The "notify me" box has not worked for over two weeks now. Clicking that box will not result in receiving comments by email.
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Economy:
Powell has now started to dial back his expectations for rate cuts, finally acknowledging that inflation is proving to be too sticky at current levels and has actually been moving up some in the month-to-month numbers.
Powell Statements: "The recent data have clearly not given us greater confidence and instead indicate that it is likely to take longer than expected to achieve that confidence. . . . Right now, given the strength of the labor market and progress on inflation so far, it’s appropriate to allow restrictive policy further time to work."
Gold is shining ‘bright like a diamond’ and could hit $3,000 says Citi
March Existing-Home Sales Descended 4.3% in March The median existing homes sales price increased by 4.3% to $393,500 compared to March 2023.
The Philly Fed manufacturing index rose to 15.5%, with the consensus estimate at 0%. The index for new orders increased 7 points. The current shipments index rose 8 points to 19.1. April 2024 Manufacturing Business Outlook Survey Any number higher than zero is an expansion.
The Fed - Monetary Policy: Beige Book April 2024: "Overall economic activity expanded slightly, on balance, since late February. Ten out of twelve Districts experienced either slight or modest economic growth—up from eight in the previous report, while the other two reported no changes in activity."
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Allocation Shifts Discussed in this Post:
Treasury Bill Purchases at Auction: $17,000 in principal amount
Corporate Bond Purchases: $12,000 in principal amount
Common Stocks: +$1,602.02 (No Sales)
Stock Funds: +$54.22
(consisting of $243.85 in purchases minus $189.63 in proceeds)
Net Inflow Stocks/Stock Funds: +$1,656.24
U.S. Equity Preferred Stocks: +$512.59
2024 Net Outflow Stocks/Stock Funds: -$20,186.16
2023 Net Outflow Stocks/Stock Funds: -$27,091.82
The outflow from stocks/stock funds is primarily due to the risk free yields in treasury bills taking into my investment objectives that deemphasizes capital appreciation in favor of capital preservation and income generation.
Even though I added to my stock allocation this week, I did not move the needle by a measurable amount.
Allocation in Fidelity Account-Treasury bills and CDs at are included in Fidelity's bond computation in this snapshot:
This snapshot excludes treasury bills and CDs:
The bonds that are covered in the preceding snapshot are corporate and Tennessee municipal bonds. The long term position noted above is in Tennessee municipal bonds with some of those falling into the intermediate term category.
When I include my other taxable accounts, the total stock allocation would be somewhat lower than 12%.
This chart shows the ‘dangerous’ stock market risk Baby Boomers could be facing - MarketWatch Since starting this blog in 2008, I have been pointing out the situational risk discussed in this article. They are prolonged periods when the stock market produces no total returns and even a negative total return adjusted for inflation. One of those periods was 1/1/1966 through 7/31/1982 when the average annual total return for the S&P 500, adjusted for inflation, was -1.813%. S&P 500 Return Calculator, with Dividend Reinvestment (click the inflation adjusted box).
There were two other long period, one lasting 26 years starting with the October 1929 crash and the other being 13 years starting in 2000. The measurement starts with a high point and then ends when the S&P 500 returns to that level.
As I have pointed out, the problem for someone who is retired and relies on stock investments is that one of those long bear market periods occurs during retirement.
The following are quotes from one of my posts on this topic:
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Putin and His Mafia State:
Losses ∙ Russia ∙ WarSpotting — documented material losses in Russo-Ukrainian war
HIMARS Destroys a Buk SAM System With Nice Ammo Cookoff - YouTube
Russia launched last week a missile attack targeting a hospital and residential buildings in Chernihiv. Russian missiles slam into downtown Chernihiv, killing at least 13 - YouTube Russia is a terrorist state ruled by a war criminal and violent psychopath.
Crimea Videos Show Huge Explosions as Russian Air Base Attacked
Secret Russian foreign policy document urges action to weaken the U.S. - The Washington Post; New report shows role of Republican useful idiots in weakening U.S., advancing Putin's goals - YouTube
Backfire K1 Destroys a Russian Pantsir SAM System - YouTube
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Trump and His Orwellian Party:
RealClearPolitics - Election 2024 - General Election: Trump vs. Biden
Trump tells reporters he would testify in hush money trial - YouTube
Fact check: Trump’s false and unsubstantiated claims about his Manhattan criminal case
My Video: Trump NY Felony Trial - YouTube
Russian troops advance in Ukraine as Kyiv runs low on air defenses - The Washington Post Trump and his minions in Congress are responsible.
Truth Social Investors Try to Keep Hope Alive as Stock Tanks; Trump tries to boost support for Truth Social as DJT stock tanks Trump will do his Carnival Barker routine hoping to keep DJT defying gravity until he can unload shares on his True Believers.
Trump posts "72 hours until all hell breaks loose" ahead of hush money trial - YouTube
Fact checking Trump and Johnson’s election integrity announcement
Truth Social investing is about faith in Trump, not business fundametals - The Washington Post Notwithstanding their losses, the Trump True Believers want to buy more shares, which Donald will gladly sell to them when his lock-up expires or earlier with Board approval.
