Until I start buying stocks again, with net purchases exceeding $500 in a week which is unlikely at the current time, I will be posting monthly updates that will discuss a very limited number of corporate bond purchases and stock/stock fund sales.
I am still buying 1 to 5 shares of dividend paying stocks, but the total amount will generally be less than $100 per week and proceeds from stock sales have substantially exceeded that amount. I did buy about $300 in dividend paying stocks on 4/4, mostly near the close and at the lowest prices previously paid for those purchases.
I will not be selling much of anything at current or lower stock market levels.
I have been discussing the economy in several YouTube Videos including the following recent ones:
Trump Tariff Taxes Worse than the Worst Expectation - YouTube; More Bad Numbers on Inflation, Consumer Spending, Confidence and Sentiment - YouTube; Fed Lowers 2025 Real GDP Growth and Increases Inflation Projections - YouTube
Trump's Misleading Tariff Chart - FactCheck.org
Trump's tariff rates for other countries larger than World Trade data
Donald Trump's Tariffs Are Based on Bizarre Math—The Numbers Explained - Newsweek
Trump's tariff formula confounds the world, punishes the poor | Reuters
Trump Reciprocal Tariffs: Details & Analysis | Tax Foundation
It is possible that today's stock market dive was or close to a washout in selling. That is not knowable unless you know what Trump will do and he does not know.
If the tariff war started by the U.S. continues throughout this year and into 2026, with some countries like Vietnam reaching a deal acceptable to Trump but major trading partners remain locked in a tariff war, then it would be reasonable to predict more significant declines in the stock market as Trump blows up the world economic order that led to robust U.S. growth post WWII.
If Trump backs off before causing a recession and much higher inflation, then stocks could rally when and if that happens.
If Trump's goals is to force both domestic and foreign companies to build and equip U.S. factories, staffing them mostly with union workers, to replace production from foreign ones, which is Trump's frequently repeated goal, then U.S. tariffs will have to remain in effect for an extended period and the impacted companies will have to be convinced that the tariff war is not a negotiating ploy lasting a few months. It will generally take 2 to 4 years to build, equip and start up production and the cost of the products for U.S. consumers will go up a lot. (E.g. An average hourly wage in Mexico for an auto worker is $4 vs. $70 for a UAW member in the U.S.)
Trump is hoping that the tariff revenue will pay for the tax cuts which is another reason they will remain around for a long time. Tax cuts do not matter to about 40% of taxpayers who do not pay federal income taxes now. They will paying the republican tariff taxes. Households paying no income tax by income level U.S. 2022 | Statista
Speech by Chair Powell on the economic outlook - Federal Reserve Board
Fed chair says Trump tariffs will likely raise inflation, slow economic growth - CBS News
1. Sample of Small Ball Common Stocks/Stock Funds Sales:
Proceeds this Section: $6,587.55
Realized Gain this Section: $1,356.55
The proceeds is a more important number than the total profit number since I am derisking my portfolio.
A. Pared MFC - Sold 5 at $31.59:
Proceeds: $157.95
Quote: Manulife Financial Corp. (MFC)
CAD Priced Shares: Manulife Financial Corp (Canada: Toronto)
Canadian Dollar to US Dollar Exchange Rate Chart | Xe
Profit Snapshot: $100.91
Last Buy Discussion: Item # 2.D. Bought 100 MFC at $11.41 (5/9/2020 Post) I have been selling lots out of that 100 share purchase.
Last Discussed: Item # 2.A. Sold 5 MFC at $32.79 (11/27/24 Post)(profit snapshot = $106.95)
Unchanged Average cost per share: $11.41 (75 shares)
Dividend: Quarterly at C$.44 per share (C$1.76 annually)
Manulife increases common shareholders’ dividend by 10.0% (2/19/25)
Dividend In USDs: Manulife Financial Corporation (MFC) Stock Dividend History & Date
Last Ex Dividend: 3/5/25
Yield: It is impossible to calculate the dividend yield precisely for a USD priced share of a Canadian company that pays dividends in CADs that are then converted into USDs for the owners of the USD priced shares. The CAD/USD exchange rate will fluctuate from quarter to quarter and is currently fluctuating in the .69 to .7 range.
If I assume a constant .7 CAD to USD, just as an example, the yield at a C$11.41 T.C. and an annual dividend of rate C$1.76, the dividend yield would be 10.8%. At a C$1 - US$1 the dividend yield would increase to 15.24%.
Calculation: C$1.76 x. .7 to convert to USDs = US$1.232 annual dividend per share ÷ US$11.41 total cost per share = 10.7975%
Last Earnings Report (Q/E 12/31/24): SEC Filed Press Release Release
All amounts are in Canadian Dollars.
Core E.P.S. = C$1.03 up from C$.92
Items excluded from core earnings:
Analyst Reports (available to Schwab customers):
Morningstar (3/24/25): 2 stars with a fair value estimate of US$27.5
S&P (2/21/25): 4 stars with a 12 month PT of US$36
Lowest price paid in Last 5 years: Item # 2.C. Bought in Fidelity Account 10 MFC at $10.15; 2 at $9.3; 2 at $8.9 (5/9/20 Post) Those lots have been sold.
Realized MFC Gain In USDs: $1,336.54
Owned Reset Equity Preferred: MFC-PM.TO, reset on 11/20/24 for five years at a 2.36% spread to the five year Canadian bond yield resulting in a new coupon of 5.542%, Manulife Financial Corporation announces Dividend Rates on Non-cumulative Rate Reset Class 1 Shares Series 17 and Non-cumulative Floating Rate Class 1 Shares Series 18; Item # 2.A. Bought 100 MFCPRM:CA at C$15.14 (7/25/20 Post). At a C$15.14 total cost, the new yield is about 9.15%.
Owned SU Bond: 2 SU 4.15% Maturing on 3/4/26, Bond Page | FINRA.org
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| Snapshot Intraday on 3/24/25 after pare |
4 of the 4% SU Maturing on 9/15/25- FINRA Page
2 of the 3.7% SU Maturing on 6/15/27 - FINRA Page
2 of the 4.9% SU Maturing on 3/15/29 -FINRA.org
The 4.9% SU was the last one purchased. Item # 2.V. (2/5/25 Post) The total cost was slightly below par value.
WMB SU Bonds that have matured so far in 2025:
%20+$17.62%20.png){kind=small}
%20+$22.66%20.png)
%20+$46.12%20.png){kind=small}
 |
| Snapshot Intraday on 3/21/25 after pare |
Interest expense in 2024 was $37.795M in 2024 with debt at $693.385M compared to $26.887M in interest expense with the debt at $707.526M in 2021 prior to the FED's rate hiking cycle. The SOFR rate has been declining starting last September with the federal funds range now 1% below the 2024 peak.
GOOD Realized Gains to Date: $442.99
GOOD Equity Preferred Stock Position: 85 shares
I prefer owning a preferred stock issued by GOOD whose dividend can not be cut, but only deferred after the cash common share dividend is eliminated. Gladstone Commercial Corp. 6.625% Pfd. Series E Stock (GOODN); Prospectus {dividends paid monthly, last discussed at Item # 2.C. Added to GOODN - Bought 10 at $18 (7/22/23 Post) and Item # 1.E. Added to GOODN - Bought 10 at $18.25 (7/8/23 Post)}
GOODN taxable accounts: For the both the common and preferred stocks, there has been some ROC adjustments to the original cost numbers.
