Six months ago, I posted an article about the political ETFs, which track the investments of politicians based on the reporting of their transactions, which politicians are legally required to provide.
I mentioned in that article that year-to-date, Democrats were far outperforming the Republicans.
The Democrats, based on the return of the Unusual Whales Subversive Democratic Trading ETF (NANC), was up 9.4% with the Republicans, Unusual Whales Subversive Republican Trading ETF (KRUZ), trailing far behind at 1.1% for the first half of the year.
Now that the year is over, we can see that the Democratic politicians are still outperforming as investors.
Republicans were up only 9.05%, yet the return for Democrats had a return that was more than double that at 19.67%.
NANC blue line vs. KRUZ green line. Source: Yahoo!Finance
Then there is the Political Contribution Comparison. What it shows is the returns of companies that make political contributions to Democratic versus Republican candidates and political action committees.
This analysis shows even more dramatic returns.
The Democratic Large Cap Core ETF (DEMZ) invests in large cap companies that make political contributions to Democratic Party candidates and political action committees above a certain threshold. Total return for the year is 23.32%.
The Point Bridge America First ETF (MAGA) has a goal of investing in companies that are highly supportive of Republican candidates. The return for 2023 was just 8.63%.
DEMZ blue line vs. MAGA green line. Source: Yahoo!Finance
Finally, there are the semi-political ETFs. These ETFs are somewhat different in that they leave the politicians out of the analysis, both as investors and political donees. These ETFs have very different returns.
The God Bless America ETF (YALL) is an ETF that screens out companies that support liberal political activism and social agendas. It was up an incredible 36.7% for the year.
The American Conservative Values ETF (ACVF) invests in stocks that meet its politically conservative criteria. The annual return was a positive 23.1%.
Two other “conservative” politically oriented ETFs closed up shop back in August, primarily due to “limited asset growth opportunities and the ongoing operational costs”. These include the 2ndVote Life Neutral Plus ETF which invested in stocks that meet its pro-life social criteria, and the 2ndVote Society Defended ETF which invested in stocks that meet its 2nd Amendment and border security social criteria.
One ETF that is considered by many to be a “liberal” ETF is the SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC). It is for “investors seeking to implement net-zero strategies and address climate change in a holistic way”. The ETF is up 21%.
The year 2024 should be an interesting year, not just for politics and the election, but for the political ETFs.
Disclosure: Author didn’t own any of the above at the time the article was written.
A wash sale is a situation in tax law where you sell a security at a loss and then repurchase the same or a substantially identical security within a specific timeframe, typically 30 days before or after the initial sale. This repurchase triggers the wash-sale rule, preventing you from claiming the capital loss on your tax return for that year.
Here’s why wash sales are important to investors:
Reducing Tax Liability:
Investors often use tax-loss harvesting to offset capital gains with capital losses, thereby reducing their tax liability. A wash sale unintentionally negates this strategy, as the disallowed capital loss cannot be used to offset other gains.
This can lead to a higher tax bill than anticipated, especially for active investors who frequently buy and sell securities.
Investment Strategy:
The wash-sale rule encourages investors to make well-considered investment decisions based on long-term goals and market fundamentals, rather than short-term tax benefits.
It prevents artificial manipulation of tax returns and promotes responsible investing practices.
Understanding the Rules:
The wash-sale rule applies to most securities including stocks, bonds, mutual funds, ETFs,and options.
The disallowed capital loss is not lost forever, but instead, it is added to the cost basis of the repurchased security. This will reduce the capital gain (or increase the capital loss) when you eventually sell the security again.
There are some <strong>exceptions and complexities</strong> to the wash-sale rule, so it’s crucial for investors to consult with a financial advisor or tax professional to ensure they understand the full implications.
Overall, wash sales are an important aspect of tax law that investors need to be aware of to optimize their tax strategy and make informed investment decisions.
Here is an additional resource that you may find helpful:
Have you ever considered Minibonds(TM), which are also sometimes referred to as Microbonds, for an income portfolio or your retirement plan? These are bonds that are traded just like stocks on the New York Stock Exchange, American Stock Exchange, or NASDAQ for around $25 per share. They are almost like preferred stocks except that they pay interest instead of dividends and they usually have a specific maturity date. Sometimes they are referred to as PINES (Public Income Notes) or QUIBS (Quarterly Interest Bonds) or QUICS (Quarterly Income Capital Securities) or QUIDS (Quarterly Income Debt Securities). There are even a few that are issued as Perpetual Debt, which means that there is no maturity date.
