Stocks gained every market day last week except Monday, and gained overall for the week. It seems that a “Santa Claus Rally” is in progress, which could extend into the New Year, barring any major, unexpected event.

The stocks I follow going ex-dividend this week through December 5 are listed following. The ex-dividend date and current annualized yield are presented for each stock. Assume frequency is quarterly unless otherwise indicated. 

AGNC Investment (AGNC), 11/29/2022, 14.62%. AGNC is a monthly payer.

STAG Industrial (STAG), 11/29/2022, 4.47%. STAG is another monthly payer.

Barrick Gold (GOLD), 11/29/2022, 3.70%.

Owl Rock Capital (ORCC), 11/29/2022, 10.07%.

Realty Income (O), 11/30/2022, 4.61%. O is a monthly payer.

Safety Insurance Group (SAFT), 11/30/2022, 3.92%.

Kellogg (K), 11/30/2022, 3.25%.

Coca Cola (KO), 11/30/2022, 2.81%.

McDonalds (MCD), 11/30/2022, 2.22%.

PepsiCo (PEP), 12/1/2022, 2.49%.

Gladstone Investment (GAIN), 12/5/2022, 6.72%. GAIN pays monthly.

Only two of the 17 CEF’s I follow will be going ex-dividend next week, both are monthly payers.

First Trust Intermediate Duration Preferred & Income Fund (FPF), ex-dividend date 12/1/2022, yield 8.43%.

AllianceBernstein Global High Income Fund, Inc. (AWF), ex-dividend date 12/1/2022, yield 7.86%.

None of my stocks are reporting this week.

Ratings changes to report on my stocks from last week were as follows, per E*trade, my source.

Healthpeak Properties (PEAK) was upgraded from Inline to OutPerform at Evercore ISI.

Welltower (WELL) and Kimco Realty (KIM) were both downgraded from OutPerform to Inline at Evercore ISI.

Plains All American Pipeline L P (PAA) was downgraded from OverWeight to Neutral at JP Morgan.

Duke Energy (DUK) was downgraded from Neutral to Sell at Seaport Research Partners.  

Intel (INTC) was resumed at Market Perform at Cowen.

STAG Industrial (STAG) was downgraded from OverWeight to Equal Weight at Wells Fargo.

Colgate Palmolive (PG) was initiated at Peer Perform at Wolfe Research.

Procter & Gamble (PG) was initiated at OutPerform at Wolfe.

Intel (INTC) was initiated at Neutral at Mizuho.

Prudential Financial (PRU) was downgraded from Strong Buy to Market Perform at Raymond James.

While the market has recovered somewhat from the October lows, and the extreme bargains have mostly disappeared, many quality names are still well off their highs from early in 2022. No one can predict where we go from here, so I recommend a cautious approach. If you can acquire a quality stock at a price that has not extended too far, do so, but don’t go “all in”. Buy a 25%, or even a 50% position, and be prepared to add to it at a better price, if one becomes available. If not, just keep the position you have, don’t mess it up by adding to it at a higher price. This is all in the context of a diversified, income strategy, with no single position being more than a small percent of the total portfolio.

JT  

The week just ended was a relatively quiet week for the stock market, with the major averages ending just slightly lower than they began it. With the Thanksgiving holiday next week initiating the holiday season, it should continue to be quiet, barring some major, unexpected event.

The stocks I follow going ex-dividend this week through November 28 are listed following. The ex-dividend date and current annualized yield are presented for each stock. Assume frequency is quarterly unless otherwise indicated. As you can see, there isn’t much happening on the dividend front.

Johnson & Johnson (JNJ), 11/21/2022, 2.57%.

Prudential Financial (PRU), 11/21/2022, 4.47%.

Kraft Heinz Co (KHC), 11/23/2022, 4.20%.

Prospect Capital (PSEC), 11/25/2022, 9.47%. PSEC pays monthly.

Two of the 17 CEF’s I follow will be going ex-dividend this week, both are monthly payers.

Miller/Howard High Income Equity Fund (HIE), 11/22/2022, 5.90%.

Eaton Vance Tax-Managed Diversified Equity Income Fund (ETY), 11/22/2022, 9.43%.

None of my stocks are reporting this week.

Ratings changes to report on my stocks from last week were as follows.

Medical Properties Trust (MPW) was upgraded from Neutral to Buy at Bank of America.