50 shares in my Schwab account with an average cost per share of $16.65 (yield = 9.95%%)
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| Price as of 3/28/25 Close |
25 shares in my my Fidelity Account at a $16.51 AC per share (yield at 10.03%):
10 shares in my Vanguard Account with a $15.64 AC per share (yield at 10.59%)
The preferred dividend can not be cut or eliminated but only deferred which first requires that no cash dividend be paid to the common shareholders and no cash is used to buy common shares.
D. Eliminated T Position in Fidelity Account - Sold 10 at $28.25:
Proceeds: $282.47
Quote: AT&T Inc. (T)
T Analyst Estimates | MarketWatch
Profit Snapshot: $126.97 (3/27/24 sale only)
Dividend: Quarterly at $.2775 per share, slashed from $.52 effective for the 2022 second quarter payment.
AT&T Inc. (T) Dividend History | Nasdaq
Last Ex Dividend: 1/10/25
Last Discussed: Item # 1.C. (3/18/25)(profit snapshots = $201.37) I discussed the last earnings report in that post and have nothing further to add here. SEC Filed Earnings Press Release
E. Eliminated T Position in Schwab Account - Sold 10+ at $28.71:
See Item # 1.D. above:
Proceeds: $305.59
Profit Snapshot: $142.73
Proceeds: $450.15
Quote: Verizon Communications Inc.
VZ Analyst Estimates | MarketWatch
Profit Snapshot: +$118.31 (3/27/25 sale only)
Dividend: Quarterly at $.6775 per share.
Last Discussed: Item # 1.C. (3/18/25 Post)(profit snapshot = $94.14). I discussed the last earnings report in that post and have nothing further to add here. VZ SEC Filed Earnings Press Release
F. Eliminated SWZ - Sold 117+ Shares at Prices Indicated Below:
Profit Snapshot: $186.08
Proceeds: $1,053.66
Quote: Swiss Helvetia Fund Inc.
I discussed the reason for this elimination in a comment published on 3/27/25. The main reason why I owned this CEF is that it owns Swiss stocks. That is about to change. Almost all of the Swiss stocks will be sold and the fund will change its investment manager and investment objectives. Swiss Helvetia Declares Special Distribution of $3 per share
G. Eliminated FLSW - Sold 10 at $34.63:
Quote: Franklin FTSE Switzerland ETF Overview
Proceeds: $346.30
Profit Snapshot: $39.3
Sponsor's website: Franklin FTSE Switzerland ETF - FLSW
Expense Ratio: .09%
Last Discussed: Item # 6.O. Added 1 FLSW at $26.73 (11/1/2022 Post); Item # 4.F. Added 2 FLSW at $28.9 (6/28/22 Post)
Top 10 Holdings as of 3/27/25:
I will consider buying these shares when and if the price sinks below $30.
The main problem now is that the Swiss economy depends on exports and the republican tariff tax on exports to the U.S. is now at 32%.
H. Eliminated DG - Sold 5 at $85.63:
Proceeds: $428.14
Quote: Dollar General Corp. (DG)
Rationale: I am becoming increasingly concerned that DG customers will have no choice but to cut back on their spending.
Profit Snapshot: Net of +$49.07
Last Discussed: Item # 1.H. Added 1 DG at $75.17; 1 at $70.25 (1/9/25 Post) I discussed the earnings report for the F/Q ending 11/1/24 in that post. SEC Filed Earnings Press Release
Dividend: Quarterly at $.59 per share
Last Ex Dividend: 1/7/25
Last Earnings Report (Q/E 1/31/25): SEC Filed Press Release
E.P.S. = $.87, down from $1.83
Fiscal 2025 Guidance:
Earnings Call Transcript: Dollar General (DG) Q4 2024 Earnings Call Transcript | The Motley Fool ("Many of our customers report that only have enough money for basic essentials, with some noting that they have had to sacrifice even on the necessities.")
SU Bond: I own 2 DG 4.15% SU that mature on 11/1/25. Item # 1.F. (10/31/24 Post); Bond Page | FINRA.org (BBB/Baa2)
My maximum SU bond ownership is 2 bonds, and I will need to receive the proceeds from those bonds before considering buying 2 more.
I. Pared MEGI - Sold 45 Shares at the Prices Indicated Below:
Quote: NYLI CBRE Global Infrastructure Megatrends Term Fund Overview - A CEF
The fund is primarily a stock CEF with some bonds, preferred stocks and convertible securities.
Leveraged: Yes at 26.95% as of 12/31/24.
Sponsor's website: MEGI MainStay CBRE Global Infrastructure Megatrends Fund
Profit Snapshot: +$25.91
Proceeds: $578.48
I sold my highest cost lots.
NYLI CBRE Global Infrastructure Megatrends Term Fund - SEC Filed Semiannual Report for the period ending 11/30/24
Top 10 Holdings as of 1/31/25:
During the recent stock market turmoil, many of the stocks owned by this fund have managed to move higher or lose less than the S&P 500 Index. Energy infrastructure stocks have benefited from the belief that Trump will ease regulations, thereby making it easier to secure new pipeline regulatory approvals. The utility stocks have benefited some due to the decline in intermediate term interest rate and more defensive posturing from many investors.
Last Buy Discussions: Item # 1.C. Bought 15 at $12.5; 10 at $12.18 - Fidelity Account (12/26/24 Post); Item # 2.B. Added to MEGI - Bought 5 at $11.45 (4/19/24 Post); Item # 1.A. Added to MEGI - Bought 50 at $12.32 - Fidelity Account (4/12/24 Post)
New Average cost per share this account: $12.01 (65 shares)
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| Snapshot Intraday on 3/27/25 after pare |
Dividend: Monthly at $.125 per share ($1.5 annually)
ROC Supported.
The only way for this fund to cover this dividend is through realized capital gains.
Yield at $12.01 = 12.49%
Last Ex Dividend: 5/23/25
MEGI Portfolio | Morningstar (list top 25 holdings)
Last Sell Discussions: Item # 2.A. Sold Remaining MEGI Shares Purchased with Dividends at $14.44 (9/19/24 Post)(profit snapshot = $3.71); Item # 3.A. Pared MEGI - Sold 22+ at $13.41 (5/24/24 Post)(profit snapshot = $10.31)(sold my highest cost lots plus shares purchased with dividends)
J. Eliminated Duplicate MEGI Position in Schwab Account - Sold 30 at $13.29:
Proceeds: $398.69
See Item # 1.I. above.
Profit Snapshot: $29.47
Data Date of 3/28/25 Trade:
Closing Net Asset Value per share: $14.62
Closing Market Price: $13.25
Discount: -9.37%
Average 3 Year Discount: -13.19%
Sourced: MEGI - CEF Connect (Click "Pricing Information" Tab)
K. Pared SPTN - Sold 15 at Prices Indicated in the Snapshot Below:
Quote: SpartanNash Co. (SPTN)
Last Buy Discussions: Item # 2.I. Bought 5 SPTN at $17.4 (1/15/25 Post); Item # 1.D. Added to SPTN - Bought 4 at $18.23; 5 at $17.9 (1/9/2025 Post)
SPTN Analyst Estimates | MarketWatch
Profit Snapshot: $26.79
Proceeds: $310.89
Description of Businesses: SEC Filed Annual Report at pages 4-7
I would describe the company as a food distributor that also owns grocery stores (196 as of 12/31/24) that has its own private label brands which is commonplace among grocery store chains now. The contract with the U.S. military to supply private label brands to commissaries is up for renewal in December 2025.
