Chasing the Yield

Chasing the Yield – August 2, 2021

Episode 15

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News

Orders for durable goods increased in June

Microsoft posts 47% profit increase year over year… stock falls 2% after hours

Hoegh LNG Partners cuts distribution 98%

In the wake of Hoegh LNG Partners dividend cut

Portfolio Update

LowYieldMediumYieldHighYieldWeek+0.68%+0.71%-6.08%Month+0.35%-0.90%-8.33%2021+14.72%+12.53%-5.89%

Dividends Received this WeekAmountCommunity Bank (CM)$101.13PIMCO Income Fund (PONPX)$168.58Cherry Hill Mortgage Investment (CHMI)$555.39Orchid Island Capital (ORC)$242.06Fidelity High Income (SPHIX)*$30.87MSC Industrial Direct (MSM)*$45.00*Reinvested to increase position

Dividends

* Hoegh LNG Partners LP (HMLP) announced its next dividend of $0.01 per share, a 98% decrease from the company’s previous payout of $0.44.* Community Trust (CTBI) announced its next dividend of $0.40 per share, a 3.9% increase over the company’s previous payout of $0.385.* Ares Capital (ARCC) announced its next dividend of $0.41 per share, a 2.5% increase over the company’s previous payout of $0.40.* Cullen/Frost (CFR) announced its next dividend of $0.75 per share, a 4.2% increase over the company’s previous payout of $0.72.* Arbor Realty (ABR) announced its next dividend of $0.35 per share, a 2.9% increase over the company’s previous payout of $0.34.* Magellan (MMP) announced its next dividend of $1.0275 per share, in line with the company’s previous payout.* Tompkins Financial Corporation (TMP) announced its next dividend of $0.54 per share, in line with the company’s previous payout.* Black Hills (BKH) announced its next dividend of $0.565 per share, in line with the company’s previous payout.* Arrow Financial Corporation (AROW) announced its next dividend of $0.26 per share, in line with the company’s previous payout.* IBM (IBM) announced its next dividend of $1.64 per share, in line with the company’s previous payout.* Matthews (MATW) announced its next dividend of $0.215 per share, in line with the company’s previous payout.* Fortis (FTS) announced its next dividend of $0.505 CAD per share, in line with the company’s previous payout.* MPLX (MPLX) announced its next dividend of $0.6875 per share, in line with the company’s previous payout.

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Chasing the Yield – July 26, 2021

The episode is late because I forgot to hit record. I recorded the podcast live at YouTube. I ended up replaying it through my Podtrak P4 and recording it again. YouTube takes too long to process the video. I was planning on downloading it and extracting the audio. At least I didn’t have to start over!

Episode 14

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News

Exxon names new CFO

Today’s market dip was not a correction

IBM sees biggest revenue gain in three years

Johnson & Johnson post higher profit

Inflation continues to weigh on companies and consumers

Median existing home price rose 23.4% in June

Brookfield Asset Management Inc.’s (“BAM”) announced the acquisition of all of the limited partnership units of Brookfield Property Partners L.P. (BPY). Brookfield Property Partners Announces Results of (globenewswire.com)

Portfolio Update

LowYieldMediumYieldHighYieldWeek+0.55%+0.07%-0.11%Month-0.34%-1.62%-2.16%2021+14.14%+11.25%+0.15%

Dividends Received this WeekAmountFirst of Long Island (FLIC)$48.02John Wiley & Sons (JWA)$84.77

Dividends

* Shell Midstream Partners, L.P. (SHLX) announced its next distribution of $0.30 per unit. This represents a 35% decrease from the first quarter.* Community Bank (CBU) announced its next dividend of $0.43 per share, a 2.4% increase over the company’s previous payout of $0.42.* 1st Source Corporation (SRCE) announced its next dividend of $0.31 per share, a 3.3% increase over the company’s previous payout of $0.30.* Johnson & Johnson (JNJ) announced its next dividend of $1.06 per share, in line with the company’s previous payout.* CrossAmerica Partners LP (CAPL) announced its next distribution of $0.5250 per unit, in line with the company’s previous payout.* Albemarle (ALB) announced its next dividend of $0.39 per share, in line with the company’s previous payout.* Omega Healthcare Investors, Inc. (OHI) announced its next dividend of $0.67 per share, in line with the company’s previous payout.* ONEOK, Inc. (OKE) announced its next dividend of $0.935 cents per share,

Episode 13

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News

J&J gets slapped around a bit this week

There are rumors that J&J may offload it’s baby powder liabilities to a separate entity and have it declare bankruptcy. This would further limit plaintiffs ability to seek higher payouts. Exclusive: J&J exploring putting talc liabilities into bankruptcy, sources say (yahoo.com)

Microsoft puts the blame on Israeli group for selling hacking tool

OPEC reaches compromise with UAE

Hotels may adopt permanent elimination of daily housekeeping service

Company Focus

Prudential Financial (PRU) : FINANCIALS

Prudential was recently reviewed by Simply Safe Dividends. It’s a service I’ve been using for the last couple of years for research and tracking of my portfolios. It’s not an inexpensive service but I think what they do is unique and it has been well worth the price for making research simple. They re-affirmed their opinion that Prudential Financial’s dividend is safe and gave a short analysis backing up their opinion.