Algonquin Power & Utilities (AQN) was downgraded from OutPerform to Sector Perform at RBC Capital and National Bank Finance, from Buy to Hold at TD Securities and Desjardins Group, and from OutPerform to Market Perform at BMO Capital. This was after a disappointing earnings report and a major sell-off of the stock.

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

Omega Healthcare Investors (OHI) was downgraded from Buy to Neutral at Bank of America.

Phillip Morris (PM) was upgraded from Hold to Buy at Argus.

General Mills (GIS) was initiated at OutPerform by Exane BNP Paribas.

Kellogg (K) and JM Smucker Co (SJM) were both initiated at UnderPerform by Exane BNP Paribas.

Kraft Heinz (KHC) was initiated at Neutral at Exane BNP Paribas.

Magellan Midstream Partners L P (MMP) was downgraded from Peer Perform to UnderPerform at Wolfe Research.

Intel (INTC) was resumed at Neutral at Credit Suisse.

Johnson & Johnson (JNJ) was initiated at Neutral at Credit Suisse.

I guess it wasn’t such a quiet week for ratings changes.

Looking at the S&P 500 Index, which is my preferred index, based on the stocks I follow, we have seen stocks advance since the lows in early October. To put this into perspective, the post-Covid high was 4818, in late December 2021, the post-Covid low in early October was 3577, a 25.75% decline from the high, and Friday’s reading was 3965, a 17.70% decline from the high. So while the market has gained since early October, it is still only about a third of the way back. If we have a “Santa Claus” rally in December, it might get to half-way back, but what then, as the New Year dawns? My best guess is that we won’t see a full recovery until the current Fed rate-tightening is concluded and inflation is tamed. We will be lucky if that comes to pass in 2023, so my advice is don’t celebrate prematurely, hold some “dry powder” in reserve to make some buys in case another dip occurs.

JT

Stocks gained 4 of 5 days last week, including a monster rally on Thursday, in response to a favorable CPI reading, to end the week with sizeable gains on the major averages. It appears that the control of Congress will not be known for some time yet, but the results overall were disappointing in a major way for the Republicans. As for the economy, the issue of recession or not in 2023 is likewise unknown, but as long as the labor market remains tight, it won’t feel like a recession to most people, even if the numbers indicate we are in one.

Repugnants/Demoncraps, recession/no recession, as an income investor, I couldn’t care less, as long as my payers keep paying. The stocks I follow going ex-dividend next week through November 21 are listed following. The ex-dividend date and current annualized yield are presented for each stock. Assume frequency is quarterly unless otherwise indicated. 

MPLX L P (MLPX), 11/14/2022, 9.12%.

Enbridge (ENB), 11/14/2022, 6.22%.

Exxon Mobil (XOM), 11/14/2022, 3.29%.

PennantPark Floating Rate Capital (PFLT), 11/16/2022, 10.01%. PFLT is a monthly payer.

SLR Investment (SLRC), 11/16/2022, 11.66%. SLRC is also a monthly payer.

Horizon Technology Finance (HRZN), 11/16/2022, 9.27%. HRZN is another monthly payer.

Welltower (WELL), 11/17/2022, 3.48%.

Gladstone Investment (GAIN), 11/17/2022, 6.78%. GAIN pays monthly.

Unilever PLC (UL), 11/17/2022, 3.74%.

3MCo (MMM), 11/17/2022, 4.61%.

Chevron (CVX), 11/17/2022, 3.13%.

Duke Energy (DUK), 11/17/2022, 4.14%.

Wheaton Precious Metals (WPM), 11/18/2022, 1.58%.

Pan American Silver (PAAS), 11/18/2022, 2.59%.

Southern Co (SO), 11/18/2022, 4.14%.

Johnson & Johnson (JNJ), 11/21/2022, 2.59%.

Prudential (PRU), 11/21/2022, 4.36%.

Twelve of the 17 CEF’s I follow will be going ex-dividend next week, all are monthly payers.

BlackRock Debt Strategies Fund (DSU), 11/14/2022, 7.87%. 

BlackRock Enhanced Equity Dividend Trust (BDJ), 11/14/2022, 8.81%.

Nuveen Real Asset Income and Growth Fund (JRI), 11/14/2022, 9.62%.

BlackRock Energy and Resources Trust (BGR), 11/14/2022, 4.30%.

Gabelli Utility Trust (GUT), 11/14/2022, 8.77%.

Gabelli Dividend & Income Trust (GDV), 11/14/2022, 6.23%.

Cohen & Steers Quality Income Realty Fund (RQI), 11/15/2022, 7.51%.

Cohen & Steers Total Return Realty Fund (RFI), 11/15/2022, 7.49%.

