Economy:
The BLS reported earlier today that the economy added 850K jobs last month. The consensus forecast was at 706K. Employment Situation Summary The U-6 number fell to 9.8% from 10.2% in April. Table A-15. Alternative measures of labor underutilization Average hourly wages continued to surge, rising 10 cents per hour after increasing 33 cents per hour during the previous 2 months.
ADP National Employment Report | June 2021 (+692K); Private payrolls rise 692,000 in June, easily topping expectations (555K consensus estimate)
El-Erian says the Fed is behind on inflation and risks another recession if it is forced to catch up
Delta: WHO urges fully vaccinated people to continue to wear masks as variant spreads
Lumber prices dive more than 40% in June, the biggest monthly drop on record (6/30/21)
U.S weekly jobless claims total hits new pandemic-era low of 364,000
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Markets and Market Commentary:
Chip shortage causes Ford to cut vehicle production at several plants
10 Undervalued Wide-Moat Stocks | Morningstar My brain is not able to process those stocks as being undervalued.
+++
Trump Organization and its CFO indicted by Manhattan grand jury; Trump Org. charged with 15-year "scheme to defraud" on taxes; Trump Organization charged with conspiracy, tax fraud and falsifying business records - POLITICO Trumpsters will view the criminal indictments as political retribution by NY liberals, an opinion that could only be reached without reviewing the factual "allegations" made in the indictment IMO. Read the Trump Organization Indictment - The New York Times; PDF version But, of course, facts, truth and evidence are so passé and irrelevant in Trump's America.
Total Scores/Overall Rankings | C-SPAN Survey on Presidents 2021 | C-SPAN.org The historians who were polled ranked Demagogue Don at #41, ahead of Andrew Johnson, James Buchanan and Franklin Pierce. While I agree with the rankings for Buchanan and Andrew Johnson from Tennessee, though a good argument could be made for Donald being in last place, I would at a minimum place Pierce ahead of Trump, moving Don the Authoritarian, the most powerful enemy of America's democracy in our history, down to # 42. Everyone needs to remember for as long as they live that 81% of Republicans believe Donald is honest and almost as many view him as a role model for their children. That needs to sink in deep and recalled multiple times each day. (Question 11: 81% of Republicans believe Trump is honest-National (US) Poll - June 18, 2020); Washington Post counts 30,573 false or misleading claims in four years by Trump | TheHill; Tracking all of President Trump’s false or misleading claims - Washington Post. And if Donald had made 100K false claims in four years or even 1 million, that would not change their opinion about his honesty. And that is fertile ground for a lying, authoritarian, sociopathic demagogue to exploit.
Senator Ron Johnson (R-WIS) apparently wants more people to die from Covid vaccinations. GOP Sen. Ron Johnson Under Fire for Holding Event on Adverse Reactions to COVID Vaccines; Ron Johnson promotes adverse reactions to COVID vaccines Why else would he be trying to scare people? Ron Johnson's anti-science crusade harms Wisconsin vaccination drive; Milwaukee newspaper blasts Ron Johnson as 'irresponsible representative of Wisconsin citizens' | TheHill
The Arizona audit ties to the conspiracy theory film debuting this week
Tucker Carlson Ratchets Up the “White Rage” on Fox News | Vanity Fair It is sad that anyone listens to this clown.
General Milley, critical race theory and why the GOP's 'woke' military concerns miss the mark; Opinion | What Underlies the G.O.P. Commitment to Ignorance? - The New York Times (Paul Krugman opinion article refers to Tucker Carlson, who called General Milley, the Chairman of the Joint Chiefs of Staff, "stupid" and a "pig" for saying that those in uniform must be "open-minded and widely read".); Tucker Carlson calls America's top general a stupid pig - YouTube
NSA Puts Out a Statement Responding to Tucker Carlson: He ‘Has Never Been an Intelligence Target’; Trumpers go spy-crazy: Now Seb Gorka claims that the NSA spied on him and Steve Bannon in White House Facts, of course, do not matter to the Trumpsters or to the Fake News networks who routinely give them free reign to spew their reality creations. Kevin McCarthy (R-CA) Wants Devin Nunes (R-CA) to Investigate Tucker Carlson's Claim
Maybe McCarthy ought to investigate another Republican claim that Jewish space lasers were responsible for wildfires in California as well as the Republican claim that the CIA conspired with an Italian company to delete votes for Trump via satellite. GOP Congresswoman Blamed Wildfires on Jewish Space Laser McCarthy has identified the right guy in the House to investigate these kind of claims.