During the pandemic, Prudential reviewed the potential losses its investment portfolio would incur over a three-year recession cycle. Management concluded that credit losses over that period would be $2.4 billion, or less than one year of Prudential’s free cash flow. This suggests Prudential will not be one of the firms that need to raise more capital during most downturns. Regardless, Prudential’s been working to reduce its sensitivity to interest rates as well as the equity markets. They’ve done so by essentially eliminating the “living benefit” from its annuity products, which replaced fixed payouts to policyholders with variable payouts that fluctuate with the market, and by selling more straightforward life insurance policies with fewer guarantees.As the firm transforms its flagship insurance and annuity businesses, management is also looking to grow its investment management arm (22% of earnings) and accelerate its global expansion plans into high-growth developing markets in Asia and Latin America.Simply Safe Dividends

Below is table showing my holdings in Prudential and it’s performance so far.

Medium Yield PortfolioTotalCost$8,188CurrentValue$10,933# Shares109Gain/Loss+33.50%$2,745% of Portfolio0.80%% of Income0.80%Annual Income$501Cost/Share$75.12Yield on Cost6.12%

For more information on Simply Safe Dividends its founder Brian Bollinger appeared on The ...

Episode 12

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News

Number of retail investors continue to climb

Self-storage REITs outpace other REIT sectors

Oil prices shaky amid OPEC indecision

Pentagon cancels JEDI contract with Microsoft

Credit and debit cards make people better spenders versus savers

Portfolio Update

LowYieldMediumYieldHighYieldWeek-0.04%-0.32%-0.09%Month-0.04%-0.32%-0.09%2021+14.39%+13.55%+2.17%

Dividends

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Disclaimer

ChasingTheYield.com and Kevin Bae are not registered investment advisors, brokers or dealers. Kevin Bae may have positions in any financial instrument, product, or company mentioned on chasingtheyield.com or on the Chasing the Yield podcast. Information provided by chasingtheyield.com and the Chasing the Yield Podcast is provided for information and entertainment purposes only and are not intended as advice or a recommendation or an offer or solicitation for the purchase or sale of any security or financial instrument. All opinions are based upon sources believed to be accurate and are provided in good faith. No warranty, representation, or guarantee, expressed or implied, is made as to the accuracy of the information contained herein. Past performance is not an indicator of future results.

Please contact an investment professional if you have any questions regarding an investment.

Contact

For questions or comments contact me at [email protected]

Episode 11

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News

Cars selling above sticker price?

Robinhood reaches settlement with FINRA

AT&T to use Microsoft’s cloud

Good jobs report lifts markets

Are investors overly optimistic?

Verizon vows to support low cost wireless service

Portfolio Update

LowYieldMediumYieldHighYieldWeek-0.08%-1.01%-0.94%Month-1.41%-2.08%+0.10%2021+14.43%+14.10%+2.26%

Dividends

* First of Long Island Corporation (FLIC) announced its next dividend of $0.19 per share, in line with the company’s previous payout.* Pinnacle (PNW) announced its next dividend of $0.83 per share, in line with the company’s previous payout.* AT&T (T) announced its next dividend of $0.52 per share, in line with the company’s previous payout.* MSC Industrial (MSM) announced its next dividend of $0.75 per share, in line with the company’s previous payout.* American Finance Trust (AFIN) announced its next dividend of $0.2125 per share, in line with the company’s previous payout.* Pimco Income Fund PONPX announced its next dividend of $0.03899 per share, in line with the fund’s previous payout.* Bank OZK (OZK) announced its next dividend of $0.285 per share, a 1.8% increase over the company’s previous payout of $0.28.

June 2021 Dividend Increases

* Jun 25 — John Wiley & Sons (JW.A) announced its next dividend of $0.345 per share, a 0.73% increase over the company’s previous payout of $0.3425.* Jun 17 — W. P. Carey (WPC) announced its next dividend of $1.05 per share, a 0.19% increase over the company’s previous payout of $1.048.* Jun 9 — Caterpillar (CAT) announced its next dividend of $1.11 per share, a 7.8% increase over the company’s previous payout of $1.03.* Jun 9 — Target (TGT) announced its next dividend of $0.90 per share, a 32% increase over the company’s previous payout of $0.68.* Jun 3 — Clorox (CLX) announced its next dividend of $1.16 per share, a 4.5% increase over the company’s previous payout of $1.11.