CBRE Global Real Estate Income Fund (IGR), 11/18/2022, 10.99%.

Tekla Healthcare Opportunities Fund (THQ), 11/18/2022, 6.54%.

Miller/Howard High Income Equity Fund (HIE), 11/22/2022, 5.93%.

Eaton Vance Tax-Managed Diversified Equity Income Fund (ETY), 11/22/2022, 9.26%.

Earnings season is pretty much done, only two of my stocks are scheduled to report next week:

Golub Capital (GBDC), on 11/14/2022.

Cisco Systems (CSCO), on 11/16/2022.

Ratings changes on my stocks over the past week are listed following, as per Etrade, my source.

Shell PLC (SHEL) was downgraded from Buy to Neutral at Goldman.

Enbridge (ENB) was downgraded from OutPerform to Sector Perform at National Bank Finance.

SLR Investment (SLRC) was upgraded from Neutral to Buy at Compass Point.

Altria (MO) was downgraded from Neutral to Sell at UBS.

Freeport-McMoRan (FCX) was downgraded from Sector OutPerform to Sector Perform at Scotiabank.

Intel (INTC) was downgraded from OverWeight to UnderWeight at JP Morgan.

Picking up where I left off last week, it seems the market recovery is continuing, as the week just ended posted gains on all the major averages I track. With the election over and possibly a divided government resulting, and the raging inflation retreating just a bit, we may be setting the stage for a “Santa Claus Rally”, as the year-end and holidays and general good feelings lift the markets. If so, enjoy it while it lasts, the cold, grey dawn of January and February will be here soon, to return us to reality!

JT

The markets posted losses for the week ended Friday, November 4, but a strong positive day on that Friday served to mitigate the damage from the prior four days. Last week the market was focused on the Fed announcement and commentary on Wednesday, then the Jobs report on Friday. The focus for the coming week will be the mid-terms, with many critical races which will determine control of Congress rated a “toss-up” by pundits. After that, maybe we can shift to more important matters, such as football, skiing, and the holidays!

The stocks I follow going ex-dividend next week through November 14 are listed following. The ex-dividend date and current annualized yield are presented for each stock. Assume frequency is quarterly unless otherwise indicated. 

Main Street Capital (MAIN), 11/7/2022, 6.77%. MAIN pays monthly.

Hercules Capital (HTGC), 11/9/2022, 9.77%.

J M Smucker Co (SJM), 11/9/2022, 2.73%.

American Electric Power (AEP), 11/9/2022, 3.71%.

Shell PLC (SHEL), 11/9/2022, 3.55%.

United Parcel Service (UPS), 11/10/2022, 3.67%.

MPLX L P (MLPX), 11/14/2022, 9.12%.

Enbridge (ENB), 11/14/2022, 6.23%.

Exxon Mobil (XOM), 11/14/2022, 3.24%.

Eight of the 17 CEF’s I follow will be going ex-dividend next week, all are monthly payers.

BlackRock Debt Strategies Fund (DSU), 11/14/2022, 8.18%. 

BlackRock Enhanced Equity Dividend Trust (BDJ), 11/14/2022, 9.35%.

Nuveen Real Asset Income and Growth Fund (JRI), 11/14/2022, 10.15%.

BlackRock Energy and Resources Trust (BGR), 11/14/2022, 4.29%.

Gabelli Utility Trust (GUT), 11/14/2022, 8.98%.

Gabelli Dividend & Income Trust (GDV), 11/14/2022, 6.61%.

Cohen & Steers Quality Income Realty Fund (RQI), 11/15/2022, 8.13%.

Cohen & Steers Total Return Realty Fund (RFI), 11/15/2022, 7.91%.

Earnings season is starting to wind down. Stocks I follow scheduled to report next week are as follows:

Monroe Capital (MRCC), 11/7/2022.

Prospect Capital (PSEC), 11/7/2022.

Alliant Energy (LNT), 11/7/2022.

Welltower (WELL), 11/7/2022.

Golub Capital (GBDC), 11/8/2022.

National Health Investors (NHI), 11/8/2022.

Spirit Realty Capital (SRC), 11/8/2022.

Pan American Silver (PAAS), 11/9/2022.

B & G Foods (BGS), 11/9/2022.

Algonquin Power Utilities (AQN), 11/11/2022.

Ratings changes on my stocks over the past two week are listed following, as per Etrade, my source. I just noticed I missed posting ratings for the last week of October in last week’s post, so this posting is for both weeks.

