19 Jul, 2021

Chasing The Yield Podcast – July 19, 2021

Episode 13



News

There are rumors that J&J may offload it’s baby powder liabilities to a separate entity and have it declare bankruptcy. This would further limit plaintiffs ability to seek higher payouts. Exclusive: J&J exploring putting talc liabilities into bankruptcy, sources say (yahoo.com)


Company Focus

Prudential Financial (PRU) : FINANCIALS

Prudential was recently reviewed by Simply Safe Dividends. It’s a service I’ve been using for the last couple of years for research and tracking of my portfolios. It’s not an inexpensive service but I think what they do is unique and it has been well worth the price for making research simple. They re-affirmed their opinion that Prudential Financial’s dividend is safe and gave a short analysis backing up their opinion.

During the pandemic, Prudential reviewed the potential losses its investment portfolio would incur over a three-year recession cycle. Management concluded that credit losses over that period would be $2.4 billion, or less than one year of Prudential’s free cash flow. This suggests Prudential will not be one of the firms that need to raise more capital during most downturns. 

Regardless, Prudential’s been working to reduce its sensitivity to interest rates as well as the equity markets. They’ve done so by essentially eliminating the “living benefit” from its annuity products, which replaced fixed payouts to policyholders with variable payouts that fluctuate with the market, and by selling more straightforward life insurance policies with fewer guarantees.

As the firm transforms its flagship insurance and annuity businesses, management is also looking to grow its investment management arm (22% of earnings) and accelerate its global expansion plans into high-growth developing markets in Asia and Latin America.

Simply Safe Dividends

Below is table showing my holdings in Prudential and it’s performance so far.

Medium Yield
Portfolio
Total
Cost
$8,188
Current
Value
$10,933
# Shares
109
Gain/Loss
+33.50%
$2,745
% of Portfolio
0.80%
% of Income
0.80%
Annual Income
$501
Cost/Share
$75.12
Yield on Cost
6.12%

For more information on Simply Safe Dividends its founder Brian Bollinger appeared on The NewRetirement Podcast back in 2019.

https://podverse.fm/episode/QtpUHSQPY7P


Portfolio Update

Portfolio ValueLow
Yield
Medium
Yield
High
Yield
Week-0.86%-1.38%-1.95%
Month-0.89%-1.70%-2.04%
2021+13.66%+11.12%+0.26%
Dividends
of the
Week
Amount
American Finance Trust (AFIN)$102.85
W.P. Carey (WPC)$97.65
Franklin Resources (BEN)$84.84
Leggett & Platt (LEG)$80.64
Main Street Capital (MAIN)$45.51
Bank OZK (OZK)$41.90

Dividends

  • Walgreens (WBA) announced its next dividend of $0.4775 per share, a 2.1% increase over the company’s previous payout of $0.4675.
  • Fastenal (FAST) announced its next dividend of $0.28 per share, in line with the company’s previous payout.
  • Enterprise (EPD) announced its next dividend of $0.45 per share, in line with the company’s previous payout.
  • P&G (PG) announced its next dividend of $0.8698 per share, in line with the company’s previous payout.
  • Coca-Cola (KO) announced its next dividend of $0.42 per share, in line with the company’s previous payout.
  • New Jersey Resources (NJR) announced its next dividend of $0.3325 per share, in line with the company’s previous payout.
  • Orchid Island Capital (ORC) announced its next dividend of $0.065 per share, in line with the company’s previous payout.
  • Con Ed (ED) announced its next dividend of $0.775 per share, in line with the company’s previous payout.
  • Pepsi (PEP) announced its next dividend of $1.075 per share, in line with the company’s previous payout.
  • BP Midstream Partners LP (BPMP) announced its next dividend of $0.3475 per share, in line with the company’s previous payout.
  • USA Compression (USAC) announced its next dividend of $0.525 per share, in line with the company’s previous payout.

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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.

Contact

For questions or comments contact me at mail@chasingtheyield.com

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About : Kevin Bae

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