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Dollar Values of Trades Discussed in this Post:
Inflow Common Stocks (Item # 1): $1,116.52
I refer to these multiple purchases as small ball shotgun scatter shots of higher yielding stocks and CEFs. All of the common stocks discussed below are in bear market patterns.
Outflow Common Stocks/Stock Funds: Zero
I have met my 2026 goal of realized capital gains. My stock allocation in my 4 brokerage accounts is close to 8% of the total.
Corporate Bonds (Item # 2): 17 (Cost at $16,844.62)
Treasury Bills Purchased at Auction (Item # 4): $5,000 in principal amount
Treasury Notes Purchased in the Secondary Market (Item # 3): $4,000 in principal amount (cost at $3,970.74)
Treasury Note Purchased at Auction (Item # 5): $1,000 in principal amount
Outflow Equity Preferred Stocks (Item # 6): $1,228.47 (realized gains at $172.69)
The two bank holding company equity preferred stocks that I sold are not investment grade and are selling at what I view has historically narrow spreads to the 10 year treasury yield. A bank holding company preferred stock will become worthless or almost so when and if the FDIC seizes the operating bank. So the downside risk is a zero preferred stock price. Two mid-sized banks failed in 2023 after deposit runs and and were seized by the FDIC. The holding companies for those operating banks had issued preferred stock that became worthless. The Silicon Valley Bank Collapse Explained | UW School of Law
The Bond Market’s Supply and Demand Problem (8/28/26)
Bond King Bill Gross warns 'don’t own bonds' as long-term debt enters a new ear of volatility-Fortune I discussed my response in a comment published on 10/5/26
Should You Buy Long-Term Bonds? Why Higher Yields Aren’t Enough | Morningstar (10/6/26)
I am slowing down my T Bill purchases at auction. I own them in 3 taxable accounts and view my current allocation as too high. I took these snapshots of my T Bills owned in my Schwab account as of 10/7/26:
I own T Bills in my bond ladder to reduce my duration and to provide a constant stream of proceeds, which is desirable for as long as interest rates continue to trend higher. I view them as anchoring my duration in the short 2 to 3 year range. All of these T Bills are likely to be reinvested at higher yields.
Reliance on a significant T Bill allocation increases my interest rate risk caused by a Fed rate cutting cycle.
The gain column does not reflect unrealized capital gains but unrealized interest income that will become taxable when the bills matures.
I have also significantly increased my allocation to short term T Notes in this account as yields rise to levels last seen in 2006. The ten to thirty year treasury yields have recently hit the highest levels since 2002. 10-year Treasury yield ease from 24-year high after solid bond auction eases demand fears (10/7/26)
I stated in my last blog that my gut had informed me that interest rates had risen too far, too fast.
Treasury Data: Major Foreign Holders of U.S. Debt by Country and Month as of 7/2026. China has been reducing its holdings. Another takeaway is that foreign owners owned $9.2482 trillion in August 2025 and $9.2481 trillion in July 2026, so they are not absorbing the increased supply.
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Economy:
For the week ending 10/8/26, Freddie Mac reported that the average 30 year mortgage rate was at 7.4%, up from 7.23% for the W/E 10/1/26. The average rate has risen from 5.98% for the W/E 2/26/26. Mortgage Rates - Freddie Mac
On a $500,000 mortgage, the 1.42% increase since the W/E 2/26/28 amounts to an additional $7,100 in annual interest payments. Over the same period, the 15 mortgage rate has risen to 6.73%, up from 5.44%.
Without tariffs, inflation on goods would have fallen: New York Fed; How Fast Do Tariffs Pass Through into Consumer Prices? - Liberty Street Economics How can that even happen when Trump has represented to the American people many times that foreign countries pay the U.S. tariff taxes? Who’s really paying for the Trump administration tariffs? | University of Chicago
Who pays for tariffs? Insights from recent research | PIIE
Trade deficit hits $105.6 billion in August, widest since just before Trump tariffs enacted last year (10/6/26) The total was up 13.7% from July. The YTD deficit through August was $138.2B, down 20% from the same period last year. Part of the August trade deficit is due to price increases caused by the tariff taxes paid by U.S. importers.
Oil prices jump amid record tanker attacks in Hormuz | CNN Business (10/8/26)
Crude Oil Prices Today | OilPrice.com
Houthi Attacks on Saudi Airports Kill 3 Amid Escalating War in Yemen (10/8/26)
ICE raids hit spending and jobs in U.S. cities, studies show
Health insurance premiums may take a big jump in 2027 (10/2/26)
Stop the Steel? Iowa approves $1.36 billion for foreign-owned steel plant in swing district less than 2 weeks before early voting - CBS News The state legislature and republican governor quickly passed a $1.36B in tax incentives for this project that, if completed, will create about 1,700 jobs at the plant or $777,000 in tax credits per job. I doubt that his plant will ever be built for the reasons discussed in the previously linked article. It makes almost no sense to locate this plant in Iowa, but Trump and other Republicans apparently believe that this announcement will help them in close elections in that state.
America Got Addicted to Cheap Money - Now the Economy Is Cracking as Rates Exceed 5% - 24/7 Wall St.
Reuters estimates that $572B in non-financial U.S. corporate debt will have to be refinanced in 2027 and approximately $4.3 trillion starting in 2027 through 2031. I do not have a number for financial debt but the number would be huge.
Another $1.2 trillion in U.S. commercial real estate mortgages will mature in 2027. The 2027 Debt Maturity Wall: What Borrowers Need to Know Before Refinancing | LP
How much of U.S. GDP growth is dependent on the federal government spending each year $2 trillion of borrowed money? U.S. Ran a $2 Trillion Deficit Last Year, We Estimate-2026-10-01
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Demagogue Don and His Party:
Trump has shown how easy it is for a demagogic authoritarian to acquire and maintain power in the U.S.
It is clear that republican politicians will do nothing to restrain him.
A female CNN reporter Kristen Holmes asked Trump about his declining approval ratings among Latino voters as reflected in a NBC/Telemundo poll. The "Chosen One" and "extremely stable genius", had this response: "CNN poll numbers are fake. And your whole outfit is fake, and so are you." Trump Rips CNN Reporter After Pressed on Low Latino Approval
Trump suggests Iran could 'take out' Los Angeles and San Diego if it develops nuclear weapons - ABC News This Trump comment was made in Nebraska. His supporters cheered the remark, something that I have seen them do many times to similar odious comments made by Trump.
