AIO, BNS, CGBD, COLB, CUBE, DNB, DOW, IDE, IDNA, LYB, NTST, PFLT, T, UGI, VHCOX, VZ

Economy: 

The ADP November jobs report estimated that private payroll jobs increased by 146,000 with an annual wage increase of 4.8%. The consensus was for a 166,000 increase. ADP® Employment Report

Fed's Waller 'leaning toward' a rate cut, but worries about inflation The FED voting members need to remember that the Federal Reserve made its second greatest monetary policy mistake in its history when it misjudged inflationary pressures that were building in 2021, characterizing them as merely "transitory" and consequently kept its extreme monetary stimulus policies, ZIRP and QE, in effect until March 2022, when the annual CPI rate was reported at +8.5%. They failed to do their job and threw gasoline on the inflationary pressures building in the economy primarily resulting from post pandemic surge in consumer spending and major supply chain disruptions. 

And in March, the 0-.25% FF range was raised only by .25 to .25% to .5%. While subsequent increases took the FF range to a high of 5.25%-5.5% in 2023, that higher level was not an historical aberration for the inflation numbers reported in 2023. The first 50 basis point cut in the FF range was in September 2024 and another .25% reduction occurred in early November.

The Fed needs to have more concern about inflation and its likely  resurgence late next year and through 2026 when and if Trump actually implements his tax cuts, tariffs and massive deportation of U.S. consumers who fill important roles in the supply chains, when taken together, will likely cause inflation to move higher from current levels. 

The November manufacturing PMI index rose to 48.4, up 1.9 from October. The new orders component rose to 50.4 from 47.1. Any number over 50 indicates an expansion.    

The November services PMI declined to 52.1 from 56 in October. The new orders component fell to 53.7 from 57.2. The price component rose .1 to 58.2. The employment component declined 1.5 to 51.5. 

Trump threatens 100% tariff on the BRIC bloc of nations if they act to undermine U.S. dollar

Jeff Bezos says he is 'optimistic' about a new Trump term and can help with cutting regulations - ABC News

+++

Allocation Shifts Discussed in this Post: 

Treasury Bills Purchased at Auction: $25,000 in principal amount 

Corporate Bonds: $10,000 in principal amount 

Overall I am not entirely replacing proceeds received from corporate bond maturities into new purchases. Given their current yield spreads to treasuries, I am more inclined to purchase Treasury bills with some of the proceeds. I will be capping my discussion of corporate bond purchases at no more than $10,000 in principal amount in each post. 

Treasury Notes Purchased in Secondary Market: $3,000 in principal amount 

Outflow Common Stocks: -$1,095.53

(consisting of $1,746.77 in proceeds minus $651.24 in purchases)

Outflow Stock Funds: -$798.77 

(consisting of $867.22 in proceeds minus $68.55 in purchases)

Net Outflow Stocks/Stock Funds: -$1,894.3

Net Realized Gains Stock/Stock Funds: +$554.45 (one loss)

2024 Net Outflow Stocks/Stock Funds: -$69,100.3

I will need a significant decline in stock prices before meaningfully increasing my stock allocation. I believe that investors are currently far too optimistic about what will happen to the U.S. economy during Trump's presidency.  

10 Year TIP Breakeven Inflation Rate as of 12/4/24: 2.29% 

This is generally viewed as the current market prediction of the average annual CPI rate over the next ten years.  

++++

Companies That Donated To Trump and Project 2025 - YouTube

I do not appreciate being subjected to another four years of Trump as President, particularly since my expected life span does not have many four year Presidential terms thereafter left, if any. 

I am not going to reward those who voted for Trump or companies that made major donations to his campaign or Project 2025. 

I want to make a brief comment about Trump's appointment of Pete Hegseth as Defense Secretary. Only Trump could nominate such as creature to fill that critical post. Besides having zero qualifications IMO, Hegseth has a history that would have disqualified him from being nominated by any President other than Trump of course. 

Report on Trump's Pick for Defense Secretary Pete Hegseth details alcohol abuse and sexual impropriety; Pete Hegseth and What Christian Nationalism Looks Like; Bombshell report details 'dangerous' new allegations against Trump Cabinet nominee - Alternet.org  

The report referenced in the previous links is written by Jane Mayer, one of the best investigative journalists and can be found in the New Yorker magazine. Pete Hegseth’s Secret History | The New Yorker 

In addition to those accusation, a woman accused Hegseth of a sexual assault and he settled with her. New details of Hegseth sexual assault claim documented in police report - ABC News

Hegseth denies any impropriety which is sufficient in Trump's America to dismiss misconduct accusations provided they are made against a republican. When made against a democrat, they are deemed to be true, just compare how the republicans reacted to Clinton's involvement with Monica compared to Trump being found civilly liable for sexual assault or his extramarital affairs with a Playboy model and a porn star. It is of course hypocritical in the extreme.      

Trump must view a prior history of sexual misconduct, sexual assaults, cheating on spouses, sex with porn stars and prostitutes and/or statutory rapes as job qualifications for high office. Maybe people need to start placing those matters on their resumes. 

If Trump's supporters accept any of the accusations as true, then they do not care or even approve in some cases. 

Those who describe themselves as evangelical Christians may resolve the internal conflict with their professed moral values that they preach to others by simply denying, irrespective of the evidence, that the claims are true. 

This is the default approach for those who view Trump as an extremely stable and honest genius chosen by God to lead a heathen nation. 

I quit paying attention to their moralizing years ago and simply classify them as hypocrites unworthy of a moment's attention.  

Mayer's most important book, which I have read, is Dark Money: The Hidden History of the Billionaires Behind the Rise of the Radical Right eBook : Mayer, Jane: Kindle Store   

Trump picks Peter Navarro as top trade advisor Navarro has been released from prison, so he is available to fill this important position. 

+++++

Small Ball Rules: 

Baseball Analogy: Small ball (baseball) - Wikipedia

Small Ball Rules: Primarily a risk reduction trading technique, one of many strategies that I employ to mitigate risk.  

(1) Each purchase has to be at the lowest price in the chain; or has to lower my average cost per share; 

(2) Purchases are made in small lots using commission-free trades;

(3) On price pops, I will consider selling my highest cost shares at a profit, no matter how small;

(4) Some positions will be eliminated altogether on price pops when the goal is achieved; 

(5) Shares purchased with dividends may be sold when it is profitable to do so and the share price is outside my consider to buy range; and

(6) There is no hesitation to sell a stock after a dividend cut or a disappointing earnings report, when I can realize any capital gain. 

The most important objective is to reduce risk through a controlled and disciplined trading strategy that realizes gains, particularly by selling the highest cost lots that reduce my average cost per share and increases my dividend yield.  

The corollary is to buy the dips, particularly during extreme volatility events that would be associated with major declines in stocks.  

Another aspect is selling fractional shares bought with dividends in order to harvest the original dividend amount plus a small profit on the shares. Generally, if I am willing to buy a dividend stock now through a market purchase, I will consider reinvesting the dividend. Conversely, if I am not willing to buy shares, I will likely turn off the dividend reinvestment option. 

Primary Investment Objectives: (1) Preservation of Capital; (2) Income Generation; (3) Realized Capital Gains in risk assets.   

