Five defense investments to purchase for dividends and profitability provide a gateway to outperform the market in the months ahead.

Russia’s Feb. 24 invasion of Ukraine has wielded a devastating toll that has resulted in the death of tens of thousands of people, destruction of an entire Ukrainian city in the case of Mariupol and a blockade by Russia’s President Vladimir Putin of grain shipments desperately needed in Africa and other places in the developing world where 140 million people live in famine conditions. The five defense investments to purchase for dividends feature an exchange-traded fund focused on the industry and four large-cap military contractors.

The five defense investments to purchase for dividends offer ways to support Ukraine’s attempt to fend off Russia’s unrelenting attacks and also present opportunities to pursue profits from the biggest military clash in Europe since World War II. Many Western countries have provided military equipment to Ukraine as it seeks to survive Russia’s attacks, as well as replenish supplies for ammunition and other weapons needed to stop invading troops from overrunning the much smaller and less populous country.

Russian Military Deaths Estimated by Ukraine Leaders to Top 35,750 as July Begins

Ukraine’s military estimated in a July 1 Facebook post that roughly 35,750 Russian soldiers had been killed since the start of the invasion. Ukraine’s death toll, including civilians, also is projected to be tens of thousands of people, but the exact number is difficult to document since many places have been seized by Russian soldiers, particularly along the Black Sea. Thus, a precise count of the dead still is prohibitive.

Russia has been accused of committing thousands of war crimes by its troops that were ordered to attack Ukraine, where civilian, industrial, cultural, religious and military have been heavily damaged. Despite Putin calling his attack on Ukraine a “special military operation,” leaders of the European Union, the United Nations, the United States, the United Kingdom and other countries have countered that the invasion of a sovereign country is a clear violation of international law.

Five Defense Investments to Purchase as Ukraine Seeks Freedom Shows Paradigm Shift

The war in Ukraine has ushered in a paradigm shift from using military might as a deterrent to direct clashes with Russia’s forces that are persisting. Amid multi-month fighting with heavy armaments, stockpiles of weapons and ammunition need to be resupplied.

Russia’s sustained assault on Ukraine has spurred leaders of many countries to express support for fortifying their national defenses and operational readiness. European nations, in particular, are on high alert due to the proximity of the battle in Ukraine to their own borders, amid threats from Putin and other Russian leaders that their ultimate plan is to seize land in other nearby nations.

Despite the devastation, defense companies are positioned to benefit from the increased military spending. U.S. defense spending specifically will continue to grow with strong support of inflation adjustments and additional aid packages from Congress.

Five Defense Investments to Purchase May Be Fueled by Rising Federal Spending

“The Department of Defense (DoD) has also included special provisions to major contractors to alleviate supply chain and worker constraints impacting critical programs such as the Virginia class submarine,” according to a recent research note from BofA Global Security’s defense and aerospace analyst Ron Epstein. “We anticipate defense spending levels to remain elevated and could reach about $1 trillion by 2025 or 2026.”

Defense stocks have remained somewhat “insulated” from the worst of the market’s recent retreats and outperformed on a relative basis due to their low beta compared to the risk of other investments, Epstein continued. The increase in defense modernization priorities, inflation pass-through on contracts, and few substitutes will support the defense market in outperforming the general markets, he added.

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Putin’s Policies Have Potential to Propel Five Defense Investments to Purchase

Putin has caused sanctions to be placed on his country in direct response to his attack, and he is blocking the important grain exports from Ukraine, preventing food from reaching people as far away as Africa, where people are enduring famine conditions as a result. Not only is he insisting that other nations cease their restrictions on his country’s goods before he allows grain exports to resume, but his troops have shelled civilian targets in Ukraine mercilessly.

Russian troops have decimated hospitals, schools, residential areas, churches, nuclear power plants, oil refineries, a theater used as a shelter, a train transporting food for World Central Kitchen and a crowded shopping mall, amid reports his soldiers raped, tortured, kidnapped and executed Ukrainian civilians. In the latest high-profile civilian attack by Putin’s forces, a Russian missile strike hit and caused deaths a shopping center with 1,000-plus civilians on Monday, June 27, in the central Ukrainian city of Kremenchuk, an industrial city of 217,000 and home of the country’s biggest oil refinery before Russia’s Feb. 24 invasion.

At the G7 meeting in Germany on Tuesday, June 28, the United States, the United Kingdom, Canada and Japan announced that they agreed to stop importing Russia’s gold. The move aims to halt Russia’s largest non-energy revenue source that totaled $15.47 billion last year. The U.S. Treasury and State Department each announced on June 28 that they were sanctioning a combined 115 entities and 48 individuals that are “critical” to Russia’s defense industrial base.

“The United States reaffirms our commitment to working alongside our allies and partners to further impose severe consequences on President Putin and his supporters for Russia’s unprovoked and unjustified war against the government and people of Ukraine,” the State Department announced.

Five Defense Investments to Purchase Should Not Be Slowed by President Biden’s New Tariffs

President issued a proclamation this week to raise tariffs on over 570 groups of Russian products worth approximately $2.3 billion to the war-waging country.  These measures are calibrated to impose costs on Russia, while minimizing costs to U.S. consumers, according to the State Department.

The actions, in coordination with those of U.S. partners, further cut off Russia’s access to critical technology for its defense sector.  By targeting those enabling President Putin’s war, the intent is to further weaken Russia’s war-making capabilities. These actions further align with measures taken by Australia, Canada, the European Union, Japan, New Zealand, Switzerland and United Kingdom, according to the State Department.