A reporter jotted down some of the comments made by Trump supporters at that rally as they explained their devotion to him. A Trump Rally Stuck in Time - The Atlantic
One person said that Trump "stands for the values America was founded on", mentioning the First Amendment. The Trump Administration Has Lost 75 of 93 First Amendment Cases, Report Finds | Truthout Trump supporters will not read those decisions or even summaries of them. In Trump's America, there is no need to learn how Trump has deliberately and repeatedly violated First Amendment rights of citizens, law firms, universities and many others. Why? Trump says he loves the First Amendment and in Trump's America his words create the only true reality. Facts are just Fake News and those judges are just part of some Deep State conspiracy to get Trump.
Another Trump supporter claimed that Trump was chosen by God to fulfill his will, just like God chose Daniel and Joseph. Trump has said he is the "Chosen One", so that proves he is. President Trump: "I am the chosen one." - YouTube
Another claimed that Biden started to sign documents with an autopen five days into his term and allowed "Democrat socialists" to make his decisions.
Those interviewed supported the Iran War and claimed that the economy was in great shape.
One person was photographed wearing Trump's "Golden Age of America" shirt which is how Trump describes the U.S. economy. Golden Age Of America - The Trump Store; Trump admin's golden age dimmed by reality; As the US midterms approach, Trump’s boasts on the economy fall flat with some voters
Another supporter claimed that Trump loves our country.
How do we know that Trump loves the U.S.? Trump claims that he does and has shown his affection many times by hugging the Flag and giving us a smug smile as if he just had an orgasm.
Trump's words create the only true reality in TrumpWorld and nowhere else of course. These reality creations are a God like power or maybe something similar to what the Green Lantern can do, but I have not seen Donald wearing the ring.
Critics would say Trump loves only (1) himself as the most well known narcissistic person alive today and (2) enriching himself and his family, frequently at his supporters' expense, by being President. As W.C. Fields once said, Trump's MO is never give a sucker an even break. Never Give a Sucker an Even Break (1941) - IMDb
Trump has told us many times that he is an "extremely stable genius" and has a "High IQ". Someone ran his words through all the AI websites to see how how they would measure his IQ. I Let 7 AIs Estimate Trump's IQ. And It's Exactly What You'd Expect - YouTube. The results can be found at 17:14.
Needless to say, taking what Trump calls an IQ test and correctly identifying a horse from an assorting of pictures depicting a snake, elephant, bear and horse does not prove a "High IQ" except of course in the Alternate Reality of TrumpWorld.
I would estimate a Trump IQ at 95-105 in his prime, within the average range, and lower now given what I view as his early stage dementia, but still above 70.
People with High IQs do not need to toot their own horn or create and embellish achievements which is Trump's MO. Trump is shameless but does have what I would characterize as highly developed reptilian and predator instincts that he routinely demonstrates.
See also, I Fed 33,397 Trump Posts Into 7 AIs and Asked About His Mental Health - YouTube What do you think were the results, including the one from Truth Social's AI?
TRUMP fragrance, gold watch on table as Trump headlines meme coin event (10/2/26); Trump reported more than $1.4B in income from crypto ventures: Filings (7/1/26); "Nearly a Million Investors Lost a Total of $3.8 Billion on Trump Crypto Coin" - Election Law Blog; Trump has amassed staggering wealth in ‘most openly corrupt’ presidency; Tracking the Trump family's business deals and profits in his 2nd term; How Trump’s $500 Million UAE Crypto Deal Trades U.S. National Security for Family Profit: UAE ‘spy sheikh’ takes 49% stake in Trump family crypto bank venture
Trump is similar to the fictional President Buzz Windrip created by the novelist Sinclair Lewis in his 1935 novel It Can't Happen Here, as I noted in an a YT video published over 2 years ago. Trump Similarities to Buzz Windrip in the Sinclair Lewis Novel "It Can't Happen Here" - YouTube As I noted there, Trump has many personality traits of the Lewis character Elmer Gantry as well IMO. {My Video published over two years ago: Trump's Personality - YouTube}
{Todd Blanche Must Be Held Accountable for Pattern of Serious Ethical Misconduct; Ethics Complaint Filed Against Acting Attorney General Todd Blanche for Alleged Violations of the New York Rules of Professional Conduct – LDAD}
Oil deal involving Witkoff, Kushner enters Ukraine war peace talks: Report
Trump has come up with another way to buy votes just prior to the midterm elections. Trump Announces $90 Payments for Seniors on Medicare Ahead of Midterm Elections for Premium Costs
Trump has an outstanding offer of $5,000 per adult provided the republicans maintain control over the House and Senate. Trump reiterates pledge to send $5,000 checks as elections loom (10/4/26); Trump promises $5,000 to every US adult if Republicans win midterms | AP News;
Trump Administration Mails $500 ACA Refund Checks to About 950,000 Enrollees What Trump has actually done was to raid a fund, just prior to the midterm elections and without any legal authority, that collected user fees from health insurance companies. User Fees for HealthCare.gov - GetInsured ("These fees cover a range of essential services, including technology support, call center operations, and outreach efforts to enroll more Americans in health insurance plans.")
At the end of Trump's first term, the Kaiser Foundation estimated that his fund had more than $1 billion of unspent user fees. So who built up the surplus you may ask? The amount of the fee changes each year. The fees are set each year.
During the Biden Administration, the percentage was at times lower than during Trump's first term. Trump to begin sending $500 ACA refund checks to 1 million Americans As noted in the previous linked article, the fee was at 3.5% of the premium charged in 2016-2019 during Trump first term and was reduced to 3% in 2020 and 2021. Biden reduced the fee prevailing during Trump's first term to 2.25% in 2022, 2.75% in 2023, and 2.2% in 2024. No representation made by Trump can be taken at face value without checking the facts.
Maybe the republicans will have a more targeted buy-the-vote strategy in 2028, but they need to find a way to just target swing voters with taxpayer money.
A considerable amount of the buy-the-vote funds from a government running $2 trillion annual budget deficits is going to persons who will vote for republican candidates without being paid to do so.
