January 2023 - WStNN.com™ WallStreetNewsNetwork® Stockerblog™ WSNN®

Stocks Going Ex Dividend in February 2023

The following is a short list of some of the many stocks going ex dividend during the next month.

Many traders and investors use the stock trading technique called ‘Buying Dividends,’ also commonly referred to as ‘Dividend Capture.’ This is the strategy of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend.

This technique generally works in bull markets and flat or choppy markets, but during bear markets, you may want to consider avoiding this strategy. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can’t sell the stock until on or after the ex date.

The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable list of the stocks going ex dividend in the near future. The list contains many dividend paying companies, lots with market caps over $500 million. Some of the stocks have yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the periodic dividend amount, and the annual yield.

Citigroup Inc. (C)	2/3/2023	0.51	3.91%
MetLife, Inc. (MET)	2/6/2023	0.50	2.77%
Paychex, Inc. (PAYX)	2/8/2023	0.79	2.75%
Starbucks Corporation (SBUX)	2/9/2023	0.53	1.95%
Consolidated Edison Inc (ED)	2/14/2023	0.81	3.41%
Southern Company (SO)	2/17/2023	0.68	4.08%
Scotts Miracle-Gro Company (SMG)	2/23/2023	0.66	4.23%
Wendy’s Company (WEN)	2/28/2023	0.25	4.53%

The entire list of over 100 ex-dividend stocks will be emailed to all subscribers next week. If you are not a subscriber, you can sign up at the signup box below. Don’t miss out. Remember, it’s free!

Dividend Definitions

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Record date: the day when you must be on the company’s books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks at two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don’t forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written; affiliate links are on this page.

Why I Will Never Invest in a Bond Fund

I think that bond funds and bond ETFs are a terrible idea for long term income investors.

by Fred Fuld III

Investors who are looking for income have several investment options, including money market funds, savings accounts, certificates of deposit, dividend-paying stocks, bonds, bond funds, bond ETFs, REITs, royalty trusts, and more.

However, I think that bond funds and bond ETFs are a terrible idea for long term income investors.

I think that all bond funds are terrible investments, even short term ones, and even government bond funds, especially during times of rising interest rates. The problem with bond funds is that there is no yield-to-maturity.

Remember, if you own a bond directly, and the bond drops in value, you will eventually get your money back at maturity.

When interest rates rise, bonds drop in value, and the net asset value drops. Many investors have a tendency to bail out when their investment drops, and when that happens, the fund managers need to sell bonds at a loss in order to handle redemptions, thereby locking in a loss on those bonds. The remaining bonds will eventually be paid off at maturity but that gain won’t cover the established losses.

Just one example of a short term government bond fund is the Vanguard Short-Term Treasury Fund Investor Shares (VFISX). The fund is down 5.4% during the last year, more than offsetting the yield on the fund, which is currently only 1.72%..

If yields drop or remain the same for a long period of time (I personally think that rates will continue higher), then in that case, the principal investment in the fund would be maintained.

However, if you know that interest rates are going to drop, then you should probably be doing some interest rate speculation.

Does anyone really know what the Federal Reserve Board is going to do? Does the Fed even know what the Fed is going to do?

Interest rates have been very low for a long time, and we may see much higher rates in the future.

**Are Interest Rates Due for a Rise Again?**

So what is an investor to do?

There are bond unit investment trusts, also called fixed income UITs, which contain a fixed portfolio of bonds. The trust pays out income monthly. As the bonds mature, the principal is paid back to the investors. Most brokerage firms offer these investment vehicles.

Another alternative is to buy bonds directly. This way, even if interest rates keep rising, the bond will eventually be paid off at par, generally $1000 per bond.

Here is one example. An AT&T 2.45% bond maturing on March 15, 2035 is selling at 84.36. This means that the bond is selling at 84.36% of face value, or for a $1000 bond, it would be selling for $843.60. This gives a rough yield to maturity of 4.13%.

So if interest rates rise, the bond may drop in value, but you will eventually receive $1000 per bond in a dozen years.