Pension Fund Head Recommends One of Five Defense Investments to Purchase

Bob Carlson, a pension fund chairman who also leads the Retirement Watch investment newsletter, spoke favorably about defense industry exchange-traded fund (ETF) Invesco Aerospace and Defense (PPA). The fund is more focused on defense than aerospace and seeks to track the SPADE Defense Index, which is composed of stocks of companies that are systematically important to the industry, Carlson continued.

Bob Carlson, who leads Retirement Watch, meets with Paul Dykewicz.

About 86% of the fund is in stocks classified in the industrial sector by S&P and about 13% are in the technology sector, Carlson counseled. The fund recently held 55 stocks and 55% of the fund was in the 10 largest positions. Top holdings in the fund include major U.S. defense stocks.

Chart courtesy of www.stockcharts.com

The fund is down 2.46% in the past month, 10.11% over the last three months, 2.44% for the year to date and 5.97% over the previous 12 months. However, PPA has outperformed the market and is up 3.87% in the last week.

General Dynamics Gains Buy Rating from Intelligence Report Leader

General Dynamics (NYSE: GD), a global aerospace and defense company based in Reston, Virginia, is a recommendation of stock picker Jim Woods in his monthly Intelligence Report investment newsletter. The company produces combat vehicles, nuclear-powered submarines and communications systems to provide safety and security.

General Dynamics employs more than 100,000 people worldwide and generated $38.5 billion in revenue in 2021. Woods highlights that the company also pays a dividend that currently yields 2.3%.

Paul Dykewicz meets with Jim Woods, leader of the Successful Investing and Intelligence Report newsletters, plus High Velocity Options and Bullseye Stock Trader.

Five Defense Investments to Purchase Feature General Dynamics

General Dynamics also received a “buy” recommendation from BofA, which set a price objective of $305, based partly on a 5.0% 2025-2030 growth rate and 2.8% long-term growth rate, as well as increased defense budget expectations. BofA wrote that the company’s defense program exposure to land and sea priorities, coupled with its Gulfstream business jet manufacturing segment, could provide near-term and medium-term organic growth.

Other plusses are the company’s strong balance sheet and solid cash generation to help sustain dividend growth and share repurchases, BofA wrote.

Potential downside risks to reaching that price target, according to BofA, are a possible downturn in business jet sales due to an exogenous factor and the pricing of business jets in dollars, making the company vulnerable to an unexpected devaluation of the U.S. dollar that could significantly impact orders. Any adverse impact on margins for defense programs and unforeseen government budget cuts could limit growth in the medium- and long-term.

Chart courtesy of www.stockcharts.com

L3Harris Lands Among Five Defense Investments to Purchase

L3Harris (NYSE: LHX), a Melbourne, Florida-based defense contractor and information technology services provider that produces C6ISR systems and products, wireless equipment and tactical radios, also netted a buy recommendation from BofA. The defense company, consisting of Integrated Mission Systems; Space & Airborne Systems, and Communication Systems, received a $285 price objective from BofA.

The valuation is in line with the median for a pure play defense stock, BofA wrote. However, an improved sentiment on defense spending should sustain a relative valuation slightly above the historical average, the investment firm added.

Potential reasons for the company to beat its price target include winning more business on new and existing programs versus BofA’s current expectations. Risk to the stock includes the possibility integration of past acquisitions may put a strain on the company’s cash and impact free cash flow estimates.

Chart courtesy of www.stockcharts.com

Money Manager Picks Northrop Grumman as One of Five Defense Investments to Purchase

Northrop Grumman (NYSE: NOC), a multinational aerospace and defense technology company headquartered in Falls Church, Virginia, is one of the world’s largest weapons manufacturers and military technology providers with 90,000 employees and $30 billion-plus in annual revenue. It also is a recommendation of BofA and has the potential to rise 20-25% in the next 12-18 months compared to the company’s current share price, said Michelle Connell, a former portfolio manager who heads Dallas-based Portia Capital Management.

Michelle Connell, CEO, Portia Capital Management

Increased geopolitical tensions do not look likely to end soon and defense stocks should continue to have an allocation in an investor’s portfolio, Connell counseled. Until the “exacerbated pullback” in the markets, defense stocks such as Northrop Grumman had performed very well, she added.

Reasons Five Defense Investments to Purchase Include Northrop Grumman

Northrop Grumman stands out from the defense pack, Connell said, partly due to:

-Developing the first B-21 bomber for the Air Force, after the company passed its first round of tests about the efficacy of the bomber that is expected to be released in 2023.

-Preparing next-generation ballistic missile systems under the name of Sentinel.

-Growing three-year revenue and profits strongly, even though sales were weak in the last quarter due to shortages of labor and supply chain issues that could continue into the rest of 2022.

Interested buyers of the stock may want to wade in with purchases and take a first step before July 29 to receive the next dividend payment, Connell advised.

Institutional Buying of Northrop Grumman Elevate Stock Among Five Defense Investments to Purchase

“I take some solace in knowing that before the recent pullback, the stock volume and institutional buying for NOC had increased,” Connell said.

BofA derived a $550 price objective on the stock, partially due to a 4% year over year growth rate for 2025-2030 estimates and a 2.5% long-term growth rate. In addition, the U.S. Defense Budget Authorization has grown at a 1.8% compound annual growth rate (CAGR) in constant dollars since post World War II, BofA’s Epstein wrote.

Northrop Grumman’s growth rate may exceed the industry norm with the most profitable production phase of the B-21 Raider program starting in about 10 years and the U.S. Air Force’s Ground Based Strategic Deterrent (GBSD) entering production at the end of this decade. The GBSD is the replacement weapon system for the aging LGM-30 Minuteman III intercontinental ballistic missile (ICBM) system.