'A criminal enterprise': Fmr. National Enquirer Exec. Editor tells all amid Trump trial - YouTube
OAN and Smartmatic settle election defamation case
Judge warns Trump over juror intimidation in hush-money tria - YouTube
The New York AG wanted more information about the surety bond that Knight Speciality posted in the NY civil fraud case. The bond was $175M and was allegedly secured by $175M in cash held by the Donald J. Trump Revocable Trust. (See my video: Trump Surety Bond Issue NY Civil Fraud Case - YouTube).
When Trump's attorneys replied to that request for more information, one of the documents, marked as Exhibit E, was a pledge agreement signed by Donald Trump Jr. on behalf of the Donald J. Trump Revocable Trump, the apparent owned of the Schwab account that had the cash.
The signature page did not grant a security interest to Knight Specialty Insurance but to the Federal Insurance Company:
Federal Insurance is a subsidiary of Chubb that issued the surety bond in the second E. Jean Carroll case, the one that included a $65M punitive damage award. I view the pledge agreement to be invalid with that signature page and could not be enforced by Knight Speciality Insurance, if challenged, given the inconsistency in who received the pledge. I would assume that this error has now been corrected, but the court has not yet responded on the impact, if any, of the original error. Is the insurer providing Trump's fraud bond eligible to do so? | Insurance Business America
The republican governor of New Hampshire, Chris Sununu, is considered to be a moderate Republican. Sununu said that he would be voting for Trump.
George Stephanopoulos asked Sununu this question: "
"So just to sum up, you would support him for president even if he is convicted in classified documents. You would support him for president even though you believe he contributed to an insurrection. You would support him for president even though you believe he's lying about the last election. You would support him for president even if he's convicted in the Manhattan case. I just want to say, the answer to that is yes, correct?
SUNUNU: Yes, me and 51 percent of America."
Fact check: Donald Trump attacks Jimmy Kimmel for something Al Pacino did After more than 8 years of observation, all of Trump's supporters must be deemed to be fully aware of his mental condition:
Trump STILL Mad About Oscars Joke & Thinks Jimmy Kimmel is Al Pacino in New Unhinged Post - YouTube
Prosecutors file notice of uncharged misconduct they'll use on cross-examination if Trump testifies - YouTube; Prosecutors offer up Trump's long list of uncharged bad acts The list can be found here.
Red states threaten librarians with prison-The Washington Post
Kari Lake tells supporters to ‘strap on a Glock’ for election - YouTube
Trump juror quits over fear of being outed after Fox News host says she should scare Trump; Fox "News" Anchor Jesse Watters recklessly describe jurors to create chaos in Trump hush money trial - YouTubeIf the jury convicts, there is a real danger that the more violent Trump supporters will find and harm them.
Donald Trump's Juror Remarks Could Land Him in Hot Water; He should be thrown in a cell for that’: Trump’s mob boss tactics threaten Hush Money trial - YouTube Trump posted this comment from the Fox propagandist Jesse Watters: "They are catching undercover liberal activists lying to the judge in order to get on the Trump jury." Trump probably violated the gag order by reposting that comment.
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1. Common Stock Small Ball Buys:
A. Started KIM - Bought 10 at $18.05; 5 at $17.58:
Quote: Kimco Realty Corp. (KIM) - Internally Managed Retail REIT
Cost: $268.38
KIM is "North America’s largest publicly traded owner and operator of open-air, grocery-anchored shopping centers and a growing portfolio of mixed-use assets. As of December 31, 2023, the Company had interests in 523 shopping center properties . . . aggregating 89.7 million square feet of gross leasable area (“GLA”), located in 28 states. In addition, the Company had 21 other property interests, primarily through the Company’s preferred equity investments and other investments, totaling 5.5 million square feet of GLA."
The 523 properties does not include the ones acquired on 1/2/24 when KIM consummated its acquisition of RPT Realty.
KIM SEC Filed 2023 Annual Report
Website: Kimco Realty
Average Cost per share: $17.89 (15 shares)
Dividend: Quarterly at $.24 per share ($.96 annually), last raised from $.23 effective for the 2023 4th quarter payment. There was a $.09 special dividend paid in the 2023 4th quarter related to the profit realized by selling shares in Albertsons that is in the process of being acquired by Kroger.
Yield at $17.89: 5.37%, rounded up.
Last Ex Dividend: 3/6/24
Tax Treatment of 2023 Dividends: Kimco Realty Corporation Announces 2023 Dividend Tax Treatment
Recent News: KIM Announces First Quarter Transaction Activity Highlighted by the Sale of 10 Former RPT Properties for $248 Million (3/27/24); KIM Closes Acquisition of RPT Realty (1/2/24)(The acquisition of RPT adds 56 open-air shopping centers, 43 of which are wholly owned, comprising 13.3 million square feet of gross leasable area, to Kimco’s existing portfolio of 527 properties. The all-stock transaction, including the assumption of debt and preferred stock.. ")
Last Earnings Report (Q/E 12/31/23): SEC Filed Press Release
FFO = $.39 per share
Occupancy: 96.2%, a 70 basis point sequential increase
2023 Diluted FFO per share: $1.57, down 1 cent from 2022
The increase in interest expense is negatively impacting FFO year-over-year comparisons.