Normally, I try to generate at least $25K in trading profits during each year. I will fall short this year and will probably be unable to hit that goal next year due to my extremely low stock allocation, unless I liquidate my largest mutual fund position which is PRWCX. Item # 1.A. Sold 50 PRWCX at $38.94 (11/14/24)(profit snapshot = $967.35) 

+++

Quotes from Warren Buffett's 1993 Letter to Shareholders: 

"In fact, the true investor welcomes volatility. Ben Graham explained why in Chapter 8 of The Intelligent Investor. There he introduced "Mr. Market," an obliging fellow who shows up every day to either buy from you or sell to you, whichever you wish. The more manic-depressive this chap is, the greater the opportunities available to the investor. That's true because a wildly fluctuating market means that irrationally low prices will periodically be attached to solid businesses. It is impossible to see how the availability of such prices can be thought of as increasing the hazards for an investor who is totally free to either ignore the market or exploit its folly." 

"As Ben Graham said: "In the short-run, the market is a voting machine - reflecting a voter-registration test that requires only money, not intelligence or emotional stability - but in the long-run, the market is a weighing machine."

Chairman's Letter - 1993

Graham first made the voting and weighing machine analogy in his book Security Analysis co-authored with David Le Fevre Dodd and published in 1934 (page 452, print edition).   

I published a YouTube video on this subject. Ben Graham and Warren Buffet Stock Market as a Voting and Weighing Machine - YouTube

+++

1. Small Ball Sells: 

Among the sell transaction discussed below, I continued to sell my highest cost shares in both VZ and T held in two taxable accounts. I do not intend to sell any more. 

A. Sold 5 VHCOX at 91.32: 

Quote: Vanguard Capital Opportunity Fund - Investor Class (VHCOX)

Proceeds: $456.6

Sponsor's website: VHCOX (closed to new investors)

Last Discussed: Item # 1.B. Sold 2 VHCOX at $90.66 (11/14/24 Post)(profit snapshot = $100.69) 

Profit Snapshot: $255.04 (11/29 sale only)

Remaining Shares: 60+

AC Per Share Remaining Shares: $40.31

Since I am using the average cost method, the AC will remain constant after I sell shares. The only way to change the AC per share is to buy more shares. 

Dividends: Paid Annually

VHCOX Stock Dividend History & Date 

Dividends Received: 

I have been taking the dividend in cash for a long time. 

2023 =  $116.36

2022 = $376.65

2021 = $562.88

2020 = $449.61

2019 = $341.55

2018 = $540.21

Recent Dividend History: 

Per Share

2023: $1.81

2022: $5.86

2021: $8.76

2020: $7.0

2019: $4.38

2018: $6.92

2017: $3.03

2016: $3.12

2015:  $2.73

2014: $2.19

VHCOX – Portfolio –  Morningstar Lists top 25 holdings. 

Last Buy Discussion: Item # 3.D. Added to VHCOX - Bought $250 (12/23/23 Post) 

Original Purchase - 2013: Most of my position originated from a $3,000 purchase made in 2013. Item # 5 Initiated Position in VHCOX (4/9/13 Post)

Prior Sell Discussions: Item # 3.A. Pared VHCOX-Sold $500 at $71.62 and $500 at $73/02 (9/5/20 Post)(profit snapshot = $470.23); Item # 4 Sold 24+ VHCOX at $71.16 (1/21/18 Post)(profit snapshot = $562.11); Item # 6-Sold All VHCOX Shares Bought with Dividends (12/4/17 Post)(profit snapshot = $222.86): Item # 2.A. Sold 115+ VHCOX at $57.97 (3/1/2017 Post)(profit snapshot = $522.35) 

VHCOX Realized Gains to Date: $2,133.28

B. Pared UGI - Sold 5 at $28.46; 5 at $30.09: 

Quote: UGI Corp. (UGI)

Proceeds: $292.68 

UGI Profile Page at Reuters

UGI Analyst Estimates | MarketWatch

UGI SEC Filings

This stock closed at $24.78 on 11/21 with volume reported at 2.26+M shares.  In response to the earnings report, the stock surged to close at $28.5 the next day with volume accelerating to 10.218+M shares. I did not have the same favorable reaction to that earnings report as noted in a comment published on 11/22/24. 

Investment Category: Bond Substitute

SEC Filed Annual Report for the F/Y ending 9/30/24 

Purchase Discussions: I still own these shares: Item # 2.A. Added 5 at $23.75; 5 at 23.4 (11/7/24 Post);  Item # 3.A. Added to UGI - Bought 5 at $24.76; 5 at $24.26 (10/31/24 Post) 

I sold my highest cost lots whose purchases were discussed in this post. Item # 3.A. Started UGI - Bought 5 at $25.2; 5 at $24.96 (10/24/24 Post) This is my most comprehensive discussion of this company so far. 

Profit Snapshots: +$41.9

Remaining Shares: 20

Price intraday on 11/27/24 after second pare

Average cost per share: $24.03

Dividend: Quarterly at $.375 per share ($1.5 annually), last raised from $.36 effective for the 2023 third quarter payment. The dividend was at $.2175 per share in the 2014 4th quarter after a 3 for 2 stock split. 

Dividends | UGI Corporation

I am not reinvesting the dividend. 

Yield at $24.03 AC = 6.24%

Next Ex Dividend: 12/16/24

Last Earnings Report (Q/E 9/30/24): 

SEC Filed Earnings Press Release and SEC Filed Slide Presentation 

GAAP E.P.S. (-$1.27), down from +$.61

2024 Fiscal Year Ending 9/30/24:  GAAP E.P.S. of $1.25, adjusted to $3.06. 

2025 Fiscal Year Ending Guidance: Adjusted E.P.S. $2.75 to $3.05. 

Fiscal Year Reconciliation of GAAP to Non-GAAP: 

I do not like the number and total amount of adjustments to GAAP results. The largest adjustment was to add $.89 per share to GAAP E.P.S. for a non-cash charge associated with an AmeriGas Propane goodwill impairment charge. This division has been problematic as previously discussed.  

"achieved $75 million reduction in operating and administrative expenses across all segments, when compared to the prior year."

UGI is discussed in this article which was published after my first purchase: Why I Just Bought This Ultra-High-Yield Dividend Stock | The Motley Fool (10/19/24)

C. Pared CGBD - Sold 10 at $17.06 - Schwab Account:

Quote: Carlyle Secured Lending Inc. (CGBD) - Externally Managed BDC 

Proceeds: $170.6

I sold my highest cost lots. 

CGBD SEC Filings

2023 SEC Filed Annual Report (Summary of risk factors starts at page 24 and ends at page 53).  

Last Discussed: Item # 2.F. Pared CGBD in Schwab Account - Sold 6 at $17.37 (9/26/24 Post)(profit snapshot = $20.63) 

Last Buy Discussions: I have not discussed most of my purchases. The last buy discussion that I could find was in this 2019 post: Item # 1.B.  Added 10 CGBD at $13.95; 10 at $13.5; 10 at $12.6- Used Commission Free Trades (1/13/19 Post)

Profit Snapshot: $32

Remaining Shares: 40+

Price intraday on 11/26 after pare 

New average cost per share: $10.37

Dividend: Quarterly at $.40 per share. This is the regular dividend.  

CGBD Stock Dividend History & Date

2024 special dividends = $.27 per share (included $.05 that will go ex dividend on 12/31/24 with a 1/17/25 pay date) 

2023 special dividends = $.28 per share (includes $.07 per share that went ex dividend on 12/28/23 with a 1/18/25 payment date) 

There are several reasons why special dividends may be paid by a BDC. 

The regular dividend may be set below the current NII per share run rate and the spillover income is distributed in one or more special dividends. 

A reason why the regular dividend is set too low is that BDC wants to avoid a dividend cut when NII starts to trend down due to one or more factors including an increase in non-performing loans and lower NII resulting from a downtrend in short term rates that lowers the coupons of variable rate loans.  

