EPRT, FENY, FHN, HBI, MPW, OFS, SLG, WCP:CA, XOM

Economy:  

CPI Annual Increase through May 2022 = +8.6%

Core Annual Increase = +6%

Consumer Price Index Summary - 2022 M05 Results

Wholesale prices rose 10.8% in May, near a record annual pace

Treasury yields popped higher in response to the May CPI report: 

Nominal Treasury Yields June 22: 

Real Yields- TIPs (real yield is the yield over or under CPI inflation): 

The rapid percentage increases shown in the preceding tables are so large that I would expect some profit taking to restrain or reverse yield increases today. So I did my buying yesterday that I would normally do today. 

The probability of a .75% increase in the FF range later today is currently at 100% with a 3% probability of a 1% increase: 

The year end FF range probabilities have move significantly higher compared to 1 month ago. 

86.3% probability of at least a 3.5% to 3.75% range. 

Countdown to FOMC: CME FedWatch Tool

Prepare Yourself: ‘The U.S. Housing Market Is at the Beginning Stages of the Most Significant Contraction in Activity Since 2006’ | Barron's

++

Trapped by Russian Forces, Ukrainians Waited a Month in a Basement - The New York Times Russia imprisoned over 300 Ukrainians, of which 77 were children, in a "dark airless school basement for nearly a month". Ten died due to that mistreatment including 1 baby.   

Ukraine says Russia creating food "catastrophe" that could starve millions in bid to reopen Black Sea ports - CBS News

Putin 'Preparing to Starve' Parts of Developing World: Yale Historian  Murdering people through starvation is one of Russia's favorite tactics.  

Putin Says Ukraine War Is to Seize Land, Undermining Own Rationale

Vladimir Putin: Restoration of empire is the endgame for Russia's president | CNN

How Russia Will Die | Peter Zeihan - YouTube

Republicans Respond to Jan. 6 Hearings by Defending Trump Fox has refused to carry the hearings, telling their viewers that the purpose is simply to fund raise for Democrats and attacking the legitimacy of the hearing. 

Several intellectuals predicted a Donald Trump like cult figure, with clear authoritarian tendencies, and his pseudo conservatism, more than 6 decades ago. The Radical Right The New American Right Expanded And Updated : Daniel Bell : Free Download, Borrow, and Streaming : Internet Archive (1963), an updated version of the New American Right, published in 1954 with Richard Hofstadter and Seymour Martin Lipset contributing. 'Radical Right' book warned of extremists predicted the Jan. 6th Attack on the Capital - The Washington Post

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1. Corporate Bonds and Treasuries: 

I am discussing in this post bonds purchased in April or early May except for 3 bonds that were purchased last week before yields popped in response to the last CPI report and the sea change in expectations about FED rate changes and 2 bonds purchased yesterday. The other bonds purchased yesterday will be discussed in time order sometime in September.  

The movement from cash reserves to mostly short term bonds is a major, ongoing allocation shift for me. 

I have caught up discussing my stock trades with this post. 

As a practical matter, my stock buying is equivalent to doing nothing. 

When buying stocks, I am focusing on increasing my dividend yields at new average costs, created either by selling my highest cost lots or buying incrementally at lower prices. Examples of both are discussed in this post. 

A. Bought 1 Morgan Stanley 3.125% SU Maturing on 7/26/26 at a Total Cost of 96.6: 

I now own two bonds. I mentioned this last purchase in a 4/28/22 comment. 

Finra page:  Bond Detail

YTM at TC = 4%

Current Yield at TC = 3.235%

B. Bought 1 Laboratory 2.3% SU Maturing on 12/1/24 at a TC of 96.916: 

I now own 3 bonds including 1 in a Roth IRA account. 

Issuer: Laboratory Corp. of America Holdings  (LH) 

Earnings Q/E 3/31/22 

FINRA Page: Bond Detail

Credit Ratings: Baa2/BBB

YTM at TC = 3.565%

Current Yield at TC = 2.37%

C. Bought 1 Laboratory 3.25% SU Maturing on 9/1/24 at a TC of 99.714: 

FINRA Page: Bond Detail

YTM at TC = 3.378%

Current Yield at TC = 3.26%

I had a previous 1 bond round-trip that netted a $28.04 profit: 

Item # 3.A. Sold at 100.131 (6/18/19 Post)-Item # 4.A. Bought 1 LH SU at a TC of 97.277 (3/15/18 Post) The bond is more interesting to me now in that it  about  the maturity is nearly 3 years closer than when I sold it on 5/28/19, which is a slight reduction in the interest risk that I call the risk of lost opportunity. 