SPTN New Average cost per share: $17.9 (20 shares)
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| Snapshot Intraday on 3/27/25 after second pare |
Dividend: Quarterly at $.2175 per share ($.87 annually)
SPTN Dividend History | Nasdaq
Yield at $17.9: 4.86%
Last Ex Dividend: 3/21/25
Last Earnings Report (Q/E 12/28/24): SEC Filed Earnings Press Release This is for the 4th fiscal quarter.
Revenue: $2.26B, up .7%
GAAP E.P.S. = ($1.04)
GAAP included a non-cash goodwill impairment charge of $45.7M.
Non-GAAP E.P.S. $.43, up from $.35
Fiscal 2024 Non-GAAP E.P.S. = $2.02, down from $2.18
Fiscal 2025 Guidance:
Adjusted E.P.S. Guidance: $1.6 to $1.85
Last Elimination: Item # 2.F. Eliminated SPTN - Sold 15 at $29.01 in Fidelity Account; 20 at $31.05 in Vanguard Account; 10 at $30.64 in Schwab Account (3/23/22 Post)(profit snapshots = $421.49)
L. Pared TSLX - Sold 5 at $22.47:
Proceeds: $112.35
Quote Sixth Street Specialty Lending Inc. (TSLX) - Externally Managed BDC
I have been reducing my exposure to BDCs based on 2 primary concerns: (1) the increasing probability of a recession within 12 months that will result in more non-accrual loans and lower investment income and (2) on top of lower net investment income due to floating rate loans resetting at lower coupons due to the FED rate cuts.
Last Discussion: Item # 2.F. Sold 3 TSLX at $21.41 (12/12/24 Post)
2024 SEC Filed Annual Report (Summary of risk factors start on page 27 and ends at page 55)
Loans on nonaccrual as of 12/31/24: 1.4% based on amortized costs, page 69 of Annual Report, which is excellent for a BDC.
Most of the investments are first lien loans:
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| Page 68, 10-K |
The weighted average total yield on income producing investment declined to 12.3% as of 12/31/24 from 14.1% as of 12/31/23.
Weighted average interest rate on debt investments: 11.8%
Profit Snapshot: $18.95
New Average cost per share: $18.21 (15+ shares)
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| Snapshot Intraday on 3/24/25 after pare |
Regular Quarterly Dividend: $.46 per share ($1.84 annually)
TSLX Stock Dividend History & Date | Seeking Alpha
I am not currently reinvesting the dividend.
Special Dividends: The company paid $.25 per share in special dividends last year and $.26 in 2023. TSLX has declared and paid a $.07 special dividend for the 2025 first quarter.
Yield at $18.21 (regular dividend only): 10.1%
Last Regular Ex Dividend: 3/14/25
Last Special Ex Dividend: 2/28/25
Net Asset Value per share history:
12/31/24: $17.16 (unadjusted for the $.07 special dividend paid in the 2025 first quarter)
9/30/24: $17.07
12/31/23: $16.96
12/31/22: $16.48
9/30/22: $16.36
12/31/21: $16.84
12/31/20: $17.16
12/31/19: $16.83
12/31/18: $16.25
12/31/17: $16.09
12/31/16: $15.95
12/31/15: $15.15
12/31/14: $15.53
IPO in March 2014: Prospectus (public offering at $16 per share with estimated proceeds to $15.04, excluding internal expenses connected with the offering of about $.43 per share)
Last Earnings Report (Q/E 12/31/24): SEC Filed Earnings Press Release
Net Asset value per share: $17.16, adjust to $17.09 to reflect a 7 cent special dividend.
Company Assessment of Credit Risks as of 12/31/24:
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| Pages 69-70 10-K |
Company Estimate of Impact of Interest rate changes on net investment income:
Based on the fair value marks made by this company as of 12/31/24, 97.2% of the debt investments are at floating rates as noted in the previous snapshot.
Last Bond Offering (2/25): Prospectus for $300M 5.625% SU maturing in 2030. The public offering price was at 98.805.
Owned SU Debt: None.
I generally will not go far out in time when buying a BDC SU bond. TSLX has a 2.5% SU bond maturing on 8/1/26 but that is far out for such a low coupon. I would consider buying it near the current price in the 2025 4th quarter assuming no material change in the credit risk.
There are two bonds maturing in 2030 with 5.7% and 5.625% coupons selling at small discounts to par value but that is far out in time for me given the credit risk.
I had 4 mature on 11/1/24:
%20+$23.2%20.png){kind=small} |
| IB |
%20%20+$49.png) |
| Fidelity |
M. Eliminated GCOW - Sold 20 at $36.74:
Quote: Pacer Global Cash Cows Dividend ETF Overview
Proceeds: $734.81
Rationale: When I am in a stock reduction mode, as now, I will eliminate several small ball stock fund positions.
This ETF uses free cash flow yield as its stock selection criteria.
Sponsor's website: GCOW | Pacer ETFs (expense ratio = .6%)
GCOW – Pacer Global Cash Cows Dividend ETF- Morningstar
GCOW – Portfolio -Morningstar (lists top 25 holdings)
Top 10 Holdings as of 3/31/25 from sponsor's website:
Profit Snapshot: $53.73
Buy Discussions: Item # 6.B. Added 5 GCOW at $33.44 (1/20/24 Post); Item # 2. Started GCOW - Bought 5 at $34.58; 5 at $34.25; 5 at $34.08 (1/12/24 Post)
N. Pared SCM - Sold 5 at $14:
Quote: Stellus Capital Investment Corp. (SCM) - Externally Managed BDC
Proceeds: $70
Last Discussed: Item # 3.B. Pared SCM - Sold 5 at $14.76 (1/29/25 Post)(profit snapshot = $36.15)
Website: Stellus Capital Management
SEC Filed 2024 Annual Report (Summary of risk factors starts at page 34 and ends at page 68)
Company Assessment of Credit Risks:
 |
| Page 80-81 Annual Report |
 |
| Page 81, Annual Report |
The numbers are far too high IMO given an economy in an expansion mode since the pandemic.
Profit Snapshot: $32.5 (1/31/25 sale only)
New Average Cost per share: $6.85 (20 shares)
 |
| Snapshot Intraday on 3/31/25 after pare |
Dividend: Monthly at $.1333 per share ($1.6 annually)
SCM Dividend History & Date | Seeking Alpha
Yield at $6.85: 23.35%
Last Ex Dividend: 3/31/25
I sold this lot on the ex dividend day.
Net Asset value per share history:
12/31/24: $13.46 (the last sale was at a premium to this NAV per share)
9/30/24: $13.55
12/31/23: $13.26
12/31/22: $14.02
9/30/22: $14.18 10-Q for the Q/E 9/30/22 at page 1
6/30/22: $14.32 10-Q for the Q/E 6/30/22
12/31/21: $14.61
9/30/21: $14.15
6/30/21: $14.07
3/31/21: $14.03 10-Q for the Q/E 3/31/21 at page 3
12/31/20: $14.03 10-K at page 74
12/31/19: $14.14
12/31/18: $14.09
12/31/17: $13.81
12/31/16 $13.69
12/31/15: $13.19
12/31/14: $13.94
12/31/13: $14.54
November 2012: IPO at $15 ($14.46 after underwriters discount)
NII per share: $.35, down from $.49
Core NII per share: $.37, down from $.50
Company Assessment of Interest Rate Changes on NII:
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| Page 93 Annual Report |
Composition of Loans: Mostly first lien.