Yield at $10.37 = 15.43%  (regular dividend only) 

Next Ex Dividend: 12/31/24 ($.40 regular and $.05 special)

Net Asset value per share history: 

9/30/24:  $16.85

6/30/24:  $16.95 10-Q at page 2 

12/31/23: $16.99

3/31/23:   $17.07

12/31/23:  $16.99 

12/31/22:  $16.91

9/30/22 :  $17.16

12/31/21:  $16.91

12/31/20: $15.39

12/31/19:  $16.56 

12/31/18:  $18.12  

6/30/17:   $18.01

The Initial Public Offering was in June 2017. The public offering price was $18.75. The external advisor paid 50% of the $.56 per share underwriters' discount. Prospectus  

Last Earnings Report  (Q/E 9/30/24)

SEC Filed Earnings Presentation 

NII per share: $.57

Investments by Category: 

Floating Rate at 99.6%

10-Q for the Q/E 9/30/24 A summary of investments starts at page 7. When an informed individual investors looks at the names of borrowers, it would be rare to recognize more than a few names. 

Company Credit Risk Assessment of Loans: 

Page 92-93 10-Q

2 of 175 investments were on non-accrual status. 

Company Assessment of How Interest Rate Changes Impact NII: 

10-Q at pages 105-106  

Last Sell Discussion in my Fidelity Account: Item #2.D. Pared Duplicate Position in Fidelity Account - Sold 2 at $16.78 (9/12/24)(profit snapshot = $14.69). That sell reduced my average cost per share in my Fidelity account to $7.24. I discussed the 2024 second quarter report in that post. SEC Filed Earnings Presentation

Other Sell Discussions:  Item # 2.D. Pared Duplicate Position in CGBD - Sold 9 at $17.57 (Schwab Account) (5/10/24 Post); Item # 2.C. Pared CGBD in Fidelity Account - Sold 7+ at $17.41 (3/15/24 Post)(profit snapshot = $37.81); Item # 3.H. Eliminated CGBD in Vanguard Taxable Account - Sold 10 at $15.1 (2/5/23 Post)(profit snapshot = $65.6); Item # 2.E. Pared CBGD in Fidelity Taxable Account - Sold 25+ at $14.46 (3/24/22 Post)(profit snapshot = $31.09) 

D. Pared IDE - Sold Highest Cost 15 Shares at $11.12: 

Quote: Voya Infrastructure, Industrials & Materials Fund Overview - Buy/Write Stock CEF

Proceeds: $166.95

Investment Category: Monthly Income Generation

The Buy/Write strategy involves selling call options on ETFs with the underlying value of the calls generally representing 15% to 50% of the underlying value of the portfolio.  

IDE SEC Filings

SEC Filed Semiannual Report for the Period Ending 8/31/24 (Cost of investments at $145.821+M with a value then at $179.099+M. 

Last Buy Discussions: Item # 2.B. Added 10 IDE at $10.18 (5/3/24 Post); Item # 2.D. Added to IDE - Bought 5 at $8.9 (10/14/23 Post); Item # 2.B. Added 5 IDE at $9.31 (6/10/23 Post)

Sponsor's website: Voya Infrastructure, Industrials and Materials Fund

Profit Snapshot: $14.25 

Remaining Share: 35 Shares

Snapshot Intraday on 11/25 after pare

Average cost per share: $9.36

Dividend: Monthly at $.10 per share

ROC supported. 

Yield at New AC per share: 12.82%

Data Date of 11/25/24 Trade:

Closing Net Asset value per share: $12.09

Closing Market Price: $11.05

Discount: -8.6%

Average 3 year discount: -12.42%

Sourced: IDE-CEF Connect (Click "Pricing Information" tab)

IDE Morningstar

IDE Portfolio | Morningstar

Largest Gains: 

Item # 2 Sold 100 of the Stock CEF IDE at $20.3 (3/11/11 Post)(profit snapshot = $227.25); 

Item # 5 Sold 100 IDE at $17.47 (3/24/2014 Post)(profit snapshot = $138.39) 

Last Elimination: Item # 3. Eliminated IDE - Sold 100 at $13.85 (1/29/2017 Post)(profit snapshot = $46.96)

Some Other Sell Discussions: Item # 1 Sold 50 IDE at $18.7 (9/30/10 Post)(profit snapshot = $49.08); Item # 2 Sold 50 of the Stock CEF IDE at $18.61 (5/10/12 Post)(profit snapshot = $55.58); Item # 3 Sold 50 IDE at $17.12 Roth IRA (7/6/13 Post)(profit snapshot = $34.48).

IDE Realized Gains to Date: $635.8

E. Eliminated DNB - Sold 10 at $12.65: 

Quote: Dun & Bradstreet Holdings Inc. (DNB)

Proceeds: $126.5

Investment Category: Lottery Ticket Basket Strategy 

This classification is based on my opinion that the debt level is excessive. Other issues include a lack of meaningful dividend support and earnings growth using non-GAAP numbers.  

DNB Analyst Estimates | MarketWatch

DNB SEC Filings

10-Q for the Q/E 9/30/24 Debt is discussed starting at page 24. Long term debt was at $3.65+B. 

Profit Snapshot: +$26.93

Last Discussed: Item # 2.D. Started DNB - Bought 10 at $9.96 (7/19/24 Post) 

Prior Sell Discussion: Item # 2.C. Eliminated DNB - Sold 5 at $20.19 in Vanguard Taxable Account (2/10/22 Post)

Dividend: Quarterly at $.05 per share

DNB Dividend History | Nasdaq

Next Ex Dividend: 12/5/24

Last Earnings Report (Q/E 9/30/24): 

SEC Filing 

Revenues: $609.1M

Net Income: $3.2M

GAAP E.P.S. $.01

Non-GAAP Income: $116M

Non-GAAP E.P.S. = $.27, unchanged from the 2023 third quarter

Reconciliation: The largest add back is $107.9M reflecting amortization of intangible assets which is a noncash expense.  

Nine month Non-GAAP E.P.S. = $.68, up just 1 cent from the same period in 2023. 

My consider to repurchase: <$10 provided no material adverse events or reports. 

F. Pared COLB Again - Sold Highest Cost 10+ Shares at $32.7 - Fidelity Account:

Quote: Columbia Banking System Inc. (COLB)

Proceeds: $348.75

COLB Analyst Estimates | MarketWatch

COLB SEC Filings

Investment Category: Regional Bank Basket Strategy

Last Discussed: Item # 3.B. Sold 12+ COLB at $31.73 - Fidelity Account (11/21/24 Post)(profit snapshot = $24.5)

Last Buy Discussions: Item # 1.J. Added to COLB - Bought 2 at $19.81  (6/3/23 Post); Item # 1.J. Added to COLB - Bought 2 at $19.81  (6/3/23 Post); Item # 2.K. Added 1 COLB at $20.31 (5/27/23 Post) 

Profit Snapshot:  $43.05

New Average cost per share this account: $21.17 (36+ shares)

Snapshot Intraday on 11/25 after pare

Dividend: Quarterly at $.36 per share ($1.44 annually), last raised from $.30 effective for the 2023 second quarter payment. 

COLB Dividend History | Nasdaq

Yield at New AC per share this account: 6.8%

Last Ex Dividend: 11/29/24

Last Earnings Report (Q/E 9/30/24):  I discussed this report in a recent post. Item # 2.D. Pared COLB in Fidelity Account - Sold Highest Cost 10 Shares at $28.2 (10/31/24 Post); SEC Filed Earnings Press Release for the Q/E 9/30/24

I own 20+ shares in my Schwab account with an average cost per share at $20.78. I will likely eliminate one of the positions when and if the price goes over $35. 

