Last week had a big up day on Wednesday and decent up days on Tuesday and Friday, with down days on Monday and Thursday, to end the week higher on the averages I track. It may mean that the market will finish the year with at least a Santa Claus “mini rally” for the last two weeks of the year, if the final short week can manage a gain.

Stocks on my lists going ex-dividend before year-end 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), 12/27/2022, 10.06%. PSEC is a monthly payer.

AGNC Investment (AGNC), 12/29/2022, 13.52%. AGNC also pays monthly.

Algonquin Power Utilities (AQN), 12/29/2022, 10.97%.

Spirit Realty Capital (SRC), 12/29/2022, 6.56%.

Owl Rock Capital (ORCC), 12/29/2022, 11.27%.

STAG Industrial (STAG), 12/29/2022, 4.48%. STAG is a monthly payer.

Park Hotels & Resorts (PK), 12/29/2022, 4.12%. PK was severely affected by the Covid shutdowns, and had reduced the dividend to $0.01/share. I had felt it would eventually recover, and apparently it has, increasing the regular dividend to $0.12/share, and for this quarter only, issuing a special dividend of $0.13/share. The annualized yield shown assumes the regular quarterly dividend will remain $0.12/share. Etrade erroneously shows the yield as double that, which would only be correct if the special dividend was ongoing, which it won’t be.

Rithm Capital (RITM), 12/29/2022, 11.78%.

Goldman Sachs BDC (GSBD), 12/29/2022, 12.61%.

Annaly Capital Management (NLY), 12/29/2022, 15.76%.

MFA Financial (MFA), 12/29/2022, 13.30%.

Chimera (CIM), 12/29/2022, 14.98%.

National Health Investors (NHI), 12/29/2022, 6.66%.

B&G Foods (BGS), 12/29/2022, 6.85%.

Realty Income (O), 12/30/3033, 4.70%. As one would expect from the “monthly dividend company”, O pays monthly.

Ventas (VTR), 12/30/2022, 3.98%.

Only one of the CEFs I track will be going ex-dividend next week, First Trust Intermediate Duration Preferred & Income Fund (FPF), ex-dividend date 12/29/2022, yield 8.51%. I suspect this is the monthly dividend for January 2023, moved up a couple of days.

I just noticed that four of the 17 CEFs I track were missed in my earlier postings this month, three of which are the only CEFs I follow that pay quarterly rather than monthly. All three quarterly payers went ex-dividend 12/24/2022. Further, I somehow missed another CEF, this one a monthly payer, which went ex-dividend 12/15/2022. In the interest of completeness, all four are listed below.

Nuveen Dow 30SM Dynamic Overwrite Fund (DIAX), 12/14/2022, 7.56%. DIAX pays quarterly.

Nuveen NasDaq 100 Dynamic Overwrite Fund (QQQX), 12/14/2022, 9.62%. QQQX pays quarterly.

Dividend and Income Fund (DNIF), 12/14/2022, 9.14%. DNIF pays quarterly.

AllianceBernstein Global High Income Fund (AWF), 12/15/2022, 8.40%. AWF pays monthly.

None of my stocks will be reporting next week.

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

Verizon (VZ) was upgraded from UnderPerform to Market Perform at MuffettNathanson.

American Electric Power (AEP) was downgraded from Buy to Neutral at Bank of America.

AT&T (T) was downgraded from Market Perform to UnderPerform at MuffettNathanson.

Main Street Capital (MAIN) was initiated at Neutral at UBS.

Smucker J M Co (SJM) was upgraded from UnderWeight to Equal Weight at Morgan Stanley.

Horizon Technology Finance (HRZN) was downgraded from Market Perform to UnderPerform at Keefe Bruyette.

It was a slow week for ratings updates, many analysts are probably on vacation.

The final week of the year is usually a slow time, but it can be a good time for astute market players, as things can be magnified because of the low volume. In my case, I will be revising my stock lists considerably, as some of my Tier1 stocks suffered major declines, and thus shouldn’t have been on Tier1, and others have gotten so bid up that their yields disqualify them from being recommended as a dividend stock. I have some new entries for Tier2 and Tier3, and a couple of Tier4 stocks have recovered enough to get back on Tier3.

My year-end blog will relate some specifics on the changes to my lists, and my outlook for the New Year. As is my practice, as I return to work for another Tax Season, I will suspend my weekly postings until after the end of April 2023, but the website will remain online. If I find time, I may even update my blog a time or two before the end of Tax Season.

JT

At the start of last week it seemed a “Santa Claus Rally” was going to happen, with the inflation numbers showing at least a slight improvement, and the rate hike announcement predicted to only be 50 basis points instead of the 75 points seen for the previous 4 hikes. But even though the rate increase was only 50 points, Chairman Powell’s comments accompanying the hike dashed the nascent rally on the cold, hard rocks of reality, as he made it clear there would be no Fed “pivot” early in 2023, and rates would remain higher for longer than most pundits expect. The consensus seems to be that the Fed held rates too low for too long, and now must make up for that misjudgment, no matter the economic consequences. The implosion of crypto currency exchange FTX has also affected confidence, and many if not most prognosticators are predicting a recession in 2023 will be unavoidable.

When capital gains are not available, a steady stream of dividends are a soothing balm for the investor. The stocks I follow going ex-dividend this week through December 27 are listed following. The ex-dividend date and current annualized yield are presented for each stock. Assume frequency is quarterly unless otherwise indicated. 

MAIN and GAIN are again my two lead-off hitters for this posting, both having two ex-dividend dates in December, as explained below.

Gladstone Investment (GAIN) had a special dividend of $0.12 per share go ex-dividend on 12/5/2022, and this week the regular monthly dividend of $0.08 per share will go ex-dividend on 12/19/2022.  Etrade now shows the annualized yield as 7.33%.

