Stocks mostly gained last week, with the headline Dow Jones Industrial Average setting both a new intraday high and a new closing high on Friday, October 22. There are many concerns regarding the economy and the prospects for the nation overall, but investors are, for the moment at least, ignoring all the headlines, and buying stocks.

Stocks on my lists going ex-dividend in my “look-ahead” period are listed following. The ex-dividend date and current yield, based on Friday’s close, are shown. Assume the dividend is paid quarterly unless otherwise indicated.

Prospect Capital (PSEC), 10/26/2021, 8.59%. PSEC pays monthly.

AGNC Investment (AGNC), 10/28/2021, 8.67%. AGNC is also a monthly payer.

Plains All American Pipeline LP (PAA), 10/28/2021, 6.56%.

Enterprise Products Partners LP (EPD), 10/28/2021, 7.38%.

Main Street Capital (MAIN), 10/28/2021, 8.67%. MAIN is a monthly payer.

Hoegh LNG Partners LP (HMLP), 10/28/2021, 0.79%. HMLP has come upon hard times, and has reduced the distribution to a penny per quarter. It is on my Tier4 list, no longer recommended.

STAG Industrial (STAG), 10/28/2021, 4.33%. STAG pays monthly.

Tanger Factory Outlet Centers (SKT), 10/28/2021, 4.16%. SKT, like many shopping mall operators, was hit hard by Covid. It remains on my Tier4 list, no longer recommended, but has recovered somewhat. I still own it, and I’m not selling. If you own it, I recommend holding, but if not, I would not buy in just yet.

Kinder Morgan (KMI), 10/29/2021, 6.11%.

Alliant Energy (LNT), 10/29/2021, 2.81%. LNT is an “over-loved” utility, with the price bid up to the point where the yield is inadequate, especially for a utility.

ONEOK (OKE), 10/29/2021, 5.77%.

Paychex (PAYX), 10/29/2021, 2.13%. Another example of a stock price having completely outrun the dividend, resulting in a low yield.

Realty Income (O), 11/01/2021, 3.98%. O pays monthly. The current yield is completely inadequate, compared to O’s historical levels, owing to, you guessed it, an elevated stock price.

Only one of the sixteen CEFs I track will be going ex-dividend in my “look-ahead” period for this post.

First Trust Intermediate Duration Preferred & Income Fund (FPF), 11/1/2021, 6.01%. FPF pays monthly.

Earnings season is now fully underway. Stocks on my lists scheduled to report next week are as follows, listed by date.

10/25/2021

Kimberly Clark (KMB), AGNC Investment (AGNC), PotlatchDeltic (PCH).

10/26/2021

3M Co (MMM), Ares Capital (ARCC), General Electric (GE), United Parcel Service (UPS), Digital Realty (DLR), Texas Instruments (TXN), Crestwood Equity Partners LP (CEQP), Horizon Technology Finance (HRZN), Martin Midstream Partners LP (MMLP), Oxford Square Capital (OXSQ).

10/27/2021

Coca Cola (KO), Kraft Heinz (KHC), McDonalds (MCD), Annaly Capital Management (NLY), Mid America Apartment Communities (MAA), VICI Properties (VICI), Automatic Data Processing (ADP), GlaxoSmithKline (GSK), Covanta Holding (CVA).

10/28/2021

Altria (MO), American Electric Power (AEP), Hershey Co (HSY), Medical Properties Trust (MPW), Newmont (NEM), Public Service Enterprise Group (PEG), Royal Dutch Shell (RDS.B), Sanofi (SNY), Omega Healthcare Investors (OHI), STAG Industrial (STAG), Washington Real Estate Investment Trust (WRE), Enterprise Products Partners LP (EPD), TotalEnergies SE (TTFNF), Hercules Capital (HTGC), Ladder Capital (LADR).

10/29/2021

Chevron (CVX), Colgate Palmolive (CL), Exxon Mobil (XOM).

Several ratings changes of interest regarding my stocks came out last week, as follows.

Occidental Petroleum (OXY) was upgraded from Hold to Buy at Truist.

Park Hotels and Resorts (PK) was downgraded from OverWeight to Equal Weight at Wells Fargo.

Crown Castle International (CCI) was upgraded from Neutral to OutPerform at Credit Suisse.

Enterprise Products Partners LP (EPD) and Williams Companies (WMB) were both downgraded from OutPerform to Peer Perform at Wolfe Research.

Verizon (VZ) was resumed at Hold at Deutsche Bank.

