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ALL CLEAR?? DOUBTFUL

January 14, 2019. The market has been rising and everyone is celebrating. We are off and running.

Before you get too positive, keep in mind that it is typical to re-test the LOWS after a sharp decline in the markets. Right now, it is more likely that we will see another decline……heading to the recent lows. So remember this before you start getting too comfortable. AND you should NOT be loading up on stocks.

Also, the re-test could pass OR fail. Yes it can fail, and we could see even further declines beyond the recent low. Our crystal ball is still broken and we do not know the future. If you buy or trade stocks, be cautious before you get too bullish. (The markets are DOWN THIS MORNING.)

Our primary focus here is INCOME. So we have remained fully invested in all Core Portfolio dividend paying positions over the last three months: individual bonds, REITs, BDCs, and preferred stocks.

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We have never invested in Altria, best known for their cancer causing Marlboro cigs. It was at $77.00 back in 2017, and has tanked down to $49.00 on Friday. So why would we even consider looking at this dud.

Well, marijuana for one….everyone wants to invest in this category.

Altria has purchased Companies in the weed AND e-cig markets.

Altria pays 6.5% but the technicals are still terrible. This Company is now on our radar, and if things change-for the positive- in the next few weeks, months, or maybe never, we will make a decision on a possible purchase. 


Cheap Dividend Stock #1: Altria (MO)

Cigarette maker Altria is the second-largest tobacco company in the world and the largest in the U.S. Its Marlboro brand is by far the most dominant cigarette on the market, with a whopping 40% market share. Nobody else is even close.

What if things go badly and the market turns south? Altria has a relatively unblemished record of solid stock performance in good markets and bad. In a bad market and economy people still drink and smoke, if not more so. This is one of the few companies that continues to thrive in bad times and bad markets. And there is reason to believe the stock will be even more resilient this time around.

Consider this: Cigarette smoking in this country has nearly halved since 2009. But in that time period Altria has grown earnings by an average of 9%, and $10,000 invested in the stock 10 years ago would be worth about $56,000 today!

After an uncharacteristic bad year, down almost 30% in 2018, the stock currently sells near a five-year low at 49 per share, and pays a massive 6.57% yield. Bear in mind this is a stock, even after the recent downturn, that has provided an average annual total return (including dividends) of 19% per year for the last 10 years. 2018 was a rare moment of weakness.

MO is down for two reasons: cigarette volumes have slipped more than usual and regulators have been more aggressive than they’ve been in a decade. Volume decreases are nothing new—the number of U.S. smokers decreases about 3% to 4% every year and has for some time. But Altria has been able to counter the volume slippage by raising prices on its dominant brand and ancillary businesses.

Volume has decreased slightly more than usual of late primarily because of competition from E-cigarettes. In addition, regulators have proposed restrictions on selling these new non-tobacco products to minors and threatened to outlaw menthol cigarettes, which account for about 20% of Altria’s profits. Altria is affected because it has also been in the E-cigarette business. But these things will likely take years in court to resolve and by then Altria will adjust. In fact, it already is adjusting.

The company just spent $14.6 billion on a 45% stake in cannabis (marijuana) company Cronos (CRON) and a 35% share in E-cigarette powerhouse Juul. Cronos is one of the largest cannabis companies in the world and that market is expected to grow 35% per year through 2025 and could grow even more as legalization becomes increasingly popular. Juul has a 75% share of the E-cigarette market in this country, and a growing presence overseas. The Juul industry is expected to grow from about $14 billion in sales in 2017 to $44 billion by 2023.

Altria has added strong growth to its already winning formula, and should thrive when the market recovers because there is now a reason to be excited about the stock. The current market doesn’t get excited about anything. Up or down, sideways or backwards—Altria should be a winning investment that currently pays you 6.57% just to hold it.

ARTICLE

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GBAB AGAIN

January 11, 2019 A few days back, we mentioned that GBAB had help up very well during the turmoil in Nov/December. And yesterday, we came across an article discussing GBAB as well as BBN and BAB: all include Build America Municipal Bonds.  Copied here is one paragraph, and the full article is linked below. GBAB is paying 6.8%. Long term investors can buy now, but we suggest putting in a BUY LIMIT order at the lower price of $21…and wait.