The GOP's leader in the House, Kevin McCarthy, threatened to take away committee assignments for any Republican who participates in a bipartisan investigation of the 1/6 Trumpster attack on the nation's Capitol. House GOP leader Kevin McCarthy threatens Republicans over Jan. 6 Capitol riot investigation
Fox News agrees to $1 million fine as part of a human rights investigation settlement
Mike Lindell Urges SCOTUS to 'Immediately' Reinstate Trump and 'Get Rid of Communists'; The MyPillow Guy-Jordan Klepper Fingers the Pulse-The Daily Show- YouTube (Instructive interview with a Trumpster); Mike Lindell’s ‘fraud’ allegations are even more ridiculous than you might think - The Washington Post; Mike Lindell has become the platonic ideal of a Trump supporter - The Washington Post
Why Does the QAnon Conspiracy Still Thrive? | Time There is no known cure for stupidity.
Wisconsin G.O.P. Wrestles With Just How Much to Indulge Trump-The New York Times The Wisconsin GOP is totally controlled by, and subservient to Donald.
Last week, Donald stated that his Wisconsin republican sycophants were not doing enough to overturn the 2020 presidential election results, and accused them of covering up "election corruption".
The Republicans had been doing everything imaginable to cast doubt on the certified election results, but that was not enough in Trump's America.
Trump's accusation only produced more servile wallowing from Wisconsin Republican leaders. Wisconsin's Republican State Senate President, Chris Kapenga, replied in what one commentator called "North Korean-style levels of Dear Leader obsequiousness." Opinion | Dear Leader: A Near-Perfect Letter From a Trump Sycophant, Annotated-The New York Times
ADM sold Sonny Perdue South Carolina land worth millions for $250,000 in 2017-Washington Post The land was sold to Purdue shortly before he became Don the Con's Secretary of Agriculture. ADM claims all was above board and kosher.
'Trump Train' drivers that almost ran Biden bus off the road sued under the Ku Klux Klan Act of 1871; Law being used to target Trump, Giuliani, Capitol mob for insurrection- The Washington Post
QAnon Couple Who Appeared in HBO Documentary Arrested Over Capitol Attack
Man Hoping to Unseat Liz Cheney Says He Pretended to Support QAnon to Discredit Media
Congress Must Fix Electoral Count Act to Stop the Next Coup
Some fear Republicans’ post-Trump actions are eroding democracy | PBS NewsHour; Donald Trump rally in Ohio Saturday a return to campaign-style events; While undermining democracy, Trump falsely claims he's saving it
4 in 5 Trump voters are dissatisfied with how democracy is going-The Washington Post Their commitment to democracy and institutions necessary for a properly functioning democracy are either superficial or non-existent IMO. (One out of five stated that democracy was not the best form of government).
Canada sets record temperature of almost 116 degrees amid heat wave, forecasts of even hotter weather - The Washington Post Shortly before they are burned to a crisp, there conceivably could be some Republicans who utter a faint, barely audible sound, so as not to be heard by the like minded, that maybe there was something to global warming after all.
6.22.21-SUDC Report on Cyber Ninjas Arizona Ballot Review-FINAL.pdf The Republicans' brazenly bogus and partisan "audit" of Maricopa County 2020 presidential ballots is likely to continue for at least two more weeks. Months behind schedule, Arizona election auditors extend lease again This asinine endeavor has no purpose other than to undermine the democratic process.