Compass Minerals International (CMP) was downgraded from Buy to Hold at BMO Capital Markets.

Rio Tinto PLC (RIO) was downgraded from Buy to Hold at Jeffries.

Getty Realty (GTY) was initiated at OutPerform at Baird.

Freeport-McMoRan (FCX) was downgraded from Buy to Hold at Deutsche Bank.

Intel (INTC) was downgraded from Buy to Neutral at Mizaho and UBS, and from OverWeight to Equal Weight at Morgan Stanley.

Chevron (CVX) was initiated at Buy at Societe Generale.

Intel (INTC) was reiterated at UnderPerform at Evercore ISI, Bank of America, and Wedbush.

Intel (INTC) was reiterated at UnderWeight at Barclays.

Intel (INTC) was reiterated at Sell at Goldman.

Intel (INTC) was reiterated at Hold at Deutsche Bank and Truist.

Intel (INTC) was reiterated at Neutral at Susquehanna and Citigroup.

Intel (INTC) was reiterated at OutPerform at BMO Capital Markets, as BMO goes against the crowd on INTC.

INTC disappointed the market with their earnings report on 10/21/2021, and when a widely-followed stock does that, a raft of ratings changes or reiterations is the result. As can be seen from the reiterations, the analysts were mostly not too high on INTC even before the report. I sold a put on INTC in the final half-hour Friday, for $95, with a strike price of $45. Even if I end up buying the stock, I’ll be fine with that, I don’t think INTC is going out of business anytime soon.

Who woulda thunk it a couple of months ago, that the market would not only NOT be crashing in October, but would actually be making new highs. Truth be known, too many market players were expecting a crash, and the market does what it usually does, which is to move opposite of the consensus view, at least in the short-term. Even though I have a higher than usual cash allocation, I still own a lot of stocks, so I’m not complaining about new highs (excepting INTC) being made. 

JT

Stocks declined early in the week just ended, but then rebounded the final two days, recovering all the lost ground, and a lot more besides. The Dow Industrials average is still about 300 points below the all-time high reached on August 16, 2021, but is closer to it than any day since the first week in September.

Stocks on my lists going ex-dividend in my “look-ahead” period are listed following. The ex-dividend date and current yield, based on Friday’s close, are shown. Assume the dividend is paid quarterly unless otherwise indicated.

Horizon Technology Finance (HRZN), 10/18/2021, 6.95%. HRZN is a monthly payer.

Colgate Palmolive (CL), 10/20/2021, 2.36%.

Gladstone Investment (GAIN), 10/21/2021, 6.12%. GAIN is also a monthly payer.

Procter & Gamble (PG), 10/21/2021, 2.42%.

That’s it, not a lot of dividend activity next week on my stocks.

Three of the sixteen CEFs I track will be going ex-dividend in my “look-ahead” period for this post. All are monthly payers.

Clarion Global Real Estate Income Fund (IGR), 10/19/2021, 6.74%.

Eaton Vance Tax-Managed Diversified Equity Income Fund (ETY), 10/21/2021, 7.26%.

Miller Howard High Income Equity Fund (HIE), 10/21/2021, 5.50%.

Don’t look now, but its earnings season time again. Stocks on my lists scheduled to report next week are as follows, listed by date.

10/19/2021

Johnson & Johnson (JNJ), Phillip Morris (PM), Procter & Gamble (PG).

10/20/2021

NextEra Energy (NEE), Verizon (VZ), Crown Castle International (CCI), Kinder Morgan (KMI).

10/21/2021

AT&T (T), FreePort McMoRan (FCX), Nucor (NUE), Intel (INTC).

Several ratings changes of interest regarding my stocks came out last week, as follows.

Exxon Mobil (XOM) was downgraded from Neutral to UnderPerform at Exane BNP Paribas.

Crown Castle International (CCI) was resumed at UnderPerform at Wolfe Research.

Digital Realty (DLR) was resumed at Peer Perform at Wolfe.

AT&T (T) was upgraded from UnderWeight to Sector Weight at KeyBanc Capital Markets.

Eni S p A (E) was upgraded from Sector Perform to OutPerform at RBC Capital Markets.

United Parcel Service (UPS) was upgraded from Hold to Buy at Stifel.

Greif (GEF) was downgraded from Buy to Neutral at Bank of America.

Barrick Gold (GOLD) was downgraded from OutPerform to Sector Perform at National Bank Financial.