Another option includes Series I bonds; however, they don’t pay out interest.

Stocks that pay high dividends may be an alternative, but an investor should consider the market risk and fluctuation over the years.

Here are a few stocks with a strong rising dividend history:

Symbol	Company	Yield
XOM	Exxon Mobil Corporation	3.21%
JNJ	Johnson & Johnson	2.69%
KO	The Coca-Cola Company	2.93%
MCD	McDonald’s Corporation	2.26%

Yields as of 1/24/2023

Maybe some of these ideas will help you increase your investment income.

Disclosure: Author owns KO and MCD.

How About a Stock that Pays Dividends WEEKLY?

Suppose you want money coming in every week?

by Fred Fuld III

There are actually many stocks, ETFs, CEFs, REITs, and trusts that pay dividends monthly.

But suppose you want money coming in every week?

If you try to set it up yourself with individual stocks, it could be a nightmare.

Fortunately, there is an alternative. The SoFi Weekly Dividend ETF (WKLY) handles that for you.

This ETF contains a portfolio of large-cap and medium-cap dividend paying stocks, mostly U.S. based but some international companies.

The fund is designed so that there are dividends paid out every week. The current yield is a decent 3.25%, and total net assets of $9.2 million. The expense ratio is 0.49%.

Surprisingly, it’s not the only weekly dividend ETF.

The same fund manager has another ETF, the SoFi Weekly Income ETF (TGIF), that also pays weekly. However, this ETF invests in investment grade and junk bonds.

It has a higher yield at 4.31%, total net assets of $16.27 million, and an expense ratio of 0.59%. The fund was founded in 2020.

These might be a good addition to your income portfolio, but just be aware of the risks.

Disclosure: Author didn’t own any of the above at the time the article was written.

Top Dog and Cat Stocks

Americans love their pets. More people own pets now than ever before, and the American Pet Products Association predicts that pet ownership will continue to grow over the next few decades.

by Nkem Iregbulem

Originally published March 24, 2020; Updated Jan. 12, 2022

Americans love their pets. More people own pets now than ever before, and the American Pet Products Association [APPA] predicts that pet ownership will continue to grow over the next few decades. According to a recent APPA National Pet Owners Survey, 67% of U.S. households, or 84.9 million homes, currently have pets — with most households owning a dog as a pet. Other commonly owned pets in households include cats and fish.

As pet ownership rises, so does the amount of money that households spend to own and take care of their pets. It is estimated that consumers collectively spent $100 billion in 2020. A table in a report from the Insurance Information Institute reports on the type and magnitude of expenses faced by cat and dog owners annually by survey participants. For cat and dog owners, reported annual expenses came from surgical and routine vet visits, food, food treats, toys, grooming, vitamins, and kennel boarding. Surgical vet visits were reported to cost around $426 annually for a dog and around $214 annually for a cat. Dog and cat owners reportedly spent an average of $259 and $228 respectively on pet food in a year.

Given the continued increase in the amount of money we spend on pets, you may want to look into pet stocks — stocks that benefit from this exact type of spending activity. Take a look through a couple of pet stocks, and you just might find yourself a treat. Your options include Patterson Companies Inc. (PDCO), Bayer AG (BAYRY), Henry Schein Inc. (HSIC), PetMed Express Inc. (PETS), Central Garden & Pet Co. (CENT), and Heska Corp. (HSKA). All of these stocks can be found on the NASDAQ exchange except for Bayer, which trades over-the-counter.

Your first option is Patterson Companies Inc., a medical supplies company involved in the research, development, and distribution of veterinary and dental supplies. The company was founded in 1877 and is headquartered in Minnesota. It has three operating segments: Dental, Animal Health, and Corporate. Under its Animal Health operating segment, it provides animal health services, technologies, and products such as pharmaceuticals, vaccines, diagnostics, antibiotics, equipment, and software to veterinarians, other animal health professionals, producers, and retailers.

Patterson Companies Inc. has a market cap of $2.75 billion and pays a fairly high dividend yield of 3.71%. It also has a trailing P/E ratio of 13.8.