Behind Biden’s 2020 Victory | Pew Research Center
Vanderbilt AD says Mississippi State fans yelled racial slurs at players’ parents - Sports Illustrated It was a lot worse when Perry Wallace started to play on Vanderbilt's basketball team in 1967. Perry Wallace, a pioneer who integrated SEC basketball, has died-Vanderbilt University
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1. Small Ball:
A. Pared FTS-Sold 5 at $46.25:
Quote: Fortis Inc.- USD Priced Shares
Fortis website
FTS SEC Filings-SEC forms for a foreign company
Last Buy Discussions: Item # 1.K. Added to FTS-Bought 5 at $39.25; 5 at $38.71 (3/13/21 Post); Item # 3.A. Started FTS-Bought 5 at $40.25 (1/30/21 Post)
2020 Annual Report (management discussion)
Profit Snapshot: +$30.88
Dividend: Quarterly at C$.505 per share, last raised from C$.445 per share effective for the 2020 4th quarter payment. Share Information
Last Earnings Report (Q/E 3/31/21): Fortis Inc. Reports Strong First Quarter 2021 Results
E.P.S. at C$.76, adjusted to C$.77, up from an adjusted C$.68 in the 2020 first quarter
Revenues: C$2.539B, up from C$2.391 Y-O-Y
B. Bought 50 AFIN at $9; 10 $8.3-Fidelity Taxable:
This is a new name for me.
Quote: American Finance Trust, Inc. Cl A (AFIN)
"American Finance Trust, Inc. (the “Company”), is an externally managed real estate investment trust for U.S. Federal income tax purposes (“REIT”) focusing on acquiring and managing a diversified portfolio of primarily service-oriented and traditional retail and distribution-related commercial real estate properties located primarily in the United States. The Company’s assets consist primarily of freestanding single-tenant properties that are net leased to “investment grade” and other creditworthy tenants and a portfolio of multi-tenant retail properties consisting primarily of power centers and lifestyle centers. The Company intends to focus its future acquisitions primarily on net leased, single-tenant service retail properties, defined as properties leased to tenants in the retail banking, restaurant, grocery, pharmacy, gas, convenience, fitness, and auto services sectors. As of March 31, 2021, the Company owned
10-Q for the Q/E 3/31/21 (summary of debt, mostly mortgages on owned real estate, starts at page 18)
2020 Annual Report (risk factor summary starts at page 4 and ends on page 29)
Average Cost per share this account: $8.88 (60 shares)
Dividend: Quarterly at $.2125 per share ($.85 annually) AFIN was paying a monthly distribution prior to 2021.
American Finance Trust Announces Common Stock Dividend for Third Quarter 2021
Dividend History 2019 to Date:
Yield at $8.88 = 9.57%
Next Ex-Dividend Date: 7/9/21
Last Earnings Report (Q/E 3/31/21):
AFFO per share = $.24
Properties 94.6% leased
8.7 year average remaining lease term
Net Income to FFO to AFFO Calculations:
C. Bought 10 AFIN in Schwab Taxable at $8.4; 10 at $8.11:
See Item # 1.B. above
AC this account: $8.26
Yield at AC = 10.29%
D. Sold 9 KR at $39.01:
Profit Snapshot: $65.6 (6/18/21 sale only)
Last Earnings Report (F/Q ending 5/22/21):
Far too many adjustments for my taste.
See Item 1.D. Above.
Profit Snapshot: +$164.46
I no longer have a position in KR. My consider-to-buy range is currently between $28 and $32.
Other Sell Discussions: Item # 1.A. Eliminated KR in Schwab Account-Sold 20 at $38.65 (2/27/21 Post)(profit snapshot = $137.43); Item # 2.F. Sold 2 KR at $38.65 (5/23/21 Post)(profit snapshot = $12.82)
KR Realized Gains to Date: $670.47 ($440.41 in prior trades)
I have been more active in Kroger's senior unsecured bonds, but all of them have matured and current yields are unattractive.