Back in the day, when there were paper ballots and the voters just put the ballot in a box, observed by everyone in the room, it was easier to just pay a dollar or two in cash ($5 max), and then watch them put the correct ballot into the box. What can you say? It is a lot more expensive to buy votes now.
Trump's various buy-the-vote strategies may work.
What We Know So Far About 2026 ACA Marketplace Enrollment, Premiums, and Deductibles | KFF
Justice Alito calls same-sex marriage a 'decisive' turn 'against religious liberty' in new book - ABC News What does gay marriage have to do with religious liberty?
I think Alito may be referring to a clerk, who opposes gay marriage, having to perform a ministerial and perfunctory task of entering marriage license form data into a computer when that can not be done online or done by anyone else in the office. There was a ginned up case involving that issue. Kim Davis - Wikipedia
It is only a question of time before the 6 Republican Justices overrule the gay marriage decision in Obergefell v. Hodges, a 5 to 4 ruling with 3 of the Justices in the majority no longer part of the Court (Ginsberg, Kennedy and Breyer). Obergefell v. Hodges | 576 U.S. 644 (2015). Chief Justice Roberts, Alito, Scalia and Thomas wrote dissents. I suspect that there is some reluctance to overrule Hodges right now only because of the blowback which has already reached a very high level for the Robert's Court. When it occurs, and it will happen, the overruling will be a 6 to 3 decision.
Trump says his super PAC will now pay for controversial taxpayer-funded promotional ads - ABC News It is illegal for Trump to coordinate with a super PAC, but he is above the law. Trump's defense of those taxpayer funded pro-Trump ads is couched in his normal Doublespeak which works on tens of millions as it has throughout history for authoritarian leaders. Super PACs Can’t Coordinate with Candidates — Here’s What Happened When One Did | Campaign Legal Center; Schumer reports Trump to FEC for coordinating with super PAC spending on ‘propaganda’ ads
Our Dear Leader has neutered the FEC. Everything you need to know about the state of the FEC - OpenSecrets News; Weeks before Election Day, the nation's campaign finance regulator can't enforce the law - CBS News
Warnings were made prior to November 2024 and were simply ignored and dismissed by up to 77M voters. Donald Trump meets the definition of a fascist, former White House chief of staff John Kelly, a Retired 4 Star Marine General says - ABC News; Ex-Trump aides emerge to back Kelly’s harsh warnings - POLITICO; Milley calls Trump ‘a fascist to the core’ in new Woodward book (Milley is a retired 4 star general who served as Trump Chairman of the Joint Chiefs of Staff)
Jan 6 rioter says she wants a ‘refund’ for attacking the US capitol | The Independent In Trump's America, those who were convicted or pled guilty to crimes committed in the January 6th insurrection, including attacking police officers, were true "patriots" who deserve, not only to be pardoned by our Dear Leader which he quickly did after becoming President again, but also rewarded for their behavior that day. They were in Trump's America "hostages".
It was after all just a simple protest walk through the capitol as everyone can see from the video evidence, according to Trump and others, and not an attempt to disrupt and prevent the peaceful transfer of power.
As I understand the Trumpster version of January 6th, there were numerous Antifa people who were planted by the FBI to cause trouble and make Trump look bad. Those were not Trump supporters but part of a deep state conspiracy hatched many years ago in a Pizza restaurant somewhere in North Virginia. The planning included having the FBI paid agitators attend Trump rallies, buying Trump clothing and creating social media accounts praising Trump for many years before January 6th as part of their deep state cover. Then the FBI plan was to have them show up on January 6th wearing everything imaginable that would identify them as Trump's True Believers, including waving Trump flags, and then cause as much mayhem as possible. That is close to my understanding of the republican narrative - some embellishments to explain how the Antifa people were successfully disguised as Trump supporters - of what really happened on January 6th.
Trump pardons some 1,500 Jan. 6 rioters, commutes 14 sentences (1/20/25); “Trump has called all patriots”: 210 Jan. 6th criminal defendants say Trump incited them - CREW | Citizens for Responsibility and Ethics in Washington (2/14/24); Trump on Jan. 6 insurrection: 'These were great people' - POLITICO; January 6 U.S. Capitol Attack | Background, Events, Criminal Charges, & Facts | Britannica; Meet some of the violent Jan. 6 rioters Donald Trump keeps calling 'hostages'
Assuming the U.S. remains a free country, which is questionable given the the already considerable and accelerating power of authoritarians, Trump's reality creations will be accepted only by his cult members in the future, who are now and will always be permanently ensconced in an impenetrable Alternate Reality. U.S. is sliding toward authoritarianism, hundreds of scholars say (4/22/25, and only more obvious since then)
"'Honey Please': Kimberly Guilfoyle, Trump's Ambassador to Greece, Pushed Donor to Wire $100,000 to Her Amex Account" - Election Law Blog; Trump donor accuses ‘grifter’ Kimberly Guilfoyle of $100,000 quid pro quo Guilfoyle's attorney questioned the authenticity of the email messages. US ambassador's interventions in Greece spark controversy in Bucharest and Athens; Marco Rubio reacts to questions about Kimberly Guilfoyle allegations - YouTube
Pentagon official says Fort Hood shooter Nidal Hasan's execution will be live-streamed - ABC News The republican candidate for North Carolina's School Superintendent said she wanted to watch Obama's execution on pay-per-view. Her support for QAnon conspiracy theories and a lack of experience in school administration, along with her calls for executing some Democrats, almost led to this republican being elected in November 2024. Democrat Defeats a State Schools Chief Candidate Who Called for Public Executions; GOP candidate for NC schools chief has spread falsehoods, ‘groomer’ rhetoric : NPR The GOP candidate for North Carolina's Governor was worse. {My videos: I estimate that Mark Robinson will receive over 2.2 million republican votes in November - YouTube; Republican down ballot candidates in North Carolina: Michelle Morrow and Mark Robinson; Mark Robinson Republican Candidate for the N C Governor and Likely Primary Winner - YouTube; GOP Candidate for North Carolina's Governor Mark Robinson - More Disturbing Comments - YouTube} Those republican candidates in a "purple" state and the number of votes received by them go a long way in explaining IMO what has happened in the U.S., as does the republicans nominating Trump 3 times as their candidate for President and 77+M voting to give him a second term. America Did This to Itself - The Atlantic (11/6/24)
Trump (10/8/26): "The White House considers anyone that uses the term, “Artificial Intelligence,” as opposed to the highly accepted new and more accurate term, “Super Intelligence,” THE ENEMY!"