G. Continued to Pare AT&T - Sold Highest Cost 5+ Shares at $23.08 - Fidelity Account: 

Quote: AT&T Inc. (T)

Proceeds: $125.37

I have been selling my highest cost lots.  

T Analyst Estimates | MarketWatch

T SEC Filings

Investment Category: Bond Substitute 

This category describes the goal rather than the safety of a dividend. The goal is realize an annual total return of 2% in excess of the dividend yield. 

Profit Snapshot: $28.63

New average cost per share: $15.96 (19+ Shares)

Snapshot Intraday on 11/27/24 after pare

Dividend: Quarterly at $.2775 per share ($1.11 annually) 

AT&T Inc. (T) Dividend History | Nasdaq

I am not reinvesting the dividend. 

Yield at $15.96: 6.955%

Last Ex Dividend: 10/10/24

Last Discussed: Item # 2.H. Sold 5 T at $22.98; 5 at $23.01 in Schwab Account (11/27/24 Post)(profit snapshots = $41.11)

Last Earnings Report (Q/E 9/30/24): I discussed this report here: Item # 2.C. Pared AT&T in 2 Taxable Accounts - Sold 5 at $22.37; 5 at $22.22 (10/31/24 Post)(profit snapshot = $38.89); SEC Filed Press Release  

H. Pared T in Schwab Taxable Account - Sold 3 at $23.66:

See Item # 1.G above. 

Proceeds: $70.99

Profit Snapshot: $11.58

New Average cost per share this account: $17.29 (32+ shares)

Snapshot Intraday on 12/4 one day after pare

Yield at New AC = 6.42%

After I sold the shares discussed discussed in Item # 1.G., AT&T had an investor conference and investors responded favorably to what was said. This allowed me to pare at a slightly higher price in my Schwab account. AT&T Outlines Plan for Sustainable Growth & Shareholder Returns, discussed at AT&T Expects to Return Another $20 Billion in Cash to Investors by 2027 (Just Not Through a Higher Dividend) | The Motley Fool and AT&T narrows its profit forecast, expects over $18bn in free cash flow in 2027 By Investing.com

I. Pared AIO Again - Sold 5 at $24.7: 

Quote: Virtus Artificial Intelligence & Technology Opportunities Fund Overview - Leveraged Balanced CEF

Proceeds: $123.5

I sold my highest cost 5 shares using the specific identification cost method. 

The fund owns common stocks, convertible securities and junk rated bonds. 

AIO SEC Filings

Virtus Artificial Intelligence &amp; Technology Opportunities Fund - SEC filed semiannual report for the period ending 7/31/24. 

Profit Snapshot: +$44.18

Last Discussed: Item # 2.K. Sold 4+ AIO at $22.54 (11/27/24 Post)(profit snapshot = $32.15) 

New Average cost per share: $15.19 (40 shares) 

Snapshots Intraday on 12/3/24 after pare

The AC per share was reduced from $15.27. 

Dividend: Monthly at $.15 per share  ($1.8 annually)

AIO Stock Dividend History & Date

Recent dividends have been supported by realized short and long term capital gains. I would expect the dividend and interest payments made by owned positions to be absorbed by the fund's expenses including interest expenses, management fees, and operating expenses. If those gains prove inadequate to support the dividend, then the dividend will need to be cut or continued with the that part of the dividend not supported by income classified as return of capital (ROC).   

Yield at New AC: 11.85%

Last Ex Dividend: 11/27/24

Next Ex Dividend: 12/30/24

Data Date of 12/31/24 Trade: 

Closing Net Asset Value per share: $23.57

Closing Market Price: $24.77

Premium: +5.09%

Average 3 Year Discount = -9.11%

Sourced: AIO  - CEF Connect 

Last Buy Discussions: Item # 2.C. Added to AIO - Bought 5 at $15.85; 5 at $15.63; 5 at $15.15 (10/28/23 Post); Item # 2.E. Added to AIO - Bought 3 at $16.37 (10/14/23 Post); Item # 5.B. Bought 5 AIO at $15.7 (10/25/22 Post)

Other Sell Discussions: Item # 2.F. Sold 8+ AIO at $19.66 (3/15/24)(profit snapshot = $22.87); Item #2.F. Pared AIO - Sold 15 at $19.7 (2/15/24 Post)(profit snapshot = $14.18)

Goal: Any total return prior to any ROC adjustments to the tax cost post in excess of the dividend payments. 

J. Pared PFLT - Sold Highest Cost 5 Shares at $11.02 - Schwab Account: 

Quote: PennantPark Floating Rate Capital Ltd. (PFLT)

Proceeds: $55.17

SEC Filed Annual Report for the F/Y ending 9/30/24 (Risk factor summary starts at page 18 and ends at page 38) A summary of investments starts at page 70.  

Last Discussed: Item # 2.H. Pared PFLT in Schwab Account - Sold 20 at $12.29 (1/12/24 Post)(profit snapshot = $12.13)   

Last Buy Discussions: Item # 1.M. Added to PFLT - Bought 3 at $9.71 (11/4/23 Post); Item # 4.F. Added to PFLT - Bought 5 at $10.51 (6/24/23 Post)

Profit Snapshot: $.98

New Average Cost per share = $8.95 (85+ Shares)

Snapshot as of close on 11/21  

Dividend: Monthly at $.1025 per share ($1.23 annually), last raised from $.10 effective for the July 2024 payment. 

PFLT Dividend History & Date

For PFLT, no ROC supported distributions were paid in 2023. The dividend was covered by net investment income. 

Yield at $8.95: 13.74%

Last Ex Dividend: 11/15/24

Net Asset Value per share history: 

9/30/24:   $11.31

9/30/23:  $11.13

6/30/23: $10.96

12/31/22:  $11.30

9/30/22:   $11.62

12/31/21:  $12.70

3/31/21:    $12.71 Press Release 2021 1st Q Earnings 
3/31/20:   $12.20   10-Q at page 5 
12/31/19:  $12.95
9/30/19:   $12.97
6/30/19:   $13.07 
3/21/19:    $13.24
12/31/18    $13.66
9/30/18    $13.82
6/30/18:   $13.82
9/30/17:   $14.10
9/30/16:   $14.06
9/30/15:   $13.95
9/30/14:   $14.40
9/30/13:   $14.10
9/30/12:   $13.98

Last Earnings Report (Q/E 9/30/24): SEC Filed Press Release 

NII per share: $.24

Adjusted NII per share: $.32

"For the quarter ended September 30, 2024, Core NII excluded: i) $8.6m of debt amendment and issuance costs, and included ii) $2.8m of incentive fee expense."

Dividends paid during the quarter: $.31

As of September 30, 2024, the PFLT "portfolio totaled $1,983.5 million and consisted of $1,746.7 million of first lien secured debt (including $237.7 million in PSSL), $2.7 million of second lien secured debt and subordinated debt and $234.1 million of preferred and common equity (including $56.5 million in PSSL). Our debt portfolio consisted of approximately 100% variable-rate investments. As of September 30, 2024, we had two portfolio companies on non-accrual, representing 0.4% and 0.2% of our overall portfolio on a cost and fair value basis, respectively. Overall, the portfolio had a net unrealized depreciation of $11.4 million. Our overall portfolio consisted of 158 companies with an average investment size of $12.6 million, and a weighted average yield on debt investments of 11.5%, and was invested 88% in first lien secured debt (including 12% in PSSL), less than 1% in second lien secured debt and subordinated debt and 12% in preferred and common equity (including 3% in PSSL). As of September 30, 2024, over 99% of the investments held by PSSL were first lien secured debt." 