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Episode 10

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News

3M loses another bellwether case involving solid earplugs

Caterpillar will produce zero emission mining equipment for graphite mine in Quebec, Canada

Oasis Midstream Partners LP (OMP): OMP shares were down 15% to $23.87 after the company said it has begun an underwritten public offering of about 3.6 million common units representing limited partnership interests. The partnership expects to grant the underwriter a 30-day option to purchase up to an additional about 543,000 common units. All of the common units are being offered by Oasis Midstream on a primary basis. Oasis Midstream Shares Drop 15% After Public Offering Prices – MarketWatch

High risk muni bonds hit decade low

Short sellers are staying away from financial stocks

Whitehouse & Senators reach agreement on $1 trillion in new spending

Microsoft introduces Windows 11

Microsoft also reached $2 trillion in market cap

Consumers shift spending to services from big ticket items

Portfolio Update

LowYieldMediumYieldHighYieldWeek-0.56%+0.54%+1.45%Month+0.61%+1.63%+2.64%

Dividends

* Cherry Hill Mortgage Investment Corporation (CHMI) announced its next dividend of $0.27 per share, in line with the company’s previous payout.* John Wiley & Sons (JW.A) announced its next dividend of $0.345 per share, a 0.73% increase over the company’s previous payout of $0.3425.* Artesian Resources Corporation (ARTNA) announced its next dividend of $0.261 per share, in line with the company’s previous payout.

YouTube Channel

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Episode 9

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News

U.S. stocks retreated Friday, with the Dow posting its worst weekly performance since October as traders warily eyed the Federal Reserve for hints of where monetary policy is headed.  The Dow Jones Industrial Average lost 1.6%, or about 530 points, in 4 p.m. trading Friday. The index of blue-chip stocks dropped more than 3% this week.  The S&P 500 declined 1.3%. The Nasdaq Composite also ticked 0.9% lower, as large technology stocks also fell. Policy makers had signaled Wednesday that they expect to raise interest rates by late 2023, sooner than they had previously anticipated. Sentiment waned again on Friday after Federal Reserve Bank of St. Louis leader James Bullard said on CNBC that he expects the first rate increase even sooner, in late 2022.Wall Street Journal

Crude oil prices hit it’s highest price in 2 1/2 years

Jobless claims on the rise

Year of the Individual Investor: For years, individual investors’ trading activity rarely made a splash on Wall Street. That started to change in 2019, when online brokerages moved en masse to commission-free trading. The Covid-19 pandemic further accelerated individuals’ interest in stocks last year, allowing those stuck at home to try their hands at trading through historic market volatility. Together, those forces helped drive individual investors’ share of U.S. equities trading volume to 20% last year, roughly double the figure from a decade before, according to data from Larry Tabb, head of market-structure research at Bloomberg Intelligence.Wall Street Journal

Microsoft (MSFT): Microsoft’s board has named CEO Satya Nadella as chair, marking the first time a person has held both the positions since the company’s co-founder Bill Gates stepped down as chief executive in 2000. The change is the latest acknowledgement of the role Nadella has played in revitalizing the tech giant. During his seven-year tenure as CEO, Microsoft has witnessed sharp growth in its Azure cloud computing, productivity and gaming divisions. Nadella has also overseen several successful acquisitions including Minecraft, LinkedIn, GitHub and, more recently, gaming behemoth ZeniMax. Today, Microsoft is the world’s second-most valuable company behind Apple with a market value above $1.9 trillion. Microsoft appoints CEO Satya Nadella as chairman (yahoo.com)Microsoft Corp. plans to add four new data centers within China by early 2022 in a wider effort to expand its service capacity across Asia, according to people familiar with its strategy who asked not to be named as its details are not public. Microsoft’s expansion in China is among the fastest for the company on the continent and in March it an...

Episode 8

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News

Do you rebalance your portfolio?

My financial life in pie charts

Surge in commodity prices bring inflation fears

Options traders betting on $100 per barrel oil

U.S. Banks to business… stop depositing cash

Inflation surges in May. Highest rate in 13 years

Georgia: Annual expenditures: $44,897Housing costs in Georgia come in at $6,959, which is fourth-best in the nation and 28.7% below the U.S. average. That might be why you can find luxurious retirement communities in the Peach State.gobankingrates.com