D. Bought 1 Treasury 2.25% SU Maturing on 11/15/24 at 98.4574: 

YTM at TC = 2.886%

Current Yield at TC = 2.29%, rounded up. 

E. Bought 1 Treasury 1.625% Coupon Maturing on 4/30/23 at 99.515:

YTM at TC = 2.12%

Current Yield at TC = 1.63%, rounded down. 

F. Bought 1 Treasury 1.25% Coupon Maturing on 7/31/23 at 98.677: 

YTM at TC = 2.34%

Current Yield at TC = 1.27%, rounded up

G. Bought 2 Southern Gas 2.45% SU Maturing on 10/1/23 at a Total Cost of 98.897: 

I am discussing the purchases in Items 1.G., 1.H. and 1.I.  about 2 months out of time sequence. These 2023 maturities are what I am looking to buy now based on credit quality and YTM.  Even though this bond was purchased only a few days ago, the YTM is closed yesterday at slightly over 4%. I am starting to add more treasuries maturing next year. 

Issuer: Wholly owned subsidiary of the Southern Company (SO) 

SO 2021 Annual Report 

SO 10-Q for the Q/E 3/31/22 (Southern Gas had net income of $319M, see page 37)

FINRA Page: Bond Detail

Credit Ratings: Baa1/BBB+ 

YTM at Total Cost = 3.324%

Current Yield at TC = 2.48%

H. Bought 2 Southern Gas 2.45% SU Maturing on 10/1/23 at a Total Cost of 98.104: 

See Item # 1.G. above. I now own 6 bonds. 

YTM at Total Cost = 3.939%

Current Yield at TC = 2.5%, rounded up. 

I added two yesterday after the rise in short term yield increased my YTM by .615% compared to the purchase made on 6/10/22

I. Bought 1 Boston Properties 3.125% SU Maturing on 9/1/23 at a Total Cost of 99.863: 

Issuer: Operating Entity for the REIT Boston Properties Inc. (BXP) 

BXP SEC Filings 

BXP 10-Q for the Q/E 3/31/22 

BXP Earnings Report for the Q/E 3/31/22 

I now own 2 bonds. The other one was purchased in April 2020.  

FINRA Page: Bond Detail (prospectus linked)

Credit Ratings: Baa1/BBB+ 

YTM at Total Cost: 3.238%

Current Yield at TC = 3.1293%

J. One Month Early Redemption Office Properties 4% SU Maturing 7/15/22: 

This bond was bought on 5/12/20 at a 98.609 TC.

The issuer was allowed to redeem up to 1 month prior to maturity without paying a make whole payment.  

I have already bought a replacement: Finra Page Select Income REIT 4.25% SU Maturing on 5/15/24 Based on yesterday's closing price of 96.98, the YTM was then at 5.94%. Select Income bonds are now Office Properties obligations. 

2. Bought 1 TIP .375% Coupon Maturing on 7/15/27 at 98.602: 

No commission is paid on Treasury trades

I have started to buy TIPs in my Roth IRA accounts. I mentioned this one in a comment published yesterday. I will not be discussing most purchases here. This is sort of a refresher course for me.   

The TIPs have become more interesting after moving into positive yield territory. My first purchases in several years were made this month. Prior to the purchases this month, I had either profitably sold all of my TIPs or allowed them to mature without reinvesting the proceeds into new TIP purchases.  

Real Yield = .655% due to purchasing the bond at below par   

Coupon = .375% applied to the principal amount as increased by CPI adjustments. 