The advantages of Minibonds to the issuers are that the interest is deductible to the corporation (unlike dividends which are not deductible).
The advantages to the investor are first, that the bonds are ‘safer’ than preferred stocks (in other words, if the corporation goes out of business, the bonds are generally paid off first before the preferred or common stock).
Second, the Minibonds (with the exception of the perpetual debt bonds) have some limited protection against inflation versus preferred stocks in that if interest rates go up after purchasing them, their value will drop, however the par value (usually $25) will be paid back at maturity. Whereas, preferreds have no maturity.
The third benefit is the small denomination, especially when looking at a $2,000 IRA investment.
A fourth benefit is that since they are traded like stocks, there is more liquidity than buying or selling a $5,000 bond.
However, these are still somewhat illiquid investments, with most have a very low daily volume and wide bid and asked spreads.
Some of the companies that issue these are lesser known, but some are major companies such as AT&T and Prudential.
Here are a few examples that are making distributions in January:
• Babcock & Wilcox Enterprises, Inc. 8.125% Senior Notes due 2026 (BWSN) • Gladstone Investment Corporation 8.00% Notes due 2028 (GAINL) • Hercules Capital, Inc. 6.25% Notes due 2033 (HCXY) • Southern Company Series 2020C 4.20% Junior Subordinated Notes due October 15, 2060 (SOJE) • Tellurian Inc. 8.25% Senior Notes due 2028 (TELZ) • AT&T Inc. 5.350% Global Notes due 2066 (TBB) • AT&T Inc. 5.625% Global Notes due 2067 (TBC) • Southern Company Series 2020A 4.95% Junior Subordinated Notes due January 30, 2080 (SOJD) • The Carlyle Group Inc. 4.625% Subordinated Notes due 2061 (CGABL) • Prudential Financial, Inc. 5.625% Junior Subordinated Notes due 2058 (PRS)
Disclosure: Author didn’t own any of the above at the time the article was written.
The shipping stock sector [meaning companies that use ships for shipping, not FedEx (FDX) or UPS (UPS) type shipping] is one which is noted for its high yields. There are over a dozen that have yields of 5% or more, with one, Frontline Ltd. (FRO), forward yielding in excess of 13%. This Bermuda based company owns and operates oil tankers for transporting crude oil, coal and iron ore.
Although the company has usually been paying dividends on a regular basis [usually March, June, September, and December) along with special dividends, the amount of the dividend has fluctuated dramatically, making it very difficult to determine what the yield really is. They stopped paying dividends during the COVID year of 2021, but started cup again in 2022.
Nordic American Tanker Shipping Ltd. (NAT) has paid quarterly dividends since 2001, but the dividend payments constantly change. It has a forward yield of 5.57%.
Remember, that just because a stock is paying a fairly consistent high yield, doesn’t mean that they will continue to do so and doesn’t mean that they won’t eliminate their dividend altogether. The price of the stock can drop far more than the dividends earned. In addition, many of these stocks have wide bid and asked spreads and low daily volumes. Do your research and assume worst case before setting sail on shipping stocks for their high yields.
The following is a list of shipping stocks with high forward yields.
“The most valuable things in life are not measured in monetary terms. The really important things are not houses and lands, stocks and bonds, automobiles and real state, but friendships, trust, confidence, empathy, mercy, love and faith.” Bertrand Russell (1872-1970) philosopher & mathematician
The following is a short list of some of the many stocks going ex-dividend during the next month, which can be helpful for traders and investors interested in the stock trading technique known as “Buying Dividends” or “Dividend Capture.” This strategy involves purchasing stocks before the ex dividend date and selling them shortly after the ex-date at a similar price, while still being eligible to receive the dividend payment.
Although this technique generally proves effective in bull markets and flat or choppy markets, it is advisable to exercise caution and consider avoiding this strategy during bear markets. To qualify for the dividend, it is necessary to buy the stock before the ex-dividend date and refrain from selling it until on or after the ex-date.
However, it is important to note that the actual dividend may not be paid for several weeks, as the payment date can be delayed by up to two months after the ex-date.
For investors seeking a comprehensive list of stocks going ex-dividend in the near future, WallStreetNewsNetwork.com has compiled a downloadable list containing numerous dividend-paying companies. Here are a few examples showcasing the stock symbol, ex-dividend date, periodic dividend amount, and annual yield.