Ratings changes for 10/24/2022 through 10/28/2022:

AT&T (T) was upgraded from OutPerform to Strong Buy at Raymond James.

Chevron (CVX) was downgraded from Buy to Hold at HSBC Securities.

Southern Co (SO) was downgraded from Neutral to UnderPerform at Bank of America.

Intel (INTC) was initiated at Reduce at HSBC Securities.

United Parcel Service (UPS) was resumed at Buy at Jeffries.

AGNC Investment (AGNC) and Annaly Capital Management (NLY) were both upgraded from Equal Weight to OverWeight at Barclays.

Trinity Capital (TRIN) was downgraded from Buy to Neutral at Compass Point.

Intel (INTC) was upgraded from UnderWeight to Equal Weight at Barclays, and from Hold to Buy at Summit Insights.

Intel (INTC) was reiterated at Inline at Evercore ISI, at Hold at Truist and Stifel, at Neutral at Citigroup and Roth Capital, at UnderPerform at Bank of America, and at Sell at Rosenblatt.

McDonalds (MCD) was reiterated at Buy at Jeffries, at OverWeight at JP Morgan, Barclays, and KeyBanc, at Hold at Deutsche Bank, and at OutPerform at Baird, RBC Capital, and Credit Suisse.

Ratings changes for 10/31/2022 through 11/04/2022:

Ladder Capital (LADR) was resumed at Neutral at Bank of America.

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

Ventas (VTR) and Welltower (WELL) were both downgraded from Strong Buy to OutPerform at Raymond James.

Ventas (VTR) and Welltower (WELL) were also both reiterated at OutPerform at Credit Suisse.

Gladstone Investment (GAIN) was upgraded from Neutral to Buy at Ladenburg Thalmann.

Pepsico (PEP) was initiated at Sell at Redburn.

It looked like the nascent market recovery we had seen since the early October lows was over until Friday, when a strong rebound day recovered a large portion of the week’s losses. With the Fed meeting and Jobs report out of the way, maybe now we will see if the recovery resumes, or not. While it is hard to determine the effect of the election and control of Congress on the markets, the usual market preference is divided government, with minimal likelihood of new legislation changing the landscape. Under that assumption, if the Republicans capture one or both chambers of Congress, a rally might occur, not that the market welcomes the Republicans necessarily, contrary to what most believe, but it does welcome divided government and stability.

JT

The first posting for November 2022 begins with October 31st, 2022. But there’s nothing spooky about the markets just now, they have been on an upswing ever since about October 12, when the low point was reached in the decline which had been going since the post-Covid highs early in January. While it may be premature to announce that the decline is over, and the lows seen around October 12 are THE lows of the 2022 decline, it just may be the case. If the market is faking everyone out, it is doing a heck of a good job.

The stocks I follow going ex-dividend next week through November 7 are listed following. The ex-dividend date and current annualized yield are presented for each stock. Assume frequency is quarterly unless otherwise indicated. 

ONEOK (OKE), 10/31/2022, 6.35%.

Realty Income (O), 10/31/2022, 4.87%. O pays monthly.

Omega Healthcare Investors (OHI), 10/31/2022, 8.41%.

Energy Transfer L P (ET), 11/3/2022, 8.52%.

Magellan Midstream Partners L P (MMP), 11/4/2022, 7.92%.

NuStar Energy L P (NS), 11/4/2022, 10.20%.

Crestwood Equity Partners L P (CEQP), 11/4/2022, 8.68%.

Healthpeak Properties (PEAK), 11/4/2022, 5.20%.

Intel (INTC), 11/4/2022, 5.56%.

Only two of the 17 CEF’s I follow will be going ex-dividend next week, both are monthly payers.

First Trust Intermediate Duration Preferred & Income Fund (FPF), ex-dividend date 11/1/2022, yield 9.17%.

AllianceBernstein Global High Income Fund, Inc. (AWF), ex-dividend date11/3/2022, yield 8.33%.

Earnings reporting for Q2 of this year is now at a peak. Firms I track that will be reporting next week are listed below, by date.

10/31/2022

Public Service Enterprise Group (PEG), Williams Cos (WMB).

11/1/2022

Enterprise Products Partners L P (EPD), MPLX L P (MPLX), Newmont (NEM), Energy Transfer L P (ET), Healthpeak Properties (PEAK), ONEOK (OKE), Prudential Financial (PRU), Gladstone Investment (GAIN), Horizon Technology Finance (HRZN).

