Stocks climbed steadily higher every day last week, even as the political wrangling intensified, with the House voting to impeach the President, then refusing to take the appropriate next step to submit the impeachment paperwork to the Senate. One might logically ask, how can this be, does the market not realize our political system is in danger of collapsing? The answer is the market is not concerned about the President actually being removed from office, and not much concerned either that any of the radical Dems economy-destroying proposals will ever become law. I will grant that it doesn’t seem likely, but I’m personally not as sanguine about the effects of our politics on our economics as the markets seem to be.

Upcoming dividends on my stocks, plus the CEFs I track, are listed following. Ex-dividend date is as shown, frequency is quarterly unless otherwise indicated, and yield is as of Friday’s closing price. The look-ahead period for this post is Monday, December 23, through the end of the year.

Getty Realty (GTY), ex-dividend date 12/24/2019, yield 4.50%.

Altria Group (MO), ex-dividend date 12/24/2019, yield 6.38%.

Covanta Holdings (CVA), ex-dividend date 12/26/2019, yield 6.72%.

MFA Financial (MFA), ex-dividend date 12/27/2019, yield 10.19%.

Main Street Capital (MAIN), ex-dividend date 12/27/2019, yield 5.65%. MAIN pays monthly.

AGNC Investment (AGNC), ex-dividend date 12/30/2019, yield 10.85%. AGNC pays monthly.

STAG Industrial (STAG), ex-dividend date 12/30/2019, yield 10.85%. STAG pays monthly.

Vermillion Energy (VET), ex-dividend date 12/30/2019, yield 13.26%. VET pays monthly. While the yield is impressive, U.S. holders suffer two reductions, the payment is in Canadian Dollars, so the U.S. Dollars received is less, and further, the Canadian government requires that 15%, as a minimum, be withheld from dividend payments to U.S. holders.

Spirit Realty Capital (SRC), ex-dividend date 12/30/2019, yield 4.13%.

Enerplus (ERF), ex-dividend date 12/30/2019, yield 1.30%. ERF pays monthly, and is a Canadian firm, with the same conditions as VET for U.S. holders. 

Park Hotels (PK), ex-dividend date 12/30/2019, yield 8.51%.

B&G Foods (BGS), ex-dividend date 12/30/2019, yield 10.76%.

Chimera Investment (CIM), ex-dividend date 12/30/2019, yield 9.51%.

Pattern Energy Group (PEGI), ex-dividend date 12/30/2019, yield 6.22%.

Annaly Capital Management (NLY), ex-dividend date 12/30/2019, yield 11.02%.

Nucor (NUE), ex-dividend date 12/30/2019, yield 2.85%.

Ventas (VTR), ex-dividend date 12/31/2019, yield 5.60%.

Kimco Realty (KIM), ex-dividend date 12/31/2019, yield 5.45%.

Realty Income (O), ex-dividend date 12/31/2019, yield 3.77%. O pays monthly.

Prospect Capital (PSEC), ex-dividend date 12/31/2019, yield 10.81%. PSEC pays monthly.

Only two of the fifteen CEFs I follow will be going ex-dividend between now and the end of the year, and both are monthly payers.

Eaton Vance Tax-Managed Diversified Equity Income Fund (ETY), ex-dividend date 12/23/2019, yield 8.05%.

Miller Howard High Income Equity Fund (HIE), ex-dividend date 12/23/2019, yield 12.14%.

None of my stocks will be reporting earnings before next year.

Upgrades, downgrades, etc. generated last week on my stocks by the various ratings analysts, as tallied by E*TRADE, were as follows:

Pepsico (PEP) was downgraded from OverWeight to Equal Weight at Morgan Stanley.

Freeport-McMoRan (FCX) was upgraded from Market Perform to OutPerform at BMO Capital Markets.

Eaton (ETN) was upgraded from Neutral to Buy at Bank of America.

Johnson & Johnson (JNJ) was upgraded from Equal Weight to OverWeight at Exane BNP Paribas.

Kimco Realty (KIM) was upgraded from UnderWeight to Equal Weight at Morgan Stanley.

CenturyLink (CTL) was downgraded from OverWeight to Equal Weight at Morgan Stanley.

Mid America Apartment Communities (MAA) was downgraded from OverWeight to Sector Weight at KeyBanc.

