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OXLCM, MAIN

July 25, 2018.  We have owned OXLCM in the Core Portfolio for over a year.  This is exchange traded debt and It pays just under 7%.

The debt issue, OXLCM, is going ex-dividend today.  Yesterday it closed at $25.44.  This is a BUY IF the price gets down to $25.30, or lower.

The regular shares, OXLC, are paying an eye-popping 14%.  IF you want to take the risk, you could buy a small position but this stock is at the top of it’s range.  Obviously, anything paying 14% is inherently risky.

GO HERE FOR ARTICLE

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MAIN, a recent purchase, has spiked up in response to a very positive article in SeekingAlpha.com.  We continue to HOLD.  It is too late now to buy this position.

GO HERE FOR FULL ARTICLE

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We admit our continuing infatuation with the Hillary collapse.  She has been floating trial balloons about getting back into the Presidential Race.  Read this funny article about how voters do NOT want Hillary to return.

After learning that nearly three-quarters (73%) of likely Democratic voters don’t want anyone who already ran for president to run in 2020, Rasmussen asked specifically about Hillary’s impact on the Democratic Party. The numbers weren’t good.
While Clinton was widely popular among Democrats back in 2015, that popularity has plummeted. Now a plurality of Democrats believe Hillary has been bad for the party overall: “33% think she’s been good for their party, but 39% believe she’s been bad for it instead,” Rasmussen reports.
And the numbers are far worse among Republicans and Independents: “Seventy-two percent (72%) of Republicans and, more worrisome for Democrats, 63% of voters not affiliated with either major party feel Clinton has been bad for the party.”
Rasmussen notes that even among the one-third of Democrats who say Clinton’s been good for the party, a strong majority (62%) don’t want her to run again.
Among all Likely Voters, 58% say Clinton has been bad for Democrats, with only 22% saying she’s been good and 12% maintaining that she’s had no impact.
Clinton has also apparently lost female voters, among whom an even stronger majority than men want a new candidate for the Democrats in 2020.
Then there’s Rasmussen’s recent findings on what voters think a Clinton presidency would have meant for the country: Only 40% of all likely voters believe the country would be better off today if Clinton had defeated Trump in 2016, while 47% disagree and 13% are undecided.

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IHIT, MIC, BXMT

July 18, 2018

IHIT, in the Core Portfolio, went ex-dividend and is priced at $9.89.  This is a BUY and we will be adding if we can get close to this price.  Yield is over 6%.

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Linked below is a positive article on BXMT, a position in the Core Portfolio.  Total return is good:  the shares are up 5% and we have also been receiving dividends.  It is too late to add to this position and we continue to HOLD.

Blackstone Mortgage Trust has dividend and capital upside in a rising rate environment thanks to the company’s large floating-rate debt investment portfolio. The REIT has solid dividend coverage stats, and shares are not overvalued yet either. Blackstone Mortgage Trust has potential to grow its dividend above $0.62/share as long as the Federal Reserve keeps pushing rates higher. Buy for income and capital appreciation.

https://seekingalpha.com/article/4187800-blackstone-mortgage-trust-covered-7_6-percent-yield-still-grabs

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We have talked numerous times about stock ‘buy backs’.  Most investors have NO understanding of what this means to them and stock prices……the link below is to an excellent article that you should read.

Who other than central banks? Why the great and proud corporations of the United States of America, that’s who. Over this same time period that investors like you and me have been scaling back our equity allocations, corporations have been repurchasing their shares hand over fist. For example, since the start of 2014 through the end of 2018 Q1, they have bought back a whopping $2.4 trillion in stock according to S&P Global. And for those that might think that these share repurchases matter little to the performance of the S&P 500 Index, I present the following chart. Put simply, they matter a whole lot.

https://seekingalpha.com/article/4187520-make-sure-understand-investing?app=1&isDirectRoadblock=false

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More news on the Core Portfolio holding MIC.  We managed to lose the link to the full article.

In February Macquarie Infrastructure Corp. (MIC) cut its dividend by 30% and the stock fell by 42%. Ouch! The company owns a diverse portfolio of infrastructure assets.
At the end of 2017 several customers did not renew leases on some energy product storage terminals. Due to the need to refurbish the terminals to store different products, management chose to reduce the dividend and use the retained cash for that purpose.
Free cash flow is now about 1.5 times the dividend rate, and as soon as the company can lease out the terminals, it will again start to grow the dividend. Investors buying in now earn a 9.4% yield while waiting for growth to resume. I expect MIC to be a $50 stock in 2019 compared to the current $42.

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GECCL ADD. ISD SELL.

July 15, 2018.  Wall Street continues to believe in Trump.  Altho SPY/DOW has been consolidating so far in 2018, the dividend paying positions that we like continue paying us.

In contrast, the Trump haters, Hollyweird elitists, CNN, and drunken British protestors just don’t get it.  They simply refuse to acknowledge the good economic programs that Trump is implementing and they continue with their hate speech.  Yes Trump is narcissistic and self centered, but he is moving this Country forward.