Trump: "The people of Texas are not going to let a weak, gutless, self-hating, transgender-promoting freak show destroy everything that we built. So you need to go out and vote for Ken Paxton for U.S. Senate. A vote for Talafreako is a vote to turn Texas into a dirty, failing, crime-ridden third world dumping ground". At San Antonio Rally, Trump Warns He’ll ‘Never Forgive’ Texas if Talarico Wins (10/7/26) Talafreako is Trump's name for James Talarico.
Trump’s billionaire Pentagon deputy defiant after he's confronted with corruption claims - Raw Story
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1. Small Ball Stock/Stock Fund Purchases:
A. Added to JRI - Bought 10 at $11.02; 10 at $10.76 - Schwab Account:
Quote: Nuveen Real Asset Income and Growth Fund (JRI) at Google Finance - Leveraged CEF
Cost: $217.76
I am buying back slowly shares sold at $13.07. Item # 1. Eliminated JRI - Sold 100+ at $13.07 (7/14/26 Post)(profit snapshot = $448.92) Each subsequent purchase must be at the lowest price in the chain.
Last Discussed: Item # 2.D. Added to JRI - Bought 10 at $11.95 (9/19/26 Post)
Reduced from $12.04.
Schwab changed without my consent the cost method for all CEFs owned in my account. The change was to average cost from original cost minus any ROC adjustments to the original cost numbers. I am assuming this was done for all customers. No other broker has forced this cost method on its customers.
Dividend: Monthly at $.1335 per share ($1.602 annually)
JRI Dividend History & Date | Seeking Alpha
I am reinvesting the dividend for as long as the likely reinvestment price lowers my average cost per share and is at a >5% discount to net asset value per share.
Yield at New AC: 13.98%
Next Ex Dividend: 10/15/26
Data Date of 9/25/26 Trade:
Closing Net Asset value per share: $12.21
Closing Market Price: $11.02
Discount: -9.75%
Average 3 Year Discount: 6.22%
Sourced: JRI - CEF Connect (Click "Pricing Information" Tab)
Data Date of 10/5/26 Trade:
Closing Net asset value per share: $11.99
Closing Market Price: $10.65
Discount: -11.18%
JRI Realized Gains to Date: $1,495.67
Goal: Any realized gain before ROC adjustments to the original purchase prices + the dividends.
B. Added to BCE in Schwab Account - Bought 5 at $19.96; 5 at $19.64:
Quote: BCE (BCE) - Canadian Based Telecommunications Company
Cost: $197.99
BCE, AT&T, Verizon and T Mobile are declining today based on this news. SpaceX Announces Major ‘Starlink Mobile’ Deal—AT&T, Verizon And T-Mobile Stocks Slide - Forbes I recently eliminated my small ball AT&T position in part based on this potential competition. Item # 1.A. Eliminated T - Sold 6 at $26.3; 15 at $26.16 (9/12/26 Post)(profit snapshots = $104.38). I do not have sufficient information to assess the viability of Starlink's competitive threat using this low band wireless spectrum. The incumbent carriers are dismissing the threat as noted in the Forbes article. And, importantly for BCE, I do not know whether the spectrum acquisition includes Canada.
BCE Detailed Earnings Estimates - Zacks.com
Investment Category: Bond Substitute (defines the goal only)
5 Year Chart: Major Bear Market Pattern
New average cost per share this account: $22.67 (26 shares)
 |
| Snapshot Intraday on 10/6/26 after last add |
Reduced from $24.46.
Dividend: Quarterly at C$.4375
When owned in a U.S. citizens taxable account, Canada will withhold a 15% tax provided an investor's broker claims this limit for its customers at the source. Foreign Tax: Credit or Deduction? | Charles Schwab
The quarterly dividend was slashed from C$.9975 effective for the 2025 second quarter payment, which was prudent IMO.
Last Dividend in USDs: US$.3143
BCE Dividend History & Date | Seeking Alpha
Last 4 Dividends in USDs: $1.2648 per share
Yield Using US$22.67 and US$1.26 Annual: 5.558%
Last Ex Dividend: 9/15/26
Last Earnings Report (Q/E 6/30/26):
All amounts are in Canadian Dollars:
Revenues: $6.176B, up from $6.085B
E.P.S. $.6, down from $.63
Adjusted E.P.S. $.65, up from $.63
Subscriber Data:
Analyst Reports (available to Schwab Customers)
Morningstar (9/1/26): 4 stars with a fair value estimate of US$29, no moat and medium uncertainty.
Argus (8/13/26): Hold
S&P (10/3/26): 3 stars with a 12 month price target of US$26
For a stock classified in the bond substitute category, a 2% or higher annual realized return based on my original cost numbers plus the dividends is viewed as satisfactory. At $22.67, that would be an annual price gain of about $.45. So eliminating this stock at $25 within 3 years would be characterized by me as a satisfactory result.
C. Added to BGR in Schwab Account - Bought 5 at $16.98:
Quote: Blackrock Energy and Resources Trust (BGR) at Google Finance - Stock CEF
Cost: $84.9
Last Discussed: Item # 1.B. Eliminated BGR in Fidelity Account - Sold 25+ at $17.12 (9/7/26 Post)(profit snapshot = $49.58) I decided to own shares only in my Schwab account where idle funds earn nothing in a sweep account.
Sponsor's website: Energy and Resources Trust | BGR
Top 10 Holdings as of 8/31/26:
BGR Portfolio | Morningstar (accessible to non-subscribers)
Last Discussed: Item # 4.E. Added to BGR in Schwab Account - Bought 5 at $14.65 (9/1/26 Post); Item # 3.A. Added to BGR in Schwab Account - Bought 10 at $16 (5/22/26 Post); Item # 6.A. Added to BGR in Fidelity Account - Bought 5 at $15.4 (4/25/26 Post); Item # 5.B. Bought 10 BGR at $15.64 - Schwab Account (3/9/26 Post)
New average cost per share: $15.82 (30+ shares)
Dividends: Monthly at $.0973 per share ($1.1676 annually)
BGR Dividend History & Date | Seeking Alpha
ROC: Return of Capital.