STAG Industrial (STAG) was upgraded from Neutral to OverWeight at JP Morgan, and from OutPerform to Top Pick at RBC Capital Markets.

Kimco Realty (KIM) was downgraded from OverWeight to Neutral at JP Morgan.

Welltower (WELL) was downgraded from OverWeight to Neutral at JP Morgan.

Kinder Morgan (KMI) was initiated at Neutral at Piper Jaffray.

Enbridge (ENB) was resumed at Buy at Bank of America.

Barrick Gold (GOLD) was upgraded from Neutral to Buy at Bank of America.

Cisco Systems (CSCO) and Johnson & Johnson (JNJ) were both upgraded from Equal Weight to OverWeight at Barclays.

Colgate Palmolive (CL) was downgraded from Buy to Neutral at Bank of America.

Annaly Capital Management (NLY) was initiated at Equal Weight at Wells Fargo.

Alliant Energy (LNT) and American Electric Power (AEP) were both upgraded from Sector Perform to Sector OutPerform at Scotia Bank.

Kellogg (K) was upgraded from UnderPerform to Buy at Bank of America.

Hershey Co (HSY) was downgraded from Buy to Neutral at Bank of America.

Healthpeak Properties (PEAK) was initiated at Buy at Mizuho. PEAK was formerly HCP Inc (HCP).

Medical Properties Trust (MPW), Omega Healthcare Investors (OHI), and Welltower (WELL) were all initiated at Buy at Mizuho.

National Health Investors (NHI) was resumed at Buy at Mizuho.

Ventas (VTR) was resumed at Neutral at Mizuho.

It seems Mizuho has become bullish on the healthcare REIT sector, with the exception of VTR.

As we prepare to wrap up 2019, the outlook at this point is definitely upbeat, a marked contrast to what it was only a couple of months ago. No doubt, the trade deals with our North American neighbors and also China, just reached last week, have contributed to the improved outlook. But that isn’t the entire story. My opinion is that the improved prospects for the continuance of the Trump administration, as the Democrats continue to slowly implode, has something to do with it. But as I read recently from one article, 10 months (how far we are away from Election Day 2020) is an eternity in Trump time, so no one should be assuming anything at this point, as far as who and what will eventually prevail. But for now, it seems the end of everything has once again been postponed, to the disappointment of the numerous economic doomsayers, as well as the Dems.

JT

Stocks managed to post a gain for the week just ended, thanks primarily to a sizeable up day on Thursday. The political circus in D.C. dominated the news flow last week, especially the “fake news” mainstays, the “nitworks”, so aptly named by Sarah Palin long ago, and the cable news extensions of the Democrat party, CNN and MSNBC. Undoubtedly this will continue, for probably many weeks to come.

Upcoming dividends on my stocks, plus the 15 CEFs I track, are listed following. Ex-dividend date is as shown, frequency is quarterly unless otherwise indicated, and yield is as of Friday’s closing price.

Oxford Square Capital (OXSQ), ex-dividend 12/17/2019, yield 14.36%. Formerly TICC Capital (TICC), this BDC has shown surprising resilience since the name change, but remains on my Tier4 (not recommended) list for now.

Greif (GEF), ex-dividend 12/17/2019, yield 3.89%.

BlackRock Capital Investment (BKCC), ex-dividend 12/17/2019, yield 12.48%.

Horizon Technology Finance (HRZN), ex-dividend 12/17/2019, yield 9.67%. HRZN pays monthly.

Gladstone Investment (GAIN), ex-dividend 12/18/2019, yield 5.55%. GAIN has gone parabolic towards the upside in the past year, with the lowest yield ever on this monthly payer.

PennantPark Investment (PNNT), ex-dividend 12/18/2019, yield 10.96%.

Solar Capital LTD (SLRC), ex-dividend 12/18/2019, yield 7.89%.

Phillip Morris (PM), ex-dividend 12/18/2019, yield 5.57%.

Apollo Investment (AINV), ex-dividend 12/19/2019, yield 10.39%.

Washington Real Estate Investment (WRE), ex-dividend 12/20/2019, yield 4.04%.

General Electric (GE), ex-dividend 12/20/2019, yield 0.33%. Yes, this one-time solid industrial stock, with a 3% yield, is now paying just one cent per quarter, yielding practically nothing, with a share price to match. It will likely survive, but also likely will remain on my Tier4 list for years to come.