Main Street Capital (MAIN) had a regular monthly dividend of $0.22 per share go ex-dividend on 12/7/2022, and a special dividend of $0.10 per share will go ex-dividend on 12/19/2022. Etrade now shows the annualized yield as 7.14%.

Getty Realty (GTY), 12/21/2022, 5.00%.

VICI Properties (VICI), 12/21/2022, 4.68%.

SLR Investment (SLRC), 12/21/2022, 11.25%. SLRC pays monthly.

Altria (MO), 12/21/2022, 8.08%.

Phillip Morris (PM), 12/21/2022, 5.07%.

Prospect Capital (PSEC), 12/27/2022, 9.86%. 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), 12/21/2022, 5.87%.

Eaton Vance Tax-Managed Diversified Equity Income Fund (ETY), 12/22/2022, 9.59%.

The week ending 12/2/2022 saw extreme volatility, but after all was said and done, the major averages ended slightly ahead of where they ended the previous week. The state of the market is where “good news is bad news”, because it likely means the Fed will continue the tightening monetary policy. Such is the bizarro world caused by the power the Fed has over the economy.

Meanwhile, the stocks I follow going ex-dividend this week through December 19 are listed following. The ex-dividend date and current annualized yield are presented for each stock. Assume frequency is quarterly unless otherwise indicated. Note that my “look ahead” period is two weeks for this posting, because I will be away next weekend.

Gladstone Investment (GAIN), 12/5/2022 (special dividend) and 12/19/2022 (regular dividend). GAIN pays the regular dividend monthly, currently $0.08/share, and for December only, a special dividend of $0.12/share. Etrade shows the annualized yield as 6.83%.

Main Street Capital (MAIN), 12/7/2022 (regular dividend) and 12/19/2022 (special dividend). MAIN pays the regular dividend monthly, currently $0.22/share, and for December only, a special dividend of $0.10/share. Etrade shows the annualized yield as 6.94%.

Newmont (NEM), 12/7/2022, 4.53%. Newmont has become a dividend stock, not just a precious metals speculation, and will be moving up to Tier 3, or possibly even Tier 2, on my next rework of my tiers.

Medical Properties Trust (MPW), 12/7/2022, 8.96%.

Kimco Realty (KIM), 12/8/2022, 4.06%.

Williams Cos (WMB), 12/8/2022, 4.87%.

Golub Capital (GBDC), 12/8/2022, 9.47%.

Public Service Enterprise Group (PEG), 12/8/2022, 3.58%.

Kimberly-Clark (KMB), 12/8/2022, 3.40%.

Ares Capital (ARCC), 12/14/2022, 9.95%.

Iron Mountain (IRM), 12/14/2022, 4.52%.

Oaktree Specialty Lending (OCSL), 12/14/2022, 10.06%.

PennantPark Investment (PNNT), 12/16/2022, 10.71%.

Horizon Technology Finance (HRZN), 12/16/2022, 9.25%. HRZN is a monthly payer.

Three other stocks on my lists may go ex-dividend in my “look ahead” period, but have not announced yet. I will list these with the prior ex-dividend date, which when combined with the frequency, implies they may go ex-dividend in the period.

Altria Group (MO), 9/14/2022, 7.89%.

PennantPark Floating Rate Capital (PFLT), 11/16/2022, 9.89%. PFLT pays monthly.

SLR Investment (SLRC), 11/16/2022, 10.91%. SLRC also pays monthly.

Six of the 17 CEFs I track will be going ex-dividend in the “look ahead” period, and another four may also, but haven’t announced the ex-dividend date yet. All are monthly payers.

Gabelli Utility Trust (GUT), 12/8/2022, 8.28%.

Gabelli Dividend & Income Trust (GDV), 12/8/2022, 6.02%.

Cohen & Steers Quality Income Realty Fund (RQI), 12/13/2022, 7.33%.

Cohen & Steers Total Return Realty Fund (RFI), 12/13/2022, 7.38%.

Nuveen Real Asset Income and Growth Fund (JRI), 12/14/2022, 9.39%.

BlackRock Enhanced Equity Dividend Trust (BDJ), 12/15/2022, 8.66%.

The other four that may go ex-dividend also, based on the last ex-dividend date and frequency (monthly), are listed, with the last ex-dividend date and current yield.

BlackRock Energy and Resources Trust (BGR), 11/14/2022, 4.25%.

BlackRock Debt Strategies Fund (DSU), 11/14/2022, 7.69%. 

CBRE Global Real Estate Income Fund (IGR), 11/18/2022, 10.68%.

Tekla Healthcare Opportunities Fund (THQ), 11/18/2022, 6.50%.

None of my stocks are reporting this week.

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

United Parcel Service (USB) was upgraded from Hold to Buy at Deutsche Bank.

United Parcel Service (USB) was downgraded from Neutral to UnderPerform at Exane BNP Paribas.

B&G Foods (BGS) was downgraded from Equal Weight to UnderWeight at Consolidated Edge Research. BGS will be going to my Tier 4 list (no longer recommended) on my next rework, the firm reduced the quarterly dividend to $0.19 from $0.47.

Rio Tinto PLC (RIO) was downgraded from Buy to Neutral at Citigroup.

As per my initial comments, after a volatile week, not much has changed. We have enjoyed a mild “Santa Claus” rally since the October lows, but with the current volatility, it may or may not continue. Regardless, the outlook for the year ahead is even more muddled than usual. Some pundits, citing pretty reliable indicators, are still predicting a recession or worse in 2023, but so far, it hasn’t arrived, and the market, which normally looks ahead, has not confirmed it. This is a time to be more cautious than usual, keep some “dry powder” handy, and be prepared to take advantage of any opportunities the market presents.

JT

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