The interest rate on KIM's credit facility, priced at a spread to a SOFR short term rate, was 6.21% as of 12/31/23, page 38 Annual Report There were no borrowings under that facility as of 12/31/23, page 89.
The last bond offering was $500M of 6.4% SU notes maturing in 2034. Prospectus (10/23).
Prior to that offering, KIM sold $650M in a 4.6% SU maturing in 2033 (8/22).
Earlier in 2022, KIM sold $600M of 3.2% SU notes maturing in 2032. The he benchmark treasury was at 1.875% as of 2/15/22. FWP
SU Bonds: I prefer owning the short term SU bonds that provide me with a higher yield.
I own 6 SU bonds.
3.3% SU Maturing on 2/1/25 (4); Bond Page | FINRA.org
3.85% SU Maturing on 6/1/25 (2), Bond Page | FINRA.org (originally issued by Weingarten that was acquired by KIM)
Last SU Bond Purchase Discussion: Item # 5.B. Bought 2 Kimco 3.2% SU Maturing on 2/1/25 at a Total Cost of 98.11 (3/28/24 Post) The YTM was then at 5.617%.
B. Added 5 FTS at $37.92; 5 at $37.63 - Schwab Account:
Quotes:
USDs: Fortis Inc.
CADs: Fortis Inc. (Canada: Toronto)
Canadian Dollar to US Dollar Exchange Rate Chart | Xe
Cost: $377.71
Website: Home
Investment Categories: Bond Substitute/Dividend Growth
New Average cost per share: $38.7 (25 shares)
Dividend: Quarterly at C$.59 per share, last raised from C$.565 effective for the 2023 4th quarter payment.
Fortis Announces 4.4% Increase in 4th Quarter Dividend Marking 50 Years of Dividend Increases (9/19/23)
Yield at US$38.7 AC: The yield can not be computed without knowing what the CAD/US exchange rate will be for each dividend payment. The total for the last 4 dividends, as converted into USDs, was $1.7. Using that annual number and an AC of $38.7, the yield would be about 4.39%. The yield will go up or down based on the CAD/USD exchange rate.
Next Ex Dividend: 5/16/24
Last Elimination: Item # 2.J. Eliminated FTS - Sold 10 at $45.16 (3/10/22 Post)(profit snapshot $61.85)
Last Discussed: Item # 3.E. Added 5 FTS at $39.07 (3/28/24 Post)
Last Substantive Discussion: Item # 1.C. Added to FTS - Bought 1 at $39.38; 1 at $38.38, (2/23/24 Post) I discussed the 4th quarter earnings report in that post. Press Release
Reset Equity Preferred Stock: I own 150 shares of the Fortis reset equity preferred stock FTS-PM.TO. Item # 2.B. Bought 50 FTS.PRM at C$12.4 (5/23/20 Post); Item # 3.A. Bought 50 FTS.PRM at C$16.28 (3/14/20 Post); Item # 2. A. Bought 50 FTS.PRM at C$17.55 (11/23/19 Post) That preferred stock will reset its coupon in December 2024 at a 2.48% spread to the 5 year Canadian government bond yield. Par value is C$25 and dividends are cumulative. The coupon is currently 3.91%.
Investment Categories: Bond Substitute and Possible Masochistic Contrarian Value
SpartanNash "operates two complementary business segments – food wholesale and grocery retail. Its global supply chain network serves wholesale customers that include independent and chain grocers, national retail brands, e-commerce platforms, and U.S. military commissaries and exchanges. . . On the retail side, SpartanNash operates 144 brick-and-mortar grocery stores, primarily under the banners of Family Fare, Martin’s Super Markets and D&W Fresh Market, in addition to dozens of pharmacies and fuel centers."
SPTN Analyst Estimates | MarketWatch
SEC Filed 2023 Annual Report (Description of businesses at pages 4-6; properties listed at pages 16-17; net interest expense in 2023 was reported at $39.887M, up from $22.791M in 2022 and $13.851M in 2021; debt is priced at spreads to SOFR, see page 50 which resulted in a 7.03% average interest rate in 2023)
Last Elimination: Item # 2.F. Eliminated SPTN - Sold 15 at $29.01 in Fidelity Account; 20 at $31.05 in Vanguard Account; 10 at $30.64 in Schwab Account (3/23/22 Post)(profit snapshots = $421.49)
New Average cost per share: $19.77 (10 shares)
Dividend: Quarterly at $.2175 per share ($.87 annually), last raised from $.215 effective for the 2024 first quarter payment. In the 2014 first quarter, the rate was at $.12 per share.