Potential risks to the stock include possible defense program cost overruns and margin contractions. Further stumbles could come from unexpected cancellations to both the company’s commercial and military programs.

Chart courtesy of www.stockcharts.com

Raytheon Technologies Ranks Among Five Defense Investments to Purchase

Raytheon Technologies Corp. (NYSE: RTX), of Waltham, Massachusetts, is another buy recommendation of BofA. The multinational aerospace and defense conglomerate is one of the largest aerospace, intelligence services and defense manufacturing providers in the world by revenue and market capitalization. The stock has a $130 price objective from BofA. Those projections include the risk of a potential impact of the research and development (R&D) amortization tax change to reflect conservatism, BofA wrote.

Risks to Raytheon reaching that price target include a downturn in commercial aviation due to the natural business cycle or an exogenous event such as a terrorist attack. A severe global economic slowdown would affect top-line growth, since 45% of sales are produced outside the United States.

In addition, any execution risk on defense programs could result in cost overruns and margin contractions. Orders from international programs also are difficult to time due to the complexity of the process, BofA wrote.

“Thus, we could see some lumpiness with regard to international orders,” according to a recent BofA research note. “Unexpected cancellations to programs in both commercial and military could materially impact RTX.”

Chart courtesy of www.stockcharts.com

China’s Lockdowns Should Not Imperil Five Defense Investments to Purchase

China’s President Xi Jinping said Wednesday, June 29, that the Communist Party’s strategy of lockdowns to curb the COVID-19 pandemic was “correct and effective.” As the world’s most populous country, it would have suffered “unimaginable consequences” had it adopted a hands-off strategy, he added during a June 28 visit to the central city of Wuhan where the virus first was reported.

Meanwhile, a new COVID-19 outbreak in China is affecting the country’s technology hub of Shenzhen, spurring stepped-up testing and leading to lockdowns of certain neighborhoods. In addition, the gambling mecca of Macau, an hour away by car, is responding to an outbreak of the virus for the first time this year.

Those new cases are coupled with positive news from major metropolitan areas of Beijing and Shanghai that have used lockdowns to stem the spread of new cases. However, the U.S. ambassador to China criticized China’s “zero-COVID” policy on June 17 for potentially causing serious damage to the global economy and foreign business with the resumption of lockdowns.

Disrupted supply chains for products such as rice, oil and natural gas have been scaled back in Shanghai, home to 25 million residents and the world’s largest port. China’s lockdowns recently affected an estimated 373 million people, including roughly 40% of the country’s gross domestic product (GDP).

U.S. COVID Deaths Near 1.018 Million People

U.S. COVID-19 deaths rose more than 1,000 in the past three days to 1,017,818, as of July 1, according to Johns Hopkins University. Cases in the United States climbed more than 500,000 during the last three days to 87,778,212. America still holds the dubious distinction as the nation with the largest number of COVID-19 deaths and cases.

COVID-19 deaths worldwide totaled 6,337,510 as of July 1, according to Johns Hopkins. Global COVID-19 cases reached 548,223,216 on July 1.

Roughly 78.3% of the U.S. population, or 259,957,415, have obtained at least one dose of a COVID-19 vaccine, as of July 1, the CDC reported. Fully vaccinated people total 222,271,398, or 66.9%, of America’s population, according to the CDC. The United States also has given at least one COVID-19 booster vaccine to 106.3 million people.

The five defense investments to purchase as Ukraine fights for its freedom in the face of Russia’s unabated invasion offer investors a chance to preserve their portfolios from the market’s worst risk, receive dividends for staying patient and pursue profitable returns. With the highest inflation in 41 years, a potential Fed rate hike of 0.75% possible for later this month and other rate increases to follow, the appeal of the five defense investments to purchase is strong, despite sustained supply chain disruptions and Russia’s punishing attacks on Ukraine.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, Guru Focus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others. Call 202-677-4457 for multiple-book pricing.

Five grocery chain stocks to purchase for income and protection against inflation and recession offer paths to hedge economic perils in pursuit of potentially potent profits.

Those five grocery chain stocks to purchase feature a fund that seeks to buy shares in the best public grocery store chains and four of the industry’s strongest dividend-paying competitors that provide essential food to people. These five grocery chain stocks to purchase offer inflation protection, since the companies can pass along rising costs to their customers as long as rival retailers do likewise.

Investors intrigued by the five grocery chain stocks to purchase can pick up shares at reduced prices after U.S. equities recently faced their worst week since 2020. However, the five grocery chain stocks to purchase showed pent-up investor interest in the past week as they moved up along with the NASDAQ, S&P 500 and the Dow Jones Industrial Average.

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Risk Affects Five Grocery Chain Stocks to Purchase for Income and for Hedging Against Inflation

Each of the five investments to purchase are affected by rising costs for shipping, fuel and labor. However, all of them are well-positioned to sidestep the crisis caused in large part by Russia’s President Vladimir Putin blockading grain shipments from Ukraine, China’s continuing COVID-19 lockdowns to enforce its zero tolerance of COVID-19 cases and last week’s inflation-fighting central bank rate hikes of .75% in the United States and .25% in the United Kingdom.

A strategy to diversify away from individual grocery chain stocks is to purchase shares in a consumer staples sector exchange-traded fund (ETF). Stocks in that sector typically do well when the economy weakens.

“They also tend to be able to pass through price increases in inflationary times, because they sell essential goods and services,” said Bob Carlson, a pension fund chairman who heads the Retirement Watch investment newsletter. “An ETF will include more than the grocery store chains. It also will include manufacturers who produce many of the goods sold in the stores.”

Bob Carlson, who leads Retirement Watch, meets with Paul Dykewicz.

