch list ready.

JT

Stocks posted gains every day last week, with some stock averages posting new all-time highs. The conventions are now over, and from here on out it will be a daily political slugfest. The markets have effectively ignored our divided politics, our deteriorating economics, and our urban riots, for weeks now. The question investors have to be asking themselves is how much longer this disconnect can continue. Even stock market bulls are now seeing stocks as fully valued. The answer to the question is it cannot continue much longer, but no one can define how long “much longer” actually is.

Firms on my lists scheduled to go ex-dividend in the week ahead are listed following, with ex-dividend date and yield indicated:

Realty Income (O), 8/31/2020, yield 4.59%. O pays monthly.

McDonalds (MCD), 8/31/2020, yield 2.36%.

Safety Insurance Group (SAFT), 8/31/2020, yield 4.75%. 

Kellogg (K), 8/31/2020, yield 3.31%.

Pepsico (PEP), 9/3/2020, yield 2.92%.

Kimberly Clark (KMB), 9/3/2020, yield 2.73%.

Two of the fifteen CEFs I follow will be going ex-dividend next week. Both are monthly payers.

First Trust Intermediate Duration Preferred & Income Fund (FPF), 9/1/2020, yield 7.09%.

AllianceBernstein Global High Income Fund (AWF), 9/3/2020, yield 7.24%.

None of my stocks are scheduled to report earnings in the week ahead.

Upgrades, downgrades, initiations or resumptions of coverage, and reiterations of ratings reported by E*Trade last week on my stocks were as follows:

Medical Properties Trust (MPW) was upgraded from Neutral to Buy at Mizuho. This hospital REIT has definitely been a winner, but with the stock close to an all-time high and the uncertainty of hospital economics these days, it will have to be a better bargain than it is right now to be of interest.

MFA Financial (MFA) was upgraded from Market Perform to Market OutPerform at JMP Securities. This MREIT has just now reinstated a dividend. MFA eliminated their dividend and suffered a share price drop from nearly $8 to the $2 range, and was demoted to my Tier4 list. It may be a bargain now, but after a drop like that, I’m not interested.

Spirit Realty Capital (SRC) was upgraded from Neutral to Buy at Bank of America.

Digital Realty Trust (DLR) was upgraded from Hold to Buy at Berenberg. DLR is a very successful Data Center REIT, but this train left the station several years ago.  

JM Smucker (SJM) was upgraded from Sell to Neutral at Guggenheim.

Royal Dutch Shell (RDS.B) was downgraded from Equal Weight to UnderWeight at Barclays. Typically, the rating comes a little late, considering RDS.B dropped from the $60’s to less than $30 since the first of this year. Just one day later, RDS.B was upgraded from Neutral to OutPerform at Exane BNP Paribas, which now considers the stock a bargain after the price drop, I suppose.

ONEOK (OKE) was upgraded from Neutral to Buy at Seaport Global Securities. If it turns out that the Oil and Gas sector is not done, and rebounds at least some from today’s low levels, OKE picked up at today’s price will be a winner, especially if the dividend is maintained, which currently yields over 13%.

General Mills (GIS) was initiated at Neutral at Citigroup.

Kellogg (K) was initiated at Buy at Citigroup. There is no doubt that the long-term decline of “Big Food” has been arrested by the Covid epidemic. You might have been eager to grab that last box of Cheerios on the shelf at the store during the panic buying that accompanied the onset of the epidemic, even if you hadn’t had Cheerios for breakfast in years. Competitively, “Big Food” had been getting hammered from above by boutique brands, and from below by store brand imitations, plus had been squeezed by commodity price increases. The question here is whether or not the terminal decline of “Big Food” will resume after the Covid epidemic is over.

Right now, my approach is to husband my cash and maintain a watch list of solid firms with reasonably safe dividends, and be ready to buy when the next big decline occurs. Just in case it doesn’t, I am holding on to stocks that I expect to recover, especially those that are still paying out. Remember, the patient investor is usually the most successful investor.

JT