The two CEFs I listed last week that I expected to go ex-dividend in the weekly look-ahead window, but that had not yet announced the ex-dividend date, did later announce as expected. These were:

BlackRock Debt Strategies Fund (DSU), ex-dividend date 12/13/2019, yield 7.54%.

BlackRock Energy and Resources Trust (BGR), ex-dividend date 12/13/2019, yield 8.16%.

Five of the fifteen CEFs I track will be going ex-dividend this coming week, as per E*Trade. All of these are monthly payers.

Cohen & Steers MLP Income & Energy Opportunity Fund (MIE), ex-dividend 12/17/2019, yield 12.02%.

Cohen & Steers Quality Income Realty Fund (RQI), ex-dividend 12/17/2019, yield 6.51%.

CBRE Clarion Global Real Estate Income Fund (IGR), ex-dividend 12/19/2019, yield 7.53%.

Miller Howard High Income Equity Fund (HIE), ex-dividend 12/23/2019, yield 12.36%.

Eaton Vance Tax-Managed Diversified Equity Income Fund (ETY), ex-dividend 12/23/2019, yield 8.16%.

Three of my stocks will be reporting next week, General Mills (GIS) and Paychex (PAYX) on 12/18/2019, and Darden Restaurants (DRI) on 12/19/2019.

Upgrades, downgrades, etc. generated last week by the various ratings analysts, as tallied by E*TRADE, were as follows:

Nucor (NUE) was upgraded from Neutral to Buy at Longbow.

3M Co (MMM) was downgraded from Buy to Neutral at Citigroup. MMM has declined from above $240 to $168 since the beginning of 2018, it is now in a reasonable range, and yields above 3% these days.

Chevron (CVX) was downgraded from Buy to Neutral at Citigroup. CVX has held up better than most oil stocks. Yielding 4%, CVX isn’t going away anytime soon.

Plains All American Pipeline LP (PAA) was initiated at Neutral at Goldman. One of the stronger MLPs, PAA now yields over 8%. The now unpopular MLP structure, mostly concentrated in the midstream oil and gas sector, will possibly be seen later as having been tremendous bargains at this point in time.

STAG Industrial (STAG) was upgraded from Market Perform to OutPerform at Wells Fargo.

Ventas (VTR) was downgraded from Market Perform to UnderPerform at Wells Fargo. VTR has seriously underperformed since I sold it at $73 and change last June, it is now time to buy it back, which I did this week, in the $50’s.  

Vermillion Energy (VET) was downgraded from OverWeight to Neutral at JP Morgan. I remember when VET was considered one of the higher quality Canadian oil trusts, back before the Canadian government blindsided investors with the 2006 “Halloween Massacre”, announcing a change in taxation for the trusts, after promising not to do so. VET converted to a corporation and survived, but has declined with the entire energy sector these past few years. Yielding nearly 14%, I bought it recently.

Darden Restaurants (DRI) was initiated at OutPerform at RBC Capital Markets. RBC evidently believes DRI will continue to defy gravity. We will see, as DRI reports this coming week.

McDonalds (MCD) was also initiated at OutPerform at RBC Capital Markets. Channeling my inner H.L. Mencken, I can say that RBC agrees with the thesis that no one has ever lost money betting on Americans continuing to make terrible food choices.

Barrick Gold (GOLD) was upgraded from Equal Weight to OverWeight at Barclays.

United Parcel Service UPS) was downgraded from OutPerform to Market Perform at BMO Capital Markets.

Century Link (CTL) was initiated at UnderPerform at Evercore ISI.

Cisco Systems (CSCO) was upgraded from Hold to Buy at Edward Jones.

General Electric (GE) was upgraded from Neutral to Buy at UBS. GE is certainly available at a cheap price these days, but don’t buy it for the dividend, as noted earlier.

Realty Income (O) was upgraded from Neutral to Buy at Citigroup. The yield available with O is at a low I have not seen in 20 years, illustrating the extreme popularity of the “monthly dividend company”. My recommendation is to avoid O until the yield increases to 4.5% or more.

3M Co (MMM) was downgraded from Neutral to Sell at UBS. This is a typical lemming rating, MMM is finally approaching buy territory, and UBS says to sell. It would have been a great call to make on 1/1/2018, not so much now.  

General Mills (GIS) and Kellogg (K) were both resumed at Buy at Deutsche Bank.