Based in Germany and founded in 1863, Bayer AG is a multinational pharmaceuticals and life science company. The company operates through its Pharmaceuticals, Consumer Health, Crop Science, and Animal Health segments. Under its Animal Health segment, the company researches, produces, and distributes prescription and nonprescription veterinary products and solutions to help prevent and treat diseases in companion and farm animals. Its main products include human and veterinary pharmaceuticals, biotechnology products, agricultural chemicals, and high value polymers.

Bayer AG has a large market cap of $60 billion and pays a dividend yield of 4.02%. It trades at 13.3 times earnings.

Another option is Henry Schein Inc., a company that distributes dental, medical, and veterinary healthcare supplies and products. The company was founded in 1932 and is headquartered in New York. It has two main operating segments, namely its Health Care Distribution segment and its Technology & Value-Added Services segment. Through these segments, it provides vaccines, pharmaceuticals, surgical products, equipment, and other products to its customers around the world.

Henry Schein Inc. has a market $10.77 billion and does not pay a dividend. It trades at 17.14 times trailing earnings.

You might also consider PetMed Express Inc., a Florida-based company founded in 1996. The company operates as a pet pharmacy and offers pet medications, supplements, and pet supplies such as food, beds, and crates for dogs and cats. With its pharmacy license, it sells both prescription and nonprescription pet medications. The company also frequently researches new healthcare products.

PetMed Express has a smaller market cap at $408 million and pays a high dividend yield of 6.13%. It trades at 25.14 times trailing earnings.

Founded in 1955, Central Garden & Pet Co. is a California-based company that distributes garden and pet supplies across the United States. It has two main operating segments: Pet and Garden. Under its Pet segment, the company offers products for dogs and cats such as edible bones, edible and non-edible chews, pet food, toys, carriers, treats, and grooming supplies. It also offers appropriate food and supplies for birds, fish, reptiles, and horses. These products are primarily sold to independent pet distributors, mass merchants, retail chains, grocery stores, and bookstores.

Central Garden & Pet Co. has a market cap of $2 billion and does not pay a dividend. It trades at 13.8 times trailing earnings.

One more option is Heska Corp., a company founded in 1988 and headquartered in Colorado. The company manufactures, distributes, and sells veterinary diagnostic and specialty products. These products are primarily used in canine and feline healthcare markets. The company operates through two segments, namely its Core Companion Animal Health segment and its Other Vaccines, Pharmaceuticals and Products segment. Through the former, the company provides veterinary imaging instruments and services, veterinary chemistry analyzers, veterinary hematology analyzers, chewable treatment tablets, and allergy products. Through the latter, the company offers vaccines and biological and pharmaceutical animal health products to animal health companies and veterinarians.

Heska Corp. has a market cap of $795 million and does not pay a dividend. However the stock is currently generating negative earnings.

There are a few other pet related companies such as Phibro Animal Health Corporation (PAHC), which has a market cap of $600 million and a yield of 3.3%.

Maybe you should get your paws on one of these stocks, when the price is right.

Disclosure: Author did not own any of the above stocks at the time the article was written.

Why Invest in Apple Stock When You Can Invest in Apple History

by Fred Fuld III

Have you ever thought about investing in tech history? Such as the history of Apple Inc. (AAPL)?

Well now you have your chance.

Alexander Historical Auctions is auctioning off a couple of early Apple collectibles including Apple Computer’s first trade sign.

The sign is estimated at $100,000 to $200,000, with a start price of $50,000.

This was the very first sign used by Steve Jobs and Steve Wozniak to promote their Apple Computer start-up, and was displayed at the first trade shows Apple attended in 1976.

If this item is too rich for your blood, you might want to consider picking up Steve Wozniak’s first Apple Computer tool box.

It even has the original LabelMaker label with Wozniak’s name on it.

The starting bid is $10,000, with an estimate of $20,000 to $30,000.

This is your chance to get unique, rare, one-of-a-kind Apple collectables.

Please note: This auction includes other items that some may find disturbing.

Disclosure: Author owns AAPL.