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| Page 145 Annual Report |
Other Sell Discussions: Item # 3.A. Pared SCM - Sold Highest Cost 5 Shares at $13.83- Fidelity Account (4/26/24 Post)(profit snapshot = $30.92); Item # 2.B. Eliminated SCM in Vanguard Taxable Account Sold 30 at $15.36 and Item # 2.C. Eliminated SCM ins Schwab Account-Sold 10 at $15.55 (2/20/23 Post)(profit snapshots = $310.04); Item # 3.C. Pared SCM in Fidelity Account - Sold 5 at $13.89 (8/23/22 Post)(profit snapshot = $28.69); Item 2.L. Pared SCM in Fidelity Taxable Account-Sold 5 at $14 (12/3/21 Post)(profit snapshot = $30.75); Item # 2.B. Sold 8.558 SCM shares at $13.19 (8/27/21 Post)(profit snapshot = $45.73); Item # 2.G. Pared SCM in Vanguard Taxable-Sold 10 at $13.2 (6/19/21 Post)(profit snapshot = $11.33); Item # 1.C. Pared SCM in Fidelity Taxable -Sold 13 at $12.46 and 13+ at $13.25 (4/17/21 Post)(profit snapshot = $69.04); Item # 1.F. Pared SCM in Fidelity Taxable-Sold 20 at $11.08 and Item #1.G. Pared SCM in Vanguard Taxable-Sold 20 at $11.17 (12/19/20 Post)(profit snapshots = $14.23); Item # 3 Sold 50 SCM at $13.72 (9/21/19 Post)(eliminating position as of that date; profit snapshot = $3.75); Item # 1.I. Sold 20 SCM at $7.61 (8/22/20 Post)(contains snapshots of prior trades; profit snapshot = $10.84); Item # 1.B. Sold 32+ SCM at $14.22-Used Commission Free Trade (2/2/19 Post)(profit snapshot = $78.09); Item # 1.A. Sold Highest Cost Lot-50 Shares at $12.63 (5/3/18 Post)(profit snapshot = $34.24); Item 2.B. Sold 100 SCM at $14.23 (2/27/17 Post)(profit snapshot=$285.96); Item # 2 Sold 100 SCM at $13.02 (1/12/17 Post)(profit snapshot= $141.96)
SCM Realized Gains to Date: $1,164.22
Goal: As with all BDC stocks, the goal is to earn any return in excess of the dividend payments.
Last Bond Offering (3/25): Prospectus for 7.25% SU notes due 2030.
O. Pared Duplicate Position in SBRA - Sold 6 at $17.61 in Fidelity Account:
Quote: Sabra Healthcare REIT Inc. - Primarily a nursing home/senior living REIT
Proceeds: $105.68
Last Discussed: Item # 1.H. Sold 10 at $17.1 in Schwab Account (3/18/25 Post)(profit snapshot = $28.04). I discussed the 2024 4th quarter report in that post. SEC Filed Press Release and SEC Filed Supplemental
Profit Snapshot: $28.61 (3/31/25 sale only)
New average cost per share this account: $10.34 (26 Shares)
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| Snapshot Intraday on 3/31/25 after pare |
Dividend: Quarterly at $.30 per share
SBRA Stock Dividend History & Date | Seeking Alpha
Yield at New AC: 11.6%
Last Ex Dividend: 2/14/25
Last Buy Discussions: Item # 1.L. Added to SBRA - Bought 1 at $11.28 (5/13/23 Post); Item # 4.I. Added to SBRA - Bought 1 at $12.1; 2 at $11.67 (5/5/22 Post)
P. Pared UL - Sold 5 at $59.73:
Quote: Unilever PLC ADR (UL)
Proceeds: $298.65
ADR Ratio: 1/1
Ordinary shares are priced in British Pence: Unilever PLC (ULVR.L)
100 Pence = 1 Pound
British Pound to US Dollar Exchange Rate Chart | Xe
UL Analyst Estimates | MarketWatch
Unilever ADRs use to trade under both the UL and UN symbols, with the later being the Unilever based in the Netherlands whose ordinary shares were traded in Euros. The two entities combined with UL being the surviving ADR with its ordinary shares traded in British Pence. Completion of Unilever’s Unification | Unilever
UL SEC Filings (foreign company SEC Forms)
UL SEC Filed 2024 Annual Report
Last Discussed: Item # 1.G. Sold 10 UL at $60.41 (8/2/24 Post)(profit snapshot = $47.23); Item # 2.B. Eliminated Duplicate Position in UL - Sold 28+ at $54.71 (5/31/24 Post)(profit snapshot = $100.95)
Profit Snapshot: $37.27 (3/31/25 sale only)
New Average cost per share: $46.69 (20+ shares)
Dividend: Quarterly at a variable rate
Unilever PLC Common Stock (UL) Dividend History | Nasdaq
Last 4 Dividends in USDs: $1.8758
Last Ex Dividend: 2/28/25 at US$.4674
Last Earnings Report (Q/E 12/31/24): SEC Filing
2024 Diluted E.P.S. = €2.29
Underlying Diluted E.P.S. = €2.98, up from €2.6
Reconciliation:
2024 Free Cash Flow ex tax on disposal: €7.105B
Last Buy Discussions: Item # 1.D. Added to UL in Fidelity Account - Bought 3 at $47 (1/26/24 Post); Item # 1.E. Bought 2 UL at $47.16 (11/25/23 Post); Item # 2.F. Added to UL - Bought 1 at $48.12; 3 at $48.36 (11/18/23 Post); Item # 1.P. Added to UL in Fidelity Account - Bought 1 at $43.03 (4/25/22 Post); Item #2.I. Added to UL in Fidelity Taxable Account - Bought 2 at $42.55 (6/9/22 Post)
UL/UN Realized Gains to Date: $3,856.34
Largest Gain to Date: $2,512.5 on 70 shares sold in 2018
Q. Pared BNL - Sold 5 at $17.03 - Schwab Account:
Quote: Broadstone Net Lease Inc. (BNL)
Proceeds: $85.18
As of 12/31/24, BNL's portfolio consisted of 765 individual properties with 39.4M rentable square feet. The portfolio was 99.1% leased with a weighted average lease term of 10.2 years. 2024 SEC Filed Annual Report at page BNL is a net lease REIT primarily to single-tenant per property.
Net Lease Definition and Types—Single, Double, Triple
I sold my highest cost 5 shares.
Top 20 Tenants as of 12/31/24:
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| Annual Report at page 8. |
Last Buy Discussions: Item # 4.B. Added to BNL - Bought 15 at $15.75 (2/5/25 Post); Item # 2.E. Added to BNL - Bought 5 at $14.57 (4/26/24 Post); Item # 1.I. Added to BNL - Bought 2 at $14.86 (3/1/24 Post)
Profit Snapshot: $5.7
New Average cost per share this account: $14.58 (101+ shares)
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| Snapshot Intraday on 4/1/25- Day after pare |
Dividend: Quarterly at $.29 per share ($1.16), last raised from $.285 effective for the 2024 third quarter payment.