Original Principal Amount: $1,000

Inflation Factor: 1.17838  (for 6/15/22, settlement date)

Inflation Factor Data for this TIP 

Inflation Factor Data-All TIPs 

Par value as adjusted for CPI through 6/15: $1,178.38

Accrued Interest Paid to Seller: $1.84 

My Cost at $1,161.90 (1.17838 inflation factor x. 98.602 = 116.19 x. 10 = $1,161.9)

Individual - Comparison of TIPS and Series I Savings Bonds

Advantages over IBonds: 

May sell at anytime without incurring a penalty

Market is extremely liquid (easily bought or sold in 1 bond lots with a slight sacrifice in price compared to large lots) 

IBonds are currently sold without a fixed coupon. TIPs have moved into positive real yield territory recently. 

Inflation adjustments monthly

Disadvantages over IBonds: 

Inflation accretion to the principal amount is taxed annually even though the bond is not sold.  

Requires an effort to learn about when and how to buy 

2022 Real Yield Rates TIPs -U.S. Department of the Treasury

Breakeven Inflation Rate 5 Year TIP as of 6/14/22: 2.88%

The breakeven inflation rate is the annual average CPI necessary for the TIP buyer to breakeven with the buyer of the non-inflation protected treasury.  

5 Year Nominal Yield at 3.61%

Minus

5 Year Real Yield at +.73%

= 2.88%

Generally, the buyer of the TIP is better off only when the actual annual average CPI increases are higher than the breakeven inflation rate when the choice is made between the TIP and the non-inflation protected treasury.

5-Year Breakeven Inflation Rate (T5YIE) | FRED | St. Louis Fed

Market Yield on U.S. Treasury Securities at 5-Year Constant Maturity, Quoted on an Investment Basis, Inflation-Indexed (DFII5) | FRED | St. Louis Fed

as of 6/13/22 at +.45%

There is an ETF that owns 1 to 5 year TIPs: iShares 0-5 Year TIPS Bond ETF | STIP The problem is not the expense ratio which is only .03%. 

As with other bond funds that owns vintage bonds bought before a spike in interest rates, the net asset value per share is going down as the real yields for TIPs go from negative to positive. 

The only way for a 5 year TIP bought at a negative real yield to adjust to the current positive real yield is to go down in price until the market rate is hit. 

And if the real yields continue to move higher, those vintage TIPs bought at negative real yields will continue declining in price in addition to producing no real yield. 

The STIP YTD total return, even with the hot inflation numbers, is -1.67% through yesterday. iShares 0-5 Year TIPS Bond ETF (STIP) Performance-Morningstar My total for the 5 year TIP bought yesterday will be the annual average inflation rate to 7/15/27 + .655% (the real yield above the inflation rate)

I published these posts in 2016: The Mechanics Of Purchasing A TIP In The Secondary Market | Seeking Alpha; Update On Buying TIPs In The Secondary Market | Seeking Alpha

This one was published in 2017: TIP Trading in the Secondary Market (1/23/17 Post) 

I view TIPs as primarily a hedge against problematic inflation continuing for several years. 

I will trade the TIPs and will definitely consider selling at a profit, as I did in 2012, when real yields go from positive to negative: Sold 3 TIP Bonds Maturing in 2019 at 120.45 (6/25/12 Post). The purchase price created a negative yield of -.89%.  

Profit Snapshot = +$838.87

3. Eliminated WCP:CA: Sold 100 at C$11.92+: 

C$1 Commission

Quote: Whitecap Resources Inc.  (Canada: Toronto) | MarketWatch

Website: Whitecap Resources Inc

1 year chart as of 6/6/22: 

Profit Snapshot: +C$405.5

Last Discussed: Item # 3.A. Bought 100 WCP:CA at C$7.85 (10/3/2018 Post) 

Given the dividend yield is relatively low for the E & P stocks that I normally buy, and the rally in the stock turn a previous unrealized loss into a decent gain, I decided to go ahead and harvest the profit. Back in 2020, the stock approached a C$1 price. 

Dividend: Monthly at C$.03 per share

At C$11.92, the dividend yield is about 3.02%. 

Last Earnings Report (Q/E 3/31/22): Whitecap Resources Announces Record First Quarter Results 

All dollar amounts are in CADs.

