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MORE DEAD MONEY. SELL BLOK

Welcome to the 6th year of Dividend Income Investor.
Before buying any investment, go to Core Portfolio for a listing of current positions.

Image result for memorial day 2018

May 24, 2018.  BLOK has a good story when we bought it back on January 17,  The Companies were involved in developing the block-chain technology which is supposedly revolutionary.

The directive of this blog is investing in dividend paying positions.  BLOK was the only holding that we own that does NOT pay dividends.  We expected price appreciation and at the time did not care about the lack of dividends.

This thing has done nothing.  A flat-liner.

So we have dead money.  BLOK is now priced slightly above what we paid, and WE ARE SELLING.  Of course BLOK can take off from here and we will regret this sale.  But at this point, we don’t care and will get into something that pays us on a regular basis.

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BUY AINV: STOCK OR BOND

May 23, 2018.  As regular readers know, we buy stuff when IT IS ON SALE……meaning there is a one-time temporary reason for a price decline.  As long as there is no change in credit quality, we will buy at a reduced price.

We are now able to buy Apollo AINV while it is on sale. The stock hit a low on March 29 and has been rising.  But we are NOT interested in the stock.  We ARE buying the bonds which mature in March 2025 and the yield to maturity is a nice 6.27%.

The stock AINV is ok to buy…….paying over 10%.  The price right now is $5.65.  But we prefer the bond.

CUSIP  03761UAG1

Price $944.00

FUND DESCRIPTION: Apollo Investment Corporation is a closed-end investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. Apollo Investment Corporation’s investment objective is to generate both current income and capital appreciation through debt and equity investments. The Company provides private debt market solutions to middle market companies in the form of senior secured, mezzanine and asset based loans and may also acquire equity interests. The Company seeks to provide private financing solutions for private companies that do not have access to the more traditional providers of credit. Apollo Investment Corporation is managed by Apollo Investment Management, L.P., an affiliate of Apollo Global Management, LLC, a leading global alternative investment manager.

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Why didn’t we think of that?  

Wholesale Carrier Network
For its Wholesale Carrier Network, AWN intends to use commercial aircraft as “mini-satellites”. The company’s primary target customer-base will be worldwide data and communications service providers.

http://www.airbornewirelessnetwork.com/index.asp#network

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Sometimes you run across an article that blows your mind.  We suggest you read this about food stamps and obesity.

Food stamps have long been a dietary disaster. Walter Willett, chair of Harvard University’s Department of Nutrition, observed, “We’ve analyzed what (food stamp) participants are eating and it’s horrible food. It’s a diet designed to produce obesity and diabetes.” A 2017 public health study found that food stamp recipients were twice as likely to be obese as eligible non-recipients. Similarly, a 2015 USDA report revealed that food stamp recipients are more likely to be obese than eligible non-recipients (40 percent vs. 32 percent).

http://thehill.com/opinion/civil-rights/388334-hunger-hoaxes-hinder-food-stamp-reform

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PORTFOLIO SHOULD BE RE-NAMED BORING CORE PORTFOLIO

May 22, 2018.  One of our bucket-list goals was traveling across Canada by train and viewing the beautiful scenery in Western Canada.  We recommend this trip but keep in mind there are significant delays due to rising freight train traffic:  probably due to Trump’s growing economy!

Cell coverage was spotty but we managed to keep tabs on the (boring) Core Portfolio.  There are NO buys or sells right now but, as usual, we are always looking at numerous positions either to buy, or sell.  We roll along collecting the dividends.

HYHG.  We are watching HYHG for a possible buy when it goes ex-dividend June 1.  Pays 5.7%

CTL.  A new CEO and some re-organizing keeps this new addition to the Core Portfolio as a hold.

VENTAS.  We continue to hold a Ventas Corporate Bond.  Reporting good results with an investment grade rating.  One of the best REITs.

WPC.  This newer position is acting well.  See link below. Up $4 since we bought so it is a little late to buy this. 

W.P. Carey is a well-established triple-net lease REIT, a pioneer in the industry. To some extent, I think it is riskier than Realty Income, but the higher yield more than makes up for that. Its current market price of around $65 makes it a good opportunity for a dividend growth investor.

https://seekingalpha.com/article/4174179-w-p-carey-still-excellent-dividend-payer?app=1&isDirectRoadblock=false

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STILL WATCHING GBAB

Welcome to the 6th year of Dividend Income Investor.
Before buying any investment, go to Core Portfolio for a listing of current positions.

May 15, 2018.  Back in mid-April our momentum indicators started turning up indicating that the stock market was setting up to head higher.  Last week, numerous financial advisors that we follow started talking about a positive trend in stocks.  Will it continue.  Who knows.  But we have been fully invested for years and continue to be positive.  Despite Trump’s objectionable personality, the public is optimistic and feel things are going well….scroll down for more.

Last week we mentioned that GBAB was going ex-dividend yesterday May 14-yesterday.  It closed at $21.51 and may still hit our target of $21.40 but it may having trouble declining to that price.  The way things are looking now, GBAB would be a buy at any price under $21.50  It pays almost 7%.

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A poll released by the far-left CNN shows that optimism about the direction of the country under President Trump has hit an 11-year high of 57 percent. The last time this same poll registered a number that high was in January 2007. This includes 40 percent of Democrats, which is a leap of 15 points from just last month.

