AV well written. I just sold in the money calls on my ET stocks. Was a nice run......jk

I also dumped ET, although it's a 12% holding of AMLP.

Just a little issue to be aware of:

Oftentimes REITS and other MLP's throw off what IRS calls UBTI. Unrelated Business Taxable Income. It CAN be problematic inside tax advantaged accounts IF the amount exceeds $1000 .

I have not dealt with those consequences.....whatever they might be...because i have always owned MLP's in a taxable account.

Anyway, just a subject you might want to read up on so as to avoid problems down the road.




That was a problem for sure several years ago Charles. These days most companies that issue a K-1 instead of a 1099 make the K-1 available online in February. But you're right ...it was a hassle in the past. I also like pipeline companies.

IF you like AGNC I would suggest looking into their preferred stock rather than the common. The dividend on those issues is cumulative and must be paid prior to any payment of dividends on the common. Also, if a dividend is "missed" it must be paid before any other dividends on the common.
So there is a greater measure of safety where the div is concerned on the preferred.

Try tickers AGNCN and AGNCM if interested.

Not recommendations..........just information.

Intrigued but not interested.

White - What do you think about HRL?

Hmmmm. Just a cursory glance at HRl makes me think I'd avoid it. I think it is 'expensive' on a P/E basis even compared to the already 'expensive' S&P500. The dividend might be attractive except for the fact that the dividend represents over 133% of earnings. I'd be wary of that !

Also I think food stocks in general have some substantial headwinds at this point from the GLP-1 drugs that are becoming so prevalent. I'd be particularly hesitant about the prepared types of products that HRL is known for.

Just my opinion

But, people gotta eat.

I'll keep watching it. The entire sector is beat down.

I'm parking my new money in SGOV for now. I'm waiting for the right opportunity.

You got me curious so I did a little reading. I mean after all, how could any self-respecting trapper not want to own shares of the maker of Spam?

Anyways, this article says that EPS has fallen over 9% annually for the past 3 years.

And this article addresses a few more concerns.

People gotta eat, but I think more and more people are moving away from packaged foods in favor of more fresh foods....

White is spot-on with the consumer staples stocks. As an example, people gotta wipe their rear-end, but Kimberly Clark stock, (likely under-valued, at this point, with a P/E of around 16.5), has taken a beating. There is extreme competition in that sector, and margins are razor thin. For consumer staples to have a strong run, the economy has to be in real trouble, and food stocks can be sketchy anyway. Processed foods are even more vulnerable. And as White points out, GLP-1 drugs are applying even more pressure.
The Dollar store, (Dollar Tree and Dollar General), have had moments of glory, but can be quite volatile, during perceived economic stress, but the trend can be short-lived. McCormic has been somewhat reliable in the "food" sector, but overall, it's tough to consistently make bank in the Staples.

I like ET dividends, but within an IRA, don’t care for the quirky rules, since it is a MLP, and if it generates UBTI of $1K per year, more tax filing and consequences. Just got to watch it, if you don’t want it to happen.

I loaded up with midstreams at the beginning of the pandemic and have been able to build up a nice passive income stream. During that falling knife scenario a one day difference in entry points made the difference between a 400% and 800% return.

Yes, some of the mid-streams have done very well. In fact, some are still doing well. A few, not so much.