F. Pared EXG in Schwab Taxable-Sold 10 at $10.31:
Quote: Eaton Vance Tax-Managed Global Diversified Equity Income Fund Overview- A Buy-Write CEF
Sponsor's Website: Tax-Managed Global Diversified Equity Income Fund (EXG) | Eaton Vance
Portfolio as of 1/31/21-SEC Filing
Eaton Vance Tax-Managed Global Diversified Equity Income Fund (Annual Report for the period ending 10/31/20)
Last Buy Discussions: Item # 2.B. Added 10 EXG at (11/28/20 Post); Item # 1.P. Added 20 EXG at $7.4(10/24/20 Post); Item # 1.A. Bought 100 EXG at $7.42 (7/11/20 Post)
Position Before Pare this account only:
I have turned off dividend reinvestment. I eliminated with this pare all shares purchased with dividends.
Profit Snapshot: +$24.68
AC per share this account after pare: $7.04 ($7.04)
 |
| Snapshot at close on 6/14/21 after pare |
Dividend: Monthly at $.0616 per share ($.74 rounded annually)
Substantial ROC Support.
Return of Capital and CEFs - Fidelity; Return of Capital and CEFs: Part 3 - Fidelity
Yield at $7.04 = 10.5%
Data Date of 6/14/21 Trade:
Net Asset Value Per Share: $10.37
Closing Market Price: $10.27
Discount: - .96%
Average 5 Year Discount: 4.04%
Sourced: EXG-CEF Connect
The largest EXG realized gain to date was in 2013:
 |
| EXG 331 Shares +$414.31 |
G. Pared EXG in Fidelity Taxable-Sold All Fractional Shares Purchased with dividends at $10.28:
 |
| 1.188 Shares |
See Item # 1.C. Above.
Profit Snapshot: +$2.75
The market price closed at a premium to net asset value per share.
New AC per share: $6.9
 |
| Snapshot Intraday on 6/16/21 after pare |
Yield at AC = 10.72%
H. Pared OFS in Fidelity Taxable-Sold Highest Cost 35 shares that could be sold profitably at $10.07:
Quote: OFS Capital Corp - a BDC
Website: Homepage - OFS Capital
Management: External
2020 Annual Report (risk factor summary starts at page 27 and ends on page 59)
Financial Highlights 2012-2021:
 |
| Page 69 |
Last Buy Discussions: Item # 3.F. Bought 40 OFS with an Average Cost Per share of $4.18 (11/7/20 Post); Item # 2.L. Added 5 OFS at $3.97-Fidelity Taxable (11/28/20 Post); Item # 1.K. Added 3 OFS at $4.5 -Fidelity Taxable (8/8/20 Post); Item # 3.E. Added 5 OFS at $9.66; 5 at $9.2; 5 at $8.7; 5 at $6; 5 at $5.65; 2 at $3.7; 10 at $3.79 (4/11/20 Post)
Profit Snapshot: +$12.44
New AC per share this account: $6.78 (134+ shares):
Dividend: Quarterly at $.22 per share
Recent dividend history has been moving back up after being slashed from $.34 to $.17 effective for the 2020 second quarter payment. OFS Capital Corporation (OFS) Dividend History | Nasdaq
Yield at New AC of $6.78 = 12.98%
Net Asset Value Per Share History:
03/31/21: $11.96 10-Q at page 3
12/21/20: $11.85 10-K at page 69
6/30/20: $10.10
3/31/20: $ 9.71
12/31/19: $12.46
9/30/19: $12.74
6/30/19: $12.95 Page 2 10-Q
3/31/19 $13.04 10-Q
12/31/18 $13.10
6/30/18 $13.70
03/31/18 $13.67
12/31/17 $14.12
12/31/16 $14.82
12/31/15 $14.76
12/31/14 $14.24
12/31/13 $14.54
IPO Offering Price at $15 (November 2012) with proceeds after the underwriters' discount at $13.05 Final Prospectus Supplement
Last Earnings Report (Q/E 3/31/21): SEC Filed Press Release
NII per share = $.19
Adjusted NII per share = $.23
The 4 cent adjustment is due to "duplicate interest" expense relating to the timing of a new bond offering and the retirement of a higher coupon vintage bond. I would agree with that adjustment:
"Interest expense for the three months ended March 31, 2021, increased $0.3 million compared to the three months ended December 31, 2020, primarily due to us paying interest on both the newly issued $125.0 million of unsecured notes in February and March 2021 and the $98.5 million of redeemed unsecured notes. After the 30-day notice period expired, we used a portion of the proceeds from the $125.0 million of unsecured notes to redeem $98.5 million of previously issued unsecured notes."
