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 ...