SPTN Dividend History | Nasdaq
Yield at $19.77 AC = 4.4%
Last Ex Dividend: 3/13/24 (owned 5 as of)
Last Earnings Report (Q/E 12/31/23): The market reacted negatively to this report.
SEC Filed Earnings Press Release
Revenues: $2.245+B, down 2.8%
E.P.S. = $.30
Adjusted E.P.S. = $.35
Consensus at $.38
Reconciliation GAAP to Non-GAAP for the Quarter and Year:
2023 E.P.S. $1.5
Adjusted 2023 E.P.S. = $2.18
2024 Adjusted E.P.S. Guidance $1.85 - $2.1 (not helpful)
The main problem is that debt is at spreads to short term rates.
Interest costs have skyrocketed upward staring in 2022 as discussed above.
I am not surprised that the guidance is down given the increases in interest costs.
The issue is whether this damaging effect is more than adequately priced into the stock, assuming no further rises in short term rates with the next directional change being down. I suspect that may end up being the case but future predictions are at best guesses.
D. Added 10 TAC at $6.1:
Quote: Transalta Corp. (TAC)
Cost: $60.95
TAC Analyst Estimates | MarketWatch
Website: TransAlta - A Clean Energy Solutions Company
The company owns wind, solar, hydro and gas generating facilities.
Projects in Development - TransAlta
New Average cost per share: $7.09 (50 shares)
Dividend: Quarterly at C$.055 per share
Last Ex Dividend: 2/29/24
I have nothing to add to my recent discussion. Item # 1.F. Added 5 TAC at $6.51; 5 at $6.32 (3/22/24 Post) I discussed the last earnings report in that post. SEC filed Press Release
E. Added to WBA - Bought 5 at $17.75:
Quote: Walgreens Boots Alliance Inc. (WBA)
Cost: $88.75
WBA Analyst Estimates | MarketWatch
Investment Categories: Bond Substitute and Possible Masochistic Contrarian Value
Last Discussed: Item # 1.H. Started WBA - Bought 5 at $20.14; 5 at $19.74 (12/2/23 Post) I mentioned in that post that the dividend yield then reflected a consensus that the rate would be cut.
Walgreens is a troubled company. It was finally kicked out of the Dow Jones Industrial Average in February 2024. Walgreens replacing GE on the Dow (6/19/18)
The problem is that consumers are increasingly buying product from online retailers who sell products cheaper. The pharmacy operation is also coming under competition from Amazon.
Walgreens is also losing money on its health clinics, Village MD, located in its stores. In the last quarter, WBA wrote down its investment in those clines by $5.8B. Walgreens (WBA) earnings 2nd F/Q 2024 The company closed 124 of those clinics.
The push into healthcare is probably necessary for survival longer term, but it will be a rocky road in successfully making that transition from just a high priced retailer with pharmacies. Besides the pharmacies located in the retail stores, the other healthcare operations include the VillageMD clinics and Shields Health Solutions
The question is whether the current price reflects the problems without factoring in a possible successful transition down the road.
Another issue was a $5.5B after tax charge taken in the last fiscal year for opioid related claims. Those involved lawsuits for filling opioid prescriptions. Teva, Allergan, CVS, and Walgreens Finalize Opioid Settlement Agreements
WBA has about 8,800 retail locations in the U.S. Over 3/4th of Americans live within 5 miles of a WBA store. The international segment accounts for about 16% of revenues.
New Average Cost per share: $19.21 (15 shares)
My confidence in the transition's ultimate success is reflected in my monetary exposure
Dividend: Quarterly at $.25 per share, slashed from $.48 effective for the 2024 first quarter payment.
A slash was needed sooner IMO.
Yield at $19.21 AC = 5.2056%
Last Ex Dividend: 2/16/24 (owned 10 as of)
Last Earnings Report (Fiscal Quarter Ending 2/28/24): This is the second fiscal quarter for the 2024 fiscal year.
Revenues: $37.052B, up from $34.862B.
GAAP E.P.S. ($6.85), compared to +$.81 in the 2023 second fiscal quarter.
GAAP E.P.S. included two large non-cash impairment charges. The largest was $5.8B after tax charge related to VillageMD goodwill and the other was for $455M related to the U.S. pharmacy retail segment.
Non-GAAP E.P.S. = $1.2, up 3.4% and +2.8% using constant currency
GAAP To Non-GAAP Reconciliation
I can understand why someone could look at the previous snapshots and say no thanks to buying shares.
Other Recent News: Walgreens Boots Alliance Sells Shares of Cencora For $992 Million of Proceeds (2/7/24); Walgreens Boots Alliance Sells Shares of AmerisourceBergen for $1.85 Billion of Initial Proceeds (8/3/23)
SU Bonds:
Item # 1.C. Sold 2 WBA 3.45% SU Bonds at 100.727 (7/12/17 Post)(profit snapshot = $34.04)
Item # 4.B. Sold 2 WBA 3.3% SU Maturing on 11/18/21 at 102.127 (9/14/19 Post)(profit snapshot = $62.54)
I currently own 2 Walgreens 3.8% SU bonds maturing on 11/18/24. Bond Page | FINRA.org The SU debt is currently rated Ba2/BBB-. When I purchased these 2 bonds in June 2022, the ratings were Baa2/BBB.