No new loans on nonaccrual
The weighted average yield on debt investments: 9.01%
Sell Discussions: Item # 2.M. Pared OFS in Vanguard Taxable-Sold 20 at $7.2 (12/25/20 Post); Item # 3.B. Sold 10 OFS at $12.04 (11/30/19 Post); Item # 4.B. Sold 60 shares at $12 (11/13/19 Post)
OFS Trading Profits to Date: $217.55 ($205.44 in prior trades)
Most of the gain is unrealized with positions held in several accounts.
Goal: Any total return before ROC adjustments to the tax cost basis in excess of the dividend payments.
I. Added to CLX-Bought $50 at $173.38:
Quote: Clorox Co.
Last Discussed: Item # 2.A. Multiple Small Dollar Purchases of CLX (3/27/21 Post) I view the current stock price as rich, so I will go slow. Purchases of cleaning products have probably now returned to pre-pandemic levels. UBS started CLX as a sell last month.
Investment Category: Dividend Growth
CLX Analyst Estimates | MarketWatch
Brands | The Clorox Company Owning the Hidden Valley salad dressing line makes no sense to me.
Average Cost in this Account:
Dividend: Quarterly at $1.16 ($4.64 annually), last raised from $1.11 effective for the next dividend payment.
Yield at AC:
Next Ex-Dividend: 7/27/21
Last Earnings Report (Fiscal 3rd Q/E 3/31/21): SEC Filed Press Release
GAAP earnings per share reflect a pre-tax non-cash impairment charge of $329 million (or $2.11 diluted EPS). "The impairment charge is the result of an adjustment to the carrying values of goodwill, trademarks and other assets in the Better Health Vitamins, Minerals and Supplements (VMS) business".
Adjusted E.P.S. = $1.62, a 14% Y-O-Y decrease
Net Sales = $1.781B
2021 Outlook:
J. Added to FCX-Bought 1 at $39.37; 1 at $37; 2 at $34.68:
Quote: Freeport-McMoRan Inc
FCX Analyst Estimates | MarketWatch
Copper Prices - 45 Year Historical Chart-MacroTrends
Last Discussed: Item # 3.A. Bought 2 FCX at $41.33; 1 at $40.29 (6/12/21 Post) I noted in that post that I expected copper prices to come back down.
I discussed the last earnings report in that post.
Average Cost Per Share: $38.38 (7 shares)
Dividend: Quarterly at $.075 per share Freeport-McMoRan Declares Quarterly Cash Dividend on Common Stock
Yield: Viewed as immaterial
K. Bought 10 CIZN at $18.99; 5 at $18.3; 5 at $18.14:
3 Year Financial History (page 7):
Dividend: Quarterly at $.24 per share ($.96)
10 shares bought just before the ex-dividend date and 5 shares on that day.
Yield at $18.99 = 5.06%
Last Ex-Dividend: 6/17/21
Last Earnings Report (Q/E 3/31/21): SEC Filed Press Release and 10-Q
E.P.S. = $.34
Net Income: $1.897M
NIM = 2.32%, hurt by early prepayments on mortgages.