Substantial ROC support. All of the shares sold were bought this year. When the sponsor reports the ROC adjustments to the original cost numbers, the taxable profit will increase slightly while most of the dividends paid on the share will be classified as returns of capital
Return of Capital and CEFs: Part 3 - Fidelity; Return of Capital and CEFs: Part 2 - Fidelity
The only way to entirely support this dividend with income is through realized capital gains.
Realized capital gains are being absorbed by a substantial capital loss carryforward. BlackRock Energy and Resources Trust SEC Filed 2025 Annual Report at page 140
The $24.6+M in capital gains realized in 2025 were in effect wiped out as dividend support through utilization of the capital loss carryforward. Given the large remaining capital loss carryforward, I anticipate that the ROC classifications for dividends will remain high for a long time.
Under current tax law, the cost basis for inherited shares can be stepped up to the market price as of the owner's date of death who did not pay a tax on that part of the dividends classified as ROC. Cost basis for inherited stock - capital gains, NUA | Fidelity
Data Date of 9/30/26 Trade:
Closing Net Asset Value per share: $18.74
Closing Market Price: $16.9
Discount: - 9.82%
Average 3 Year Discount: -8.7%
Average 5 Year Discount: -9.76%
Sourced: BGR - CEF Connect (Click "Pricing Information" Tab)
D. Added to SAFE - Bought 5 at $11.91 - Fidelity Account:
Quote: Safehold Inc (SAFE) at Google Finance
Cost: $59.55
Investment Category: Equity REIT Common and Preferred Stock Basket Strategy
Website: Safehold - The Modern Ground Lease Company
Last Elimination: Item # 2.C. Eliminated SAFE - Sold 15+ in Fidelity Account at $16.02 (7/8/26 Post)(profit snapshot = $40.99) Item # 2.C. Eliminated SAFE in Schwab Account - Sold 41+ at $15.71 (6/18/26 Post)(profit snapshot = $70.6)(discussed the 2026 first quarter report in that post, where I noted that both GAAP and Adjusted GAAP declined, SEC Filed Press Release and SEC Filed Slide Presentation)
Safehold SEC Filed 2025 Annual Report
New average cost per share: $12.68 (25 Shares)
Reduced from $12.88.
Dividend: Quarterly at $.177 ($.708 annually)
SAFE Dividend History & Date | Seeking Alpha
Yield at $12.68: 5.58%
Last Ex Dividend: 9/30/26
Last Earnings Report (Q/E 6/30/26): I discussed this report here: Item #1.E. Restarted SAFE in Fidelity Account - Bought 10 at $13.15; 5 at $12.9; 5 at $12.3 (9/25/26 Post)
SEC Filed Press Release and Supplemental (most of the information is in the supplemental filing)
E. Added to SCHD - Bought 5 at $32.81 - Fidelity Account:
Quote: Schwab US Dividend Equity ETF (SCHD) at Google Finance
Cost: $164.05
Sponsor's Website: SCHD | Schwab U.S. Dividend Equity ETF
There was a 3 for 1 stock split in October 2024.
Top 10 Holdings as of 10/1/26:
Holdings: 102
Expense Ratio: .06%
New Average cost per share this account: $33.04 (10 shares)
The previous purchase was not discussed.
Dividends: Quarterly at a variable rate
SCHD Dividend History & Date | Seeking Alpha This history is adjusted for the October 2024 3 for 1 stock split.
Last 4 Dividends per share: $1.054
Yield at $33.04 Using $1.05 Annual: 3.178%
Last Ex Dividend: 9/23/26
SCHD at Morningstar Currently rated 3 stars.
SCHD – Performance – Schwab US Dividend Equity ETF™ | Morningstar As of 10/2/26, the average annual total returns over 3, 5, 10 years were 15.99%, +9.31%, and 12.51% respectively. The YTD total return through 10/2 was 22.22% which probably saved the 3 star rating, while the total returns in 2022-2025 probably kept the rating from rising to 4 stars.
According to the previously linked page at Morningstar, this fund has underperformed its "category" over the 3 and 5 year periods but outperformed over the past year and 10 years through 10/2.
I have 2 issues with this ETF (1) the dividend yield is too low given my age and investment objectives that emphasize current income generation and (2) the yield is also lower than the current inflation rate.
I will probably average down only.
Vanguard has the Vanguard Dividend Appreciation ETF (VIG), which has a .04% expense ratio. Morningstar also rates that one at 3 stars. VIG – Morningstar I have a small ball position in the Vanguard High Dividend Yield ETF (VYM) that also has a 3 star rating. I view the dividends paid by "high dividend" ETFs to be high, using an historical perspective, only compared to the current dividend yield of the S&P 500 ETF (SPY) which is currently less than 1%. I would not characterize the yields of any of these ETFs as high using my definition of high which is over 4% in today's richly valued stock market, down from about 8% in 1982.
S&P 500 Dividend Yield - Multpl
Last VYM Discussion: Item # 2.D. Bought 1 VYM at $66.72; 1 at $65.27; 1 at $63.8; 1 at $62.7; 1 at $60.78 (4/25/20 Post)
F. Added to BCX in Schwab Account - Bought 5 at $11.77:
Quote: BlackRock Resources & Commodities Strategy (BCX) at Google Finance - Stock CEF
Cost $58.83
BCX Page at Morningstar - Unrated.
Sponsor's website: Resources & Commodities Strategy Trust | BCX
Top 10 Holdings as of 8/31/26:
BCX will have a higher weighting in non-E&P companies compared to BGR, including significant weightings in metal mining companies (gold, silver and other metals).
Last Discussed: Item # 4.F. Added to BCX in Schwab Account - Bought 5 at $10.53 (7/1/26 Post); Item # 5. C. Started BCX - Bought 10 at $12.1; 10 at 12 (6/12/26 Post)
BlackRock Resources & Commodity (BCX) Portfolio | Morningstar
New average cost per share: $11.91 (30+ shares)
Raised from $11.83
Dividend: Monthly at $.0697 per share ($.8364 annually)
BCX Dividend History & Date | Seeking Alpha
Heavy ROC Support.