Some Other Sell Discussions: Item # 2.D. Eliminated PFLT in Fidelity Account (Duplicate Position)-Sold 15 at $10.93 (3/11/23 Post)(profit snapshot = $74.78); Item # 7.E. Sold Highest Cost 20 PFLT Shares Purchased with Dividends at $14.07 - Schwab Taxable Account (4/28/22 Post)(profit snapshot = $46.13); Item # 3. Sold 102 PFLT in Schwab Taxable Account at $13.26 -Highest Cost Lots (7/30/21 Post)(profit snapshot = $30.92); Item # 2.A. Eliminated PFLT in Fidelity Account-Sold 81+ at $12.01 (12/14/19 Post)($29.66) 

Annual Average Total Returns (dividends reinvested): 

Through 11/30/24 (using the same month/day for earlier periods)

1   year:  11.59%

5 years:   9.03%  

10 years: 7.69%

Sourced: DRIP Returns Calculator | Dividend Channel

For both the 5 and 10 year periods referenced above, the total average total return was less than the dividend yield which indicates that the stock price was going down over those longer periods. The share price decline was offsetting some of the dividends value. 

Goal: As with all BDCs, the goal is to realize any total return in excess of the dividend payments.  The goal takes into account the risky loans made by BDCs, their leverage, the stock price meltdowns that occur periodically in response to a recession or too many bad loan decisions, a recognition that all of the return will likely come from the the juiced dividend payments, and the generally less than stellar net asset value per share histories.  

K. Pared CUBE - Sold 1 at $50.25 - Fidelity Account: 

Quote: CubeSmart - Storage REIT

Investment Category: Equity REIT Common and Preferred Stock Basket Strategy

Corporate Profile

SEC Filings

SEC Filed Investor Presentation 11/18/24 

Last Buy Discussion: Item # 2.E. Bought 19 CUBE at $22, 2 at $21.55, 1 at $19.74 (4/25/20 Post)

Profit Snapshot: $28.48

New Average cost per share: $21.12 (8 shares) 

Snapshot Intraday on 11/25 after pare

Dividend: Quarterly at $.51 per share 

CUBE Dividend History | Nasdaq

Yield at $21.12: 9.66%

Last Ex Dividend: 10/1/24

Last Earnings Report (Q/E 9/30/24): 

SEC Filed Press Release 

E.P.S. $.44 per share

FFO per share: $.67

The primary adjustment is to add back $49.639M in the noncash depreciation "expense"

Same Store Occupancy: 90.8%

Same Store (598) Net Operating Income decreased 3.1% year-over-year resulting from a .8% decrease in revenues and a 5.3% increase in operating expenses.  

Third Party Management: "As of September 30, 2024, the Company’s third-party management platform included 893 stores totaling 58.3 million rentable square feet. During the three and nine months ended September 30, 2024, the Company added 24 stores and 131 stores, respectively, to its third-party management platform."

Interest Expense: "Interest expense decreased from $23.2 million during the three months ended September 30, 2023 to $22.8 million during the three months ended September 30, 2024, a decrease of $0.4 million . . . The weighted average effective interest rate on our outstanding debt decreased from 3.04% during the three months ended September 30, 2023 to 2.99% for the three months ended September 30, 2024."

Guidance: 

Sell Discussions: Item # 1.L. Sold 1 CUBE at $53.15 (9/24/21 Post)(profit snapshot = $31.38); Item # 3.E. Pared CUBE - Sold 3 at $47.49 (7/23/21)(profit snapshot = $77.16) 

The appreciation in the stock price occurred in a year or so after the 2020 purchase and the stock has been range bound since I sold shares in July and September 2021.  

Owned CUBE SU Bonds: 12

10 of the 4% Maturing on 11/15/25, Bond Page | FINRA.org

2 of the 3.125% Maturing on 9/1/2026, Bond Page | FINRA.org

L. Sold Highest Cost 2 BNS Shares - Schwab Account: 

Quote: Bank of Nova Scotia  (BNS) 

Proceeds: $112.56 

BNS is one of the large Canadian banks. 

BNS Website: Financial Results

Corporate Profile

Reuters Valuation Metrics Page 

BNS Analyst Estimates | MarketWatch

Branches and Offices as of 10/31/24: 2,236

Loss Snapshot: -$15.59

New average cost per share share:  $50.03

Price as of 11/27 Close after pare 

Dividend: Quarterly at C$1.06 (C$4.24 annually), last raised from C$1.03 effective for the 2022 third quarter payment. 

Common Share Dividend Information

The dividend was left unchanged for the 2025 first quarter payment. 

Yield: The yield will depend on both the dividend amount and the CAD/USD exchange for each quarterly dividend payment. It is consequently impossible to to calculate an accurate dividend yield given the fluctuations in the currency conversion rate from the CAD dividend into USDs for the owners of BNS. 

If I assumed a constant .71 or .8 CAD/USD, just for illustration purposes, the yield at US$50.03 average cost per share using the current annual dividend of C$4.24 would be about 6.02% and 6.78% respectively (calculation for .8 CAD/USD: C$4.24 x. .8 CAD/USD = US$3.392 annual per share ÷ US$50.03  = 6.7799%)

Last Ex Dividend: 10/2/24

Last Earnings Report (4th F/Q ending 10/31/24): 

This report was released on 12/3/24 after this pare.  

Investors had a negative reaction. The USD priced shares close at $54.78 on 12/3, down $1.99 or 3.51%

All amounts are in CADs. 

Comparisons are to the 2023 4th fiscal quarter. 

Reported E.P.S. $1.22, up from $.99

Adjusted E.P.S. $1.57, up from $1.23

Adjustments to Reported E.P.S.

In the 4th fiscal quarter, the largest adjustment was an impairment charge related to the sale of a wholly owned finance subsidiary operating in Peru. 

Fiscal 2024 Adjusted E.P.S. $6.47, compared to $6.48

Reported 2024 E.P.S. $5.87 compared to $5.72

NIM: 2.15%, unchanged. 

Charge off Ratio: .51%, up from .35%  

Adjusted ROTCE: 12.8%, up from 10.8%

Revenues: $8.526B, up from $8.272B (+3%)

Net interest income: $4.923B, up 6%

"The provision for credit losses was $1,030 million, compared to $1,256 million, a decrease of $226 million."

"Non-interest expenses were $5,296 million, a decrease of 4%"

"The effective tax rate was 23.2% compared to 9.1% due primarily to lower tax-exempt income, lower income in lower tax jurisdictions, and the benefit of divestitures in the prior year. The lower tax-exempt income reflects the impact of the denial of the dividend received deduction measure enacted during the year as part of Federal Budget Implementation Act Bill C-59."

My concern is the flat NIM at 2.15%, same as in the 2023 4th fiscal quarter. 

Both the lack of an increase and the low number are unfavorable IMO.  

M. Eliminated IDNA - Sold 5 at $24.05: 

Quote: iShares Genomics Immunology & Healthcare ETF Overview

Proceeds: $120.27 

I decided that I would not be buying more shares due to subpar performance and consequently eliminated the position.  

Sponsor's website: iShares Genomics Immunology and Healthcare ETF | IDNA

Expense ratio: .47%

Profit Snapshot: $2.32

Last Discussed:  Item # 2.I. Started IDNA - Bought 5 at $23.6 (7/12/24 Post) 

IDNA  Performance - Morningstar (rated 1 star) 

IDNA – Portfolio – Morningstar Lists top 25 holdings. Of the top 25 holdings, I have small ball positions only in GILD and LGND. 