Based on my credit risk concerns, which are not currently acute, I will own no more than 2 WBA SU bonds at any given point in time. So I will need to receive the proceeds from the 2 bonds that mature next November before buying 2 more. I will not buy any when and if both Moody's and S&P have junk credit ratings on the SU debt.
10-Q for the F/Q Ending 2/28/24 Debt is listed at page 17.The November 2024 note is the next one to mature. The company did reduce its debt by $2.6Bin FY 23. Capital was raised by selling shares in Cencora Inc. (COR), formerly known as AmerisourceBergen, as noted above. Far better IMO to reduce debt using the proceeds from those stock sales, given the operating problems and debt levels, than to keep the shares hoping for larger profits.
Analyst Reports (available to Schwab customers):
Morningstar (3/28/24): 5 stars with a fair value estimate of $33.
S&P (3/28/24): 3 stars with a 12 month PT of $23.
F. Added to WPC - Bought 5 at $54.75; 5 at $53.3:
Quote: W. P. Carey Inc. (WPC) -Primarily a Net Lease Industrial REIT
Cost: $540.25
Website: Leaseback Build-to-Suit Real Estate Finance | W. P. Carey
New Average Cost per share: $60.45 (42+ shares)
Dividend: Quarterly at $.8645 per share ($3.46 annually)
I am reinvesting the dividend.
W. P. Carey Announces Tax Treatment of 2023 Dividends
As previously discussed, the WPC dividend was cut to account for the spinoff of Net Lease Office Properties (NLOP); W. P. Carey Announces Completion of Spin-Off of Net Lease Office Properties
Yield at New AC per share: 5.72%
Last Discussed: Item # 1.D. Added to WPC - Bought 5 at at $55.55 (3/22/24 Post) I discussed the last earnings report in that post and have nothing further to add here. SEC Filed Press Release, Supplemental and SEC Filed Investor Presentation
G. Added to AY - Bought 5 at $17.49; 5 at $16.9:
Quote: Atlantica Sustainable Infrastructure PLC (AY)
Cost: $171.93
Website: Atlantica- Sustainable Infrastructure
AY SEC Filings (foreign company forms)
Corporate Presentation Nov-2023.pdf
Last Discussed: Item # 1.E. Added to AY - Bought 5 at $18.25; 5 at $17.9 (3/1/24 Post) I discussed the last earnings report in that post. SEC Filed Earnings Release and SEC Filed Slide Investor Presentation
New Average cost per share: $18.63 (45 shares)
Dividend: Quarterly at $.445 per share ($1.78 annually)
Yield at New AC = 9.55%
Last Ex Dividend: 3/11/24 (owned 35 shares as of)
I have nothing further to add to my recent substantive discussion.
2. Small Ball CEF and ETF Fund Trades:
These trades are just an example where I sell a stock fund that pays almost nothing in dividends and then buy other funds that have much better dividend yields.
JRI and MEGI are balanced CEFs. I will classify CEFs as stock funds when the stock allocation is over 50%.
Many of the securities owned by JRI and MEGI have been adversely impacted by the recent rise in intermediate and longer term interest rates.
AOD, JRI and MEGI pay monthly dividends.
In my Fidelity account, a goal reached earlier this year was to go over $200 in monthly dividends paid by CEFs. I am now moving toward $250 per month. I will consider selling my highest cost lots when I can do so profitably, thereby lowering my average cost per share and increasing my dividend yield.
I want to have a cushion of monthly dividend income over $200 so that those sell transactions will not lower the total amount below $200 per month.
I will consider reducing a CEF position when I can profitably sell my highest cost lots, prior to any return of capital adjustment to the tax cost basis, for a profit and when the discount to net asset value per share is more than 5% below the 3 year average discount.