"record average production of 132,691 boe/d (74% liquids)"

"Free Funds Flow" = $294.137M or $.46 per diluted share

Net income per diluted share  = $1.03

4. Small Ball: 

A. Added to MPW in Fidelity Taxable - Bought 5 at $17.68; 5 at $17.55; 5 at $17.21; 5 at $16.65; 5 at $15.8; 5 at $15.35; 5 at $15.05: 

Quote:  Medical Properties Trust Inc. (MPW)

MPW SEC Filings

2021 Annual Report

10-Q for the Q/E 3/31/22 (LT debt at $10.1+B)

Website: MPT | Home: At the Very Heart of Healthcare

MPW  - Investor Relations

I will keep averaging down in 5 share lots until I hit 100 shares. 

Investment Category: Equity REIT Common and Preferred Stock Basket Strategy

SU Debt Ratings: Ba1/BBB- (Finra page for 3.5% SU Maturing in 2031 with $1.3B in principal amount sold in November 2020, currently trading near 80)

Last Substantive Buy Discussions: 

Item # 2.A. Bought 10 MPW at $17.97 (5/12/22 Post) I discussed the 2022 first quarter report in that post. SEC Filed Press Release

Item # 2.A. Bought 10 MPW at $20.31; 5 at $19.93 (3/24/22 Post) I discussed the 2021 4th quarter report in that post. 

Average Cost per share: $17.52  (65 shares)

Dividend: Quarterly at $.29 per share, last raised from $.28 effective for the 2022 first quarter payment. 

Medical Properties Trust, Inc. (NYSE: MPW) - Dividend History

Yield at $17.52 = 6.62%

Last Ex Dividend: Today, 6/15/22

Last Sell Discussion: Item # 3.B. Eliminated MPW- Sold 63+ at $15.55 (11/14/18 Post)

MPW Realized Profits to date: +$1,582.21 (currently at #4 in this basket strategy)

Some Other Buy Discussions (shares have been sold): Item 2.C. Added 10 MPW at $12-Used Commission Free Trade (2/12/18 Post); Item # 5.A. Reinitiated Position in MPW with a 50 Share Buy at $12.85 (8/3/2017 Post); Item # 3 Bought 50 MPW at $11.4 Update For REIT Basket Strategy As Of 9/8/15 - South Gent | Seeking Alpha; Item # 4 Bought 50 MPW at $9.85 UPDATE For Equity REIT Basket Strategy As Of 2/12/16 - South Gent | Seeking Alpha; UItem # 3. Bought 100 MPW at $10.42 Update For Equity REIT Basket Strategy As Of 1/21/16 - South Gent | Seeking Alpha;

B. Pared OFS Again in Fidelity Taxable- Sold 15.427 at $12.49: 

I sold all shares with a cost basis over $8 that were owned in this account.  

Quote: OFS Capital Corp- A BDC

OFS SEC Filings

Website: Homepage - OFS Capital

2021 Annual Report (risk factor summary starts at page 29 and ends at page 63) 

Management: External

Last Buy Discussions: Item # 3.F. Bought 40 OFS with an Average Cost Per share of $4.18 (11/7/20 Post); Item # 2.L. Added 5 OFS at $3.97-Fidelity Taxable (11/28/20 Post); Item # 1.K. Added 3 OFS at $4.5 -Fidelity Taxable (8/8/20 Post); Item # 3.E. Added 5 OFS at $9.66; 5 at $9.2; 5 at $8.7; 5 at $6; 5 at $5.65; 2 at $3.7; 10 at $3.79 (4/11/20 Post)

Profit Snapshot:  $60.07 (6/3/22 sale only; YTD this account at $129.96) 

Average cost per share this account after pare: $4.49 (90+ shares)

Snapshot Intraday on 6/3/22 after pare

Dividend:  Quarterly at  $.29 per share (regular only)

Dividends & Splits | OFS Capital Corporation

The quarterly rate was slashed from $.34 to $17 effective for the 2020 second quarter payment. The dividend rate was subsequently raised several times to reach the current payout. 