ETF Featured With Five Grocery Chain Stocks to Purchase for Income and for Ducking Inflation

A “good ETF” that takes advantage of the grocery chain opportunity is Consumer Staples Select Sector SPDR (XLP), Carlson said. The ETF’s top holdings include Costco Warehouse Corporation (NASDAQ: COST), encompassing 9.41% of the fund, and WalMart (NYSE: WMT), accounting for 3.89% of the holdings. The fund also owns Kroger (NYSE: KR) and Walgreens Boots Alliance (NASDAQ: WBA).
XLP owns 32 stocks and has 70% of the fund in the 10 largest positions. Other top holdings are Procter & Gamble (NYSE: PG), Coca-Cola (NYSE: KO) and PepsiCo (NASDAQ: PEP). The fund also offers a dividend yield of 2.5%.

The ETF has spiked 4.19% in the past week, after falling 0.26% in the last month, 2.61% in the past three months and 6.24% so far this year.

Chart courtesy of www.stockcharts.com

Putin’s Policies Jeopardize Food Supply and Availability

Russia’s President Vladimir Putin, who triggered sanctions on his country and himself by sending troops into Ukraine in violation of international law, is insisting that other nations cease their restrictions on his country’s goods before he allows grain exports to resume. Russia’s invasion of Ukraine, called a “special military operation” by Putin, has shelled hospitals, schools, residential areas, churches, nuclear power plants, oil refineries, a theater used as a shelter and even a train transporting food for World Central Kitchen, amid reports of potential war crimes by his soldiers who have been accused of raping, torturing, kidnapping and executing Ukrainian civilians.

Russia’s move to choke off a significant part of the world’s food supply stems from its continuing attack and blockade of Ukraine, potentially spurring the spread of a famine beyond 140 million undernourished people in needy nations. U.N. Secretary-General Antonio Guterres warned Friday, June 24, that the world faces a “catastrophe” due to the growing global food shortage.

The world is at the crossroads of an “unprecedented global hunger crisis” affecting hundreds of millions of people in 2022 and even more people next year, Guterres said. The five grocery chain stocks to purchase mainly serve developed nations that can afford to pay for food, unlike many people in the developing world who are especially vulnerable to Russia’s blockades.

Target Rates Highly Among the Five Grocery Chain Stocks to Purchase

One of the best grocery retailers is Minneapolis-based Target Corp. (NYSE: TGT), said Michelle Connell, a former portfolio manager who heads Dallas-based Portia Capital Management. Target has a place in a long-term portfolio for a number of reasons, she added.

The company produces 20% of its revenue on groceries and has done “an amazing job” growing its online sales, Connell said. Target’s online sales specifically have risen to 19% from 9% of its total sales in the past few years, Connell continued.

Despite the stock price dropping after its latest financial report revealed short-term inventory oversupply, Target’s management expects its sales for 2022 to grow and its market share to increase, Connell counseled. Plus, Target is increasing its dividend by 20% this September, so its dividend yield should rise to 3.1% from its current 2.9% by year end, she added.

Michelle Connell, CEO, Portia Capital Management

Target’s excess inventory should be trimmed by the second half of 2022, especially after its “Deal Days,” July 11-13, Connell said.

“This will be TGT’s largest Deal Days in its four-year history,” Connell said. “This online sale takes on Amazon’s Prime Day, except you don’t need a membership.”

The stock jumped 3.88% on Tuesday, June 21, and looks comparatively inexpensive after a recent share price pullback that lowered the company’s current price-to-earnings (P/E) ratio to 12 from its long-term, historic valuation of 16. Connell pegged the estimated upside for TGT close to 30% from today’s price of $150.39 per share.

Chart courtesy of www.stockcharts.com

BofA Global Research cautioned Target’s risks include gross margin pressures from labor costs, investments and the rapid growth of the lower-margin e-commerce channel, as well as aggressive competition from Walmart and Amazon (NASDAQ: AMZN).

Five Grocery Chain Stocks to Purchase Feature Walmart

Walmart Inc., a superstore chain headquartered in Bentonville, Arkansas, has slumped since mid-May but now is showing some resiliency by rising 3.28% on Tuesday, June 21. Investors seeking to buy Walmart at a discount should take into account the stock has fallen 13.79% so far this year and 12.52% in the past three months.

Chart courtesy of www.stockcharts.com

“Walmart is one of the few stores that’s likely to benefit from rising inflation, as the store offers the best discounts of any major retailer,” said Jim Woods, leader of the Successful Investing and Intelligence Report newsletters, plus the High Velocity Options and Bullseye Stock Trader advisory services.

Woods told me he recommends Walmart in the Income Multipliers portfolio of his Intelligence Report newsletter due to its history of raising annual dividends and its five-year total return of more than 71%.

Paul Dykewicz talks to Jim Woods, head of the Successful Investing and Intelligence Report newsletters.

Walmart’s risks, according to BofA Global Research, are the ill effects of foreign exchange, pharmacy headwinds and questions about it continuing to gain incremental market share, despite its large size and a weakening global retailing environment.

Costco Captures Place Among Five Grocery Chain Stocks to Purchase

Costco Wholesale Corp., a membership-only, retail superstore chain headquartered in Issaquah, Washington, rallied 3.68% on Tuesday, June 21, and 1.97% on Friday, June 24. It could be close to bottoming and starting a slow climb, despite untamed inflation and recession risk. Costco’s share price rebounded 5.14% in the previous week and 10.64% in the prior month, after dropping 14.10% in the past three months and 16.03% so far in 2022.