Yield at $11.91: 7.023%
Next Ex Dividend: 10/15/26
Data Date of 9/30/26 Trade:
Closing Net Asset value per share: $12.99
Closing Market Price: $11.87
Discount: - 8.62%
Average 3 Year Discount: - 9.62%
Sourced: BCX - CEF Connect (Click "Pricing Information" Tab)
Goal: Dividends + realized annualized gain selling the shares, prior to ROC adjustments to the original purchase prices, of at least 2% per year.
G. Added to RITM in Schwab Account - Bought 5 at $9.08; 5 at $8.75; 5 at $8.49:
Quote: RITHM Capital (RITM) at Zacks
Cost: $131.59
RITM is a hybrid REIT that is involved in a variety of disparate businesses. I view the company as overly complicated that results in the stock selling at below book value per share IMO. A flavor to this complexity is available by reading how the company briefly summarizes its business segments:
 |
| 10-Q at pages 95-96 |
10-Q for the Q/E 6/30/26
RITM Detailed Earnings Estimates - Zacks.com As of 10/5/26, the average E.P.S. estimate for 2026 was at $2.26 and at $2.29 for 2027. Those are not GAAP number but earnings available for distribution according to how the company calculates that numbers.
New average cost per share this account: $9.58 (51+ shares)
 |
| Snapshot Intraday on 10/7/26 after last add |
Reduced from $9.91.
Dividend: Quarterly at $.25 per share
Yield at $9.58: 10.44%
The yield highlights and emphasizes the risk.
Last Ex Dividend: 10/1/26 (owned 41+ as of)
Last Earnings Report (Q/E 6/30/26):
SEC Filed Earnings Press Release
Revenues: $1.282+B
GAAP E.P.S. $.04
Earnings Available for Distribution: $.60
Reconciliation:
Analyst Report Available to Schwab Customers:
Argus (8/11/26): Buy with a $12 price target.
H. Added to CHCT in Schwab Account- Bought 5 at $13.69; 5 at $13.4:
Quote: Community Healthcare Trust Inc (CHCT) - Healthcare REIT
Cost: $135.45
Properties as of 6/30/26:
10-Q for the Q/E 6/30/25 at pages 9-10
As previously discussed, CHCT suffered a blow when a tenant, operating 6 properties, became inconsistent in paying rent. A new tenant is attempting to acquire the properties, but the deal has not yet been finalized as discussed here:
Investment Category: Equity REIT Common and Preferred Stock Basket Strategy
I am gradually buying back shares sold in my Fidelity at $14.29: Item # 1.E. Eliminated Duplicate Position in CHCT - Sold 16+ at $14.29 (9/7/26 Post) Each subsequent purchase must be at the lowest price in the chain with a maximum 100 shares excluding shares purchased with dividend.
New average cost per share: $15.54 (81+ shares)
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| Snapshot Intraday on 10/6/26 after last add |
Reduced from $15.84.
Dividend: Quarterly at $.33 per share ($1.32 annually), slashed from $.48 effective for the CHCT Dividend History & Date | Seeking Alpha Dividend slashes are not helpful.
Yield at $15.54: 8.49%
Last Ex Dividend: 8/19/26
Last Earnings Report (Q/E 6/30/26): I discussed this report here: Item # 1.L. Pared CHCT in Schwab Account - Sold 15 at $19.07 (8/11/26 Post)(profit snapshot = $1.66)(SEC Filed Press Release for the Q/E 6/30/26; SEC Filed Supplemental-properties are listed starting at page 16 & ending at page 22); SEC Filed Investor Presentation) This pare occurred shortly before CHCT slashed its quarterly dividend $.33 from $.48, which I discussed in a comment published on 8/5/26.)
I. Added to PNNT - Bought 10 at $3.235:
Quote: PennantPark Investment Corp. (PNNT) at Google Finance
Cost: $32.35
In my last post, I discussed this externally managed BDC that is deeply out of favor. I am just averaging down in 10 share lots until I hit 100 shares.
PNNT Detailed Earnings Estimates - Zacks.com
SEC Filed Annual Report for the Fiscal Year Ending 9/30/25 (Risk factor summary starts at page 20 and ends at page 38)
New Average cost per share: $3.66 (70 shares)
Reduced from $3.73
The last reported net asset value (NAV) per share was $6.56 as of 6/30/26. When the stock price has such a large discount to NAV per share, the cause IMO is a belief that the NAV per share will continue to significantly decline. There may also be some doubts about the values assigned to loans, so that the NAV number is viewed as too high.
Regular Dividend: Monthly at $.04 per share ($.48 annually), slashed from $.08. effective for the 4/1/26 payment.
Special Monthly Dividends: $.04 per share.
Since slashing the regular dividend by 50%, PNNT has paid 7 special dividend of $.04 per share seven with the last payment made on 10/1/26.
Yield Using Regular Dividend Only: 13.11%
I do not anticipate that the special dividend will last for long.
Last Ex Dividend: 9/15/26 ($.04 regular; $.04 special)
Next Ex Dividend: 10/15/26 ($.04 regular; $.04 special)
Last Earnings Report (Q/E 6/30/26): I discussed this report in a recent post: Item # 4.D. Restarted PNNT - Bought 30 at $3.84 (8/18/26 Post); SEC Filed Earnings Press Release
Last Eliminations: Item # 1.F. Eliminated PNNT - Sold 10+ at $7.23 - Fidelity Account (9/8/25 Post)(profit snapshot = $43.52); Item # 3.D. Eliminated Duplicate Position in PNNT - Sold 26+ at $6.96 - Schwab Account (1/29/25 Post)(profit snapshot = $42.88)
PNNT Realized Gains to Date (includes RI accounts): $259.88
Goal: As with all BDC stocks, the goal is simply to earn any return in excess of the dividend yield.
J. Added to PFLT - Bought 5 at $6.77 - Fidelity Account:
Quote: PennantPark Floating Rate Capital (PFLT) at Zacks - Externally Managed BDC
Cost: $33.85
Investment Category: Lottery Ticket with dividends
I discussed this BDC in my last post. This is just another small ball average down.