Yield at New AC per share this account = 25.84% (using an annual rate of $1.16 per share)

Next Ex Dividend: 6/22/22

OFS Capital Corporation Common Stock (OFS) Dividend History | Nasdaq

Net Asset Value per share history: 

3/31/22 :   $15.52

12/31/21:   $15.18

03/31/21:  $11.96 10-Q at page 3 

12/21/20:  $11.85 10-K at page 69 

6/30/20:   $10.10
3/31/20:    $  9.71
12/31/19:   $12.46
9/30/19:    $12.74  
6/30/19:    $12.95   Page 2 10-Q
3/31/19      $13.04   10-Q
12/31/18    $13.10
6/30/18     $13.70
03/31/18   $13.67
12/31/17    $14.12
12/31/16    $14.82
12/31/15    $14.76
12/31/14    $14.24
12/31/13    $14.54

IPO Offering Price at $15 (November 2012) with proceeds after the underwriters' discount at $13.05 Final Prospectus Supplement

Last Earnings Report (Q/E 3/31/22): OFS Capital (OFS) SEC Filed Press Release

NII per share = $.22, adjusted to $.30 with the consensus at $.29 per Fidelity; 

Adjustment of 8 cents is for accrued but not yet paid capital gain incentive fee; 

"Net asset value (“NAV”) per common share of $15.52 as of March 31, 2022, an increase from $15.18 as of December 31, 2021";  

Net gain on investments of $5.5 million, or $0.41 per common share "principally due to a $10.0 million, or 3.1%, increase in the fair values of our directly originated debt and equity investments"; 

"As of March 31, 2022, based on fair value, 93% of our loan portfolio consisted of floating rate loans and 97% of our loan portfolio consisted of senior secured loans."

Weighted average yield of performing debt investments: 9%

10-Q for the Q/E 3/31/22 (summary description of investments starts at page 7)

Company Assessment of Risks: 

Page 62, 10-Q. Linked above. 

Some Sell Discussions: Item # 2.D. Pared OFS in Fidelity Account - Sold 29+ at $13.06 (4/21/22 Post); Item # 2.M. Pared OFS in Vanguard Taxable-Sold 20 at $7.2 (12/25/20 Post); Item # 3.B. Sold 10 OFS at $12.04 (11/30/19 Post)Item # 4.B. Sold 60 shares at $12 (11/13/19 Post)

OFS Realized Gains to Date: $352.12

Realized Gains Prior to 2022 = $222.16

Goal: Any realized gain on the shares + the dividends.  

I also own shares in my Schwab taxable account and in 2 Roth IRA accounts, all with a very low cost basis. 

Lot Details Schwab Taxable Account: Average cost per share at 

Price as of 6/14/22 close.

By selling the 50 shares with a $9.42 cost basis, I could reduce my AC per share to $5.56 and slightly more by selling th lots bought with dividends during 2019. 

C. Pared FENY Again in Fidelity Account-Sold 10 at $25: 

I have been gradually selling my highest cost shares into the robust energy stock rally.  

Profit Snapshot: $88.89 (6/7/22 sale only; YTD at $220.84)

New AC per share: $14.02 (70+ shares)

Snapshot Intraday on 6/7/22 after pare

Dividends: Quarterly at a variable rate

Last 4 Dividend Payments (through 2022 first quarter): $.585 per share

Yield at $14.02 AC  = 4.17% (using $.585) 

Last Discussed: Item # 2.C. Pared FENY Again - Sold 10 at $22.74 (6/1/22 Post) 

D. Pared XOM in Fidelity Account Again - Sold 4 at $102.79: 

Quote: Exxon Mobil Corp (XOM)

XOM Analyst Estimates | MarketWatch

XOM SEC Filings

2021 Annual Report

Investment Category: Bond Substitute with a small flavor of dividend growth 

I sold every share that had a cost basis over $40. Those 4 shares were bought in the $40-$42 price range. 

Profit Snapshot: $245.51 (6/7/21 sale only/YTD 9+ shares = +$435.3)  

New AC per share this account: $36.40 (11 shares)

Snapshot Intraday on 6/7/22 after pare

The remaining shares were bought during the 2020 meltdown in energy stock prices. The AC per share was reduced from $37.47. 