Darden Restaurants (DRI) was initiated at Sell at Goldman. I’m not sure if I would sell it if I owned it, but my inclination is to agree more with Goldman than RBC Capital Markets, as regards DRI.

Eaton (ETN) and Emerson Electric (EMR) were both initiated at Neutral at UBS.

Hershey Co (HSY), Kraft Heinz (KHC), and Smucker JM Co (SJM) were all resumed at Hold at Deutsche Bank.

MicroSoft (MSFT) was reiterated at OutPerform at Cowen. MSFT has certainly done just that over the past 5 years, with the stock price more than doubling, from near $60 to now near $160. With a yield barely above 1%, I dropped it from my lists some time ago, as it no longer qualifies as a dividend stock.

United Parcel Service (UPS) was reiterated at UnderWeight at Morgan Stanley.

As we approach the end of the year, I will be updating all of my lists with new buy under and consider sell prices, and as always, I will be making some changes in the stocks shown on the lists. The search for yield is never-ending, and while capital gains are nice when they occur, they cannot be depended upon as an income stream. The outlook for the economy is actually a little more upbeat than it has been for a while, even though all agree the current expansion will have to end someday, just as fall and winter follows spring and summer. But the current consensus seems to be that the long-expected correction (or worse) has been delayed once again. Regardless of the new highs reflected in the major averages, there are some bargains available, there always are. The trick is to determine if a bargain is real, or is just the beginning of a secular decline. It always turns out to be one or the other.

JT

Last week was a stock market roller coaster ride, with significant declines Monday and Tuesday, a respectable rebound on Wednesday, nothing much on Thursday, but then a huge surge to the upside on Friday, on the strength of a blowout monthly Jobs report for November. Even so, stocks ended up slightly below where they stood at the end of the prior week, as per the major averages I track. The oft-predicted recession, lusted for by the anti-Trump crowd, appears to be delayed once again, as Americans appear to be ignoring the doom and gloom prognostications, as evidenced by the Christmas season shopping statistics logged thus far.

A number of the firms I track are likewise evidencing the giving spirit, in that they have announced upcoming dividend payments to shareholders. Stocks on my lists going ex-dividend in the coming week are listed following. Ex-dividend date is as shown, frequency is quarterly unless otherwise indicated, and yield is as of Friday’s closing price.

Public Service Enterprise Group (PEG), ex-dividend 12/9/2019, yield 3.20%.

Ladder Capital (LADR), ex-dividend 12/9/2019, yield 7.80%.

Occidental Petroleum (OXY), ex-dividend 12/9/2019, yield 8.32%.

Golub Capital BDC (GBDC), ex-dividend 12/11/2019, yield 7.28%.

Medical Properties Trust (MPW), ex-dividend 12/11/2019, yield 4.88%.

Main Street Capital (MAIN), ex-dividend 12/12/2019, for a special dividend of $0.24/share, and then the regular monthly ex-dividend date is 12/27/2019, in the amount of $0.205/share, the current regular dividend amount. The yield is 5.72% considering only the regular dividends. MAIN frequently pays an extra dividend in December, displaying more Christmas spirit towards shareholders than most firms.

Williams Companies (WMB), ex-dividend 12/12/2019, yield 6.85%.

Crown Castle International (CCI), ex-dividend 12/12/2019, yield 3.56%.

Digital Realty Trust (DLR), ex-dividend 12/12/2019, yield 3.68%.

Oaktree Specialty Lending (OCSL), ex-dividend 12/12/2019, yield 7.31%.

Ares Capital (ARCC), ex-dividend 12/13/2019, yield 8.54%.

Monroe Capital (MRCC), ex-dividend 12/13/2019, yield 11.96%.

Iron Mountain (IRM), ex-dividend 12/13/2019, yield 7.64%.

Merck (MRK), ex-dividend 12/13/2019, yield 2.75%.

Six of the fifteen CEFs I track will be going ex-dividend this coming week, as per E*Trade, and two others likely will soon announce ex-dividend dates that fall into my look-ahead time frame, 12/9/2019 – 12/16/2019. My purpose for listing ex-dividend dates looking ahead a week is to allow any readers so inclined to buy the stock or fund in time to receive the dividend. In recognition of this, I will list these two CEFs also.

Nuveen Dow 30SM Dynamic Overwrite Fund (DIAX), ex-dividend date 12/12/2019, yield 6.56%. DIAX pays quarterly.