FLT Detailed Earnings Estimates at Zacks.com
Website: Home - PennantPark
SEC Filed Annual Report for the F/Y ending 9/30/25 (Summary of risk factors starts at page 18 and ends at page 37)
5 Year Chart: Major Bear Market Pattern
New Average cost per share this account: $7.65 (46+ shares)
Reduced from $7.77.
Last reported net asset value per share = $10.26 as of 6/30/26
Dividend: Monthly at $.08 per share ($.96 annually), recently slashed from $.1025 effective for June 2026 monthly payment.
PFLT Dividend History & Date | Seeking Alpha
I am reinvesting the dividend for as long as the likely reinvestment price reduces my average cost per share.
Yield at New AC: 12.55%
Next Ex Dividend: 10/15/26
Last Earnings Report (Q/E 6/30/26): I discussed this report here: Item # 5.A. Bought 5 PFLT in Fidelity Account at $6.99 (8/11/26 Post); SEC Filed Press Release; 10-Q This post also contains snapshots of the largest gains in this stock. Realized Gains PFLT to Date: $276.56
Goal: Any total return in excess of the dividends.
2. Corporate Bonds:
With interest rates continuing to move higher, I would just assume, without checking, that the bonds discussed below can now be bought at lower prices.
A. Bought 2 Waste Management 4.5% SU Maturing on 3/15/28 at a Total Cost of 99.557:
%204.5%25%203:15:28%20(9:21:26).png)
Issuer: Waste Management Inc (WM) at Google Finance
Cost: $1,991.14
Filled on 9/21/26
WM Detailed Earnings Estimates at Zacks.com
WM SEC Filed Earnings Press Release for the Q/E 6/30/26 (Revenues reported at $6.684B with net income at $785M adjusted to $813M)
FINRA Page: Bond Page | FINRA.org
Credit Ratings: A3/A-
YTM at Total Cost: 4.813%
Current Yield at TC: 4.52%
B. Bought 2 Waste Management 4.875% SU Maturing on 2/15/29 at a Total Cost of 99.756 - Interactive Brokers Account:
%202:15:29%204.875%25.png)
Issuer: See Item #2.A. above.
Cost: $1,995.12
Filled on 9/22/26
FINRA Page: Bond Page | FINRA.org
Credit Ratings: A3/A-
YTM at Total Cost: 4.982%
Current Yield at TC: 4.887%
C. Bought 2 Athene Holding 4.125% SU Maturing on 1/12/28 at a Total Cost of 98.586 - Interactive Brokers Account:
%20IB.png)
Issuer: Athene Holding is owned by Apollo Global Management (APO).
Cost: $1,971.72
Filled on 9/23/26
Website: Leading Annuity & Retirement Services Provider | Athene
SEC Filed Financial Report for the Q/E 5/30/26
10-Q for the Q/E 5/30/26 Debt is listed at page 56
FINRA Page: Bond Page | FINRA.org
Credit Ratings: Baa1/A-
YTM at Total Cost: 5.251%
Current Yield at TC: 4.184%
I now own 4.
The prior purchase was not discussed here:
%204.125%25%201:12:28.png) |
| 2 at a 97.876 TC on 2/13/25 - Fidelity Account |
D. Bought 2 Nextera Energy Capital 4.9% SU Maturing on 2/28/28 at a Total Cost of 99.854:
%204.9%25%202:28:28%20(9:23:26).png)
Issuer: Wholly owned subsidiary of NextEra Energy Inc (NEE), a utility holding company who guarantees the notes.
Cost: $1,977.08
Filled on 9/23/26
DoNEE SEC Filed Earnings Press Release for the Q/E 6/30/26 (Revenues = $7.524B with net income reported at $3.144B adjusted to $2.407B)
FINRA Page: Bond Page | FINRA.org
Credit Ratings: Baa1/BBB+
YTM at Total Cost: 5%
Current Yield at TC: 4.907%
E. Bought 2 Potomac Electric 5.2% First Mortgage Bonds Maturing on 3/15/34 at a Total Cost of 97.981:
%20(9:23:26).png)
Issuer: One of the wholly owned operating subsidiaries of the utility holding company Exelon Corp (EXC)
Cost: $1,959.62
Filled on 9/23/26
EXC 10-Q for the Q/E 6/30/26 Potomac Electric results can be found at page 35.
FINRA Page: Bond Page | FINRA.org
Credit Ratings: A2/A
YTM at Total Cost: 5.533%
Current Yield at TC: 5.307%
Last Discussed: Item # 2.F. Sold 2 Potomac Electric 5.2% First Mortgage Bonds Maturing on 3/15/34 at 102.554 (8/12/25 Post)("profit" snapshot = $72.08)- Item # 3.A. Bought 2 Potomac Electric Power 5.2% First Mortgage Bonds Maturing on 3/15/34 at a Total Cost of 98.85 (5/30/25 Post)
When given the opportunity, I will trade the longer term corporate bonds.
F. Bought 1 Becton Dickinson 4.874% SU Maturing on 2/8/29 at a Total Cost of 98.918:
%204.874%202:8:29%20(9:24:26).png)
Issuer: Becton, Dickinson and Company (BDX) at Zacks
Cost: $989.18
Filled on 9/24/26
BDX Detailed Earnings Estimates at Zacks.com
BDX SEC Filed Earnings Press Release for the Q/E 6/30/26
FINRA Page: Bond Page | FINRA.org
Credit Ratings: Baa2/BBB
YTM at Total Cost: 5.3635%
Current Yield at TC: 4.927%
G. Bought 2 Hewlett Packard Enterprise 4.5% SU Maturing on 3/23/28 at a Total Cost of 99.152:
%203:23:28%204.5%25%20IB.png)
Issuer: Hewlett Packard Enterprise (HPE) at Zacks
Cost: $1,983.04
Filled on 9/24/26
HPE Detailed Earnings Estimates - Zacks.com
HPE SEC Filed Earnings Press Release for the Q/E 7/31/26 (Revenues = $12.213B with net income reported at $1.511B)
HPE SEC Filed Earnings Press Release for the Q/E 4/30/26
FINRA Page: Bond Page | FINRA.org
Credit Ratings: Baa2/BBB
YTM at Total Cost: 5.096%
Current Yield at TC: 4.538%
H. Bought 2 Rexford Industrial LP 5% SU Maturing on 6/15/28 at a Total Cost of 99.625:
%206:15:28%205%25%20(9:25:26).png)
Issuer: Operating entity for Rexford Industrial Realty Inc (REXR) who guarantees the notes.