11/2/2022

Rithm Capital (RITM), Hercules Capital (HTGC), Lumen Technologies (LUMN), Omega Healthcare Investors (OHI), Park Hotels & Resorts (PK), Plains All American Pipeline L P (PAA), Realty Income (O), Tanger Factory Outlet Centers (SKT), Safety Insurance Group (SAFT), Crestwood Equity Partners L P (CEQP), SLR Investment (SLRC).

11/3/2022

Barrick Gold (GOLD), Chimera Investment (CIM), Iron Mountain (IRM), Kellogg Co (K), OGE Energy (OGE), Ventas (VTR), Wheaton Precious Metals (WPM), Universal (UVV), Midcap Financial Investment (MFIC), Goldman Sachs BDC (GSBD), NuStar Energy L P (NS), Owl Rock Capital (ORCC), MFA Financial (MFA).

11/4/2022

Duke Energy (DUK), Enbridge (ENB).

As stated in the opening, the market is doing a great job of spoofing investors that the downturn is over, IF in fact it is not over, and lower lows than seen in early October are coming. At this point, lower lows may or may not be coming in this cycle, so my strategy now is to go over all positions, and if I can add shares at the price available and improve my cost basis, I’d better get cracking, prices may be going up from here.

JT

Stocks ended the week Friday with gains for the week on all the averages I track, aided by substantial up days on Monday and Friday. The question now is whether this is just another bear market rally, or the start of a recovery. The US mid-term elections will dominate the news for the next two weeks plus, but investors will also be paying attention to the earnings news, as we get into the thick of earnings season.

The stocks I follow going ex-dividend next week through October 31 are listed following. The ex-dividend date and current annualized yield are presented for each stock. Assume frequency is quarterly unless otherwise indicated. 

Prospect Capital (PSEC), 10/26/2022, 10.36%. PSEC pays monthly.

AGNC Investment (AGNC), 10/28/2022, 18.39%. AGNC also pays monthly.

STAG Industrial (STAG), 10/28/2022, 5.20%. STAG is another monthly payer.

Tanger Factory Outlet Centers (SKT), 10/28/2022, 5.38%.

Kinder Morgan (KMI), 10/28/2022, 6.48%.

Enterprise Products Partners L P (EPD), 10/28/2022, 7.60%.

Plains All American Pipeline L P (PAA), 10/28/2022, 7.46%.

ONEOK (OKE), 10/31/2022, 6.61%.

Realty Income (O), 10/31/2022, 5.18%. O pays monthly.

None of the 17 CEFs I follow will be going ex-dividend next week.

Earnings reporting is now well under way. Firms I track that will be reporting next week are listed below, by date.

10/24/2022

AGNC Investment (AGNC).

10/25/2022

3M Co (MMM), Ares Capital (ARCC), Coca Cola (KO), Kimberly Clark (KMB), United Parcel Service (UPS).

10/26/2022

Kraft Heinz Co (KHC), Annaly Capital Management (NLY).

10/27/2022

Altria (MO), American Electric Power (AEP), Kimco Realty (KIM), Magellan Midstream Partners L P (MMP), McDonalds (MCD), Medical Properties Trust (MPW), Southern Co (SO), Intel (INTC), STAG Industrial (STAG), VICI Properties (VICI).

10/28/2022

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

Ratings changes on my stocks over the past week are listed following, as per Etrade, my source.

Enterprise Products Partners L P (EPD) was downgraded from Buy to Hold at Tudor Pickering.

Johnson & Johnson (JNJ) was initiated at OverWeight at Barclays.

Kimberly Clark (KMB) was initiated at Inline at Evercore ISI.

Exxon Mobil (XOM) was upgraded from Hold to Buy at Jeffries.

Chevron (CVX) was initiated at Hold at Jeffries.

McDonalds (MCD) was reiterated at OutPerform at Credit Suisse.

Southern Co (SO) was upgraded from Sector Weight to OverWeight at KeyBanc.

Alliant Energy (LNT) was downgraded from OutPerform to Peer Perform at Wolfe.

Spirit Realty Capital (SRC) was initiated at Perform (whatever that means) at Oppenheimer.

AT&T (T) was upgraded from Hold to Buy at Truist.

Now, while we are at a market pause, more or less, is a good time to review the prices available and get prepared to make additional buys, or even start new positions, on quality stocks that have come down substantially from their highs. It can’t be a bad thing to acquire a quality stock at a price below where it has been for the past 3 or more years, with a yield of 4% or more, even if it drops further before this bear market is over. Acquiring at the exact bottom would be great, but not likely. Don’t let this buy opportunity pass without buying anything, if you haven’t already. Waiting on even better prices could be a mistake, if the U-turn we saw last week takes hold. You can always add to a position later on if a better price comes available, assuming the investing thesis of the stock has not changed.