Franklin Resources, Inc. (BEN)
1/2/2024
0.31
4.17%
Campbell Soup Company (CPB)
1/3/2024
0.37
3.39%
Cisco Systems, Inc. (CSCO)
1/3/2024
0.39
3.11%
Dollar General Corporation (DG)
1/8/2024
0.59
1.82%
General Mills, Inc. (GIS)
1/9/2024
0.59
3.54%
Oracle Corporation (ORCL)
1/10/2024
0.40
1.51%
Cracker Barrel Old Country Store, Inc (CBRL)
1/18/2024
1.30
6.45%
Caterpillar, Inc. (CAT)
1/19/2024
1.30
1.77%
Dell Technologies Inc. Class C (DELL)
1/22/2024
0.37
2.01%
Clorox Company (CLX)
1/23/2024
1.20
3.37%
Krispy Kreme, Inc. (DNUT)
1/23/2024
0.035
0.95%
Scholastic Corporation (SCHL)
1/30/2024
0.20
2.15%
To access the entire list of over 100 ex-dividend stocks, subscribers will receive an email in the next couple days with the full list. If you are not already a subscriber, you can sign up using the provided signup box below. Don’t miss out on this valuable information, and the best part is that it’s free!
Dividend Definitions
To better understand the dividend-related terms, let’s define them:
Declaration date: This refers to the day when a company announces its intention to distribute a dividend in the future. Ex-dividend date: On this day, if you purchase the stock, you would not be eligible to receive the upcoming dividend. It is also the first day on which a shareholder can sell their shares and still receive the dividend. Record date: This marks the day when you must be recorded on the company’s books as a shareholder to qualify for the dividend. Typically, the ex-dividend date is set two business days prior to the record date. Payment date: This is the day on which the dividend payment is actually made to the eligible shareholders. It’s important to note that the payment date can be as long as two months after the ex-date.
Before implementing the “Buying Dividends” technique, it is crucial to reconfirm the ex-dividend date with the respective company to ensure accuracy and avoid any unexpected changes.
In conclusion, being aware of the stocks going ex-dividend can be advantageous for traders and investors employing the “Buying Dividends” strategy. WallStreetNewsNetwork.com provides a convenient resource to access a comprehensive list of such stocks, allowing individuals to plan their investment decisions effectively. Remember to stay informed and consider market conditions before employing any investment strategy.
Disclosure: Author did not own any of the above at the time the article was written.
Recently, I posted an article about turning tax selling stocks into tax selling bounce stocks, which had four stocks listed.
Remember, at year end, traders and investors dump their losers in order to establish a loss for tax purposes. This activity greatly depresses these stocks more than normal, creating an opportunity for traders to buy these stocks and sell them for a quick profit in early january after they hopefully recover.
Here are several more tax selling stocks worth considering.
This is a list of stocks that are down over 50% during the last six months, have a forward P/E of less than 50, and have market caps in excess of $300 million.
Company
Ticker
Market Cap
Agiliti Inc
AGTI
1.04B
CommScope Holding Co
COMM
393.37M
Driven Brands Holdings Inc
DRVN
2.11B
Green Dot Corp.
GDOT
482.02M
Hawaiian Electric Industries
HE
1.47B
ICU Medical, Inc.
ICUI
2.07B
Methode Electronics, Inc.
MEI
782.50M
NextEra Energy Partners LP
NEP
2.47B
Omnicell, Inc.
OMCL
1.57B
Piedmont Lithium Inc
PLL
472.95M
Shyft Group Inc
SHYF
395.71M
Beauty Health Company
SKIN
403.00M
Petco Health and Wellness Co
WOOF
910.42M
Xponential Fitness Inc
XPOF
387.05M
Yext Inc
YEXT
688.75M
Maybe you can profit from another trader’s losses. Remember that these are low cap stocks and are very speculative. Some might never recover in January.
Disclosure: Author didn’t own any of the above at the time the article was written.
A tax selling stock is a stock that is currently selling for a low price but was trading at much higher levels earlier in the year.
What is Tax Harvesting?
As the year-end approaches, many investors use the strategy called tax harvesting , which is selling stocks the have tanked to offset any gains that may have been established sometime during the year.
With strong selling, the price of stocks that have had big drops tends to fall far more than what would normally take place during the rest of the year.
What are Tax-Selling Bounce Stocks?
So traders and investors are on the lookout for tax selling bounce stocks that are heavily hit, hoping for a little (or big) bounce in January, once the tax selling is over.
Here are some stocks that are down over 75% year-to-date and have market caps in excess of $75 million. They are all based in the United States and re generating positive earnings.