With the headlines flagging a “supply chain and worker crisis”, inflation like we haven’t seen since the 1980’s, the continuing Covid threat, and the ongoing US political and governance failures, the recent stock gains have to be a “go figure” moment. My personal opinion, admittedly backed up only by my biased viewpoint, is that the market is reacting favorably to the stalling of the Democrat-Socialist legislative agenda. But regardless of whatever is responsible, the fact is that the predicted September-October stock market decline has failed to materialize. I’m taking advantage by selling both covered calls and cash-covered puts at ridiculous prices, compared to what was available a couple of months ago, while still holding on to an outsized cash allocation. I still believe a market tsunami will eventually come, but as Keynes so wisely stated, if you go all-in on a particular point of view on the market’s future direction, you will learn that “the market can remain irrational longer than you can remain solvent“. That is why I position myself to prosper no matter what the market does, including NOT doing what it “should” do.

JT

Stocks posted a gain for the week just ended, based on the indexes I track.  The advance ended with Thursday’s session, as a disappointing jobs report for September released before the open Friday dampened spirits, causing the final session of the week to basically churn in place.

Stocks on my lists going ex-dividend in my “look-ahead” period are listed following. The ex-dividend date and current yield, based on Friday’s close, are shown. Assume the dividend is paid quarterly unless otherwise indicated.

Oxford Square Capital (OXSQ), 10/14/2021, 10.05%. OXSQ is a monthly payer.

Mid America Apartment Communities (MAA), 10/14/2021, 2.14%.

Freeport-McMoRan (FCX), 10/14/2021, 0.88%.

PennantPark Floating Rate Capital (PFLT), 10/15/2021, 9.33%. PFLT is a monthly payer.

Horizon Technology Finance (HRZN), 10/18/2021, 7.12%. HRZN is another monthly payer.

That’s it for dividends next week. And two of these, OXSQ and FCX, are on my Tier4 list, no longer recommended. But seven of the sixteen CEFs I track will be going ex-dividend next week, and another CEF likely will also, but has not announced yet. All of these are monthly payers.

Cohen & Steers Quality Income Realty Fund (RQI), 10/12/2021, 6.23%.

BlackRock Debt Strategies Fund (DSU), 10/14/2021, 6.41%.

BlackRock Enhanced Equity Dividend Trust (BDJ), 10/14/2021, 5.99%.

Nuveen Real Asset Income and Growth Fund (JRI), 10/14/2021, 7.53%.

Gabelli Utility Trust (GUT), 10/14/2021, 7.59%.

Gabelli Dividend & Income Trust (GDV), 10/14/2021, 5.03%.

BlackRock Energy and Resources Trust (BGR), 10/14/2021, 4.63%.

Clarion Global Real Estate Income Fund (IGR) will likely be going ex-dividend next week as well. Assuming no change in the monthly amount, the yield will be 7.05%.  

None of my stocks will be reporting next week.

Several ratings changes of interest regarding my stocks came out last week, as follows.

3M Co (MMM) was downgraded from OverWeight to Neutral at JP Morgan.

Ventas (VTR) was resumed at Equal Weight at Morgan Stanley.

Procter & Gamble (PG) was reiterated at Buy at Deutsche Bank.

Digital Realty (DLR) was downgraded from OutPerform to Neutral at Credit Suisse.

Paychex (PAYX) was downgraded from Buy to Neutral at Citigroup.

Main Street Capital (MAIN) was initiated at Buy at Oppenheimer.

Colgate Palmolive (CL) was resumed at Neutral at Bank of America.

Procter & Gamble (PG) was resumed at Buy at Bank of America.

Texas Instruments (TXN) was reiterated at OverWeight at KeyBanc Capital Markets.

FreePort-McMoRan (FCX) was upgraded from Neutral to OutPerform at Exane BNP Paribas.

PotlatchDeltic (PCH) was upgraded from Neutral to Buy at DA Davidson.

Rio Tinto PLC (RIO) was upgraded from Neutral to OutPerform at Exane BNP Paribas.

Vici Properties (VICI) was upgraded from Sector Weight to OverWeight at KeyBanc Capital Markets.

AGNC Investment (AGNC) and Annaly Capital Management (NLY) were both downgraded from OverWeight to Neutral at Piper Sandler.

Nucor (NUE) was downgraded from Buy to Neutral at Goldman Sachs.

Paychex (PAYX) was downgraded from Buy to Neutral at Citigroup.

McDonalds (MCD) was initiated at Buy at Loop Capital.  

AT&T (T) was upgraded from Sell to Neutral at MoffatNathanson.