Dividends: Immaterial IMO

N. Pared VZ in Fidelity Account - Sold 2 at $44.24 and 5+ at $44.01:

Quote: Verizon Communications Inc.

Proceeds: $349.23

I sold my highest cost lots using the specific identification cost method. 

VZ Analyst Estimates | MarketWatch

VZ SEC Filings 

Investment Category: Bond Substitute

Last Buy Discussions: Item # 3.A. Added 4 VZ at $38.98 (7/26/24 Post)(discussed 2024 second quarter report, SEC Filed Press Release); Item # 2.I. Added to VZ in Schwab Account - Bought 1 at $38.78 (4/26/24 Post); Item # 6.K. Added to VZ in Schwab Account - Bought 1 at $35.09 (11/1/2022 Post); Item # 5.M. Added to VZ in Schwab Taxable Account - Bought 1 at $38.65; 1 at $36.76; 1 at $35.73 (10/18/22 Post)

Profit Snapshot: +$37.68

New Average cost per share this account: $35 (15 shares)

Snapshot Intraday on 12/3/24 after second pare 

Dividend: Quarterly at $.6775 per share ($2.71 annually), last raised from $.665 effective for the 2024 4th quarter payment. 

VZ Dividend History | Nasdaq

Yield at $35: 7.743%

Last Ex Dividend: 10/10/24

Last Earnings Report (Q/E 9/30/24): SEC Filed Press Release 

Comparisons are to the 2023 third quarter. 

Revenues: $33.33B, down slightly from $33.336B

GAAP E.P.S. = $.78, down from $1.23

Adjusted E.P.S. $1.19, down from $1.22

Adjusted E.P.S. excludes a sizeable severance charge of $1.773B "under the company's voluntary separation program for select U.S.-based management employees as well as other headcount reduction initiatives."

Reconciliation GAAP to Non-GAAP: 

Free Cash Flow 9 Months:  $14.461B

Total debt as of 9/30/24: $150.461B

Wireless service revenue up 2.7% to $19.8B

"Retail postpaid phone net additions of 239,000, and retail postpaid net additions of 349,000. " 

broadband net additions of 389,000. This was the ninth consecutive quarter with more than 375,000 broadband net additions." 

"fixed wireless net additions of 363,000. At the end of third-quarter 2024, the company had a base of nearly 4.2 million fixed wireless subscribers"

2024 Adjusted E.P.S. Guidance: $4.5 to $4.7

10-Q for the Q/E 9/30/24 

O. Pared VZ in Schwab Account - Sold 1 at $44.67 : 

See Item # 1.K. above

Proceeds: $44.67

Profit Snapshot: +$3.02

New Average Cost per share this account = $35.84

Yield at New AC = 7.56%

2. Small Ball Buys: 

I discussed in a comment published yesterday that chemical companies are still experiencing weak demand for their products. That is causing the stocks to hit 52 week lows. The weakness in demand has been confirmed by the companies. However, stock prices are at least in theory suppose to be forward looking, and the current prices for chemical stocks are not consistent with the future optimism currently expressed in major stock indexes and other stock sectors that use chemical products including industrials. In other words, there is a disconnect between the pessimism reflected in chemical stock prices and the continued robust future optimism expressed in other stock sectors. This is not to say that one view or the other is correct but only that they are inconsistent IMO.    

A. Started NTST - Bought 10 at $16.425; 10 at $16: 

Quote: NetSTREIT Corp. (NTST) - Internally managed net lease REIT

These are my first purchases. 

Cost: $324.25

I bought 10 just prior to the ex dividend date and 10 on the ex dividend date. 

"The Company acquires, owns and manages commercial single-tenant lease properties, with the majority being long-term triple-net leases where the tenant is generally responsible for all improvements and contractually obligated to pay all operating costs (such as real estate taxes, utilities and repairs and maintenance costs). As of September 30, 2024, exclusive of mortgage loans receivable, the Company’s weighted average remaining lease term was 9.5 years. 10-Q at page 11 

NTST SEC Filings 

Portfolio Details as of 9/30/24: 

Occupancy at 100%.

In addition to properties this REIT has investments in mortgage loan receivables: 

10-Q at page 14

2023 SEC Filed Annual Report

Average cost per share: $16.21  (20 shares)

Dividend: Quarterly at $.21 per share ($.84 annually), last raised from $.205 effective for the 2024 third quarter payment. 

Yield at AC = 5.18%

Last Ex Dividend: 12/2/24 (owned 10 as of)  

Last Earnings Report (Q/E 9/30/24): SEC Filed Press Release 

and  Supplemental 

Comparisons are to the 2023 third quarter. 

Revenues:  $41.444M, up from $33.961M

AFFO per share: $.32, up from $.31

GAAP Net Income to AFFO reconciliation:  

A triple net lease will transfer to the tenant the obligation to pay property taxes, insurance and maintenance expenses. 

Occupancy: 100%

The company reiterated "its full year 2024 AFFO per share guidance midpoint and updating the range to $1.26 to $1.27 from its prior range of $1.25 to $1.28. The Company now expects cash G&A to be in the range of $12.8 million to $13.2 million (exclusive of transaction costs and severance payments)."

Goal: Dividend + an annual realized gain on the shares exceeding 2%. 

I would be more comfortable buying this stock if the REIT did not own 25 properties leased to Walgreens and 39 to Advance Auto Parts. SEC Filed Supplemental at page 14 I do not know how many of those properties that Walgreens and AAP intend to close. Walgreens is closing 1,200 stores | CNN Business; Advance Auto Parts is closing more than 700 locations | CNN Business  

B. Added 1 LYB at $81.86; 1 at $80.9; 1 at $77.65: 

Quote: LyondellBasell Industries N.V. Cl A 

Cost: $240.41

This is a link to the LYB Investor Presentation made on 12/4/24 that contributed to the decline. Conference December 2024.pdf At page 8, LYB says that its 4th quarter EBITDA, excluding identified items, will likely be lower than any quarter since 2020. The near term outlook is presented at page 7. 

10-Q for the Q/E 9/30/24

LYB Analyst Estimates-MarketWatch

Reuters Key Metrics

Products & Technology | LyondellBasell

New average cost per share: $82.73 (6 shares)

Dividend: Quarterly at $1.34 per share ($5.36 annually), last raised from $1.25 effective for the 2024 second quarter payment. 

A $5.2 special dividend went ex dividend on 6/3/22. LyondellBasell Announces $5.20 Special Dividend and Increases Quarterly Dividend by 5 Percent I owned 4+ shares on the ex dividend data and have sold those shares. Item # 1.C. Eliminated LYB - Sold 6 at $98.42 (2/13/23 Post)(profit snapshot = $58.35)

Yield at New AC =  6.48%

Last Ex Dividend: 12/2/24 (owned 4 as of)

Last Earnings Report (Q/E 9/30/24):I discussed this report here: Item # 2.E. Restarted LYB - Bought 1 at $87.49; 1 at $84.81; 1 at $83.87 (11/7/24 Post); SEC Filed Press Release 

Analyst Reports (available to Schwab customers): 

Morningstar (11/1/24): 4 stars with a fair value estimate of $115, reduced from $118 as analyst revised estimates based on a slower volume and price recovery that previously anticipated. Morningstar assigns this company a narrow moat. I would most likely be a seller over $100. 

S&P (11/1/24): 3 stars with a 12 month PT of $93 which was lowered from $100 in response to the third quarter report. 

Argus (8/8/24): Buy with a $112 PT. This analyst has not yet updated the report to reflect the 3rd Q report. 

Purchase Restriction: 1 or 2 share lots with each subsequent purchase required to be the lowest price in the chain. 