(BNL) Dividend History | Nasdaq
Yield at $14.58: 7.96%
Last Ex Dividend: 3/31/25
Last Earnings Report (Q/E 12/31/24): SEC Filed Earnings Press Release
Revenues: $112.13M
GAAP E.P.S. = $.26
FFO (Funds from Operation) per share: $.41
Core FFO per share: $.38
AFFO per share = $.36 (exceeds the quarterly dividend)
Net Income to AFFO Reconciliation:
To calculate FFO, the GAAP net income is increased by the $42.902M in non-cash depreciation and amortization expenses and a $17.69M non-cash impairment charge. The only subtraction is a $8.196M gain on sale of real estate.
To arrive at AFFO, the company deducts $6.312M in non-cash revenues created by the straight line accounting convention and adds back the stock based compensation non-cash expense and certain non-cash amortization expenses.
Occupancy: 99.1% leased based on rentable square footage.
Last Sell Discussions: Item # 2.D. Pared BNL in Schwab Account - Sold 5 at $18,85 (9/26/24 Post)(profit snapshot = $15.66); Item # 1.D. Pared BNL in Schwab Account - Sold 10 at $17.85 (8/2/24 Post)(profit snapshot = $16.38)
R. Eliminated KMB in Fidelity Account - Sold 2 at $146.44:
Proceeds: $292.88
Quote: Kimberly-Clark Corp.
Last Discussed: Item # 2.I. Restarted KMB - Bought 1 at $120.69; 1 at $119.4 (11/11/23 Post)
KMB Analyst Estimates | MarketWatch I noted in that November 2023 post that the E.P.S. consensus was at $7.09 for 2024 and at $7.48 in 2025. The 2025 consensus was at $7.57 as of 4/4/25.
2024 compared to 2023:
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| Page 22 Annual Report |
Investors | Kimberly-Clark Corporation
Last Elimination: Item # 3.A. Eliminated Remaining KMB in Fidelity Account - Sold 5+ at $137.87 (1/3/23 Post)(profit snapshot = $66.85)
Profit Snapshot: $52.8
Dividend: Quarterly at $1.26 per share, last raised from $1.22 effective for the 2025 first quarter payment.
KMB Stock Dividend History & Date | Seeking Alpha
Last Ex Dividend: 3/7/25
Last Earnings Report (Q/E 12/31/24): SEC Filed Earnings Press Release
Diluted E.P.S. = $1.34, down from $1.5
Consider to repurchase price: <$120
S. Pared ENB - Sold 5 at $45.45:
Proceeds: $227.35
Last Discussed: Item # 1.A. Eliminated Duplicate Position in ENB - Sold 10 at $43.12 - Schwab Account (2/10/25 Post)(profit snapshot = $146.02); Item # 2.A. Eliminated 1 of 2 Duplicate Positions in ENB - Sold 20 at $36.2 in Vanguard Account (6/14/24 Post)(profit snapshot = $141.27)
Last Buy Discussions: Item # 1.F. Added to ENB in Vanguard Taxable Account-Bought 5 at $29.51; 5 at $28.95; 5 at $27.4 (10/31/20 Post); Item # 1.C. Added 5 ENB at $30.65-Fidelity Taxable (8/15/20 Post): Item # 1.C. Added 1 ENB at $27.23; 1 at $26.21; 1 at $25.49; 1 at $24.29; 1 at $23.68 (4/18/20 Post)
ENB Analyst Estimates | MarketWatch
SEC Filed 2024 Annual Report Maps of facilities can be found at pages 17, 23, 29, and 33.
2024 Revenues by Segment:
 |
| Total Revenue = C$53.473B |
Website: Home - Enbridge Inc.
Profit Snapshot: +$66.91
New average cost per share: $29.05 (25 shares)
 |
| Snapshot Intraday on 4/3/25 after pare |
Dividend: Quarterly at C$.9425 per share, last raised from C$.915 effective for the 2025 first quarter payment.
Dividends and Common Shares - Enbridge Inc.
Canada will withhold 15% when the shares are owned in a U.S. citizens taxable account.
Foreign Tax: Credit or Deduction? | Charles Schwab
Dividends In USDs: ENB Stock Dividend History & Date | Seeking Alpha
Last 4 Dividends in USDs: $2.654
Yield using $2.654 and $29.05 AC per share: 9.137%
Dividend Growth:
Last Ex Dividend: 2/14/25 at US$.6653 per share.
Last Earnings Report (Q/E 12/31/24):
All amounts are in Canadian Dollars.
GAAP E.P.S. = $.23
Adjusted E.P.S. = $.75, up from $.64
Distributable Cash Flow: $3.974B, up from $2.732B
DCF per share: $1.41
2024 DCF = $12B, up 6% compared to 2023
Some Other Sell Discussions: Item # 5.B. Pared ENB in Fidelity Account - SOLD 3 at $40.63 (1/16/23 Post)(profit snapshot = $24.15); Item # 3.B. Pared ENB in Fidelity Taxable Account - Sold 2 at $43.01 (8/23/22 Post)(profit snapshot = $19.2); Item # 7.A. Pared ENB in Schwab Account - Sold 2 at $46.77 (4/28/22 Post)(profit snapshot = $33.27); Item # 3.F. Pared ENB in Fidelity Account - Sold 5 at $42.4 (3/17/22 Post)(profit snapshot = $42.71); Item 1.F. Pared ENB - Sold 3 at $42.18 (2/3/2022 Post)(profit snapshot = $22.89); Item # 1.E. Sold Remaining Shares Purchased with Dividends in Fidelity Account at 40.14 (10/15/21 Post)(profit snapshot = $20.93); Item # 1.B. Sold 8 ENB at $42.36 (2/19/20 Post)(profit snapshot = $68.36); Item # 3.B. Sold 17 ENB at $40.21 (1/18/20 Post)(profit snapshot = $68.18); Item # 1.B. Sold 15 ENB at $37.61-Used Commission Free Trade (2/20/19 Post)(profit snapshot = $9.29); Item # 3 Sold 50 ENB at $39.03 (12/21/17 Post)(profit snapshot = $72.48); Sold 10 ENB at $40.14 (1/4/18 Post)(profit snapshot = $6.21)(no item #)
ENB Realized Gains to Date: +$753.25
ENB Reset Equity Preferred Stock:
I currently own 600 shares of ENBPRP:CA. Last Friday, this reset equity preferred stock declined by 4.7%:
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| Price in CADs as of 4/4/25 Close |
The unrealized gain was reduced by C$582 to +C$1,600.
In March 2024, this preferred stock reset its coupon at 5.918% paid on C$25 par value. Press Release The reset coupon remains in effect to, but excluding March 1, 2029. The security may be called on a reset date. The reset coupon is at 2.5% spread to the 5 year Canadian bond yield. The current yield at my average cost per share is 8.87%.
ENBPRP:CA Sell Discussions: Item # 1.A. Sold 100 out of 400 ENBPRP:CA at C$20.20 (12/31/21 Post)(profit snapshot = C$368); Item # 4.A. Sold 200 ENBPRP at C$19.91 (3/25/17 Post)(profit snapshot = C$963, contains a snapshot of a prior realized gain of US$1,458.25 converted by Fidelity into USDs from a CAD profit of C$1,814)
Realized Gains ENB Reset Equity Preferred Stocks: Snapshots can be found as part of this post: Advantages and Disadvantages of Equity Preferred Floating Rate Securities
2016 ENBPRF (100) = C$196
2017 ENBPRP (300) = C$1,814
2017 ENBPRP (200) = C$963
2021 EBGEF (150-2 trades) = US$351.52 (traded on the U.S. Grey Market)
2021 ENBPRP (100) = C$368
Totals: +C$3,341; +US$ 351.52
SU ENB Bonds: I had 4 mature on 3/15/25.
