September was an eventful month for Chasing the Yield. My annual income increased by $80, thanks to dividend boosts from Microsoft (MSFT) (up 11%), New Jersey Resources (NJR) (up 7.1%), and five other holdings. While there were no upgrades or downgrades in dividend safety, I closed our position in Oaktree Specialty Lending (OCSL) and used the proceeds to increase positions in, as well as take fresh looks at, ONEOK (OKE), Verizon (VZ), and TC Energy (TRP).
Fresh Looks
- ONEOK acquisitions strengthen portfolio
- On September 18, I analyzed how ONEOK, a Tulsa-based pipeline operator, is further cementing its role as a key player in the U.S. energy sector. The dividend appears to remain borderline safe as the company continues to bolster its dividend profile.
- Verizon to acquire Frontier; dividend looks to remain stable
- On September 13, I examined Verizon’s move to expand its fiber footprint through the acquisition of Frontier. Despite challenges, the dividend appears to remain safe, signaling stability in its dividend profile.
- TC Energy to spin off oil pipeline in October
- On September 6, I looked at TC Energy’s plan to spin off its liquids pipelines business, now branded as South Bow. Despite this move, dividend investors can expect to be kept whole, with the dividend appearing to remain safe.
- Oaktree Specialty Lending Pressured by Mounting Non-Accrual Loans
- On September 10, I reviewed Oaktree Specialty Lending and noted how the dividend is being pressured by a series of troubled investments. Several loans moved into non-accrual status, meaning the borrowers have stopped paying interest. Given the high risk of a dividend cut, we decided to close our position. With the proceeds, we increased our positions in Ares Capital (ARCC), Capital Southwest (CSWC), and Starwood Property Trust (STWD).
Dividend Changes
Eight of my holdings announced dividend changes, increasing my annual income by $80. Here’s a breakdown:
- Fortis (FTS): Raised its dividend by 4.2%, marking 51 consecutive years of growth, adding $41.57 to my annual income.
- W.P. Carey (WPC): Increased its payout by 0.57%, contributing an additional $1.86.
- Microsoft (MSFT): With a significant 11% hike, marking 15 consecutive years of payout growth, boosting my income by $1.61.
- Philip Morris (PM): Increased its dividend by 3.8%, balancing its deleveraging goals with payout growth, adding $10.84 to my annual income.
- NJR (NJR): Raised its dividend by 7.1%, celebrating 29 consecutive annual increases, adding $14.95.
- Realty Income (O): Increased its payout by a modest 0.19%, adding $0.37.
- Verizon (VZ): With an increase of 1.9%, marking 18 consecutive years of payout growth, contributing $9.14 to my annual income.
These updates reflect our ongoing commitment to finding opportunities for growth and stability in our dividend income-focused strategy. Keep following Chasing the Yield for more updates.
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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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