C. Added 10 GLQ at  $6.855 - Fidelity Account: 

Quote:  Clough Global Equity Fund Overview - Leveraged CEF 

Cost: $68.55

Sponsor's website: Clough Closed-End Funds (CEF) 

SEC Filings 

SEC Filed Semiannual Report for the period ending 4/30/24 Leverage was at a .8% spread to the Overnight Bank Funding Rate, and that cost has been coming down due to the Fed rate cuts. 

Chart: Overnight Bank Funding Rate (OBFR) -St. Louis Fed

Leveraged at 13.94% as of 9/30/24

Last Discussed: Item # 1.B. Added to GLQ - Bought 10 at $6.78 (8/29/24 Post); Item # G. Added to GLQ - Bought 10 at $6.49 (3/28/24 Post); Item # 2.A. Added to GLQ - Bought 5 at $5.88; 10 at $5.82 (12/9/23 Post); Item # 3.A. Added to GLQ - Bought 5 at $5.2 (11/4/23 Post); Item # 2.C. Added to GLQ - Bought 5 at $5.35 (10/14/23 Post);Item # 3.E. Bought 5 GLQ at $5.96 (5/6/23 Post)

New Average cost per share this account: $6.46 (143 + Shares)

Snapshot Intraday on 11/29/24 after add 

Dividend: Monthly at $.063 per share ($.756 annually)

ROC Supported. 

The entire amount paid in 2023 was classified as ROC: 

The 2023 dividends would not be taxed in 2023. Instead, the tax cost basis in the shares would be reduced by the ROC allocation each month.  

Yield at New AC: 11.7%

Next Ex Dividend: 12/16/24

Data Date of 11/29/24 Trade: 

Closing Net Asset Value per share: $8

Closing Market Price: $6.86

Discount: -14.31%

Average 3 Year Discount: -10.78% 

Sourced: GLQ  - CEF Connect 

Top 10 Holdings as of 9/30/24: 

Clough Global Equity (GLQ) Portfolio | Morningstar Lists top 25 holdings

Asset Allocation as of 9/30/24: 

D. Added 1 DOW at $43.99; 1 at $42.59: 

Quote: Dow Inc. (DOW)

Cost: $86.58

DOW SEC Filings

DOW  Analyst Estimates | MarketWatch

Dow Presents at Citi 2024 Basic Materials Conference.pdf on 12/3/24. This presentation contributed to the recent share price decline, though I did not see anything that added to what I previously described as weak demand conditions reflected in the last earnings report. 

Last Discussed: Item # 2.D. Added to DOW - Bought 1 at $44.31 (11/27/24 Post) 

A 1 share purchase was made on the ex dividend day and the other was made after Dow made a presentation at an investor conference on 12/3 that was not well received by investors. 

New Average cost per share: $49.16 (15+ shares)

Dividend: Quarterly at $.70 per share ($2.8 annually)

DOW Dividend History | Nasdaq

I do not regard the dividend as safe. 

Yield at New AC: 5.696%

Last Ex Dividend: 11/29/24 (owned 13+ as of)

Last Earnings Report (Q/E 9/30/24): I discussed this report here: Item #2.G. Added to DOW - Bought 2 at $48.39; 1 at $47.82 (11/7/24 Post); SEC Filed Press Release 

Last Elimination: Item # 1.B. Eliminated DOW in 2 Taxable Accounts - Sold 5 at $59.71; 8 at $60.02 (2/13/23 Post)

3. Corporate Bonds: 

Other corporate bond purchases made prior to today will be discussed in my next post. 

I live in a state with no income tax. 

If I lived in a state where I had to pay a state income tax on corporate bond interest payments, I would not be buying them in a taxable account. 

The yield spreads to treasury bills and notes, whose interest payments can not be taxed by a state, are too low, making the after tax yields of corporate bond interest payments, compared to treasuries, unworthy of the credit risk no matter how slight. 

A. Bought 2 Invesco Finance 3.75% SU Maturing on 1/15/26 at a Total Cost of 98.986: 

Issuer: Wholly owned indirect subsidiary of INVESCO Ltd. (IVZ), who guarantees the notes. 

Prospectus

IVZ Analyst Estimates | MarketWatch

I have a small ball position in the common shares. 

Last IVZ Discussion: Item # 1.C. Pared IVZ - Sold Highest Cost 10 Shares at $17,82 (12/12/23 Post)(profit snapshot = $36.15). This pare reduced my average cost per share to $13.01 {IVZ realized gains to date: $542.6, with the largest gain discussed here: Item # 1.A. Sold 83+ at $17.3-Schwab Account and Item # 1.B. Sold 71+ IVZ in Fidelity Taxable Account  at $17.39 (1/1/21 Post)(profit snapshots = $330.88)} 

SEC Filed Earnings Press Release for the Q/E 9/30/24 

10-Q for the Q/E 9/30/24 Debt is listed and discussed at page 10. 

Finra Page Bond Page | FINRA.org

Credit Ratings: A3/BBB+

YTM at Total Cost: 4.675%

Current Yield at TC: 3.788%

I now own 4 bonds. 

B. Bought 2 Autozone 3.125% SU Maturing on 4/21/26 at a Total Cost of 97.855:

Issuer: AutoZone Inc. (AZO) 

AZO Analyst Estimates | MarketWatch

I have never owned the common stock. 

AZO SEC Filings 

AZO SEC Filed Earnings Press Release for the F/Q ending 8/31/24 

AZO SEC Filed Annual Report for the F/Y ending 8/31/24 Debt is listed at page 65.  

Finra Page: Bond Page | FINRA.org

Credit Ratings: Baa1/BBB

YTM at Total Cost: 4.721% 

Current Yield at TC = 3.194%

C. Bought 2 American Tower 4.4% SU Maturing on 2/15/26 at a Total Cost of 99.592 - IB Account: 

Issuer:  American Tower REIT  (AMT) 

I have never owned the common stock. 

AMT SEC Filings 

SEC Filed Earnings Press Release for the Q/E 9/30/25 

10-Q for the Q/E 9/30/24 Long term debt is listed and discussed starting at page 14. The long term debt was at $33.367+ billion as of 9/30/24.  

Finra Page: Bond Page | FINRA.org

Credit Ratings: Baa3/BBB 

YTM at Total Cost: 4.745%

Current Yield at TC: 4.418%  

Last Bond Offering (11/24): Prospectus 

I own two American Tower SU bonds that mature on 1/15/25. This is the next AMT SU bond to mature. I am replacing those bonds with this last purchase in advance of their maturity. 

D. Bought 2 Magna International 4.15% SU Maturing on 10/1/25 at a Total Cost of 99.616: 

Issuer: Magna International Inc. (MGA) 

I have a small ball position in the common stock. 

Last MGA Discussion: Item # 3.C. Bought 1 MGA at $40.8; 3 at $40.28 (10/10/24 Post) 

Website: Magna International

MGA Analyst Estimates | MarketWatch

MGA SEC Filings (foreign issuer forms)

SEC Filed Earnings Press Release for the Q/E 9/30/24 

Finra Page: Bond Page | FINRA.org

Credit Ratings: A3/A-

YTM at Total Cost: 4.62%

Current Yield at TC = 4.166%

I now own 4 bonds. 

I do have a concern that this company may be negatively impacted by Trump's tariffs which may cause me to dump my 3 common share position.  

E. Bought 2 Blue Owl 4.25% SU Maturing on 1/15/26 at a Total Cost of 99.15: 

Issuer:  Blue Owl Capital Corp. (OBDC) - Externally Managed BDC. The symbol was change from ORCC after a name change.  