JT

The most representative index for me, based on the stocks I follow, is the S and P 500. Last week it had moderate declines the first three days of the week. On Thursday, a disappointing CPI report before the open was an ominous sign that a major downswing was coming that day. Indeed, it started out that way, as the index opened considerably below the prior close, and proceeded down from there. But after about an hour, as the index set a new low from its post-Covid high in January, buyers rushed in to take advantage of the many bargains. By day’s end, we had seen a monster rally, ending up 92 points on the index. The more commonly tracked Dow Industrials index, as least as far as the public is concerned, had an advance of 827 points. Was a new rally starting? Apparently not, as Friday yielded a decline in the S&P 500, giving back over 90% of Thursday’s gain. What will the new week bring? No one knows, so the best plan is to have a plan for all possible scenarios, a down day, an up day, or a day of minimal movement either way.

Meanwhile, the stocks I follow going ex-dividend next week through October 24 are listed following. The ex-dividend date and current annualized yield are presented for each stock. Assume frequency is quarterly unless otherwise indicated. 

PennantPark Floating Rate Capital (PFLT), 10/17/2022, 11.07%. PFLT pays monthly.

Horizon Technology Finance (HRZN), 10/17/2022, 11.35%. HRZN also pays monthly.

SLR Investment (SLRC), 10/19/2022, 12.50%. SLRC is another monthly payer.

Gladstone Investment (GAIN), 10/20/2022, 7.85%. You guessed it, GAIN is a monthly payer.  

Procter & Gamble (PG), 10/20/2022, 2.92%.

Colgate Palmolive (CL), 10/20/2022, 2.64%.

As with last week, not much dividend action this week.

Four of the 17 CEF’s I follow will be going ex-dividend next week, all are monthly payers.

CBRE Global Real Estate Income Fund (IGR), 10/19/2022, 12.45%.

Tekla Healthcare Opportunities Fund (THQ), 10/19/2022, 7.29%.

Miller/Howard High Income Equity Fund (HIE), 10/21/2022, 6.46%.

Eaton Vance Tax-Managed Diversified Equity Income Fund (ETY), 10/21/2022, 9.86%.

Earnings season for the 2022 3rd Quarter is starting, 7 of my stocks will be reporting next week.

Johnson & Johnson (JNJ), on 10/18/2022.

Proctor & Gamble (PG), on 10/19/2022.

Kinder Morgan (KMI), on 10/19/2022.

AT&T (T), on 10/20/2022.

Freeport-McMoRan (FCX), on 10/20/2022.

Phillip Morris (PM), on 10/20/2022.

Verizon (VZ), on 10/21/2022.

Ratings changes on my stocks over the past week are listed following, as per Etrade, my source.

Kraft Heinz (KHC) was upgraded from Neutral to Buy at Goldman.

Omega Healthcare Investors (OHI) was downgraded from OutPerform to Neutral at Baird.

Proctor & Gamble (PG) was downgraded from Buy to Neutral at Goldman.

Ventas (VTR) and Welltower (WELL) were both downgraded from OutPerform to Neutral at Baird.

Algonquin Power & Utilities (AQN) was upgraded from Neutral to OutPerform at Credit Suisse.

Coca Cola (KO) was initiated at OutPerform at Wolfe.

Pepsico (PEP) was initiated at OutPerform at Wedbush.

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

Oaktree Specialty Lending (OCSL) was initiated at Buy at B. Riley.

Coca Cola (KO) was reiterated at Hold at Deutsche Bank.

Johnson & Johnson (JNJ) was reiterated at Neutral at Bank of America.

I added to several positions again last week. Now is the time to be paying attention, there are many attractive buy prices available. My plan is based on prices available on stocks (including preferreds, ETFs, and CEFs) I’m following, not on the movement of the indexes. I have a buy price set for up to 30 or so securities, and if I can get filled at or below my desired price, I will put in a limit order. I only buy an incremental number of shares at a time, always keeping my options open in case better prices appear later on. Once I have started a position, I will add to it if lower prices come available, up to a maximum for any one position. If I really believe in the stock, I may go (slightly) above my pre-defined maximum for any one position, but not by much. I still believe the market rout is not over, but I suspect we are closer to the end than the beginning. At least, I hope so. But if not, I am keeping some “dry powder” handy in case even better prices come available, as we move through the fall and into year-end.