Prices of the Core Portfolio dividend payers continue higher and we have been so frustrated in trying to buy NEW investments as they are too expensive. We like to buy stuff ON SALE and ‘sales’ these days are hard to find.

Bottom line:  Ignore the nitwits on biased fake-news CNN, ABC et al.  As long as the economy continues to hum along, we are staying fully invested.

But you have to remain cautious.  From realinvestmentadvice.com:

Breadth has narrowed substantially, valuations are elevated, rates and inflationary pressures are rising, and price deviations and over-bought conditions are at extremes.

Speaking of ‘on sale’, GECCL went ex-dividend and is a buy at $25.24.

ISD.  This loser continues down.  There is no indication that a turn-around will happen.  When we add in the dividends, we are almost breaking even on this position.  SELL.

WHFBL.  To be redeemed…..giving us capital to buy something new.

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

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WooHoo.  We can’t wait for the new Downton Abbey movie.

A toast is in order for fans of Downton Abbey, because the film adaption of the series is officially underway. Focus Features has announced that the show’s principal cast—including Dame Maggie Smith, Michelle Dockery, and Hugh Bonneville—has officially reunited, and shooting will begin this summer.

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LIMIT ORDER FOR AN ODD-BALL. ALTY.

July 12, 2018.  ALTY is one of those ‘out of the ordinary’ etf’s that nobody has ever heard of.  Several years ago we owned SDIV, a similar etf, that provided excellent returns.  We ended up selling it.

ALTY has been trading in a range since April 2016 and is relatively stable.  At $14.95 pricing is right in the middle of the range.  We do consider this position on the riskier side and as such we are starting with a small amount, possibly adding later on.  The yield is a very nice 7.6%.

Here is a description that is pulled from the dense copy below:  Alternative income investments that are eligible for inclusion in the Index fall into one of four classes: Master Limited Partnerships (MLPs) and Infrastructure, Real Estate, Institutional Managers, and Fixed Income and Derivative Strategies.

We are placing a Limit Order for ALTY at $14.95 and do NOT expect it to be filled at that price, unless we get lucky.  We will watch and possibly raise our bid to $15.00.

Global X SuperDividend Alternatives ETF
Ticker Symbol: ALTY CUSIP: 37954Y806 Exchange: NGM
Security Type: Index ETF — ETF SubType: U.S. Market Sector Index ETF

Company’s Online Profile
FUND DESCRIPTION: Global X SuperDividend Alternatives ETF is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the Global X Funds, an open-end investment management company. INVESTMENT OBJECTIVE: The Global X SuperDividend Alternatives ETF seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx SuperDividend Alternatives Index. INDEX DESCRIPTION: The Indxx SuperDividend Alternatives Index is comprised of securities that rank among the highest dividend yielding securities in each eligible category of alternative income investments, at the time of index reconstitution, as defined by Indxx, LLC, the Index Provider. Alternative income investments that are eligible for inclusion in the Index fall into one of four classes: Master Limited Partnerships (MLPs) and Infrastructure, Real Estate, Institutional Managers, and Fixed Income and Derivative Strategies. The Real Estate category provides exposure to global Real Estate Investment Trusts (REITs), and gains this exposure through the Global X SuperDividend REIT ETF. The Institutional Managers category primarily consists of shares of business development companies (BDCs) and publicly listed private equity companies. The Fixed Income and Derivative Strategies category includes exposure to emerging market debt, mortgage and asset backed securities and option-writing primarily through the purchase of publicly traded closed-end funds (CEFs). Each of the Index components are selected from a universe of securities that are publicly traded in the U.S. The Index assigns weights to each of the four categories in a method that seeks to equalize the volatility contribution of each category, which assigns less weight to higher volatility categories and more weight to lower volatility categories. The Index is reconstituted annually, but may rebalance quarterly if any one category deviates more than 3% from its target weight.

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ADD TO OFSSL

June 12, 2018.  OFSSL went ex-dividend and is now priced at $24.58…..down from $24.95.

This is a BUY, and as we already own, we are ADDING to this position.  Pays 7.2%.

Here is the link to the original post:

https://luvthosedividends.com/2018/04/27/look-at-ofssl/

NOTE:  MIC continues to recover upward.  This is a BUY.

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UPWARD BIAS IN MARKETS. WATCH MIC.

July 9, 2018.  Last week was very good for our income producing positions in the Core Portfolio in that we saw price increases.  But it was not very good for buying new positions that we wanted.  Prices spiked on those that we were looking at, so all in all, we had a quiet four days in terms of buying anything.

We have been looking at numerous positions for POSSIBLE BUYS, but the prices are just too high.

The overall market continues to look positive despite all of the bad news like the tariff situation…yield curve….and more…..and the market is up once again this morning.

From what we can tell, the Donald has gotten himself in somewhat of a mess, but his record so far indicates he knows what he is doing.  We shall see.

