Dividend Income
July 16, 2022 | C, Daily JAM, Dividend Income |
Shares of Citigroup climbed by 13.23% on Friday, July 15, after the company reported earnings of $2.19 a share. Revenue came in at $19.6 billion. Wall Street had projected earnings of $1.689 a share and revenue of $18.4 billion. So it’s not surprising that the stock rose strongly after the report. Or that the gains dragged other bank stocks higher too. For example, Bank of America (BAC), which reports on Monday, July 18, gained 7.04%. Wells Fargo (WFC) climbed 6.17%. To which I say, Thank you, and I’m selling.
July 5, 2022 | Daily JAM, Dividend Income, KMB, Stock Alerts |
As I said in my recent video “Quick Pick Kimberly-Clark,” I’m adding this stock to my Dividend Portfolio effect tomorrow July 6. The stock pays a dividend of 3.39%. That’s not knock-your-socks-off stuff, but very good for a very defensive consumer staples stock as we move closer to a recession. The stock is down 2.69% year to date as of the close on July 1 but the shares are up 10.31% in the last three months
July 1, 2022 | Daily JAM, Dividend Income, Videos |
My one-hundred-and-fifty-second YouTube video “Quick Pick Kimberly Clark” went up today. This week I’m looking at Kimberly-Clark (KMB), a consumer staples producer that I’m sure many of you are familiar with. I think in the coming recession, this stock will be well insulated: Consumers will continue to buy brands such as Kleenex, Depend, and Cottonelle. So far this year, the stock is down but has outperformed the S&P. Today, July 1, the shares gained 1.19%. The stock pays a 3.5% dividend and I will be adding it to my Dividend Portfolio after the holiday.
June 23, 2022 | ABBV, Daily JAM, Dividend Income, GOLD, Jubak Picks, PXD, Special Reports |
The advice is sound, very sound. Move part (at least of your portfolio to cash and sit out the worst of this bear market on the sidelines. And since you have that cash in hand, you’ll be ready to snap up bargains when the market has put in a bottom (or near the bottom, or on the way up from the bottom…or something.) But right now that’s easier said than done.
June 20, 2022 | Daily JAM, Dividend Income, PFXF, VGSH |
I’ve probably overstayed my welcome in the Vanguard Short-Term Treasury ETF (VGSH) and the VanEck Preferred Securities ex-Financials ETF (PFXF), but with the Federal Reserve accelerating its interest rate increases, I think selling these two members of my Dividend Portfolio is a bit more pressing right now.
June 12, 2022 | Daily JAM, Dividend Income, Stock Alerts, TFC |
On Friday in my Quick Pick video on YouTube (have you subscribed yet–why not? It’s free and that way you’ll know when a new video goes up) I said I would add Truist Financial (TFC) to my Dividend Portfolio on Monday. And so I will. My rule of thumb at the moment is to buy dividend-paying stocks when the yield breaks 4%. At the time I shot the video, Truist paid 4.1%. Thanks to Friday’s sell off and the stock’s 3.69% drop, the yield rose to 4.18%.
June 10, 2022 | Daily JAM, Dividend Income, Videos |
My one-hundred-and-forty-third YouTube video “Quick Pick Truist Financial” went up today. My Quick Pick this week is Truist Financial Corp (TFC), a “super-regional” bank based in the Southeast. Bank stocks have been down recently on rising costs (got to pay more to keep your good people, these days), but Truist Financial, formed through a merger of BB&T and Sun Trust, is still taking out acquisition costs. My rule of thumb these days is to buy a dividend stock when the yield hits 4% or more. Thanks to the retreat in bank stocks Truist Financial now pays 4/02 plus with its share buyback plan the total yield hits 5.75%. I’ll be adding this Monday to my Dividend Income Portfolio on JubakPicks.com and JubakAM.com.
May 24, 2022 | Daily JAM, DIS, Dividend Income, DUK, Jubak Picks, KO, MRK, PEP, PFE, Top 50 Stocks, XLU |
Of course, there’s nothing even vaguely normal about a day when a stock falls 43% and takes much of the market with it.Snap’s (SNAP) plunge did take some surprising candidates along for the ride. Tesla (TSLA) dropped 6.93% on yet more bad news on production in its Shanghai factory. Disney (DIS) fell 4.01% just because. SentinelOne (S) was lower by 8.11% since everyone knows that cybersecurity stocks are just a fad.
But on balance, on the green side (and yes, there was a green side to the market) the market did what markets are supposed to do in the face of bad news and an increase in fear.
May 18, 2022 | Daily JAM, Dividend Income, Jubak Picks, KO, PEP, Top 50 Stocks |
Ok, the bad news on profit margins from Target (TGT) was a big deal. No argument. When you’re operating margin falls to 5.37% when Wall Street was projecting 9.5%, it’s a big deal. And after yesterday’s earnings miss from Walmart (WMT), it’s reasonable to extrapolate and say the entire economy and stock market has a cost, inflation, and margin problem. But that doesn’t mean that every company has the same degree of problem. And it certainly doesn’t justify selling everything–and selling to the tune of big losses–shares of every company that sells stuff to consumers. And tomorrow, or the next day, I expect a little more analysis and discrimination in the market. Some of the stocks hit hardest today should rebound handily on that rethink. I’d put PepsiCo (PEP) and Coca-Cola (KO) at the head of that group.
May 15, 2022 | AES, CRWD, Daily JAM, Dividend Income, GNRC, Jubak Picks, OKTA, WCC |
I don’t know if Friday’s bounce will continue into the new week. I think the summer season is likely to be positive for revenue at many companies–travel, airlines, Las Vegas–but I don’t like the longer term fundamentals in the economy. Inflation is going to be harder to reduce than Federal Reserve rhetoric and Wall Street sentiment now credit. And there is a good chance of a recession in 2023. But I’m not looking for some kind of crash from here–at least not before a recession tests the credit markets in 2023. We’re on the edge of a bear–the Standard & Poor’s 500 was down 18.1% from its all time high as of the close on Thursday–or in a bear–for the technology stocks of the NASDAQ. The typical pattern from here is for a continued decline to be punctuated by sharp rallies and bounces (like Friday) until we put in the ultimate bottom (certainly after a few more Federal Reserve interest rate increases.)
We’re not there yet. This downward trend in equity markets is likely to continue for a while in my opinion. So what am I trying to accomplish with these sells?
May 9, 2022 | Daily JAM, Dividend Income, Jubak Picks, PEP, Top 50 Stocks |
Last week PepsiCo (PEP) declared a quarterly dividend of $1.15 a share, up about 7% from $1.075 a share. That brings the dividend yield up to 2.7%, almost exactly Coca-Cola’s (KO) 2.72% yield. On the basis of that yield and the pricing power that the company demonstrated in first quarter earnings I’m adding the stock to my Dividend Portfolio. I think it’s a good pick for a period of high inflation and uncertain economic growth.
May 6, 2022 | Daily JAM, Dividend Income, Friday Trick or Trend, HBI, KO |
For a day, Friday, May 6, at least the pattern of divergence between consumer staples stocks and consumer discretionary stocks that has ruled much of 2022 reasserted itself. Now the question is How long will the pattern hold?