Company
Symbol
Market Cap
P/E
Price
reAlpha Tech Corp.
AIRE
146.29M
428.75
3.43
Ebix Inc.
EBIX
139.05M
28.04
4.5
Eagle Pharmaceuticals Inc
EGRX
75.18M
6.36
5.79
Origin Materials Inc
ORGN
99.19M
1.96
0.69
reAlpha Tech Corp., a real estate technology company with a focus on short-term rentals, operates under two main segments: Platform Services and Investment Services.
Platform Services offer AI-powered products and services to real estate professionals, including data analytics, property management tools, and automated property valuations. Investment Services connect investors with fractional ownership opportunities in short-term rental properties.
The company has recently launched a new AI-powered rental pricing tool and expanded its portfolio to include Miami, Florida. With growing revenue and a focus on artificial intelligence, reAlpha Tech Corp. may be well-positioned to benefit from the booming short-term rental market.
Ebix Inc. is a leading international supplier of on-demand software and e-commerce services, primarily focusing on the insurance, financial, travel, cash remittance, and healthcare industries. The company operates globally, providing end-to-end solutions ranging from infrastructure exchanges and carrier systems to agency systems and risk compliance solutions.
Ebix boasts a comprehensive portfolio of services including software development, consultancy services, life insurance, risk management, health and employee benefits, CRM, and applications software for property and casualty insurance. Its expertise lies in developing and deploying insurance and reinsurance exchanges on an on-demand basis using software-as-a-service (SaaS) enterprise solutions. These solutions cover a wide range, encompassing customer relationship management, front-end and back-end systems, and outsourced administrative and risk compliance services.
Ebix leverages its expertise in consulting, systems design and integration, IT and business process outsourcing, applications software, and web and application hosting to cater to the individual needs of various organizations. This comprehensive approach positions Ebix as a leading player in the on-demand infrastructure exchange market for insurance, financial, and healthcare industries.
Eagle Pharmaceuticals, Inc. is a fully diversified pharmaceutical company dedicated to advancing safe and effective treatments for patients, healthcare providers, and the healthcare system as a whole. The company focuses its efforts on critical care and oncology, developing and commercializing injectable products in areas where there are unmet medical needs.
Eagle’s portfolio consists of four approved products:
Argatroban: An injectable anticoagulant used to treat and prevent blood clots in patients with heparin-induced thrombocytopenia (HIT).
Ryanodex: The only FDA-approved treatment for exertional heatstroke, a life-threatening condition caused by excessive exertion in hot environments.
Belrapzo: A monoclonal antibody approved for the treatment of adult patients with chronic lymphocytic leukemia (CLL) and indolent B-cell non-Hodgkin’s lymphoma (NHL) who have failed or are intolerant to bendamustine and rituximab.
Bendeka: A liposomal encapsulation of bendamustine, a chemotherapy drug used to treat patients with CLL and indolent NHL.
Origin Materials, Inc. is a leading carbon-negative materials company on a mission to enable the world’s transition to sustainable materials. Their innovative platform transforms the carbon found in sustainable biomass, like wood residues and agricultural waste, into useful materials like bioplastics, biofuels, and carbon black. This process eliminates the need for fossil resources and captures carbon in the process, making Origin’s products truly carbon-negative.
Origin’s technology boasts several significant advantages. Their bio-based materials offer comparable performance to traditional petroleum-based materials while significantly reducing greenhouse gas emissions. This makes them attractive to companies seeking to reduce their environmental footprint and contribute to a more sustainable future. Additionally, Origin’s platform is highly scalable, allowing them to produce large quantities of their products to meet the growing demand for sustainable materials.
Currently, Origin is focused on two key markets:
Advanced bio-textiles: These bio-based alternatives to traditional textiles can be used in a variety of applications, including clothing, automotive interiors, and medical textiles.
Carbon black: This essential material is used in a variety of industrial applications, including tires, rubber products, and inks. Origin’s bio-based carbon black offers superior performance and environmental benefits over traditional carbon black derived from fossil fuels.
Origin may be well-positioned to capitalize on the growing demand for sustainable materials.
Hopefully, another investor’s loss can be your gain. However, keep in mind that these are all very low cap stocks and they may have been dropping substantially for a reason.
Disclosure: Author didn’t own any of the above at the time the article was written.
If you have a spare hour and a half, you should watch the Elon Musk interview. It is well worth watching. He covers a lot of topics, including Disney, unions, Tesla, X.com, and many others.