I currently own 4 Enbridge 4.25% SU bonds that mature on 12/1/26
I also own 2 Spectra Energy SU bonds that mature on 10/15/26. Spectra is now part of Enbridge.
2. Corporate Bonds:
I will consider adding to corporate bonds from an issuer when another bond from that company is about to mature.
The bond purchases discussed in Items A., B. and D. are examples.
Senior Unsecured bonds - 2026-2028:
A. Added 2 Ares Capital 3.875% SU Maturing on 1/15/26 at a Total Cost of 99.296:
%201:15:26.png)
I now own 6 including 2 in my Vanguard taxable account.
I have 2 SU bonds issued by Ares maturing on 7/15/25:
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| Third Party Price as of 3/23/25 |
Issuer: Ares Capital Corp (ARCC) - Externally Managed BDC
I have small ball common stock positions in two accounts.
Last ARCC Discussions: Item # 3.C. Pared ARCC in Fidelity Account - Sold 5 at $23.42 (1/29/25 Post)(profit snapshot = $58.41); Item # 2.E. Pared ARCC in Fidelity Account-Sold 5 at $21.64 (11/27/24 Post)(profit snapshot = $48.01)
Last ARCC Buy Discussion: Item # 4.C. Added 5 ARCC at $14.3; 5 at $14; 5 at $13.67; 5 at $12.5; 5 at $12.4; 5 at $12; 5 at $11.74; 5 at $10.44; 5 at $9.4 (4/4/20 Post)
SEC Filed Earnings Press Release for the Q/E 12/31/24
Finra Page: Bond Page | FINRA.org
Credit Ratings: Baa2/BBB
YTM at Total Cost: 4.769%
Current Yield at TC: 3.9%
When I purchased this bond on 3/24/25, my Fidelity sweep money market account (SPAXX), using as the funding source for this purchase, had a 3.96% seven day yield.
I had 6 ARCC 4.25% SU bonds mature on 3/12/25 which includes 2 in a RI account. The realized market discount was $121.12 for the 4 bonds held in taxable account.
B. Added 2 Healthcare Trust of America 3.625% SU Maturing on 1/15/28 at a Total Cost of 96.467:
%201:15:28.png)
Issuer: Healthcare Realty Trust (HR) - Medical Office Building REIT
"Healthcare Realty's portfolio includes over 650 properties totaling more than 38 million square feet concentrated in 15 growth markets."
In a reverse merger, Healthcare Trust of America acquired Healthcare Realty and then changed its name and symbol.
HR SEC Filed Earnings Report for the Q/E 12/31/24
HR SEC Filed 2024 Annual Report (SU debt is listed at page 32)
I have 2 bonds issued by this REIT that mature on 5/1/25:
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| Third Party Price as of 5/23/25 |
Finra Page: Bond Page | FINRA.org
Credit Ratings: Baa2/BBB
YTM at Total Cost: 4.988%
Current Yield at TC: 3.758%
C. Bought 2 Highwoods Properties 3.875% Maturing on 3/1/27 at a Total Cost of 98.334:
%203.875%25%203:1:27.png)
Issuer: Operating entity for Highwoods Properties Inc. who guarantees the notes:
I own the common shares but have been selling my highest cost lots.
Last Discussed: Item # 1.G. Pared HIW - Sold 5 at $28.66 (3/18/25 Post)(That sale lowered my AC per share to $20.24); Item # 2.B Pared HIW Again - Sold 2 at $36.26 (10/31/24 Post); Item # 3.F. Pared HIW - Sold 10 at $34.31; 5 at $35.77 (10/16/24)
Finra Page: Bond Page | FINRA.org
Credit Ratings: Baa2/BBB-
YTM at Total Cost: 4.795%
Current Yield at TC: 3.941%
D. Bought 2 Blue Owl Capital 3.4% SU Maturing on 7/15/26 at a Total Cost of 97.779:
%203.4%25%207:15:26%20.png)
Issuer: Blue Owl Capital Corp. (OBDC) - Externally Managed BDC
I have a small ball position in the common stock.
Last Discussed: Item # 1.L. Sold 10 OBDC at $15.05 (2/10/25 Post)
SEC Filed 2024 Annual Report (Risk factors summary starts at page 35 and ends at page 78)
Finra Page: Bond Page | FINRA.org
Credit Ratings: Baa3/BBB-
YTM at Total Cost: 5.207%
I had 8 Blue Owl SU bonds mature last month:
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| Fidelity |
%20+%20$92.98%20.png){kind=small} |
| IB |
%20+$39.22%20.png) |
| Vanguard - Name Changed to Blue Owl |
I currently own 4 Blue Owl 4.25% SU notes that mature on 1/15/26.
Sample of Senior Unsecured Bond Purchase - 2029 Maturities:
When buying a bond maturing in more than 3 years, I prefer having most of my yield in the current interest payment.
I have no interest in a corporate bond with a 3% or less coupon maturing in 2029 or later that has a similar YTM and roughly the same credit risk.
With the recent decline in interest rates, I am more at ease buying corporate bonds maturing in 2029 with 4% coupons.willin
Most of my 2029 maturities are Tennessee municipal bonds and TIPs owned in Roth IRA accounts. I currently own only $37K in principal amount of corporate bonds maturing in 2029, almost all bought this year, so I am only starting to building a ladder for that year.
I am willing to buy an investment grade corporate bond maturing in 2028, like the Healthcare Realty bond discussed above, when the the current yield is over 3.5% and the YTM is higher than similarly rated bonds.
E. Bought 2 Motorola Solutions 4.6% SU Maturing on 5/23/29 at a Total Cost of 99.425:
%205:23:29%204.6%25%20.png)
Issuer: Motorola Solutions Inc. (MSI)
MSI Analyst Estimates | MarketWatch
MSI SEC Filed Earnings Press Release for the Q/E 12/31/24
MSI 2024 SEC Filed Annual Report SU debt is listed at page 79.
FINRA Page: Bond Page | FINRA.org
Credit Ratings: Baa2/BBB
YTM at Total Cost: 4.752%
Current Yield at TC: 4.627%
I also own 2 of the Motorola Solutions 4.6% SU that matures on 2/23/28. Bond Page | FINRA.org
I did not discuss that purchase made on 2/10/25:
%202:23:28%20.png) |
| IB Account |
F. Added 2 CubeSmart LP 4.375% SU Maturing on 2/15/29 at a Total Cost of 98.093:
%204.375%25%202:15:29%20.png) |
| IB Account |
Issuer: Operating entity of the self storage REIT CubeSmart who guarantees the note.
I now own 4 bonds.
CUBE SEC Filed Earnings Report for the Q/E 12/31/24
SEC Filed SEC Investor Presentation March 2025 1,533 properties as of 12/31/24 CUBE also provides third party management for 902 properties, page 21.
Finra Page: Bond Page | FINRA.org
Credit Ratings: Baa2/BBB
YTM at Total Cost: 4.92%
Current Yield at TC: 4.46%
I have 10 CubeSmart LP 4% SU notes maturing on 11/15/25.