ROE = 6.45%
CIZN.O - Citizens Holding Company Key Metrics | Reuters
Capital Ratios:
 |
| Page 44, 10-Q |
Maximum Position: 50 shares
Purchase Restriction: Each subsequent purchase must be at the lowest price paid in the chain.
Goal: Dividend harvest and a >2% profit on the shares.
My overall judgment is that CIZN is not a quality regional bank, and that is established by its earnings history and price chart. I will preferably avoid holding the shares for more than a year. I have successfully traded the shares in the past, so I decided to try again. A successful trade is defined as collecting 4 dividends and then selling the shares at >$20. I am becoming less choosy with new dividend paying stock purchases given the inflow of bond redemption proceeds with nowhere to go into new bond purchases.
CIZN Realized Gains to Date: $419.77
L. Added to VRTX-Bought $50 at $189.72; $20 at $188.21; $30 at $187.57:
Quote: Vertex Pharmaceuticals Inc.
VRTX Analyst Estimates | MarketWatch
Pipeline | Vertex Pharmaceuticals
Last Buy Discussions: Item # 3.L. Multiple Small Dollar Buys (6/12/21 Post; Item # 1.A. Bought 1 VRTX at $213.65; $50 at $211.32; $50 at $201.33 (4/30/21 Post)(discussed last earnings reports in that post, Vertex Reports First-Quarter 2021 Financial Results)
I have nothing further to add to those recent discussions.
Average Cost per share in this account = $203.91 (3+ shares)
M. Bought 10 VKTX at $5.88:
Recent News-June 2021: Viking Therapeutics Announces Results from Phase 1 Clinical Trial of Novel Oral Thyroid Receptor Beta Agonist VK0214 (6/17/21); Viking Therapeutics Announces Initiation of Phase 1b Clinical Trial of VK0214 in Patients with X-ALD (6/24/21)
Last Financial Report (Q/E 3/31/21): Viking Therapeutics Reports First Quarter 2021 Financial Results and Provides Corporate Update
Cash and short term investments as of 3/31/21 = $241.7M
Net loss of $14M or $.19 per share.
N. Added to HTBK-Bought 10 at $11.1:
Quote: Heritage Commerce Corp.
I discussed this small bank holding company in my last post. Item # 1.L. Bought 10 HTBK at $11.52 (6/25/21 Post)
New Average Cost per share = $11.31 (20 shares)
 |
| Snapshot Intraday 6/28/21 |
I will probably continue averaging down in ten share lots until I hit 50 shares and then decide whether or not to take the position up to 100 shares.
Dividend: Quarterly at $.13 per share
Yield at $11.31 = 4.6%
O. CFG's Redemption of its 2.375% SU bonds:
Issuer: Citizens Financial Group Inc. (CFG); CFG Analyst Estimates | MarketWatch; CFG SEC Filings
The prospectus allowed the issuer to redeem within 1 month prior to maturity at par plus accrued and unpaid interest. Prospectus at p. S-2
S & P Rating: BBB+
Interest on 4 bonds was paid semiannually at $47.5 or about $7.92 per month. The interest paid by the issuer upon redemption was for five months and totalled $39.58.
Profit Snapshot: $44.24
I still only a few common shares. Dividend History-Citizens Bank (Quarterly at $.39 per share)
CFG has 2 non-cumulative equity preferred stocks that are currently priced over their $25 par values. Citizens Financial Group Inc. Series D Preferred Stock-Final Prospectus Supplement; Citizens Financial Group Inc. Series E Preferred Stock-Final Prospectus Supplement. The equity preferred stocks are rated BB+ by S & P, a larger than normal spread to the senior unsecured debt of BBB+. Credit Ratings – Citizens Bank; Citizens Bank Credit Ratings-Fitch
CFG has several $1K par value senior unsecured bonds that can be traded, but I have no interest in them due to their currently low yields. (e.g. FINRA Bond Detail CFG 2.85% SU Maturing in 2026 trading near a YTM of 1.42%). The breakeven inflation rate for the 5 year TIP closed yesterday at 2.49%. If the Bond Ghouls are proven correct in predicting a 2.49% average annual inflation over the next 5 years, the 2026 CFG bond with its 1.42% would produce an annual average real rate of return, before taxes, of -1.07%.