3M Co (MMM) was reiterated at Equal Weight at Morgan Stanley, and also at Wells Fargo.

Eaton (ETN), Emerson Electric (EMR), and General Electric (GE) were all initiated at Equal Weight at Wells Fargo.

Omega Healthcare Investors (OHI) was reiterated at OutPerform at Robert W Baird.            

Considering the storm clouds facing the nation, both economically and otherwise, the market has held up amazingly well. So far, at least, the month of October has not lived up (or should I say down) to its’ reputation. With the debt limit deadline being delayed, we may muddle through October without any major decline. But the relief is only until December, keep in mind.

JT                       

Stocks had two major declines exceeding 500 Dow Points last week, two minor positive days of less than 100 Dow Points, then capped the week with a nearly 500 Dow Point gain on Friday. The end result was still down for the week, but with the big rebound on Friday, it did not seem like it. The major news was the stand-off in Congress between Democratic factions, with the pending debt limit being ignored by the Dems in favor of their pet programs. The relief rally on Friday may have been triggered by the reality that nothing was passed.

Stocks on my lists going ex-dividend in my “look-ahead” period are listed following. The ex-dividend date and current yield, based on Friday’s close, are shown. Assume the dividend is paid quarterly unless otherwise indicated.

Cisco Systems (CSCO), 10/04/2021, 2.72%.

Covanta Holdings (CVA), 10/06/2021, 1.59%. The low yield is compliments of a dividend cut, which is why CVA is now on my Tier4 list, no longer recommended. 

AT&T (T), 10/07/2021, 7.70%. While the bountiful dividend will be reduced after the company spins off the entertainment divisions sometime in 2022, for the time being, it remains above 7%.

Universal (UVV), 10/07/2021, 6.37%. UVV is a “stealth” way to invest in a tobacco stock, without the name recognition.

Verizon (VZ), 10/07/2021, 4.74%.

General Mills (GIS), 10/07/2021, 3.41%.

Only one of the sixteen CEFs I track will be going ex-dividend in my “look-ahead” period for this post, AllianceBernstein Global High Income Fund (AWF), 10/07/2021, 6.44%. AWF pays monthly.

One of my stocks will be reporting earnings next week, General Mills (GIS) on 10/04/2021.

Several ratings changes of interest regarding my stocks came out last week, as follows.

Barrick Gold (GOLD) and Newmont (NEM) were both initiated at Sector Weight at KeyBanc Capital Markets.

Wheaton Precious Metals (WPM) was initiated at OverWeight at KeyBanc.

United Parcel Service (UPS) was initiated at OutPerform at Evercore ISI.

Energy Transfer LP (ET), Enterprise Products Partners LP (EPD), Williams Cos (WMB), and MPLX LP (MPLX) were all resumed at Buy at Bank of America.

Kinder Morgan (KMI) and ONEOK (OKE) were both resumed at Neutral at Bank of America.

Magellan Midstream Partners LP (MMP) and Plains All American Pipeline LP (PAA) were both resumed at UnderPerform at Bank of America. I guess B of A decided it was time to weigh in on midstream energy.

Occidental Petroleum (OXY) was upgraded from InLine to OutPerform at Evercore ISI.

Freeport-McMoRan (FCX) was resumed at Buy at Bank of America.

Compass Minerals International (CMP) was upgraded from Neutral to Buy at Monness, Crespi, & Hardt. Regardless of the name, this is not a European firm, but rather a brokerage located in New York.

Public Service Enterprise Group (PEG) was upgraded from Hold to Buy at Vertical Research.

New Residential Investment (NRZ) was resumed at OverWeight at Barclays. NRZ will be a new MREIT added to my Tier3 (higher risk) group, upon my next rework of my stock lists.

General Mills (GIS) was upgraded from Neutral to Buy at Citigroup.

Washington Real Estate (WRE) was initiated at Buy at BTIG Research.

Sanofi (SNY) was upgraded from Market Perform to OutPerform at SVB Leerink.

The volatility continues, which reflects the recognition by investors that risk is elevated at this time. My view remains that it is time to carry a higher, perhaps much higher, cash percentage, and dispose of any marginal positions that might not survive a major downturn. I’m approaching a 60% cash level, which I’m comfortable with. I know what I want to buy, some of which I have sold recently, I’m just waiting on better entry, or in some cases, re-entry, points.

JT

It seemed the long anticipated stock decline was here on Monday last week, with the Dow Industrials closing down some 600 points, but after a much smaller decline on Tuesday, stocks came roaring back to finish the week ahead of where they began it. There are many concerns with the economy and the general situation in the nation, and confidence polls reflect that. But so far, the market is holding up.

