5 Jun, 2021

The Yield – Week ending June 4, 2021

News

Johnson & Johnson (JNJ): Johnson & Johnson said on Friday that it has been in talks with Taiwan about providing its COVID-19 vaccine to the island since last year. Johnson & Johnson talking to Taiwan about providing COVID-19 vaccine (yahoo.com)

3M (MMM): CEO Mike Roman told an investment conference that rising commodity prices and parts shortages created by pent-up demand from the pandemic translate into higher costs for 3M–and those increased expenses, in turn, will reduce earnings by 30 cents to 50 cents in 2021. Wall Street projects 3M will earn a little less than $10 a share this year, so the impact is about 4%. “There’s what’s going to happen to raw materials, logistics, labor cost inflation,” he said. Roman took on a subject — inflation — that is worrying investors. Inflation, these days, feels like the monster under a child’s bed. Investors haven’t seen it, they don’t know if its friend or foe, but they are scared of it nonetheless. 3M Chief Talks Inflation. We Explore Ways to Invest. | Barron’s (barrons.com)

Microsoft (MSFT): Morgan Stanley and Microsoft Corp. on Wednesday announced a strategic cloud partnership aimed at accelerating the firm’s digital transformation and shaping the future of innovation in the financial services industry. The companies will strike a unique collaboration to unlock the opportunities that Microsoft’s cloud provides with a specific view toward the challenges of financial services and enabling Morgan Stanley to accelerate the modernization of its IT environment to enhance client, employee and developer experiences. Morgan Stanley and Microsoft collaborate to accelerate cloud transformation – Stories

Microsoft has announced it will unveil the latest version of the Windows operating system in a June 24 event. The news comes after Microsoft said last month that Windows 10X for dual-screen devices would no longer ship. The new Windows is expected to incorporate significant changes in the user interface called “Valley of the Sun.” Xbox, bluetooth features part of Microsoft’s next-generation Windows – UPI.com


Sold position in Nordic American Tankers (NAT). They cut their annual dividend by 30% and reduced my yield by a significant percentage. The stock price appreciated enough where I will still exceed my annual estimated income for this year. That enables me to find a new company with a higher yield.

I will be moving the funds from NAT into CrossAmerica Partners (CAPL). CAPL was founded in 2012 and distributes gasoline, leases out retail outlets for gas stations, and operates convenience stores. They cut their dividend by 16% in 2018 but improved their cash flow and balance sheet to where their dividend now looks much safer. Of course, fluctuations in the price of oil as well as the push towards all electric vehicles will have an impact on the company both in the short and long term and must be watched closely. Their current dividend yield is 10.74% more in line with where I need my High Yield Portfolio to be. Once the cash from the sale of NAT clears my account next week I will be completing that purchase.


Dividends

  • SPHIX announced its next dividend of $0.0312 per share, bringing the fund’s total payout over the last twelve months down 0.44%.
  • Clorox (CLX) announced its next dividend of $1.16 per share, a 4.5% increase over the company’s previous payout of $1.11.
  • Verizon (VZ) announced its next dividend of $0.6275 per share, in line with the company’s previous payout.

Disclaimer

ChasingTheYield.com and Kevin Bae are not registered investment advisors, brokers or dealers. Kevin Bae may have positions in any financial instrument, product, or company mentioned on chasingtheyield.com or on the Chasing the Yield podcast. Information provided by chasingtheyield.com and the Chasing the Yield Podcast is provided for information and entertainment purposes only and are not intended as advice or a recommendation or an offer or solicitation for the purchase or sale of any security or financial instrument. All opinions are based upon sources believed to be accurate and are provided in good faith. No warranty, representation, or guarantee, expressed or implied, is made as to the accuracy of the information contained herein. Past performance is not an indicator of future results.

Please contact an investment professional if you have any questions regarding an investment.

Image by Dr StClaire from Pixabay

About : Kevin Bae

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