P. Issuer Redemption GOODM-7% Cumulative Equity Preferred:
Item # 1.C. Bought 10 GOODM at $20; 5 at $19 (4/4/20 Post)
I still own the common shares. Gladstone Commercial Corp. (GOOD); GOOD SEC Filings
I last discussed the common stock here: Item # 3. F. (6/14/21 Post)(average cost Fidelity taxable at $13.19; yield at 11.05%; 58 shares). I have been selling my highest cost shares and have eliminated all shares purchased with dividends.
2. Cash Flow into Fidelity Taxable 6/30-7/2 (1 of 5 taxable accounts that I own):
The cash flow snapshots highlight my diverse holdings and my current inch deep, mile wide approach to risk management. In the following snapshots, I reinvested the dividend only in the utility holding company PPL and KMB. I did not realize that the reinvestment option for KMB was turned on and have now turned it off. Several of the securities are owned in multiple accounts.
The only corporate bonds included in the snapshots are two 3.1% First Mortgage bonds issued by Entergy Mississippi that matures on 7/1/23 and 1 Hercules 6.5%, one of the leftovers from my junk bond basket strategy implemented mostly in 2011 and now in runoff.
FINRA Page 2029 Hercules 6.5% Junior Bond; Item # 2 Bought 1 Hercules 6.5% Junior Bond at 86 (6/24/11 Post)(current yield at total cost = 7.488%)
FINRA Page 2023 Entergy Mississippi 3.1% First Mortgage (currently trading near a .45% YTM). I discussed that bond here: Item # 3.A. Bought 3 Entergy Mississippi 3.15% First Mortgage Bonds Maturing on 7/1/23 at a TC of 99.111 (2/13/19 Post) That purchase brought me up to 6 bonds held in two of my accounts. I later sold 1 at 102+. Item # 3.A. (7/20/19 Post)
I received $250 in tax exempt interest from 3 separate $5K Tennessee municipal bond positions. (annual average tax free current yield of 3.33+%)
The snapshots highlight some reliance on CEFs to generate income (AIO, AOD, BXMX, ERC, EXG, FAX, GDO, GLQ, IGR, JDD, JQC, JRI, KIO, SWZ, MIN, THQ). Of those CEFs, all pay monthly dividends except for BXMX, JDD, and SWZ who pay quarterly.
There is also some reliance on BDCs to generate cash flow. The following stocks shown in the snapshots are BDCs: ARCC, FSK, NMFC, OFS, PFLT, PNNT, SLRC, SUNS, TCPC and TPVG.
I am extremely proactive in managing the inherent risks in BDC stocks.
I have been using the small ball trading strategy in managing CEF risks which I would summarize simply as selling the rips (particularly shares bought with dividends) and buying the dips. All recent transactions have been to sell.
3. Tennessee Municipal Bond Interest Paid 7/1 into Schwab Taxable:
All of these positions are 5 bond lots.
Total = $538.76
I also received $5K in an issuer early redemption, along with a $75 tax free interest payment included in the previous snapshots.
This bond was bought at slightly less than par value (11/2019), with the $10 commission taking the cost basis up to 100.157.
I am unaware of any municipal bonds that have make-whole provisions. The call protection is generally 10 years from the original issuance date, with the issuer having the option to redeem at par value thereafter.
For the bonds included in the interest payment snapshots that are still owned, the unrealzied gain using Schwab's third party pricing is at $1,626.74:
I have not tried to sell any of my municipal bonds.
The Tennessee Housing bonds are rated AA+ and Aa1:
I will go down to a AA or AA2 when buying a 10 municipal bond lot.
This one is rated AA+:
This 10 bond lot is rated AA+ by S & P and one notch lower at Aa2 by Moody's.
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.