A boost for Costco and other brick-and-mortar retailers, such as Target and Walmart, is that spending trends for physical retail stores have risen 4.7% since the same time last year, according to BoA Global Research. In contrast, online retail sales slipped 1.6% in the past year, even though they stayed strong on a three-year basis, including the COVID-19 lockdown period when government decrees limited in-person shopping to reduce exposure to the virus.

That brick-and-mortar retailer spending surge shows support for Costco, Target and Walmart sales trends due to their “dominant U.S. store footprints,” compared to Amazon, which has a comparatively small brick-and-mortar presence, even with its ownership of Whole Food stores, from both a sales and margin perspective, according to BoA.

Chart courtesy of www.stockcharts.com

Albertsons Earns Position Among Five Grocery Chain Stocks to Purchase

Albertsons Companies, Inc., an American grocery store chain founded and headquartered in Boise, Idaho, has more than 2,200 retail locations. The company is a BoA buy but faces further challenges than some of its bigger and better-known rivals in the grocery store chain business.

For example, Albertsons lacks general merchandise breadth, with an accompanying higher gross margin profile that warrants an enlarged valuation for big discounters such as Target and Walmart, BofA wrote in a research note. Albertsons also may benefit less from favorable demographic trends in the South, where it has lower penetration compared to Walmart, Target, Costco and Dollar General (NYSE: DG).

Another drag on Albertsons is that it has nearly $5 billion in estimated off-balance sheet underfunding of multi-employer pension obligations, according to BofA. Other downside risks that Albertsons must navigate are its presence in a highly competitive retail food industry, a higher perishable mix that brings increased inflation exposure compared to its peers, e-commerce inroads at an earlier stage than for Walmart, its unionized workforce, competition from retail discounters and exposure to gas prices if shoppers opt to reduce driving.

Nonetheless, Albertsons jumped 5.85% on Tuesday, June 21. The stock soared 7.23% in the previous week and rose 0.24% in the past month. However, the share price slid 17.42% in the last three months and 1.95% so far this year.

Chart courtesy of www.stockcharts.com

Watch out for Volatility With Further Fed Interest Rate Hikes Ahead to Fight Inflation

Investors could face a rocky road to recovery with the Fed still needing to raise interest rates further to cool the economy and quell inflation that rose 8.6% in the past year, based on the latest Consumer Price Index reading. Plus, investors need to be cautious about diving back into equities until the “three-headed dragon” of rate hikes, upward wage pressures and rising commodity prices have been slain to bring inflation under control, said Bryan Perry, a high-income aficionado, a veteran of Wall Street firms and the editor of the Cash Machine investment newsletter.

The June 21 rally is a fresh bet that inflation has peaked with tough Fed jawboning, Perry wrote to his newsletter subscribers.

“However, the inflation rate shock of the past three months, coupled with the rally in the dollar, invites caution heading into the second-quarter earnings season, which will begin during the second week of July,” Perry cautioned. “I would also add that third-quarter guidance will likely be guarded and fairly opaque, as companies are citing highly fluid factors that will greatly influence year-end forecasting.”

Paul Dykewicz interviews Wall Street veteran Bryan Perry, who heads the Cash Machine newsletter.

Supply Chains Remain Vulnerable to China’s Lockdowns

A new Covid-19 outbreak in China is affecting the country’s technology hub of Shenzhen and spurring stepped-up testing, as well as a lockdown of certain neighborhoods. Meanwhile, the gambling mecca of Macau, an hour away by car, is facing cases of the virus for the first time this year.

Those new cases are accompanied by encouraging news from major metropolitan areas of Beijing and Shanghai that have used lockdowns to curb new cases. However, the U.S. ambassador to China criticized China’s “zero-COVID” tolerance policy on June 17 for potentially causing serious damage to the global economy and foreign business with the resumption of lockdowns. But China is seeking to contain outbreaks of COVID-19 with lockdowns, despite many other countries adopting policies to balance anti-coronavirus measures with exposure to the risk.

Disrupted supply chains for products such as rice, oil and natural gas are starting to normalize again in Shanghai, home to 25 million residents and the world’s largest port. China’s recent lockdowns have affected an estimated 373 million people, including roughly 40% of the country’s gross domestic product (GDP).

U.S. COVID Deaths Top 1.015 Million

U.S. COVID-19 deaths rose to 1,015,805, as of June 24, according to Johns Hopkins University. Cases in the United States climbed more than 450,000 in the past three days to reach 86,909,569 on that date. America holds the dubious distinction as the nation with the largest number of COVID-19 deaths and cases.

COVID-19 deaths worldwide totaled 6,327,659, up 5,683 during the past three days, as of June 24, according to Johns Hopkins. Worldwide COVID-19 cases have reached 542,763,865, up 2,228,211 million in the past three days.

Roughly 78.1% of the U.S. population, or 259,426,758, of America’s population, have been injected with at least one COVID-19 dose, according to the CDC. The United States also had amassed 222,123,223 fully vaccinated people, or 66.9% of the population, who had received at least one dose. Plus, 105.1 million obtained at least one COVID-19 booster vaccine.

The five grocery chain stocks to purchase offer investors a chance to dodge the worst of the fallout from inflation and rising interest rates, since food is essential and related price increases can be passed along by the retailers. With the highest inflation in 41 years, the appeal of such stocks is starting to gain investor interest but the road ahead could be rough with the Fed expected to raise rates again between .75% and .50% next month to limit price hikes that are needed amid rising federal deficits, sustained supply chain disruptions and Russia’s unrelenting attacks on Ukraine.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, Guru Focus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others. Call 202-677-4457 for multiple-book pricing.

Four inflation-shedding income investments to own as potential safe havens as Russia restricts the world’s food supply by attacking and blockading Ukraine have the potential to help reduce the risk of famine from spreading beyond 140 million undernourished people in needy nations.