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Borrowers in the U.S. are defaulting on subprime auto loans at a higher rate than during the financial crisis, according to Fitch Ratings.
Lenders are responding by pulling back on financing to applicants with shaky credit histories and requiring higher standards for loans that they bundle and sell on to investors.
The delinquency rate for subprime auto loans more than 60 days past due reached the highest since 1996 at 5.8 percent, according to March data, the most recent available from Fitch. That compares with default rate of around 5 percent during the financial crisis in 2008.
The number of auto loans and leases extended to subprime borrowers fell by almost 10 percent from a year earlier in January, which is the latest data available from the credit reporting agency Equifax. Auto-lease origination to those customers decreased by 13.5 percent.

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CNN DIES. ONE SELL AND TWO BUYS

Welcome to the 6th year of Dividend Income Investor.
Before buying any investment, go to Core Portfolio for a listing of current positions.

May 11, 2018

Donnelly is in the “old” industry of printing and is in the process of trying to turn itself around.  But it’s not working as well as we had hoped when be bought this bond.  We are selling the corporate bond that we hold in the Core Portfolio.  The next dividend payment is not until later this year.  And it does not mature until 2024 at which time we get our money back.  But we just don’t want to take the risk and wait that long.

We have been receiving dividends and have a reasonable total return profit, even when you consider the bond price has declined.  We do not want to hold investments in declining industries.  SELL.

Our recent purchase of CTL has taken off, up a dollar on Thursday.  It is still ok to buy.

GBAB is starting to turn up after plunging in January.  It pays 7%.  The momentum indicators look positive.  It is going ex-dividend May 14 and you may be able to buy at lower prices.  $21.40 would be a reasonable buy limit order. 

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Listeners getting tired of CNN fake news hate speech.  LOLOL

CNN’s May Ratings Already Collapsing by 20-Plus Percent
While Fox News and MSNBC are more or less holding steady this week when compared to the full month of May last year, the far-left CNN is already in a total ratings freefall by 20 percent and more.

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From Dennis Miller:  comedian and podcaster.

“But right now, you can’t wake up everyday and say he had an affair with a porn star and a playmate and that’s why he needs to be impeached.” Miller said. “It doesn’t work since Bill Clinton.”

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NETFLIX ROCKS

May 9, 2018

The WP Carey position in the Core Portfolio is doing quite well since we bought it recently.  Go to the link below for a recent review.  Continue to hold if you own: it is a little late to buy this now.

https://seekingalpha.com/article/4170532-take-charge-w-p-careys-6_3-percent-dividend-yield-stands-strong?app=1&uprof=46&isDirectRoadblock=false

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We were late-comers to Netflix.  As we wrote a few months back, we had become so FED UP with the continuous and annoying advertising on commercial and cable, it made sense to try Netflix where you pay a small monthly fee and you don’t have to be subjected to virtually non-stop advertising.

We have watched numerous Netflix series and most of them have been absolutely excellent.  The program with Jane Fonda is really good.  But today, we want to mention a program that most people would probably ignore.

Chef’s Table may sound like a boring recipe show.  In fact it’s just the opposite.  You are following chefs from the “top 50 rated” restaurants in the world, according to Michelin.  This series is about the trials and tribulations of the most famous chefs in the world, who have reached the 1 to 3 star level.  You see the rags to riches story of the chefs, in location at their restaurants.  Talk about beautiful photography:  it is stunning.  You go to Russia, Peru, and locations all over the world.  Wow.

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Trump gets 90% Negative Coverage but polls keep going up.  They keep trying to kill him but it’s not working.

Yes we keep buying those damn tickets:

While it might seem tempting to spend two bucks for the chance to win millions, the odds are not in your favor, and those dollars are better off in your savings account. Your chance of winning a Powerball grand prize is only about 1 in 292 million. To put that in perspective, your odds of being killed by an asteroid impact are about 1 in 700,000.

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FREE APP CLAIMS PREVENTION OF SCAM CALLS. KCAPL. LADR.

Welcome to the 6th year of Dividend Income Investor.
Before buying any investment, go to Core Portfolio for a listing of current positions.

May 7, 2018

We watch the articles in SeekingAlpha.com very closely.  We follow at least a hundred SeekingAlpha authors who provide thoughtful analysis on Companies (in addition to following dozens of other financial sites).  The SA site is free but numerous authors also promote their paid newsletter subscriptions.

Here is an analysis of KCAPL which we do hold in the Core Portfolio.  Below is the link and the bottom line from the article.  The price is not that much higher than what we paid and this would be a good time to buy. 

https://seekingalpha.com/article/4167329-safe-baby-bond-yields-6-percent-short-duration-and-limited-interest-rate-risk?app=1&uprof=46&isDirectRoadblock=false

Bottom line – KCAPL is a low risk bond that is suited for the conservative investor. The bond is set to generate a safe +6% cash returns until it matures in about 4.5 years.

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We came across an article this morning talking about a new free APP which helps prevent the robocalls and scam calls.  We are going to download and see how it works.

Mr. Number Call Block & Lookup 4+
Hiya
#23 in Utilities
43.1K Ratings
Free
Offers In-App Purchases

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Below is a link to a positive article on LADR which is in the Core Portfolio.  The price is down a little and the momentum indicators are pointing down.  We are holding for now and NOT adding to this position.  But we will ADD in the future at lower prices if we see an upward bias in the indicators. 

In conclusion: I am maintaining a STRONG BUY on Ladder and I am inclined to increase my exposure after Q1-18 results. The company is hitting on all-cylinders and the business model is producing exceptional shareholder returns. Related obviously knows Ladder is a diamond in the rough and the management team (at Ladder) is the true differentiator: The premium is not so much in the properties, but the people running them, and as I said at the outset, “Price is what you pay, value is what you get.”

https://seekingalpha.com/article/4170537-price-pay-value-get?app=1&uprof=46&isDirectRoadblock=false

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