A. Added to JRI - Bought 10 at $10.85 (Vanguard Account):
Quote: Nuveen Real Asset Income & Growth Fund Overview - A Leveraged Balance CEF
Cost: 108.5
Sponsor's website: JRI - Nuveen Real Asset Income and Growth Fund | Closed-End Fund | Nuveen
Last Discussed: Item # 1.A. Added to JRI - Bought 50 at $11.5 (3/22/24 Post); Item # 2.F. Added to JRI - Bought 10 at $9.98; 10 at $9.74 in Vanguard Taxable Account (10/28/23 Post)
Average cost per share: $10.86 (187+ shares)
Dividend: Monthly at $.10 (ROC supported)
Yield at New AC : 11.05%
Last Ex Dividend: 4/12/24 (owned 177+ as of)
Data Date of 4/16/24 Purchase:
Closing Net Asset Value Per Share: $12.66
Closing Market Price: $10.86
Discount: -14.22%
Average 3 year discount: -11.94%
Sourced: JRI - CEF Connect
Nuveen Real Asset Income and Growth (JRI) Portfolio | Morningstar (links top 25 holdings)
Last Elimination: Item # 3.A. Eliminated JRI in my Fidelity Taxable Account - Sold 130 at $12.13 (3/11/23 Post)(profit snapshot = $184.6)
Other Sell Discussions: Item # 1.I. Pared JRI Again-Sold 12.661 shares at $16.31-Remaining Shares Bought With Dividends in Fidelity Taxable Account (10/1/21 Post)(profit snapshot = $53.03); Item # 2.C. Pared JRI-Sold 22.235 at $16.11(8/6/21 Post)(profit snapshot = $42.31); Item # 2.A. Pared JRI-Sold 30 at $15.9-highest cost shares (6/19/21 Post)(profit snapshot = $14.73); Item # 1.K Eliminated JRI in Schwab Taxable Account-Sold 100 at $11.48 (6/6/20 Post)(profit snapshot = $69.35); Item # 2.A. Sold 102+ JRI at $17.98 (12/22/19 Post)(profit snapshot = $140.67); Item # 1.A. Sold 100 JRI at $17.51(10/30/19 Post )(profit snapshot = $100.41); Item # 4 Sold 100 JRI at $17.23 (10/2/19 Post)(profit snapshot = $40.45)
JRI Realized Gains to Date: $665.52 (includes $19.97 realized gain from selling 9 shares in my Vanguard account in July 2021 that was not discussed in posts)
Goal: Any total return in excess of the dividend payments before ROC adjustments to the tax cost basis.
B. Added to MEGI - Bought 5 at $11.45 (Fidelity Account):
Cost $57.25
MainStay CBRE Global Infrastructure Megatrends Term Fund - SEC Filed Semiannual Report for the period ending 11/30/23.
Sponsor's website: MEGI MainStay CBRE Global Infrastructure Megatrends Fund
MEGI Portfolio | Morningstar (lists top 25 holdings)
I discussed MEGI in my last post Item # 1.A. Added to MEGI - Bought 50 at $12.32 - Fidelity Account (4/12/24 Post)
New average cost per share: $12.39 (106+ shares)
Dividend: Monthly at $.125 per share ($1.5 annually)
Yield at $12.39: 12.11%, rounded up
Last Ex Dividend: Today, 4/19/24 (owned all as of)
Data Date of 4/16/24 Purchase:
Closing Net Asset Value per share: $13.28
Closing Market Price: $11.34
Discount: -14.61%
Sourced: MEGI - CEF Connect
C. Added to AOD - Bought 10 at $7.81 - Fidelity Account:
Quote: abrdn Total Dynamic Dividend Fund Overview - A Leveraged Stock CEF
Cost = $78.1
Last Discussed: Item # 2.A. Bought 5 AOD at $7.95 (2/2/24 Post)
Sponsor's website: abrdn Total Dynamic Dividend Fund, Inc.
AOD SEC Filed Annual Report for the the period ending 10/31/23 (leverage is discussed at page 32)
SEC Filing-Holdings as of 1/31/24
abrdn Total Dynamic Dividend (AOD) Portfolio | Morningstar (lists top 25 holdings)
New Average cost per share: $7.91 (226+ shares)
 |
| Snapshot Intraday on 4/18/24 after add |
Dividend: Monthly at $.0575 per share ($.69 annually)
ROC supported. The fund is in a position to cover the dividend through realized capital gains but has not been doing so. As of 1/31/24, the total cost of investments was reported at $809.479+M and was valued then at $1.013+B.
AOD Stock Dividend History & Date
Yield at $7.91 AC: 8.72%
Next Ex Dividend: 4/22/24
Data Date of 4/18/24 Trade:
Closing Net Asset Value per share: $9.28
Closing Market Price: $7.80
Discount: -15.95%
Average 3 year discount: 11.94%
Sourced: AOD - CEF Connect
D. Eliminated PAVE - Sold 5 at $37.93:
Proceeds: $189.63
Last Sell Discussions: Item # 2.A. Sold 5 PAVE at $35.92 (2/15/24 Post)(profit snapshot = $29.45); Item # 7.D. Eliminated PAVE - Sold 6 at $28.19; 5 at $28.15(4/28/22 Post)(profit snapshot = $54.36)
Last Buy Discussion: Item # 2.Q. Bought 8 PAVE - Multiple Purchases with an AC at $22.38 (3/6/21 Post)
Sponsor's website: U.S. Infrastructure Development ETF
Expense Ratio: .47%
Global X US Infrastructure ETF (PAVE) Portfolio - Morningstar (lists top 25 holdings)
Profit Snapshot: $37.78
Dividend: Paid Semiannually at a variable rate.