The four inflation-shedding income investments to own, after interest hikes by central banks this week of .75% in the United States and .25% in the United Kingdom, feature a royalty company, an energy stock and other prospective hedges to shield against further rate increases. Despite President Biden blaming the worst inflation in 41 years on Russia’s unrelenting attacks on Ukraine’s military and civilians, other reasons include disrupted supply chains, prolonged government stimulus policies, soaring federal deficits and regulatory curbs on fossil fuels.

Russia’s President Vladimir Putin, who triggered sanctions on his country by sending troops into Ukraine in violation of international law, is insisting that other nations cease their restrictions on his country’s goods before he allows grain exports to resume. Russia’s invasion of Ukraine, described by Putin as a “special military operation,” has shelled hospitals, schools, residential areas, churches, nuclear power plants, oil refineries, a theater used as a shelter and even a train transporting food for World Central Kitchen, amid  reports of potential war crimes of his soldiers raping, torturing, kidnapping and executing Ukrainian civilians.

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Four Inflation-shedding Income Investments Offer Alternative to U.S. Dollar

The U.S. dollar offers an inflation-shelter through Invesco DB U.S. Dollar Index Bullish Fund (NYSEARCA: UUP), but it does not pay a dividend. The Fast Money Alert advisory service, co-led by Mark Skousen, PhD, and Jim Woods, informed its subscribers this week that the fund can be used as an inflation hedge.

Paul Dykewicz meets with Jim Woods, leader of the Successful Investing and Intelligence Report newsletters, plus High Velocity Options and Bullseye Stock Trader.

The investment seeks to establish long positions in ICE U.S. Dollar Index futures contracts with the intent of tracking the changes, either positive or negative, in the Deutsche Bank Long USD Currency Portfolio Index. UUP invests in futures contracts to try to mirror the results of the index that is calculated to reflect the changes in market value over time, whether positive or negative, of long positions in dollar contracts. As the U.S. Dollar Index moves against a basket of foreign currencies that include the euro, the yen and the Canadian dollar, so does UUP, Skousen and Woods wrote.

Mark Skousen, head of Forecasts & Strategies, meets with Paul Dykewicz.

Royalty Company Is one of Four Inflation-shedding Income Investments to Own

Skousen, who also leads the Forecasts & Strategies investment newsletter and the Five Star TraderHome Run Trader, TNT Trader services, further favors a royalty company as an inflation hedge: Dorchester Minerals, L.P. (NASDAQ: DMLP), of Dallas. The oil and gas royalty company, a recent recommendation of Five Star Trader, began operations on January 31, 2003, after the combination of Dorchester Hugoton, Ltd., Republic Royalty Company, L.P. and Spinnaker Royalty Company, L.P.

The limited partnership (LP) has been expanding its resources, acquiring 3,600 new mineral and net royalty acres in 13 counties across Colorado, Louisiana, Ohio, Oklahoma, Pennsylvania, West Virginia and Wyoming. Skousen wrote that it has $33 million in hand to support further growth, with only $1.8 million in debt.

“Business is booming,” Skousen opined. “Revenues and earnings more than doubled in the past year.”

Chart courtesy of www.stockcharts.com

One of Four Inflation-shedding Income Investments to Own Has Soared

The royalty company’s revenues rose 127% to $112 million, and its earnings grew 159% to $86 million. Plus, its profit margins exceed 76% and its return on equity (ROE) reached 70.9%.

Dividend lovers will appreciate that Dorchester has provided payouts to its shareholders. In the past year, Dorchester’s quarterly dividend has gone from 48 cents to 75.4 cents per unit. Expect another increase in July, with Dorchester selling for just 11.8 times earnings, Skousen continued.

High-Yield Energy Mutual Fund Joins Four Inflation-shedding Income Investments to Own

Kayne Anderson Energy Infrastructure Company (NYSE: KYN), a Houston-based closed ended equity mutual fund launched and managed by KA Fund Advisors, LLC., provides the largest payout of the four inflation-shelter investments to buy. KYN offers a current dividend yield of 10% and is a recommendation of Bryan Perry, a high-income aficionado who is a veteran of Wall Street firms and the editor of the Cash Machine investment newsletter.

Paul Dykewicz interviews Wall Street veteran Bryan Perry, who heads the Cash Machine newsletter.

Crude oil prices have risen in recent months, but they dipped Tuesday, June 14, amid reports that President Joe Biden and Saudi Arabia’s crown prince would meet and possibly agree upon Organization of the Petroleum Exporting Countries (OPEC) boosting production to offset global supply constraints. Oil hit 14-week highs earlier on June 14, with U.S. crude climbing to almost $124 a barrel as OPEC kept its forecast that 2022 global oil demand would top pre-pandemic levels. Changing political winds have increased the volatility of energy as an investment lately.

Perry chose to use KYN to increase the weighting of his monthly newsletter’s model portfolio to tap into a secular transition to natural gas from coal at America’s largest electric utilities. The mutual fund provides exposure to the rising demand for exporting natural gas to Europe and Asia through liquified natural gas (LNG).

Chart courtesy of www.stockcharts.com

Pension Fund Chairman Recommends Broad Dividend-paying Energy Fund

Bob Carlson, a pension fund chairman who also leads the Retirement Watch investment newsletter, currently is recommending DWS RREEF Real Assets (AAASX). The investment uses a basket of four different inflation hedges and has six share classes.

Carlson advised that investors check with their brokers or the fund for guidance on the best share class for each person. The mutual fund is allocated among inflation-sensitive assets, including infrastructure stocks, commodities, gold, real estate stocks and Treasury Inflation-Protected Securities (TIPS). It owns both stocks and futures contracts.