The name was changed from Owl Rock. 

The external advisor is also a publicly traded entity. Blue Owl Capital Inc.  (OWL) 

I have a small ball position in the common stock (40 shares in my Fidelity with an average cost per share at $12.11)

Last OBDC Discussions: Item # 3.A. Eliminated Duplicate Position in ORCC - Sold 30+ at $13.78 - Vanguard Account(9/23/23 Post)(profit snapshot = $52);Item # 1.A. Eliminated  ORCC in Schwab Taxable Account- Sold 26+ at $13.6 (3/6/23 Post)(profit snapshot = $40.68) 

OBDC SEC Filings 

OBDC SEC Filed Earnings Press Release for the Q/E 9/30/24 

10-Q for the Q/E 9/30/24 A summary of investments starts at page 4. 

Finra Page for bond: Bond Page | FINRA.org

Credit Ratings: Baa3/BBB- 

The pricing of this bond indicates that bond investors assign at most a BB+ rating. This is normal for bonds issued by BDC companies that are viewed as more risky than non-pass through corporate bonds rated at BBB-. 

The reasons for the higher yield than typical for the credit rating include the risky investments made by BDCs and the payment of all or a large part of net investment income as common share dividends. Other factors include debt levels and declining net interest margins resulting from variable rate loans resetting their coupons at lower rates as short term rates decline. Those loans are generally priced at spreads to short term rates like the 1 or 3 month SOFR. 

YTM at Total Cost: 5.042%

Current Yield at TC: 4.286%

In my Fidelity account, I have staggered maturities of Blue Owl SU bonds, and this last purchase simply extended the maturity range a few months: 

Third Party Prices as of 12/3/24

3 of those bonds were issued by the publicly traded Blue Owl and the other, referenced as Blue Owl Credit Income, was issued by a private BDC that has the same external manager and has the same credit rating. Since the private company sells bonds to the public, it has to file reports with the SEC. SEC Filings for Blue Owl Credit Income Corp. 

Brokers do not price bonds based on the last trade but update the price after the market closes based on a third party's estimate which is invariably lower than the last trade.  

I also own bonds by either Blue Owl Capital or Blue Owl Credit Income in other taxable accounts that brings the total to $14,000 in principal amount. That is about 4 more than I am comfortable owning. Since the maturities are short, and everything looks okay at the present time, I am willing to go higher in my dollar exposure. 

I own 4 of the 5.5% SU issue by Blue Owl Income (private) maturing on 3/21/25; 6 of the 4% SU issued by Blue Owl Capital (public) that matures 3/30/25; 2 of the Owl Rock, now Blue Owl Capital, 3.75% SU maturing on 7/22/25; and 2 of the Blue Owl Capital 4.25% SU discussed here.  

4. Treasury Bills Purchased at Auction: 

When held to maturity, the interest paid by the following treasury bills will be taxed in 2025. I always hold T Bills bought at auction to maturity.  

A. Bought 2 Treasury Bills at the 11/27/24 Auction: 

119 Day Bill

Matures on 4/1/24

Interest: $29.02

Investment Rate: 4.517%

B. Bought 10 Treasury Bills at the 12/2/24 Auction- Schwab Account: 

182 Day Bills

Mature on 6/5/25

Interest: $217.64

Investment Rate: 4.462%

C. Bought 10 Treasury Bills at the 12/2/24 Auction - 2 Accounts: 

91 Day Bills

Mature on 3/16/25

Interest: $111.22

Investment Rate: 4.511%

D. Bought 3 Treasury Bills at the 12/4/24 Auction: 

119 Day Bills

Mature on 4/8/25 

Interest: $42.79

Investment Rate: 4.438%

The prior week's auction had an IR of 4.517%, see Item # 4.A. above.  

5. Treasury Notes Purchased in the Secondary Market: 

I can not currently buy T Bill or Treasury Notes at auction with the maturities of the following purchases. I will probably buy the 1 year treasury bill at the January 2025 auction that will shift the tax recognition of the interest income, when held to maturity, into 2026.  

A. Bought 1 Treasury Note 4.25% Coupon Maturing on 1/31/26 at a Total Cost of 99.879: 

YTM at 4.353%

I now own 2. 

B. Bought 1 Treasury Note 2.75% Coupon Maturing on 8/31/25 at a Total Cost of 98.7544: 

YTM at 4.433%

C. Bought 1 Treasury Note 3.15% Coupon Maturing on 8/15/25 at a Total Cost of 99.1039: 

YTM at 4.411%

I now own 2 notes. 

6. Cash Flow into Fidelity Account on 12/1/24: 

My portfolio is managed to generate a constant stream of cash flow from security redemptions, interest and dividend payments. 

Proceeds from redemptions will generally be invested in more of the same, with the current emphasis in the weeks ahead on treasury bill purchases using the proceeds from redeemed  bonds (primarily corporate) and matured T Bills, CDs and Treasury notes.   

Since 12/1 was a Sunday, the credits were made on 12/2. 

Total Cash Flow received: $20,296.49

Redemption Proceeds: $18,000 including $10,000 in a municipal bond early redemption. 

Bond "Profit": $287.8

The Carlisle, Laboratory and Trimble SU bonds were also owned in my Vanguard taxable account. 

The largest "profit" was from the 10 Harpeth Valley federally tax exempt bonds: 

For the most part, long term capital gains realized from bond positions will be taxed as interest income under a IRS rule. 

Clicking the tab in my Fidelity account labelled "Year-to-Date" Tax Activity", as of 12/2/24, there is a link to "Realized Accrued Market Discount Income" The total was over $4,000 and that is my bond "profits" that will be classified as interest income. 

The two Laboratory Corporation bonds that matured on 12/1 had what is in reality a $76.83 long term capital gain which is not treated as such but as interest income called realized accrued market discount income: 

Treating a long term capital gain as interest income does not make any difference to me since I will manage my tax rate at 15% or lower, primarily through owning tax exempt bonds, deferring the tax recognition of income into subsequent years, taking some stock losses to reduce the current year income level and receiving qualified dividends from stocks.  

I still own 5 Harpeth Valley Utility District 3.25% tax exempt bonds that mature on 9/1/38. Item # 6.A. Bought 5 Harpeth Valley Utility District 3.25% Maturing on 9/1/38 at a Total Cost of 90.07 (3/28/20 Post), Emma Page (rated at AA+)

Dividends and Interest: $2,296.49

Most of the income in this account will be generated by Tennessee Municipal bond and investment grade corporate bonds.  

Tennessee Municipal Bonds: $1,235.33 (Harpeth Valley was a partial semiannual payment) The semiannual interest payments for municipal bonds are paid on the 1st business day of each month. 

Corporate Bond Interest $1,000 par value: $910 (interest payments from corporate bonds are paid throughout each week but the bulk with be received on the 1st, 15th and last business day of each month. 

Exchange Traded Baby Bonds Interest $25 par value: $56.88   (ELC and EAI FM bonds; GLADZ and SAZ SU bonds) 

CDs Interest (Paid Monthly): $21.94

Common Stock Dividends: $24.06 (not important to me, but small payments are received throughout the month)

CEF Dividends (Paid Monthly): $48.28. Most payments are made on the last business day or the first business day of each month with some scattered in between.  

Total: $2,296.49

The First Mortgage bonds referenced in the preceding snapshots are  either $25 or $1,000 par values. The issuers are Entergy Louisiana, Entergy Arkansas, Entergy Texas, Entergy Mississippi, Entergy New Orleans and Evergy Kansas Central. 

In this account, I received $7,000 in proceeds from a T Bill and CD maturity on 11/29:

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.