Nuveen Real Asset Income and Growth Fund (JRI), ex-dividend date 12/12/2019, yield 7.16%. JRI pays monthly.

Gabelli Utility Trust (GUT), ex-dividend date 12/12/2019, yield 7.70%. GUT pays monthly.

Gabelli Dividend & Income Trust (GDV), ex-dividend date 12/12/2019, yield 6.32%. GDV pays monthly.

BlackRock Enhanced Equity Dividend Trust (BDJ), ex-dividend date 12/13/2019, yield 6.05%. BDJ pays monthly.

Dividend and Income Fund (DNI), ex-dividend date 12/13/2019, yield 6.38%. DNI pays quarterly. The investment manager for DNI is Bexil Advisors LLC.

The next two CEFs are both monthly dividend payers, and the ex-dividend for both in November was 11/14/2019. So I expect the ex-dividend date for both funds to be next week, but it may not be on the same day in December that it was in November.

BlackRock Debt Strategies Fund (DSU), yield 7.54%.

BlackRock Energy and Resources Trust (BGR), yield 8.56%.

None of my stocks will be reporting earnings next week.

Upgrades, downgrades, etc. generated last week by the various ratings analysts, as tallied by E*TRADE, were as follows:

Altria (MO) was upgraded from Neutral to Buy at Citigroup.

Plains All American Pipeline LP (PAA) was upgraded from Neutral to OutPerform at Baird.

Unilever (UN, UL) was upgraded from Hold to Buy at Liberum.

Phillip Morris (PM) was downgraded from Buy to Neutral at Citigroup.

Ladder Capital (LADR) was initiated at Buy at Compass Point.

GlaxoSmithKline (GSK) was initiated at OutPerform at SVB Leerink.

Spirit Realty Capital (SRC) was upgraded from Equal Weight to OverWeight at Capital One.

Eaton (ETN) was downgraded from Buy to Hold at Deutsche Bank.

Enbridge (ENB) was initiated at Buy at Argus, and at Hold at Jeffries.

RBC Capital Markets weighed in on their outlook for precious metals stocks, resuming coverage for Barrick Gold (GOLD) and Wheaton Precious Metals (WPM) at OutPerform, and Newmont Goldcorp (NEM) at Sector Perform.

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

The short-term outlook for the economy and the stock market has definitely shifted to the upside over the past few weeks, with the major averages all making new highs recently, and the economic statistics also turning up. The “doom and gloom” crowd was in vogue from August through mid-October, but then things started turning up, continuing since then to the present. Just as fall and winter follows spring and summer, an economic downturn will come someday, but apparently not as soon as the Democrats had hoped. It is not unusual for the general upbeat mood of the holidays to generate a “Santa Claus Rally”, which appears to be happening. My advice is to enjoy it while it lasts, but be prepared for it to end at any time.

JT

The market finished the month of November with gains on the final week of the month, based on the major averages I track as representative of the broad market. It would have been a little better than where it ended up, after several of the averages hit new all-time highs on Wednesday, but a down day on Friday dampened the animal spirits a bit, but not enough to force a net loss for the week. The news out of D.C. was as depressing as ever, but stocks are mostly ignoring our fractured politics, focusing on the latest economic statistics and the performance of individual companies, as per the latest round of earnings reports. At this point, it looks like December will be similar to recent months, barring some game-changing geo-political event.

Stocks on my lists going ex-dividend in the coming week are listed following. Ex-dividend date is as shown, frequency is quarterly unless otherwise indicated, and yield is as of Friday’s closing price.

Gladstone Investment (GAIN), ex-dividend 12/02/2019, yield 5.59%. GAIN pays monthly.

Wheaton Precious Metals (WPM), ex-dividend 12/03/2019, yield 1.32%. After a mini-rally a few months ago, metals and mining stocks have gone “back to sleep”. They will only awaken when turmoil erupts, which could happen at any time, or may not happen for many months.

Newmont Goldcorp (NEM), ex-dividend 12/04/2019, yield 1.47%.  Same comment as preceding stock, applies.

Kimberly Clark (KMB), ex-dividend 12/05/2019, yield 3.02%. This is not a bad yield for a solid “blue chip”, but a look at the chart from early in 2018 to now will tell you that buying in at today’s price will likely lead to a major capital loss, if a major market decline occurs. Still, the dividend should be safe, unless something approaching a true economic “Armageddon” occurs.