Dividend: Quarterly at $.88 per share 

Yield at $36.4:  9.67%

I discussed the last earnings report in this post: Item # 4.A. Pared XOM in Fidelity Taxable Account - Sold 2 at $89.66 (5/5/22 Post) 

E. Added 10 FHN in Fidelity Taxable Account at $22.79; 10 at $22.15: 

Quote: First Horizon National Corp. (FHN)

SEC Filings

10-Q for the Q/E 3/31/22

FHN Analyst Estimates | MarketWatch

I previously stated there was no overlap in service territories. There is some minor overlap in limited geographical areas in Florida as well as North and South Carolina that may requires some branch divestitures. Here's What It Will Take to Make TD Bank's Purchase of First Horizon a Winning Move | The Motley Fool

As of 5/31/22, the FHN short position remained large at 29.66M shares or 7.26% of the float. First Horizon Corporation (FHN) Valuation Measures & Financial Statistics I mentioned the short position when I last discussed a purchase. To work, the shorts will need the merger to fail. Shortly after the merger announcement, the share price did surge to $24 and shorting then at that price would make sense for those who like playing that game, since the downside is $1 per share or so with a potential upside of $6-$7. 

I mentioned the first 10 share purchase, made shortly before the ex dividend date, in a 6/8/22 comment. I added 10 more shares after the ex dividend date. 

Last Discussed: Item # 1. Added 450 FHN at $21.53 (5/19/22 Post) I discussed the last earnings report in that post. 

My recent purchases have been a merger arbitrage play as previously discussed. TD to Expand in the Southeastern U.S. with Acquisition of First Horizon FHN has agree to be acquired for $25 per share in cash. If the deal does not close before 11/27/22, the cash offer will be increased by up $.65 per share "on an annualized basis for the period from November 27, 2022 through the day immediately prior to the closing." FHN will continue paying its quarterly dividend until the merger is completed. 

Before this merger was announced, I owned 50+ shares in this account with an AC at $9.73.

Recent Material News: First Horizon Corporation Shareholders Approve Transaction with The Toronto-Dominion Bank (5/31/22) There were 393.12 million “for” votes, 1.88 million “against” votes, and 933,975 abstentions. SEC Filing 

Investment category: Regional Bank Basket Strategy

Average cost per share this account: $20.43 (520+ shares)

Snapshot Intraday on 6/10 after second 10 share purchase

Dividend: Quarterly at $.17 per share

Yield at AC: 3.33%, rounded up. 

Last Ex Dividend: 6/9/22 (day after this 10 share purchase) 

While I currently expect the acquisition to close, and do not currently know any valid reason why either Canadian or U.S. regulators would prevent the merger, the downside risk is probably down to around $17-$18, roughly where FHN was trading before the announcement. FHN Historical Prices 

TD Bank-First Horizon deal should pass regulatory muster | S&P Global Market Intelligence

Using the current consensus E.P.S. estimate for 2022, which is $1.56, the P/E at my average cost per share is about 13.09. In assessing my risk, I take into account that information and the dividend yield noted above. 

Assuming the deal closes at $25, the share profit upside at a $20.43 AC per share is $2,377.39 plus the dividends. 

One analyst expects heightened regulatory scrutiny that will sufficiently delay the approval process that TD will be required to fork over an additional $.65 per share. Opinion: Terms of TD’s First Horizons takeover reflect regulatory scrutiny, staff turnover - The Globe and Mail (quoting John Aiken at Barclays who stated that the "forecast for closing in the current U.S. regulatory environment is aggressive and investors will likely see the US$0.65 per share added on to the final price.”) I do not see the Federal Reserve being motivated by Elizabeth Warren political considerations but the Comptroller of the Currency may be infected. To receive 100% of $.65 per share on top of the $25, the merger would have to be delayed until at least 11/27/23. 

Federal Reserve Board - Agencies announce public meeting on proposed acquisition by The Toronto-Dominion Bank of First Horizon Corporation; public comment period extended A public meeting is scheduled for 8/18/22.  The 2 U.S. agencies involved in the approval process are the Comptroller of the Currency and the Federal Reserve Board.  

US Regulators Scrutinize Canadian Banks’ Acquisitions - Banking Exchange On 7/14/22, the same two agencies will hold a public hearing for Bank of Montreal's proposed acquisition of U.S. West. BMO Financial Group accelerates North American growth with strategic acquisition of Bank of the West - Dec 20, 2021 That one is also a cash offer. Part of the purchase price will be sourced from about $2.9B in "excess cash" at Bank of the West, which may add a wrinkle to U.S. approval. Bank of the West is not publicly traded in the U.S. and is a subsidiary of BNP Paribas. 