Last 2 Dividends: $.2359 per share
Yield at $37.93 = .006%
Last Ex Dividend: 12/28/23
3. U.S. REIT Equity Preferred Stocks:
Investment Category: Advantages and Disadvantages of Equity REIT Cumulative Equity Preferred Stocks, part of the Equity REIT Common and Preferred Stock Basket Strategy
A. Added 5 EPRPRC at $18.9; 5 at $18.5:
Cost: $186.98
Issuer: EPR Properties (EPR)
Last Discussed: Item # 5.A. Restarted EPRPRC - Bought 10 at $19.31 (3/8/24 Post) I discussed the last EPR financial report in that post. SEC Filed Press Release for the Q/E 12/31/23 and Supplemental:
New Average cost per share: $19 (20 shares)
Yield at $19: 7.5658%
Last Ex Dividend: 3/27/24 (owned 10 as of)
Preferred Stock Prospectus
Placement in the Capital Structure: Equity Preferred Stock, senior only to common stock.
Par Value: $25
Coupon: 5.75%
Dividends: Paid Quarterly, Non-Qualified and Cumulative
Conversion into Common Stock: The conversion feature is currently assigned no value, or close to it, based on the preferred stock price.
That has not always been the case as shown by some price levels before the pandemic, including those of some of my prior sales. The current conversion price is at $58.59 as of 3/31/24: Summary of Series C Preferred-Shares.pdf At some point, the conversion feature may start to positively impact the share price, as it has in the past, but it is difficult to foresee that happening anytime soon given the troubles of major tenants in the movie theater business.
The conversion price started at $71.34 and has drifted down as determined by a complex formula. One component of that formula is the amount that common share quarterly dividend exceeds $.685 per share.
This REIT was hit hard by the pandemic. It will take time, possibly several more years, before the conversion feature is assigned some value .
Other Sell Discussions: The conversion feature was assigned some value in 2018, when I sold shares above par value as highlighted below. In October 2018, the closing prices for the common shares ranged from $67.21 to $69.38 and hit an intraday highs at $70.86 and at $72.18 in September and November 2018. The conversion feature had value at those prices.
Item # 4.B. Sold 10 ERPPRC at $20.32 (7/3/2020 Post)(profit snapshot = $76.66);
Item # 3.B. Sold 10 EPRPRC at $17.5 and 5 at $16.22 (5/2/20 Post)(profit snapshot = $16.6)
Item # 3 Sold 50 EPRPRC at $27.49 (10/21/18 Post)(profit snapshot = $178.58)-Item # 1 Bought 50 EPRPRC at $23.78-Used Commission Free Trade (4/23/18 Post)
Item # 1.B. Sold 50 EPRPRC at $28.48 (9/12/18 Post)(profit snapshot = $224.22)-Item # 1 Bought 50 EPRPRC at $24 (4/23/18)
Item # 3 Sold 50 EPRPRC-Update For Equity REIT Basket Strategy As Of 4/6/16 - South Gent | Seeking Alpha (profit snapshot = $160.48)
Quote: REXR-PB
Cost = $107.86
Issuer: Rexford Industrial Realty Inc. (REXR) - An Industrial REIT
SEC Filed Earnings Press Release for the Q/E 12/31/23
Par Value: $25
New average cost per share: $21.74 (10 shares)
Yield at New AC = 6.756%
Last Ex Dividend: 3/14/24
Coupon: 5.875% paid on the $25 par value
Dividends: Paid Quarterly, non-qualified and cumulative.
I have nothing further to add to the discussion in my last post. StockItem # 7.A. Started (4/12/24 Post)
C. Added to NSAPRA - Bought 5 at $22.05; 5 at $21.5:
Quote: NSA-PA
Cost: $217.75
Issuer: National Storage Affiliates Trust (NSA) - Internally Managed Storage REIT
I have a small ball position in the common stock.
Last Discussed: Item # 5.B. Added to NSAPRA - Bought 5 at $22.56 (3/8/24 Post); Item # 2.C. Bought 10 NSAPRA at $23.15 (2/9/24 Post)
New Average cost per share: $22.47 (25 shares)
REIT Equity Preferred Stock
Par Value: $25
Coupon: 6%
Dividends: Paid quarterly and cumulative.
Yield at $22.47 AC: 6.68%, rounded up
Last Ex Dividend: 3/14/23 (owned 10 as of)
Optional Call: At par value + accrued and unpaid dividend on or after 10/11/22.
Maturity: None, potentially perpetual
Stopper Clause: Standard
Currently adding in 5 shares lots at the lowest price in the chain.
A. Bought 2 Borgwarner 3.375% SU Maturing on 3/15/25 at a Total Cost of 97.981 (IB Account):
Issuer: BorgWarner Inc. (BWA)
BWA Analyst Estimates | MarketWatch
BWA SEC Filed Earnings Press Release for the Q/E 12/31/23
BWA SEC Filed 2023 Annual Report Debt is listed at page 99. This SU note is the next one to mature.