JT

Last week was a tale of two extremes, with a record setting two day upsurge on Monday and Tuesday, and a three day downturn the next three days. Even though the net result for the week was a small net gain, the fact that nearly all of the two day advance was given back has definitely put a damper on things.

The stocks I follow going ex-dividend next week through October 17 are listed following. The ex-dividend date and current annualized yield are presented for each stock. Assume frequency is quarterly unless otherwise indicated. 

Freeport-McMoRan (FCX), 10/13/2022, 2.01%.

PennantPark Floating Rate Capital (PFLT), 10/17/2022, 11.53%. PFLT pays monthly.

Horizon Technology Finance (HRZN), 10/17/2022, 11.83%. HRZN also pays monthly.  

That’s it, not much dividend action this week.

Eight of the 17 CEF’s I follow will be going ex-dividend next week, all are monthly payers.

Cohen & Steers Quality Income Realty Fund (RQI), 10/11/2022, 8.31%.

Cohen & Steers Total Return Realty Fund (RFI), 10/11/2022, 7.31%.

BlackRock Debt Strategies Fund (DSU), 10/13/2022, 8.09%. 

BlackRock Enhanced Equity Dividend Trust (BDJ), 10/13/2022, 9.82.

Nuveen Real Asset Income and Growth Fund (JRI), 10/13/2022, 10.09%.

BlackRock Energy and Resources Trust (BGR), 10/13/2022, 4.47%.

Gabelli Utility Trust (GUT), 10/14/2022, 8.58%.

Gabelli Dividend & Income Trust (GDV), 10/14/2022, 6.81%.

Only one of my stocks will be reporting next week, Pepsico (PEP), on 10/11/2022.

Ratings changes on my stocks over the past week are listed following, as per Etrade, my source.

Alliant Energy (LNT) was initiated at Neutral at Credit Suisse.

Lumen Technologies (LUMN) was downgraded from OverWeight to Equal Weight at Wells Fargo.

Horizon Technology Finance (HRZN) was initiated at Neutral at Janney Capital.

Verizon (VZ) was upgraded from Perform to OutPerform at Oppenheimer.

Freeport-McMoRan (FCX) was downgraded from OutPerform to Neutral at Exane BNP Paribas.

Global Medical REIT (GMRE) was downgraded from OutPerform to Market Perform at BMO Capital.

Algonquin Power & Utilities (AQN) was upgraded from Sector Perform to OutPerform at National Bank Financial.

I added to some positions Friday, as attractive prices came into view. I would describe my approach as selective buying at this point. With further declines likely, now is not a time to “buy with both hands”. For new positions, I establish a small starter position, and add to it if prices decline further. The downturn could end at any time, but like most pundits, I don’t think it is over, I’m expecting even better buys in the coming days.

JT

Stocks declined four of the five days last week, and even with a significant rebound on Wednesday, still posted a loss overall for the week, as the declines totaled roughly three times more than the lone up day. Long story short, the “bear” has returned, and the S&P 500 index closed Friday below the prior low of June 17, 2022.

The stocks I follow going ex-dividend next week through October 10 are listed following. The ex-dividend date and current annualized yield are presented for each stock. Assume frequency is quarterly unless otherwise indicated. 

Rithm Capital (RITM, formerly NRZ), 10/3/2022, 13.79%.

Cisco Systems (CSCO), 10/4/2022, 3.75%.

Main Street Capital (MAIN), 10/6/2022, 7.94%. MAIN is a monthly payer.

AT&T (T), 10/6/2022, 5.42%.

General Mills (GIS), 10/6/2022, 2.78%.

Verizon (VZ), 10/6/2022, 6.75%.

Universal (UVV), 10/6/2022, 6.73%.

OGE Energy (OGE), 10/7/2022, 4.43%.

Only two of the 17 CEF’s I follow will be going ex-dividend next week, both are monthly payers.

First Trust Intermediate Duration Preferred & Income Fund (FPF), ex-dividend date 10/3/2022, yield 8.97%.

AllianceBernstein Global High Income Fund, Inc. (AWF), ex-dividend date10/6/2022, yield 8.77%.

None of my stocks will be reporting next week.

Ratings changes on my stocks over the past week are listed following, as per Etrade, my source.

Unilever PLC (UL) was upgraded from Hold to Buy at Berenberg.

Pepsico (PEP) was reiterated at Hold at Deutsche Bank.