For the taxable municipal bonds, I would recommend BlackRock Build America Bond Trust (BBN), Guggenheim Build America Bonds Managed Duration Trust (GBAB), and Invesco Build America Bond Portfolio ETF (BAB). BAB is good for those who don’t like leverage and currently yields 3.8%. BBN and GBAB have higher yields (around 7%) and are what I have been holding in my portfolio, but they are leveraged, which will make the volatility more severe, both to the up and down side. They both have higher quality A, AA, and AAA bonds though, so credit quality isn’t much of a risk. I have enjoyed having these two Build America Bonds funds in my portfolio since 2014 and they have not disappointed me. The current income is great, plus when the stock market has gone south, these bonds have done well at bringing balance to the portfolio. Since inception in 2010, GBAB has returned 8.53% in total market returns and BBN has returned 9.75%. If you have money to invest in just one of the two, BBN seems to be the clear winner both in terms of its current status and total market return since inception.

FULL ARTICLE

LOL FUNNY PIC

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LOOK AT AWF

January 9, 2018 If you are a buy and hold investor in the SPY, you would just now BE BREAKING EVEN from a year ago. SPY went up, down, and is now almost even vs last year. What a waste!!! We prefer to invest in dividend paying positions which have given us very nice income over the last year.

AWF took a dive recently, down to $10.16. It has now recovered trading right now at $11.05. This 7.5% payer is still a BUY today. If you are looking to invest right now, AWF is a good pick.

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RIP

Image result for sears catalog picture

We grew up with JCP and Sears in our very little rural town. Penny’s had a store and Sears had a storefront where they shipped in stuff. Who will ever forget the days when the Sears hundred pound catalog would show up in the mail. Well, the day of Sears demise has finally come (altho they are making a last ditch effort today to save the Company) and Penny’s will go under soon. Who woulda thought. Will we miss you? Nah. We have Amazon now.

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WHAT????? AMAZON NEWS

Bezos revealed during a tweet on Wednesday that after a trial separation, he and his wife MacKenzie would be seeking a divorce – though he insisted that the two would “remain friends.” The two recently launched a charitable organization to help the homeless and specifically homeless children.

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MAJOR PROBLEMOS IN FRANCE

The Macron’s popularity is in free fall; it has dropped to 18%. No French president’s popularity has dropped so low, so quickly. Flore Santisteban, a professor at the Paris Institute of Political Studies, quoted surveys showing that Macron now crystallizes “an intense hatred, and maybe more than hatred: rage”.

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IS THERE LIGHT AT THE END OF THE TUNNEL

January 7, 2019. We own UNIT Corporate Bonds in the Core Portfolio. The bonds have shown significant declines since we bought, and they are ON SALE, now giving you a 10% yield.

CUSIP: 909218AB5

https://luvthosedividends.com/2018/06/27/buying-corporate-bond/

IHIT has been extremely stable over the last three months and is a BUY.

GBAB has actually increased in value and is a BUY in your IRA account.

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As you probably know, the stock market went thru the roof on Friday. There were huge ‘short’ bets and those people would have been badly hurt if they didn’t get out of the positions. (Shorting stocks and using inverse funds can be extremely dangerous, as we learned from experience many years ago….lol. You can really get hurt, especially during market turmoil.) If you are a stock investor, you should be primarily in cash waiting for buy signals.

It does look like the stock market is in a bottoming process, especially after the Fed cheered up everyone with their comments, and Trump keeps telling us everything will be ok with China. Yeah, we will believe it when we see it. 

We are NOT stock traders. In our Core Portfolio, we own individual term bonds, BDCs, CEFs and REITs for the most part, and remain fully invested.

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Apple ‘crashed’ last week. We hear that Warren Buffett (Berkshire, the oracle of Omaha) owns $40 Billion in Apple shares, which is 21% of his portfolio……WOW. And YOU think you have problems. Warren just lost a huge chunk of change.  Can you imagine having forty BILLION dollars in ONE stock!!!! 

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NOTE TO NEW READERS:  Before you buy anything we discuss here, GO to the Core Portfolio tab to see a CURRENT listing of holdings. This blog is designed for investors seeking income.

Obama and Hill have both called for building a wall in the past. But the dem’s hatred toward Trump is so intense that they will never approve paying for it. Read this article:

https://www.breitbart.com/politics/2019/01/06/trump-quotes-obama-clinton-build-a-barrier-to-fight-illegal-immigration/

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Pocahontas has NO chance.

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ADVISORS ALL OVER THE MAP. WHO TO BELIEVE.

Update: We are watching ABR for a possible buy next week. This is a REIT which is on sale, but we have to wait for the technicals to give us a better signal.

January 3, 2019. We follow numerous advisors who have good records in the markets. Some follow primarily stocks and they are out of stocks, expecting a bear market.

Some focus on stocks and bonds, and they are out of both stocks and bonds.

Some focus on term bonds, the same as our Core Portfolio. They recommend holding all positions.

With forecasts all over the map, what to do? We continue holding all positions, not selling anything.

CGBD is on sale and a BUY right now.