Walmart (WMT), ex-dividend 12/05/2019, yield 1.79%. The same situation as with KMB applies, plus WMT is such a high-profile firm, they are a target for any number of aggrieved parties, of which we have no shortage of in these times.

Pepsico (PEP), ex-dividend 12/05/2019, yield 2.81%. PEP’s stock chart likewise flashes “caution” for new money. It’s hard to see how PEP can continue on the current trajectory, but as I’ve noted before, no one has lost money yet betting on Americans making terrible food choices.

Public Service Enterprise Group (PEG), ex-dividend 12/09/2019, yield 3.16%. Utilities have been favored for some time now, just take a look at PEG’s chart. I can’t get excited about any utility paying less than 4%.

Ladder Capital (LADR), ex-dividend 12/09/2019, yield 7.85%. This is a commercial real estate finance company, a new addition to my Tier3 (higher risk) list. The yield is attractive, but not the risk. But these days, all stocks have high risk, so why not get paid while the good times last?

Occidental Petroleum (OXY), ex-dividend 12/09/2019, yield 8.15%. This is another new addition to Tier3. OXY has experienced a precipitous decline over the last 18 months, as a member of the “out of favor” energy sector, exacerbated by a perceived ill-advised acquisition. Buying in now will be a classic value play, betting on the firm at least surviving, and continuing to pay a dividend for some time to come.  

Only two of the fifteen CEFs I track will be going ex-dividend this coming week, as listed below. Both are monthly payers.

First Trust Intermediate Duration Preferred & Income Fund (FPF), ex-dividend 12/02/2019, yield 6.58%.

AllianceBernstein Global High Income Fund (AWF), ex-dividend 12/05/2019, yield 6.70%.

One of my stocks will be reporting next week. Greif (GEF), an international industrial packaging products and services firm, will report on 12/04/2019. GEF hit multi-year lows in mid-2019, as the world economic outlook seemed to be deteriorating, but has recovered some since then as the downturn has not, as yet, materialized. GEF is obviously somewhat dependent on a positive world economy, and is a classic cyclical stock.  

As is typical for a holiday week, upgrades, downgrades, etc. generated by the various ratings analysts were minimal last week. Those tallied by E*TRADE last week were as follows:

Kimco Realty (KIM) was upgraded from Sell to Neutral at Compass Point.

Enbridge (ENB) was upgraded from Neutral to Buy at UBS.

Prudential Financial (PRU) was downgraded from Neutral to Sell at Citigroup. PRU is a new addition to my Tier2 (moderate risk) list. PRU last reported earnings on 11/4/2019, and beat estimates.

Public Service Enterprise Group (PEG) was downgraded from OutPerform to InLine at Evercore ISI.

Magellan Midstream Partners LP (MMP) was initiated at Buy at Goldman.

Annaly Capital Management (NLY) was resumed at Neutral at Bank of America.

McDonalds (MCD) was initiated at Hold at Deutsche Bank.

Chevron (CVX) and Total S A (TOT) were both initiated at OverWeight at Piper Jaffray, while ExxonMobil (XOM) and Royal Dutch Shell (RDS.A, RDS.B) were both initiated at Neutral by the ratings firm.  

See my rant from last week regarding my view of the choices available right now for new money. I have added OXY to my Tier3 list, and I initiated a position last week, with a dividend upcoming. I do believe that the “out of favor” energy sector is where the bargains are these days, so much so, that I’m currently overweight in the sector, closer to 30% of my portfolio instead of my 20% sector limit. Still, my major holding is cash, a little over 30%, as I await better opportunities. I consider a market making new highs, particularly at the end of a bull run, to be the highest-risk market possible. But it has been there far longer than I thought it would. The Keynes observation comes to mind, “the market can remain irrational longer than you can remain solvent, betting against it”, or words to that effect. That is why I am cautious, I certainly cannot advise going short at this point, nor can I advise going long all-in. My approach is to be cautious, have ample cash reserves, take positions that seem to offer a reasonable risk-reward ratio, and limit exposure to any one bad selection, there are probably a few sitting in my accounts right now!

JT

The string of weekly gains on the major averages was broken last week, but not by much. The markets basically just marked time, as the minor declines outweighed the minor advances, but no major up or down days occurred to indicate any major turning point was at hand.