Cost: $1,992.5
Filled on 9/25/26
Issuer: Rexford Industrial Realty Inc (REXR) at Google Finance - Industrial REIT
I recently discussed eliminating my common stock position. Item # 1.A. Eliminated REXR - Sold 15+ at $39.07 (9/16/26 Post)(profit snapshot = $97.18)
FINRA Page: Bond Page | FINRA.org
Credit Ratings: Baa1/BBB+
YTM at Total Cost: 5.227%
Current Yield at TC: 5.019%
I. Bought 2 Parker Hannifin 4.75% SU Maturing on 9/14/28 at a Total Cost of 99.261:
%204.75%25%209:14:28%20(9:25:26)%20.png)
Issuer: Parker-Hannifin Corp (PH) at Google Finance
Cost: $1,985.22
Filled on 9/25/26
SEC Filed Earnings Press Release for the Q/E 6/30/26 (Revenues at $5.755B with net income at $1.091B)
FINRA Page: Bond Page | FINRA.org
Credit Ratings: A3/BBB+
YTM at Total Cost: 5.15%
Current Yield at TC: 4.785%
Other Owned PH SU Bonds:
2 of the 4.25% SU Maturing on 9/15/27, Bond Page | FINRA.org, discussed at Item # 2.B. Bought 2 Parker Hannifen 4.25% SU Maturing on 9/15/27 at a Total Cost of 99.911 (5/26/26 Post)
3. Treasury Notes Purchased in the Secondary Market:
A. Bought 1 T Note 4.625% Coupon Maturing on 9/30/28 at 99.4414:
%209:30:28%204.625%25%20.png){kind=small}
YTM: 4.919%
Cost: $994.41
Filled 9/23/26
B. Bought 1 T Note 4.625% Coupon Maturing on 4/30/29 at 99.2344:
%204:30:29%20%204.625%25%20.png){kind=small}
YTM: 4.941%
Cost: $992.34
Filled 9/24/26
C. Bought 1 T Note 4.15% Coupon Maturing on 11/15/27 at 99.3945:
%2011:15:27%204.15%25%20S%20.png){kind=small}
YTM: 4.677%
Cost: $993.95
Filled 9/25/26
I now own 4.
D. Bought 1 Treasury Note 4.375% Coupon Maturing on 8/31/28 at 99.0039:
%208:31:28%204.375%25%20S%20.png){kind=small}
YTM: 4.923%
Cost: $990.04
Filled 9/28/26
I now own 3.
4. Treasury Bills Purchased at Auction:
A. Bought 5 T Bills at the 10/5/26 Auction:
%204:8:27%20.png){kind=small}
182 Day Bills
Matures on 4/8/27
Interest: $105.28
Investment rate: 4.314%
5. Treasury Note Purchased at Auction:
A. Bought 1 T Note % Coupon at the Auction:
%2010:15:29%204.875%25%20.png){kind=small}
Three Year Note
Matures on 10/15/29
Coupon: 4.875%
YTM at 4.932%, the highest auction yield since May 2006.
U.S. Pays Highest Borrowing Costs for Three-Year Notes Since 2006 | Morningstar
I will average down only with purchases in the secondary market which is how I am attempting to manage risks for the short term T Notes.
6. Equity Preferred Stock:
A. Eliminated MNSBP - Sold 15 at $24.5:
Quote: MainStreet Bancshares Preferred Stock
Proceeds: $367.49
Issuer: MainStreet Bancshares Inc (MNSB) at Google Finance - A Bank Holding Company
The operating bank "operates seven branches in Herndon, Fairfax, McLean, Leesburg, Middleburg, Clarendon, and Washington, D.C."
MNSB SEC Filed Earnings Press Release for the Q/E 6/30/26 Both the NPL and NPA ratios are far too high IMO. The non-accruing loans to total loans was at 3.14%, up from .4%. The non-performing assets to total assets was at 2.77%, up from .34%.
Last Discussed: Item # 6.A. Added to MNSBP - Bought 5 at $22.78 (9/19/24 Post); Item # 4.B. Started MNSBP - Bought 10 at $22.95 (9/5/24 Post)
Profit Snapshot: $24.09
Par value: $25
Coupon: 7.5%
Dividends: Paid quarterly, qualified and non-cumulative
Optional Call: On or after 9/30/25
Maturity: None
Stopper Clause: Yes, standard. To eliminate the preferred dividend, the company must first eliminate its cash common stock dividend. The company has no obligation to ever pay a legally eliminated non-cumulative dividend. Preferred dividend payments must, however, resume, once common share cash dividends are paid. Bank holding companies pay non-cumulative dividends on their preferred stocks.
The downside risk of a preferred stock issued by a bank holding company is a zero price (or a few cents above zero), which will likely be realized when and if the FDIC seizes the operating subsidiary. The debt owed by the bank holding company will generally far exceed the value of any remaining assets.
B. Eliminated CCNEP - Sold 35 Shares at $24.6:
Quote: CCNEP at Google Finance
Issuer: CNB Financial Corp (CCNE) Google Finance - A Bank Holding Company
Proceeds: $860.98
Profit Snapshot: $148.6
Buy Discussions: Item # 3.A. Added to CCNEP - Bought 5 at $20 (11/11/23 Post); Item # 3.A. Added 5 CCNEP at $21.84; 5 at $21.61 (7/29/23 Post); Item # 2.B. Restarted CCNEP - Bought 5 at $22.2; 5 at $20.75; 5 at $18.75; 5 at $18.4 (5/13/23 Post)
Par Value: $25
Coupon: 7.125%
Maturity: None, Potentially Perpetual
Issuer Optional Call: On or after 9/1/25 at par value + accrued and unpaid dividends.
Stopper Clause: Standard
Dividends: Paid quarterly, qualified and non-cumulative.
Prior Sell Discussion: Item # 5.A. Eliminated CCNEP - Sold 10 at $26 (1/16/23 Post)(profit snapshot = $7.08)
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.