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MOVIES. HIGHLY RECOMMENDED. GREEN BOOK. Probably one of the best of the year. It is based on a true story about a concert pianist, but the relatives say that the director took liberties with the truth. In any case, go see this film.

If you have Netflix, the series Bloodline is an excellent show full of twists and turns.  It is rather long with three seasons, but well worth it.

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Wow this is stunning stuff. Read the full article below talking about the corrupt New York Times.

A former New York Times executive editor has slammed her former employer for being “unmistakably anti-Trump,” while invoking Steve Bannon’s claim that the mainstream media has become the “opposition party” united against the president, according to Fox News.

FULL ARTICLE  

  • According to a Reuters/Ipsos poll conducted after the shutdown began, 47% of adults believe Trump is responsible for the partial shutdown (now in its 7th day), while 33% blame Democrats in Congress. Meanwhile, 7% blamed Republicans in Congress.

Has that actually hurt Trump? Nope: the latest betting odds out of PredictIt, an online betting site, have traders pricing in roughly 2:1 that Trump prevails over either Biden or Beto in 2020, with odds rising to 3:1 if Trump is competing against Kamala Harris or Bernie Sanders.

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LOOK AT BPR

December 31, 2018. Wow the dividend payments are really rolling in. This is what the dividend game is all about: the holdings are dropping in price but the divvies keep arriving.

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We are probably entering a bottoming process. But are we out of the woods yet? Of course not. History tells us that this process can last for months and give us whip-saw action.

It is very possible we will get one or two LOWER LOWS. In other words, we could spikes DOWN and test the lows. So we may not have seen the worst.

We continue holding all positions in the Core Portfolio with the understanding that we continue getting the dividends (income) during this terrible period in the markets. We have sold NO holdings during this down-turn, and have in effect been selectively buying. As we said last week, almost all Core Portfolio positions are ON SALE, and are buys at these bargain levels.

Of course the problem is, who in the hell has the guts to buy during the turmoil. As Buffett said, buy when there is blood in the streets.

If you can’t sleep and nights, and want to throw in the towel, we suggest you hold off. You may in fact be selling at the lows right now and therefore locking in your losses.

The highest rated analyst at seekingalpha.com is suggesting BPR as a top selection right now. We already own a Brookfield Corporate Bond so we will not be buying BPR…..but you should consider. It pays 8%.

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Here is an excellent article from the experts talking about the markets.

CLICK HERE

We didn’t realize it was THIS BAD.

More than 700,000 Americans died from drug overdoses from 1999 to 2017, about 10% of them in 2017 alone, according to a new report published by the US Centers for Disease Control and Prevention (CDC). In total, there were a staggering 70,237 drug overdose deaths last year, which is more deaths than all US military fatal casualties of the Vietnam War. Opioids were involved in 67.8%, or 47,600 of those deaths. Of those opioid-related overdose deaths, 59.8% of them, or 28,466, were due to synthetic opioids. 

FULL ARTICLE ON DRUGS

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IS THERE HOPE!!!

December 28, 2018. Are the markets starting to stabilize???? We don’t know what the future holds, but we do know that virtually any position in the Core Portfolio is a buy. Everything is on sale.  If you can handle the risk, now is the time to pick up holdings when they are cheap……….

yesterday we bought a very small position in SCA.

FUND DESCRIPTION:  Stellus Capital Investment Corp. is an exchange-traded closed-end fund or a closed-end ETF that is officially described as a closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. INVESTMENT OBJECTIVE: The Stellus Capital Investment Corp. seeks to maximize the total return to its stockholders in the form of current income and capital appreciation. FUND STRATEGY: The Fund invests primarily in private middle-market companies (typically those with $5.0 million to $50.0 million of EBITDA (earnings before interest, taxes, depreciation and amortization)) through first lien, second lien, unitranche and mezzanine debt financing, often with a corresponding equity investment. FUND MANAGEMENT: Stellus Capital Management serves as investment adviser to the Fund.

With the polls showing Joe Biden leading as the Democratic Presidential candidate for 2020, we felt it important that we pass along this article, linked below. Yes folks, Biden is just as corrupt as all the rest of them in the Washington cesspool.

FULL ARTICLE

You owe the government a boat-load of money!!!! Go to the article link below.

The Census Bureau estimates there were 127,586,000 households in the United States in 2018. That means the $1,370,760,684,441.54 Christmas-to-Christmas increase in the debt equals approximately $10,743.82 per household.

FULL ARTICLE

Insiders are buying!!!!!!! Link below.

The last time insider buying spiked in this fashion, in August 2011, the S&P 500 was in the middle of a 19 percent retreat before staging a 10 percent rally in each of the next two quarters.

Read Newsmax: Insider Stock Buying Surges to 8-Year High | Newsmax.com

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