I have a small ball position in the common stock. My last buy discussion was in this post: Item # 2.E. Bought 19 CUBE at $22, 2 at $21.55, 1 at $19.74 (4/25/20 Post) I currently own 8 shares with an average cost per share of $21.03. ROC adjustments have slightly reduced my cost basis.
G. Bought 1 HP 4% SU Maturing on 4/15/29 at a Total Cost of 96.77:
%204%25%204:15:29%20.png)
Issuer: HP Inc. (HPQ)
HPQ Analyst Estimates | MarketWatch
I do not currently have a small ball common stock position.
HPQ SEC Filed Earnings Press Release for the Q/E 1/31/25
HPQ 10/Q for the Q/E 1/31/25 SU listed at page 28.
Finra Page: Bond Page | FINRA.org
Credit Ratings: Baa2/BBB
YTM at Total Cost: 4.889%
Current yield at TC: 4.134%
Last Bond Offering (9/22): Prospectus
H. Bought 2 Welltower 4.125% SU Maturing on 3/15/29 at a Total Cost of 97.7:
%204.125%25%203:15:29%20.png)
Issuer: Welltower Inc. (WELL) - Senior Living/Healthcare REIT
SEC Filed Earnings Press Release for the Q/E 12/31/24
Finra Page: Bond Page | FINRA.org
Credit Ratings: Baa1/A-
S&P upgraded to A- on 3/28/25
YTM at Total Cost: 4.693%
Current Yield at TC = 4.222%
I own 5 Welltower 4% SU Bonds that mature on 6/1/25:
I also own 2 Welltower 4.25% SU bonds that mature on 4/1/26, bought last November:
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Sample of First Mortgage Bond Purchases:
I have continued to buy first mortgage bonds. The following are examples since my last blog post in February.
K. Added 1 Entergy Texas 5.25% First Mortgage Bond Maturing on 4/15/25 at a Total Cost of 99.263
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Issuer: Wholly owned operating subsidiary of the utility holding company Entergy Corp. (ETR).
ETR SEC Filed 2024 Annual Report Financial information for Entergy Texas starts at page 417. The 2024 net income was reported at $291.55M, page 435.
Finra Page: Bond Page | FINRA.org
Credit Ratings: A3/A
YTM at Total Cost: 5.344%
Current Yield at TC: 5.289%
My last purchase was at a total cost of 99.607. Item # 2.C. (3/18/25 Post) I included a snapshot of the make whole provision in that post.
L. Added 20 EMP at $21.35 - Fidelity Account:
Quote: Entergy Mississippi LLC 4.9% First Mortgage Bond (EMP)
Issuer: Wholly owned operating subsidiary of Entergy Corp. (ETR)
Last Discussed: Item # 2.A. Added to EMP in Fidelity Account - Bought 5 at $21.5; 5 at $21.2(2/10/25 Post); Item #8.A. Added to EMP - Bought 5 at $21.55 - Schwab Account (12/26/24 Post)
Category: Exchange Traded Baby Bonds Trades like a common stock on the stock exchange rather than in the bond market.
I started to invest in exchange traded first mortgage bonds in October 2008. Bought 100 EHL at $22.75 (10/22/08 Post) EHL had a 7.6% coupon and would have matured in 2032. The issuer, Entergy Louisiana, called this FM bond early.
First Mortgage Bond
Par Value: $25
Interest Payments: Quarterly
Maturity: 10/1/2066
No call protection. Issuer has the optional right to call at par value plus accrued and unpaid interest.
Interest Rate Risk: High given the potentially long maturity. Interest rate risk is asymmetric in favor of the issuer who has the optional call right. If interest rates fall too far, the issuer will call the bond, but will allow the owner to keep the security when interest rates are rising and the price is falling.
Credit Risk: Low IMO since the issuer is a regulated utility and the bond is a first lien on substantially all assets.
Trades Flat (whoever owns the security on the ex interest date receives the entire interest payment and no accrued interest is paid when purchased)
New Average cost per share this account: $21.96 (100 shares)
 |
| Snapshot Intraday on 3/20/25 |
Yield at New AC: 5.58%
Calculation: .049% coupon x $25 par value = $1.225 annual interest per share ÷ $21.96 average cost per share = 5.5783%
ETR SEC Filed 2024 Annual Report Financial information for Entergy Mississippi starts at page 373. The company reported 2024 net income of $255.958M, page 391, which excludes a loss of $10.551M attributable to a noncontrolling interest.
I have been buying an Entergy Mississippi 5% first mortgage bond that matures in 2033. This is $1,000 par value bond. The interest rate risk is less given the 2033 maturity and the YTM at my purchase prices are higher than the coupon.
Taxable Accounts Maximum Position: 300 shares divided evenly among my Schwab, Vanguard and Fidelity accounts.
Prior Sell Discussions: Item # 4.A. Eliminated EMP-Sold 70 at $24.87 (5/1/19 Post)(profit snapshot = $207.92)-Item # 1.B. Bought 70 EMP at $21.76 (1/2/19 Post); Item # 2.B. Sold 30 EMP at $24.44 (2/13/19 Post)(profit snapshot = $7.04)-Item # 4.A. Bought 30 EMP at $24.04-Used Commission Free Trade (5/28/18 Post); Items 2.A and B. Sold 50 EMP at $24.97 and 30 at $24.96 (9/21/17 Post)(profit snapshots $167.52); Item # 2.A. Sold 50 EMP at $24.47 (7/22/17 Post) (profit snapshot = $66.98)-Item # 2.B. Bought 50 EMP at $22.85 (5/17/17 Post)
EMP Trading Profits to Date: $464.9
M. Added 5 EMP in Schwab Account at $20.1:
See Item # 2.L above.
New Average cost per share this account: $21.71 (85 shares)
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| Snapshot at close on 4/4/25 |
Yield at $21.72 = 5.64%
Even though this FM bond declined in price last week, the current yield became more attractive with the decline in the 30 year treasury bond yield since 3/27. The 30 year treasury yield is in the far right column:
Resource Center | U.S. Department of the Treasury
M. Added 1 Entergy Mississippi 5% First Mortgage Bond Maturing on 9/1/33 at a Total Cost of 99.013:
%20IB%20.png) |
| IB Account |
Issuer: Wholly owned operating subsidiary of the utility holding company Entergy (ETR).
Finra Page: Bond Page | FINRA.org
Credit Ratings: A2/A
YTM: 5.15%
Current Yield: 5.05%
I now own 6 bonds including 2 in Roth IRA accounts.
Interest rate risk: I would describe the interest rate risk as meaningful but acceptable to me. If there was any possibility that I would be forced to sell this bond at a loss, I would not buy it.
Last Discussed: Item # 2.E. (3/18/25 Post)
Snapshot of Make Whole Provision:
The make whole provision is designed to protect the owner when interest rates have declined significantly below the coupon.
If the interest rate for similarly rated corporate bonds maturing in 2033 fell to 3% in 2026 or 2027, and there was no make whole provision, Entergy Mississippi would simply call the bond early, pay the owners the $1,000 par value and refinance at 3%. The bond owners would then have proceeds that could only be reinvested at 3% for a similar rated bond.
In this interest rate scenario, the make whole provision would require the issuer to pay a premium to par value as a condition to calling the bond early.