The liberal radical press continues to tell lies and is totally out of control:  we have never seen anything like it.  And we have been around a long time!!! 

Bottom line:  we are just sitting here, collecting the dividends, and waiting for the next inevitable down swing allowing us the opportunity to buy at lower prices.

Note:  MIC has been a disaster dropping 50%.  This is a ‘turnaround’ situation and we decided to keep MIC in the portfolio fully expecting it to recover.  In late May, buyers started to come in and now would be a good time to buy.  Pays over 9%. 

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We wanted to buy GSBD but positive press coverage caused higher prices.  We will continue to watch.  (We owned GSBD in the past but sold it.) 

I consider GSBD to be a higher quality BDC for many reasons including:
Likely higher NII per share in the coming quarters that could drive a near-term quarterly dividend increase to $0.50 to $0.55 (as shown in the previous table) and/or special dividends.
Best-of-breed fee agreement including 1.00% base management fee and income incentive fees that take into account capital losses.
Access to a broader credit platform, Goldman Sachs Asset Management (GSAM), with a depth of credit channels and robust organization to support higher quality originations.
10b5-1 purchase plan that automatically purchases shares under NAV of up to $25 million that uses GS capital to purchase up to 19.9%. Additionally, there is a $35 million share repurchase program, at prices below NAV, once the 10b5-1 plan is exhausted.
Use of front-end leverage by partnering with banks for first-out/last-out transactions to structure a higher yield while staying invested in first lien and maintaining credit control including 90% of the portfolio with protective covenants.
Excellent historical dividend coverage (average of 114% over the last four quarters) growing spillover/undistributed income to $32.7 million or around $0.81 per share.

On June 18, 2018, GSBD announced that Fitch Ratings (“Fitch”) has assigned the company an investment grade rating of BBB-; the rating outlook is stable.
“We are pleased to receive an investment grade rating from Fitch, which we believe reflects both the quality of GSBD’s investment portfolio and the strength of Goldman Sachs Asset Management’s (“GSAM’s”) platform. We are particularly gratified by Fitch’s acknowledgment of GSAM’s differentiated risk management and proprietary loan sourcing capabilities in its assessment.” said Brendan McGovern, CEO of the Company.

https://seekingalpha.com/article/4185603-8_6-percent-yield-dividend-growth-potential-reduced-fees-increased-leverage

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Twitter news:

The social media giant has more than doubled its rate of suspensions since October, when the company suggested that Russia used fake accounts to manipulate the 2016 U.S. presidential election.
While the 70 million accounts suspended in May and June represent an amount equal to roughly 20% of Twitter’s 336 million active monthly users – the company says that the purge mostly applies to inactive users, or bot accounts, instead of the revenue-generating accounts of real people.

That said, Facebook VP of advertising, Rob Goldman, said in February after the indictment of 13 Russian nationals running a “bot farm” that the majority of advertising purchased by Russians on Facebook occurred after the election – and was in fact designed to sow discord and divide Americans.

https://www.zerohedge.com/news/2018-07-06/twitter-purges-70-million-accounts-two-months-equal-20-monthly-active-users

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We signed up for emails from http://www.statista.com.  Here is an example of the various categories that they cover.

Infographic: Netflix Is Americans' Platform of Choice for TV Content | Statista

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SELLING SAFEWAY BOND

July 3, 2018.  We bought the Safeway Corporate Bond way back in 2014 before AMAZON bought Whole Foods, and before the days of Amazon Prime.  They are now competing in the food business and people are buying boxes of food-stuffs thru Prime (and other web sites) with free shipping, thereby avoiding the local grocery store.  In our opinion, the old line stores like Safeway are in trouble.

(Technically shipping is not free as you pay for Prime.  But people don’t seem to care.)

Altho the value of the bond has declined (but has recently been rising), we have received numerous dividend payments.  SO the TOTAL RETURN is very good.  We would not hold this bond to maturity.  It is time to get out.

SELL Safeway bond.

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When is CNN going to die and go away.

CNN continues to struggle mightily with its ratings, and the fake news network failed to have a single show in the top five in both total day and primetime last week.
CNN’s ratings are so bad that it has fallen behind the Food Network, where people are more interested in learning how to cook food than getting political news from the left-leaning network.

*** Please support The Media Equality Project’s work through PayPal
According to TV Newser for the week of June 18 to June 24, Fox News was number one in primetime, averaging a whopping 2.513 million viewers. Fox News even humiliated MSNBC, who finished in second place with an average of just 1.78 million primetime viewers in the same time frame.
Last week marked the 24th consecutive month in which Fox News was the overall top cable news network. Fox averaged 1.465 million total day viewers, which was almost has much as MSNBC’s primetime numbers.
Meanwhile, CNN was so far down on the chart that viewers had to literally search for them. The network was 13th in primetime ratings and 7th in total day. CNN took a humiliating blow and only averaged 633,000 total day viewers last week.

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