Stocks on my lists going ex-dividend in my “look-ahead” period are listed following. The ex-dividend date and current yield, based on Friday’s close, are shown. Assume the dividend is paid quarterly unless otherwise indicated.

Prospect Capital (PSEC), 9/27/2021, 9.07%. PSEC pays monthly.

Phillip Morris International (PM), 9/28/2021, 4.93%.

Main Street Capital (MAIN), 9/28/2021, 4.93%. MAIN pays monthly.

Spirit Realty Capital (SRC), 9/28/2021, 5.13%.

STAG Industrial (STAG), 9/29/2021, 3.56%. STAG pays monthly.

Ladder Capital (LADR), 9/29/2021, 7.08%.

Innovative Industrial Properties (IIPR), 9/29/2021, 2.44%.

Americold Realty Trust (COLD), 9/29/2021, 2.84%.

Algonquin Power & Utilities (AQN), 9/29/2021, 4.48%.

Goldman Sachs BDC (GSBD), 9/29/2021, 9.54%. Note that this dividend is a special dividend of $0.05. GSBD will pay three of these special dividends in 2021, in addition to the regular quarterly dividend of $0.45. The yield shown is all dividends annualized.

Chimera Investment (CIM), 9/29/2021, 8.57%.

Annaly Capital management (NLY), 9/29/2021, 9.93%.

National Health Investors (NHI), 9/29/2021, 6.30%.

Nucor (NUE), 9/29/2021, 1.63%. NUE’s stock price has exploded, and the dividend has not kept up, hence the low yield. It likely will be dropped after my next review.

Owl Rock Capital (ORCC), 9/29/2021, 8.60%.

MFA Financial (MFA), 9/29/2021, 8.42%. MFA is on my Tier4 list, no longer recommended, demoted when the stock price declined to less than $2 during the Covid crash. It has regained to a little over $4, but that is still barely half of where it was pre-Covid.

AGNC Financial (AGNC), 9/29/2021, 8.88%. AGNC pays monthly.

Ventas (VTR), 9/30/2021, 3.19%.

Realty Income (O), 9/30/2021, 4.18%. O pays monthly.

Cisco Systems (CSCO), 10/4/2021, 2.61%.

Only one of the sixteen CEFs I track will be going ex-dividend in my “look-ahead” period for this post.

First Trust Intermediate Duration Preferred & Income Fund (FPF), 10/1/2021, 6.00%. FPF pays monthly.

Only one of my stocks will be reporting next week, Paychex (PAYX), on 9/30/2021.

Several ratings changes of interest regarding my stocks came out last week, as follows.

Colgate Palmolive (CL) was upgraded from Hold to Buy at Deutsche Bank.

Energy Transfer LP (ET) was upgraded from Hold to Buy at Tudor Pickering.

General Mills (GIS) was downgraded from Equal Weight to UnderWeight at Morgan Stanley.

AT&T (T) and Verizon (VZ) were both initiated at Hold at Loop Capital.

Hershey Co (HSY), Kraft Heinz (KHC), and Kellogg (K) were all resumed at Equal Weight at Morgan Stanley.

ONEOK (OKE) was upgraded from Market Perform to Market OutPerform at Bernstein.

Ventas (VTR) was upgraded from OutPerform to Sector Perform at Raymond James.

Kimco Realty (KIM) was initiated at Peer Perform at Wolfe Research.

Mid-America Apartment Communities (MAA) was resumed at Neutral at Goldman.

General Mills (GIS) was reiterated at Sector Perform at RBC Capital Markets.

Barrick Gold (GOLD) and Newmont (NEM) were both initiated at Sector Weight at KeyBanc Capital Markets.

Wheaton Precious Metals (WPM) was initiated at OverWeight at KeyBanc Capital Markets.

Even though the market recovered from Monday’s selloff, anyone with significant stock exposure has to be nervous about the volatility exhibited. Now would be a good time to take some “money off the table”, and sell at least some holdings where one has significant paper profits. It is no secret that stock prices are at extreme levels, based on various historical valuation methods, and there are numerous threats to continued gains. To name a few, China’s debt problems and their crackdown on technology firms, US political gridlock and US Debt, Inflation, labor/supply chain issues, ill-advised new US taxes and regulations, US Federal Reserve policy changes, Covid resurgence, and many others. A stock market correction is coming, but when, and how severe, no one knows. Better to be prepared months too early than days too late.

JT