Rocky’s Weekly Stock Picks

This week we’re looking for safe plays with upcoming ex-divs. No long intro, just getting right to it.

1. BBDC - $8.64/share, ex-div 3/7, quarterly dividends of about a quarter. Not bad, that’s $.96-$1.01 a year. The actual share price is trending now at the moment, and we expect this to continue. We’re not worried about Barings in the long-term, but we also foresee BDC’s, business development companies, to lag behind the market overall.
   
   BDC’s are one of our least held stocks, and in fact, BBDC might be our only one. Business development companies tend to offer above-average returns, with only a nominal amount of risk. Generally.
   

2. ORC - $11.62/share, ex-div 2/27. Annualized yield of 16.52%! The price is only slightly above a 3-year low. (This REIT underwent a reverse split a while ago, if you’re wondering how $11.62 is “low” compared to its $4.50 price last year).
   
   Even though we missed the boat on ex-div, we want to increase our holdings while the price is down.
   

3. FSD - $11.47/share, ex-div 3/2, annualized return of 10.99% paid monthly. The price here is also at a 3-year low, but it’s not so far off that the ~11% figure for yield is wildly inaccurate. Depending on when you buy in, 8%+ should be what you’re seeing.
   
   This is one of those funds that you can’t trade on Robinhood, which is unfortunate. Robinhood is really underrated for things like options trading, but it leaves a lot to be desired when it comes to things like, well, income funds.
   

4. YCBD.A -$4.20/share, ex-div 2/29, this CBD stock annualizes at 19.06%, according to TD Ameritrade. We’d argue that it’s not quite that high, closer to 12%, but who’s counting? Distributions are paid monthly.
   
   This preferred stock is both cumulative, perpetual, and redeemable with a coupon price of $10 (that’s more than what we’re paying for it!).
   
   Even though you could still technically lose your investment, in case of liquidation, preferred shares are paid out before common stock!
   

5. UAN -$108.87/share, CVR chemical LP produces nitrogen fertilizers. Fantastic! We love LPs, and finally we get to buy one that isn’t oil!

   Slow your roll, we’re all-in on oil all day long. However, it’s still worth having a bit of diversity in your life!
   
   Ex-div is 3/3, with quarterly dividends annualizng at 27.39%. Shut the front door! How can a stock over $100 be yielding so high?! Well, the price is in the last 3 months dropped from ~$128 to ~$94. Over the last year, we saw a high of ~$159. It also dropped to around $90 in July. So, there’s some volatility here.
   
   But you didn’t ask for us to paraphrase our TD Ameritrade tab, you just wanted to know where to put your money. With that in mind, buy UAN!