F. Added 1 SLG at $57.48; 1 at $56.25; 1 at $54.2; 1 at $52.7; 1 at $50.4; 1 at $49.35: 

Quote: SL Green Realty Corp.

SLG SEC Filings

SL Green Realty Corp Profile | Reuters

Investment Category: Equity REIT Common and Preferred Stock Basket Strategy

Last Discussed: Item # 2.N. Added to SLG- Bought 1 at $62.25, 1 at $59.95 (5/26/22 Pos) I discussed the 2022 first quarter report in that post. SL Green Realty (SLG) SEC Filed Press Release and Supplemental

At this pace, I may not reach 100 shares using my current life expectancy. 

New Average Cost per share: $61.55  (14 shares)

Dividend: Monthly at $.3108 per share ($3.7296 annually)

SL Green Realty Corp. Announces Common and Preferred Stock Dividends (6/14/22)

I am not currently reinvesting the dividend. 

Yield at AC = 6.06%

Investment categories: Equity REIT Common and Preferred Stock Basket Strategy and Monthly Income Generation 

G. Added 5 HBI at $10.9; 5 at $10.2: 

Quote: Hanesbrands Inc.

HBI SEC Filings

HBI Analyst Estimates-MarketWatch

Annual Report for the F/Y Ending 1/1/22

10-Q for the First F/Q Ending 4/2/22

Website: Comfortable Clothing Since 1901 | Hanes

As mentioned in my 6/1/22 post, I am averaging down until I hit 100 shares. Item # 2.I. Added 5 HBI at $11.68 (6/1/222 Post)  Each subsequent purchase is just a 5 share lot. 

Average cost per share: $13.64  (65+ shares)

Dividend: Quarterly at $.15 per share

I am reinvesting the dividend. 

Yield at AC =  4.4%

Last Ex Dividend: 5/9/22 (owned 50 as of)

I discussed the last earnings report in this post: Item # 2.B. Added to HBI in Schwab Taxable Account- Bought 5 at $14.4; 5 at $13.75; 5 at $13.55; 5 at $13.15; 5 at $12.32 (5/12/22 Post)

Analyst Reports (available to Schwab customers): 

Morningstar (5/17/22): 5 stars with a FV of $26, narrow economic moat. 

Credit Suisse (5/5/22): Outperform with a 12 month PT of $19, lowered from $23  

S & P (5/10/22): 3 stars with a 12 month PT of $18 

I do not have access to the following reports: 

In a Cowen & Company report, released on 6/9, the PT was reduced to $11 from $16.  I would probably sell my highest cost lots at $16. 

On 6/8/22, Barclays cut its rating to equal weight and its PT to $13 from $18.  

Over the years, I have noticed a clear tendency of analysts to cut ratings and price targets after a major price decline. The analyst may just be responding to the price decline rather than a change in valuation based on facts rather than conjecture and herd following.      

HBI has been in a bear market since topping out near $27 back in 2017. There was cyclical bull move within that bear market that took the price from $7 to around $23 before the stock rolled over and headed back down to its current price. The decline to $7 was mainly due to the pandemic induced stock market decline in March 2020 while the rally was linked to Hanes  manufacturing and selling protective gear, a business that has faded with its peak.  

H. Added 3 ERPT at $20.3: 

Quote: Essential Properties Realty Trust Inc.

EPRT SEC Filings

2021 Annual Report

10-Q for the Q/E 3/31/22

Investment Category: Equity REIT Common and Preferred Stock Basket Strategy

Last Discussed: Item 2.L. Added to EPRT - BOUGHT 2 AT $23.28; 3 AT $23.38; 3 at $22.73; 2 at $21.55  (5/12/22 Post) I discussed the last earnings report in that post. SEC Filed Press Release

Average Cost per share = $25.13 (30+ shares)

As of close on 6/13/22

Dividend: Quarterly at $.27 per share ($1.08 annually). Last raised from $.26 effective for the next dividend payment.  

EPRT Dividend History | Nasdaq

Yield at AC = 4.3%, rounded up. 

Next Ex Dividend: 6/29/22

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.