Nucor Corporation (NUE): Nucor announced today that it has signed a definitive purchase agreement to acquire Cornerstone Building Brands’ insulated metal panels (IMP) business for a cash purchase price of $1 billion, or approximately 10x pre-pandemic EBITDA inclusive of expected synergies. Adjusting for the net present value of associated tax benefits, the realized effective purchase price for Nucor is approximately $900 million. The transaction is expected to close later this year, pending regulatory approvals. “Today’s announcement accelerates our vision to broaden value-added solutions that Nucor provides to our targeted end markets. Additionally, it enhances our strong financial position with attractive free cash flow conversion rates and accretive EBITDA margins,” said Leon Topalian, President and Chief Executive Officer of Nucor. “We are excited about this opportunity to acquire a historical leader and innovator in the quickly growing IMP product category serving the non-residential market. We are committed to finding new and better ways to meet our customers’ needs, and this acquisition is an excellent fit with Nucor’s long-term strategy to grow our core business and expand our product portfolio.” Nucor to Acquire Insulated Metal Panels Business from Cornerstone Building Brands (yahoo.com)

3M (MMM): 3M has worked with the U.S. Marshals Service in the Eastern District of Kentucky to stop the sale of more than one million suspected fake N95 respirators, as part of the company’s continuing global effort to combat pandemic fraud, counterfeiting, and price gouging. 3M helps U.S.

News

Update: Supreme Court refuses to hear J&J appeal

Johnson & Johnson (JNJ): Johnson & Johnson said on Friday that it has been in talks with Taiwan about providing its COVID-19 vaccine to the island since last year. Johnson & Johnson talking to Taiwan about providing COVID-19 vaccine (yahoo.com)

New ETF bets on interest rate rise

Oil prices jump over $70 a barrel today

3M (MMM): CEO Mike Roman told an investment conference that rising commodity prices and parts shortages created by pent-up demand from the pandemic translate into higher costs for 3M–and those increased expenses, in turn, will reduce earnings by 30 cents to 50 cents in 2021. Wall Street projects 3M will earn a little less than $10 a share this year, so the impact is about 4%. “There’s what’s going to happen to raw materials, logistics, labor cost inflation,” he said. Roman took on a subject — inflation — that is worrying investors. Inflation, these days, feels like the monster under a child’s bed. Investors haven’t seen it, they don’t know if its friend or foe, but they are scared of it nonetheless. 3M Chief Talks Inflation. We Explore Ways to Invest. | Barron’s (barrons.com)

Microsoft (MSFT): Morgan Stanley and Microsoft Corp. on Wednesday announced a strategic cloud partnership aimed at accelerating the firm’s digital transformation and shaping the future of innovation in the financial services industry. The companies will strike a unique collaboration to unlock the opportunities that Microsoft’s cloud provides with a specific view toward the challenges of financial services and enabling Morgan Stanley to accelerate the modernization of its IT environment to enhance client, employee and developer experiences. Morgan Stanley and Microsoft collaborate to accelerate cloud transformation – Stories

Microsoft has announced it will unveil the latest version of the Windows operating system in a June 24 event. The news comes after Microsoft said last month that Windows 10X for dual-screen devices would no longer ship. The new Windows is expected to incorporate significant changes in the user interface called “Valley of the Sun.” Xbox, bluetooth features part of Microsoft’s next-generation Windows – UPI.com

Sold position in Nordic American Tankers (NAT). They cut their annual dividend by 30% and reduced my yield by a significant percentage. The stock price appreciated enough where I will still exceed my annual estimated income for this year. That enables me to find a new company with a higher yield.

I will be moving the funds from NAT into CrossAmerica Partners (CAPL). CAPL was founded in 2012 and distributes gasoline, leases out retail outlets for gas stations,

News

Oil companies increasing their footprint in renewables

Investors jumping into risky bundled collateralized loans

Exxon under attack from eco-activist investors

Eco-activist investors win at least 2 seats on Exxon board

I Bonds an inflation protected safe investment

Microsoft (MSFT): Microsoft struck a deal with the world’s largest copper producer to fast-track the digitization of its sprawling mining operations, helping it extend automation and improve analytics. The joint project with Microsoft will beef up the company’s capacity to make its production processes more efficient and promote “sustainability” within its operations, Codelco said in a statement. Codelco, like many Chilean miners, has fought in recent years to adopt new technologies to boost efficiency and keep down costs at its aging deposits, many of which suffer from declining ore grades. https://www.reuters.com/technology/chiles-codelco-strikes-deal-with-microsoft-extend-automation-its-copper-mines-2021-05-24/

Johnson & Johnson (JNJ): Johnson & Johnson said on Monday it has filed for regulatory approval of its one-shot COVID-19 vaccine in Japan, and that it can begin supplying doses to the country in early 2022 once it wins approval. https://news.yahoo.com/j-j-applies-covid-19-043413656.html

Porfolio Update

Dividends

* Altria (MO) announced its next dividend of $0.86 per share, in line with the company’s previous payout.* CIBC (CM) announced its next dividend of $1.46 CAD per share, in line with the company’s previous payout.* Nordic (NAT) announced its next dividend of $0.02 per share, bringing the company’s total payout over the last twelve months down 30%.

Image by Jennifer Ditscheit from Pixabay