Chart courtesy of www.stockcharts.com

The fund’s managers change the allocations to the different sectors based on economic outlook and inflation. They have shown a knack for profitably adjusting the portfolio, Carlson commented.

In addition, analysts specializing in each of the sectors select the individual securities to be purchased after the top managers decide on allocations. This investment offers diversification and a chance to benefit from a full basket of inflation hedges, he added.

Bob Carlson, who leads Retirement Watch, meets with Paul Dykewicz.

Connell Chooses One of Four Inflation-shedding Income Investments to Own

“Real assets typically provide purchasing power protection during periods of inflation,” said Michelle Connell, a former portfolio manager who heads Dallas-based Portia Capital Management.

Real assets include real estate investment trusts (REITs), real estate, energy and commodity futures. Most classifications of REITs benefit investors in the form of dividends and purchasing power protection.

However, REITs that have distribution centers and warehouses as their underlying properties also will benefit from supply-side inflation that is caused by a lack of goods demanded by consumers, Connell said.

Michelle Connell, CEO, Portia Capital Management

Connell told me one of her favorite REITs involved in distribution centers and warehouses is Boston-based Stag Industrial Inc. (STAG). A key reason is that distribution centers became more “imperative” during the pandemic due to a shift from brick-and-mortar retailers to online shopping.

Amazon (NASDAQ: AMZN) is STAG’s largest tenant and 40% of the REIT’s portfolio provides distribution for e-commerce businesses, Connell said. Its stock has pulled back with the market in the past month, but Connell views that reduced price as a buying opportunity.

Chart courtesy of www.stockcharts.com

“The demand for distribution centers is expected to continue to grow,” Connell said. “While e-commerce sales have grown 167% in the past five years, they are expected to grow another 50% in the next five years.”

Supply Chains Remain Susceptible to China’s Lockdowns

The U.S. ambassador to China criticized China’s “zero-COVID” tolerance policy on June 17 for potentially causing serious damage to the global economy and foreign business with the resumption of lockdowns after some of its residents tested positive to inflame concerns for a resurgence of the virus. However, China is continuing to seek to contain outbreaks of COVID-19 with strict lockdowns, while most other countries seem to be adopting policies to balance anti-coronavirus measures with exposure to the risk.

Earlier this week, Chinese authorities responded to new cases by shutting down dozens of bars and hundreds of restaurants in Beijing. It came after nearly two months of lockdowns in China’s economic center of Shanghai, a large city that has begun trying to rebound economically after much normal commerce was stymied.

Disrupted supply chains for products such as rice, oil and natural gas now are starting to normalize again in Shanghai but the new restrictions occurring in Beijing add risk for investors. China’s recent lockdowns have affected an estimated 373 million people, including roughly 40% of the country’s gross domestic product (GDP).

Shanghai, home to 25 million residents and the world’s largest port, had strained to unload cargo due to strict regulations that caused shipping containers to stack up. Some Shanghai residents even posted videos online that went viral to complain about a lack of food during the lockdown there.

U.S. COVID Deaths Surge past 1.013 Million

U.S. COVID-19 deaths rose to  1,013,351, as of June 17, according to Johns Hopkins University. Cases in the United States climbed to 86,213,825 on that date. America retains the dreaded distinction as the nation with the largest number of COVID-19 deaths and cases.

COVID-19 deaths worldwide totaled 6,317,273, up about 5,000 in the last few days, as of June 17, according to Johns Hopkins. Cases across the globe have surged by slightly more than 538,323,117.

Roughly 78.1% of the U.S. population, or 259,198,178, have obtained at least one dose of a COVID-19 vaccine, as of June 17, the CDC reported. Fully vaccinated people total 221,924,152, or 66.8%, of America’s population, according to the CDC. The United States also has given at least one COVID-19 booster vaccine to 104.7 million people, up 200,000 in the past several days.

The four inflation-shedding income investments to own offer an opportunity to profit and to support companies that can help alleviate the world’s growing hunger problem. Amid the highest inflation in 41 years, the Fed announced a .75% interest rate increase on June 15 and plans for another one of between that level and .50% next month to limit price hikes that also have been exacerbated by rising federal deficits, supply chain disruptions and Russia’s unrelenting attacks on Ukraine. These four inflation-shedding income investments to own offer potential relief from the market’s recent drops.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, Guru Focus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others. Call 202-677-4457 for multiple-book pricing.

Five grain investments to buy for income provide opportunities to guard against rising famine risks and inflation.

The critical role of the five grain investments to buy for income and potential profitability gained global attention this week at the United Nations Security Council when European Council President Charles Michel accused Russia of causing a food crisis by stealing and blocking shipment of Ukrainian grain. Russia’s UN ambassador Vassily Nebenzia stormed out of the UN Security Council meeting rather than respond point by point to the evidence cited by Michel or commit to unconditional support for food transport.

Roughly 140 million undernourished people who live in needy nations are most vulnerable to the policies of Russia’s President Vladimir Putin, who ordered his troops to invade neighboring Ukraine on Feb. 24 in violation of international law to pursue what he called a “special military operation.” Russia’s sustained attack has resulted in shelling of hospitals, schools, residential areas, churches, nuclear power plants, oil refineries and a theater used as a shelter, amid reports of his soldiers raping, torturing and executing Ukrainian civilians.

Five Grain Investments to Buy for Income and Protection from Famine, Inflation, War

Putin has refused to withdraw Russin troops from Ukraine despite economic sanctions placed on him and his country as pressure to do so. Before allowing the export of grain to resume, Putin is insisting that the economic sanctions end.