Stocks on my lists going ex-dividend in the coming week are listed following. Ex-dividend date is as shown, frequency is quarterly unless otherwise indicated, and yield is as of Friday’s closing price.

Johnson & Johnson (JNJ), ex-dividend 11/25/2019, yield 2.79%.

Enerplus (ERF), ex-dividend 11/26/2019, yield 1.43%. ERF pays monthly, in Canadian Dollars, which further reduces the amount available for US holders.

AGNC Investment, ex-dividend 11/27/2019, yield 11.14%. This MREIT pays monthly.

STAG Industrial (STAG), ex-dividend 11/27/2019, yield 4.69%. STAG also pays monthly.

Barrick Gold (GOLD), ex-dividend 11/27/2019, yield 1.20%.

NextEra Energy (NEE), ex-dividend 11/27/2019, yield 2.14%.

Prospect Capital (PSEC), ex-dividend 11/27/2019, yield 11.09%. PSEC is a monthly payer.

Brookfield Renewable Partners LP (BEP), ex-dividend 11/27/2019, yield 4.54%.

Vodafone Group PLC (VOD), ex-dividend 11/27/2019, yield 5.05%. VOD pays semi-annually, this will be the second and final payout for this year.

CenturyLink (CTL), ex-dividend 11/29/2019, yield 6.73%.

Safety Insurance Group (SAFT), ex-dividend 11/29/2019, yield 3.73%.

Realty Income (O), ex-dividend 11/29/2019, yield 3.56%. O pays monthly.

McDonalds (MCD), ex-dividend 11/29/2019, yield 2.60%.

Kellogg (K), ex-dividend 11/29/2019, yield 3.52%.

Coca Cola (KO), ex-dividend 11/29/2019, yield 3.02%.

Washington Prime Group (WPG), ex-dividend 11/29/2019, yield 23.92%.

Gladstone Investment (GAIN), ex-dividend 12/02/2019, yield 5.84%. GAIN pays monthly.

Only one of the fifteen CEF’s I follow will be going ex-dividend in the look-ahead period, First Trust Intermediate Duration Preferred & Income Fund (FPF) goes ex-dividend on 12/02/2019, yielding 6.66%. FPF pays monthly.

None of the stocks I follow will be reporting earnings next week.

Upgrades / downgrades etc. on my stocks listed by E*TRADE last week were as follows:

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

AT&T (T) was downgraded from Neutral to Sell at MoffettNathanson.

Johnson & Johnson (JNJ) was initiated at OverWeight at Cantor Fitzgerald.

Transocean (RIG) was initiated at Sell at Deutsche Bank.

Duke Energy (DUK) and Alliant Energy (LNT) were both upgraded from Equal Weight to OverWeight at Barclays.

GlaxoSmithKline (GSK) was upgraded from Neutral to Buy at UBS.

Public Service Enterprise Group (PEG) was downgraded from OverWeight to Equal Weight at Barclays.

Duke Energy (DUK) was upgraded from Sell to Buy at Goldman.

Hoegh LNG Partners LP (HMLP) was upgraded from Sell to Hold at DNB Markets.

Covanta Holdings (CVA) was initiated at Hold at Jeffries.

Duke Energy (DUK) was initiated at Neutral at Mizuho.

The choices for new money these days are readily apparent from the ex-dividend list above. You can buy into a “safe” company, with decent financials and prospects, at an extremely elevated price, settling for a minimal yield, or buy into a firm with a terrific yield, compliments of a depressed price, with the high risk of a dividend cut or worse. In the first case, you likely will continue to receive the dividend, but in the case of a broad market decline, will suffer a capital loss that will outweigh the dividend proceeds for years to come. In the second case, the market has judged, often for good reasons, that the dividend is at risk, and you will likely will not receive the dividend for long, and will probably suffer a major capital loss as well, as the dividend is reduced or eliminated, the share price collapses, and the firm either disappears entirely, or becomes a “zombie” company. These are firms that continue on in business, going nowhere, paying nothing to shareholders, but simply refuse to die! The only way to really win would be if the market’s harsh judgement turns out to be incorrect, and your investment in a super high-yielder turns out well. This is unlikely, but if contemplating one as an investment, ask yourself the question from the famous Clint Eastwood movie line, “do you feel lucky, punk?”

JT