FINRA Page: Bond Page | FINRA.org
Credit Ratings: Baa1/BBB
YTM at Total Cost: 5.642%
Current Yield at TC = 3.44%
B. Bought 2 Goldman Sachs BDC 3.75% SU Maturing on 2/10/25 at a Total Cost of 98.282 (IB Account):
Issuer: Goldman Sachs BDC Inc. (GSBD)
I have a small ball position in the common stock. Item # 1.D. Added to GSBD - Bought 5 at $13.51 (11/4/23 Post)
GSBD | Goldman Sachs BDC Inc. Analyst Estimates | MarketWatch
GSBD SEC Filed 2023 Annual Report Debt is listed at page 126. This note is the next SU to mature. For BDCs, which I view as high risk in part due, in part, to paying out all or almost all net investment income in common stock dividends, I will generally avoid maturities over 2 years from the date of purchase and focus more on buying the first to mature SU.
Finra Page: Bond Page | FINRA.org
Credit Rating: Baa3
YTM at Total Cost: 5.92%
Current Yield at TC = 3.816%
C. Bought 1 Ventas LTD 3.5% SU Maturing on 2/1/25 at a Total Cost of 98.255:
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Issuer: Operating subsidiary of Ventas Inc. (VTR) who guarantees the notes.
Prospectus
I no longer have a position in the common stock.
SEC Filed Earnings Report for the Q/E 12/31/23
Finra page: Bond Page | FINRA.org
Credit Ratings: Baa1/BBB+
YTM at Total Cost: 5.748%
Current Yield at TC = 3.56%
I now own 5 bonds.
I had 4 Ventas bonds mature on 4/15/24, see snapshots in Item # D. and F. below.
I have 5 Ventas bonds that will mature on 5/1/24.
This is another example of replacing recently matured bonds with new purchases from the same issuer that extend the maturity out some.
D. Bought 2 General Motors Finance 4.35% SU Maturing on 4/9/25 at a Total cost of 98.813 (IB Account):
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Issuer: Wholly owned subsidiary of General Motors Co. (GM)
GM does not guarantee the notes.
2023 SEC Filed Annual Report for GM Financial
Finra Page: Bond Page | FINRA.org
Credit Ratings: Baa2/BBB
YTM at Total Cost: 5.61%
Current Yield at TC = 4.4%
Last Offering GM Financial SU Bonds: Prospectus (4/24)
I had two GM Finance bonds, along with several others, mature on 4/13 and 4/15 in my Fidelity account:
E. Bought 1 FNB 5.15% SU Maturing on 8/25/25 at a Total Cost of 98.533:
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Finra Page: Bond Page | FINRA.org
Credit Ratings: Baa2/BBB-
YTM at Total Cost: 6.29%
Current yield at TC = 5.227%
F. Bought 2 Arrow Electronics 4% SU Maturing on 4/1/25 at a Total Cost of 98.46 - Vanguard Account:
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Issuer: Arrow Electronics Inc. (ARW)
ARW Analyst Estimates | MarketWatch
SEC Filed Earnings Press Release for the Q/E 12/31/23
Finra Page: Bond Page | FINRA.org
Credit Ratings: Baa3/BBB-
YTM at Total Cost: 5.68%
Current Yield at TC = 4.06%
I now own 4 bonds.
I recently received the proceeds from 2 Arrow bonds that were redeemed early.
I own 4 Arrow SU bonds that mature on 9/8/24. Bond Page | FINRA.org
In my Vanguard account, I received proceeds from 4 corporate bonds on 4/16/24 and will use those funds to buy corporate bonds
 |
| Cheniere: Redeemed Early with a Small Make Whole Payment |
 |
| Ventas: I also had 2 mature in my Fidelity Account |
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4. Treasury Bill Purchases:
A. Bought 5 Treasury Bills at the 4/15/25 Auction:
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Matures on 10/17/24
Interest: $130.31
Investment Rate: 5.366%
B. Bought 5 Treasury Bills at the 4/15/24 Auction:
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91 Day Bill
Matures on 7/18/22
Interest: $66.35
Investment Rate: 5.395%
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C. Bought 2 Treasury Bills at the 4/16/24 Auction:
1 Year Treasury Bill
Matures on 4/17/25
Interest is taxable in 2025 when held to maturity.
Interest: $99.39
Investment Rate: 5.177%
D. Bought 5 Treasury Bills at the 4/17/24 Auction:
Matures on 8/20/24
Interest: $86.61
Investment Rate: 5.406%
Disclaimer: I am not a financial advisor, but simply an individual investor who has been managing my own money since I was a teenager. In this post, I am acting solely as a financial journalist focusing on my own investments. The information contained in this post is not intended to be a complete description or summary of all available data relevant to making an investment decision. Instead, I am merely expressing some of the reasons underlying the purchase or sale of securities. Nothing in this post is intended to constitute investment or legal advice or a recommendation to buy or to sell. All investors need to perform their own due diligence before making any financial decision which requires at a minimum reading original source material available at the SEC and elsewhere. A failure to perform due diligence only increases what I call "error creep". Stocks, Bonds & Politics: ERROR CREEP and the INVESTING PROCESS Each investor needs to assess a potential investment taking into account their personal risk tolerances, goals, and situational risks. I can only make that kind of assessment for myself and my family members.