This is done by requiring a payment equal to the sum of the principal amount ($1,000) and all interest payments remaining (other than the accrued and unpaid interest payable upon redemption) discounted to present value using the the treasury yield for a similar maturity + .25%.
Say the treasury note yield was 2.5%, then the sum would be discounted at 2.75%. As the discounting to present value yield declines, the premium payment to par value would go up. Discounting $1,000 plus 6 or 7 years of interest payments at 5% by 2.75% will result in no call in this scenario.
The make whole provision places the issue and owner in the same interest rate risk position when interest rates have declined since the bond was initially issued.
The owner still has all of the interest rate risk associated with a rise in interest rates that would cause the bond to decline in price. If held to maturity, there would be still be a "profit" realized at maturity but the owner would still experience what I call the risk of lost opportunity associated with having funds tied up in a bond that has a lower yield than what may exist during the term.
The Entergy Mississippi exchange traded FM bond, EMP, does not have this provision. The company can call that FM bond at par value without paying a penalty for an early redemption.
N. Bought 2 Duke Progress 5.05% First Mortgage Bonds Maturing on 3/15/35 at a Total Cost of 99.385:
%203:15:25.png)
Issuer: Operating subsidiary of the utility holding company Duke Energy Corp. (DUK)
Collateral:
Make Whole Provision:
DUK SEC Filed 2024 Annual Report Operating results for Duke Progress can be found at pages 52-53. The 2024 net income number was $1.264B on revenues of $7.017B.
Finra Page: Bond Page | FINRA.org
Credit Ratings: Aa3/AYTM at Total Cost: 5.129%
Current Yield at TC: 5.031%
O. Added 5 ELC at $20.60 - Schwab Account:
Quote: Entergy Louisiana LLC Mortgage Bonds 4.875% Series due 2066 (ELC)
Interest Rate Risk: HIGH and asymmetric in favor of the issuer
Last Discussed: Item # 2.G. Bought 5 ELC at $20.75 in Schwab Account (3/18/25 Post)
Entergy Louisiana is an operating subsidiary of the utility holding company Entergy Corp. (ETR).
As previously discussed, I prefer buying the $1,000 par value bonds maturing in 2028 or earlier since I can control the interest rate risk with those short term bonds which is a major issue with owning ELC. Recently, however, I have recently bought $1,000 par value first mortgage bonds issued by Entergy Louisiana maturing after 2030 when the YTM was over 5%. (See, e.g. Item # 2.B. Bought 1 Entergy Louisiana 5.15% FM Maturing on 9/15/24 at a Total Cost of 98.746 (3/18/25 Post); Bond Page | FINRA.org
I had 1 Entergy Louisiana 3.78% FM bond mature on 4/1/25. Item # 4.C. (6/28/24 Post)(YTM at TC was then at 5.59%):
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| Entergy Gulf States Acquired by Entergy Louisiana |
Par Value: $25
Coupon: 4.875% paid on a $25 par value
Interest Payments: Quarterly
Trades Flat: (no accrued interest is payable to the seller, whoever owns on the ex interest date receives the entire interest payment)
First Mortgage Bond, with lien attaching to substantially all assets.
Credit Ratings: A2/A
New average cost per share this account: $21.16 (55 shares)
 |
| Snapshot Intraday on 4/1/25 after add |
While the interest rate resulting from a non-temporary rise in rates is high, the other interest rate risk resulting from an early call when rates have significantly declined is mitigated some by the $3.84 per share "profit" when and if called at the $25 par value.
Yield at New AC this account: 5.76%
Calculation: .04875% coupon x. $25 par value = $1.21875 annual interest per share ÷ $21.16 average cost per share = 5.7597%)
Last Ex Interest: 2/28/25
Investment Category: Exchange Traded Baby Bonds {I do not include in this post several categories of exchange traded bonds including trust preferred, synthetic floaters, SU notes tied to the performance of an index, and trust certificates, see Trust Certificates; Synthetic Floaters, Trust Preferred Securities, Item # 1 Principal Protected Notes, Item # 2 Principal Protected Notes. While those securities are exchange traded bonds, they have qualities that separate them from the baby bond category that are simply bonds traded like stocks with no quirkiness)
Other Recent Buy Discussions: Item # 2.B. Bought 5 ELC at $21.25 - Fidelity Account (2/10/25 Post); Item #7.A. Added 5 ELC in Vanguard Taxable Account at $21.15 (1/15/25 Post); Item # 7.A. Added to ELC in Fidelity Account - Bought 5 at $21.29 and Item #1.C. Added to ELC in Schwab Account - Bought 5 at $21.15 (1/1/25 Post)
I am working my way up slowly to 100 shares in each of 3 taxable accounts.
P. Bought ELC at $20.3 - Fidelity Account:
New average cost per share this account: $21.44 (100 shares)
 |
| Snapshot Intraday on 4/3/25 after add |
Yield at New AC this account: 5.6845%
3. Cash Flow Into Fidelity Account: 3/31 & 4/1 Only:
Interest payments are made throughout the month, but are concentrated on the 1st, 15th and last day of each month
Corporate Bond Redemptions: $19,000
I had 2 corporate bonds that would have matured on 4/1 that were redeemed early on 3/28:
Some of those bonds were owned in other taxable accounts.
Interest and Dividends:
Corporate Bond Interest: $976.13
Tax Free Interest: $820.76 (Tennessee municipal bonds, all pay semiannual interest on the 1st day of a month)
CD Interest: $26.81 (all monthly interest)
Common Stock Dividends: $75.66 (Includes Equity REITs: CTO, GOOD, NSA, PINE)
CEF Dividends: $141.65 (AOD, AVK, BSTZ, BWG, ERC, ETW, FAX, GLQ, HFRO, JQC, JRI, KIO, MEGI, MIN, MMT, NAD, NMAI, PPT, THQ, WIW; all pay monthly except for which pays quarterly)
ETF Dividends: $10.41
Equity Preferred Stocks: $25.01
(GOODN, NSA.PRA, VNO.PRM with GOODN paying monthly)
Total: $2,076.43
4/1
3/31:
Notes:
The BDC OCSL paid a regular and special dividend.
Most of my interest payments from Wells Fargo will be from 1 or 2 CD positions. The $17.75 payment is from 1 SU bond that matures on 9/29/25.
I restarted a BlackRock Science & Technology Term Trust (BSTZ) position by buying 5 shares shortly before the monthly ex dividend date ($1.12 entry). I previously eliminated this CEF in two accounts. Item # 2.B. Eliminated BSTZ - Sold 30 at $21.75 - Fidelity Account (1/22/25 Post)(profit snapshot = $136.92); Item # 2.C. Eliminated Duplicate Position in BSTZ - Sold 15+ at $19.75 (5/31/24 Post)(profit snapshot = $44.2) I discussed this CEF in a YT video: Blackrock Science and Technology Term CEF (BSTZ) - YouTube; BSTZ SEC Filings
EMP ($30.63 entry) is an exchange traded first mortgage bond issued by Entergy Mississippi that has a $25 par value.
The entries for Entergy Arkansas and Entergy Louisiana are to $1,000 par value first mortgage bonds.
The Williamson County municipal bonds are rated AAA.
The Maury County municipal bonds are rated Aa2.
The Montgomery County municipal bonds are rated AA.
The Rutherford County municipal bond is rated Aaa.
The Wilson County municipal bond is rated AA+.
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.