HealthPeak Properties (PEAK) was upgraded from Peer Perform to OutPerform at Wolfe Research.

Phillip Morris (PM) was initiated at Neutral at Credit Suisse.

MPLX LP (MPLX) was downgraded from Buy to UnderPerform at Bank of America.

Unilever (UL) was initiated at Equal Weight at Morgan Stanley.

Rithm Capiital (RITM) was upgraded from UnderWeight to Neutral at Piper Sandler.  

As noted in the intro, the market has now declined to its lowest reading yet since the post-Covid highs of January. Specifically, the S&P 500 has now closed 25.6% below the high set on January 4, 2022. I had a number of orders get filled last week. I don’t believe the declines are finished, I’m expecting more buy opportunities will appear in the weeks ahead. Now is a good time to start buying. No one knows when the declines will end, my recommendation is to start buying, but save some “dry powder” in case the market continues to decline in the weeks ahead.

JT

Stocks rose modestly on Monday, and that was it for the week, as the remaining four days saw major declines, bringing the averages close to the mid-June lows. The Fed raised interest rates on Wednesday, but that was expected. It was the Fed Chair’s comments, as the announcement was made, promising more raises will be coming, that sent the markets into a funk. 

The stocks I follow going ex-dividend next week through October 3rd are listed following. The ex-dividend date and current annualized yield are presented for each stock. Assume frequency is quarterly unless otherwise indicated. 

Phillip Morris (PM), 9/27/2022, 5.53%.

Prospect Capital (PSEC), 9/27/2022, 10.64%. PSEC pays monthly.

Algonquin Power (AQN), 9/28/2022, 5.79%.

AGNC Investment (AGNC), 9/29/2022, 13.37%. AGNC pays monthly.

Spirit Realty Capital (SRC), 9/29/2022, 6.70%.

Trinity Capital (TRIN), 9/29/2022, 12.83%.

Stag Industrial (STAG), 9/29/2022, 4.91%. STAG is a monthly payer.

Park Hotels & Resorts (PK), 9/29/2022, 0.34%.

Store Capital (STOR), 9/29/2022, 5.17%. STOR is being taken private, at a price $5 over where it was trading when the announcement came out. The buyout price is $32.25 per share, and the stock is now trading close to that figure. Holders of STOR are not complaining.

Ladder Capital (LADR), 9/29/2022, 8.47%.

Goldman Sachs BDC (GSBD), 9/29/2022, 11.04%.

Annaly Capital Management (NLY), 9/29/2022, 15.57%. NLY will be implementing a 1:4 split over the weekend, but surprisingly, the dividend will be increased by a factor of 4, maintaining the payout. The holders of NLY, thus far, are not losing anything because of the split.

Chimera Investment (CIM), 9/29/2022, 13.45%. CIM reduced the dividend, announced after the close on Wednesday, causing the stock to decline into the single digits.

Owl Rock Capital (ORCC), 9/29/2022, 10.79%.

Ventas (VTR), 9/30/2022, 4.04%.

Realty Income (O), 9/30/2022, 4.76%. O pays monthly.

Only two of the 17 CEF’s I follow will be going ex-dividend next week, both are monthly payers.

First Trust Intermediate Duration Preferred & Income Fund (FPF), ex-dividend date 10/3/2022, yield 8.73%.

AllianceBernstein Global High Income Fund, Inc. (AWF), ex-dividend date not yet available, but expected to be 10/3/2022, yield is 8.34%.

None of my stocks will be reporting next week.

Ratings changes on my stocks over the past week are listed following, as per Etrade, my source.

Goldman Sachs BDC (GSBD) was resumed at Neutral at Bank of America.

Cisco Systems (CSCO) was downgraded from OverWeight to Equal Weight at Wells Fargo.

Prudential Financial (PRU) was initiated at Strong Buy at Raymond James.

Digital Realty (DLR) was downgraded from Equal Weight to UnderWeight at Barclays.

McDonalds (MCD) was initiated at OverWeight at Stephens.

While I track several averages, the most representative index I follow is the S&P 500. The low point for this index, after the January highs, was 3636 on June 17, a 24.5% decline from the post-Covid high in January. After that, we had a modest summer rally, which now seems to have ended in September. The index closed Friday at 3693, a 23.3% decline from the post-Covid high. Long story short, we are now effectively back to the June lows. My “trigger” to begin deploying capital seriously is when the decline reaches 30%. That may be coming in October. As the saying goes, “get your popcorn ready, this show should get interesting”.

JT