As Russia’s UN ambassador Nebenzia left the Security Council meeting last Monday, June 6, Michel said Russia’s ambassador may not want to hear the truth about its numerous humanitarian offenses. Those acts include allegations of thousands of war crimes that a Ukrainian prosecutor has been documenting.

The 27-nation European Union (EU) voted on Tuesday, May 31, to remove 90% of its Russian crude oil imports in 2022 to limit funds that could be used to sustain the nation’s ongoing military action in Ukraine. Subsequently, reports have arisen that cholera, a bacterial infection that spreads through contaminated food and water, has been contracted by people still in the port city of Mariupol.

Plus, more than 1.1 Ukrainian, including children, have forcibly been moved to Russia. Additional reports indicate 600 people have been detained in and around Kherson, Ukraine, where they are held in “specially equipped basements that basically serve as torture chambers,” according to the Washington Examiner.

Putin’s Policies Blamed for Blocking Grain Distribution and Worsening Famines

“The EU has no sanctions on the agricultural sector — zero,” Michel said in his speech at UN headquarters in New York. “And even our sanctions on the Russian transport sector do not go beyond our EU borders.”

The sanctions do not prevent Russian-flagged vessels from carrying grain, other food or fertilizers to developing countries, Michel continued. He also spoke out against sexual violence and other war atrocities reportedly committed by Russian forces in Ukraine.

Western leaders have urged their Russian counterparts to open ports and shipping corridors in the Black Sea to allow the transport of millions of tons of grain grown in Ukraine, a major agricultural producer. Russia has used its military might to capture important port cities such as Mariupol and Kherson, while also imposing a blockade on Ukraine’s imports and exports.

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Putin Accused of ‘Weaponizing Food Supplies,’ Causing Prices to Rise with Blockade

European Commission President von der Leyen cautioned that Russia is weaponizing food supplies as prices of grain, cooking oil and other food commodities climbed after Putin ordered the invasion of Ukraine, one of the world’s largest wheat producers. In the industrial part of Ukraine that Russia is occupying and attacking to seize land, Putin’s army is confiscating grain stocks and machinery, she said during a May 24 address at the World Economic Forum in Davos, Switzerland.

“When war is waged, people go hungry,” said UN Secretary‑General António Guterres at a May 19 Security Council open debate on conflict and food security, adding that 60% of the world’s 140 million undernourished people live in areas affected by conflict.

Ukraine normally provides food for 400 million people, said David Beasley, executive director of the UN World Food Programme, at the same May 19 Security Council event. The United Nations is trying to provide humanitarian assistance inside Ukraine, but its ports need to operate for 36 countries to import more than 50% of their grain from that region, he added.

For example, Ukraine and the Russian Federation had been exporting 67% of the world’s sunflower oil, according to the UN. In 2021, Ukraine itself exported more than $27 billion in agricultural products to the world.

Eagle Bulk Shipping Leads Five Food Supply Investments to Buy

Eagle Bulk Shipping Inc. (NASDAQ: EGLE) recently became a recommendation in the Fast Money Alert advisory service co-led by Mark Skousen, PhD, and Jim Woods. They described the company as a “fast-money” shipping stock that is breaking out to new highs.

The company operates in the shipping and logistics industry and is engaged in the ocean transportation of dry bulk cargoes through the ownership, charter and operation of dry bulk vessels. Eagle Bulk Shipping’s fleet is comprised of Supramax and Ultramax bulk carriers.

Eagle’s services include commercial operations and technical supervision, vessel maintenance and repair, vessel acquisition and sale, finance, accounting, treasury and information technology services and legal, compliance and insurance. It transports a broad range of major and minor bulk cargoes, including grain, coal, ore, pet coke, cement and fertilizer.

Paul Dykewicz meets with Jim Woods, leader of the Successful Investing and Intelligence Report newsletters, plus High Velocity Options and Bullseye Stock Trader.

Improved Delivery Can Aid Five Grain Investments to Buy for Income

With optimism that supply chain issues will be resolved in the months ahead, the world should return to demanding more and more goods and services, Skousen and Woods wrote to their subscribers. Those goods are transported by big cargo ships such as those operated by EGLE.

“That business has been fantastic of late, with the company growing its earnings per share (EPS) some 396% in its most recent quarter vs. the same quarter last year,” they reported in Fast Money Alert.

That move higher in earnings has resulted in a jump in EGLE’s share price so far in 2022. Yet, EGLE may not be overextended.

However, the company’s Chief Financial Officer Frank De Costanzo sold 3,022 shares of his Eagle Bulk Shipping stock in a transaction dated Monday, June 6, according to a filing with the Securities and Exchange Commission. The shares reportedly were sold at an average price of $78.06, for a total value of $235,897.32. Upon completion of the sale, he directly owned 52,323 shares valued at $4,084,333.38.

Bargain-conscious investors may appreciate that the stock has pulled back more than $14 per share since its high of $77.77 on June 7, in a possible overaction the CFO’s sale of a minority stake of his holdings. The stock has fallen 11.28% in the past week, but risen 12.54% in the past month, 7.96% in the last three months, 50.24% so far this year and 48.94% during the past 12 months.

Chart courtesy of www.stockcharts.com

Skousen, who leads the Forecasts & Strategies investment newsletter and the TNT Trader, Five Star TraderHome Run Trader and Fast Money Alert advisory services, is a prominent free-market economist who favors dividend stocks such as Eagle Bulk Shipping. The stock’s 12.6% dividend yield stands out as the latest Consumer Price Index released on Friday, June 10, showed inflation through May 2022 had soared 8.6% during the last 12 months, before seasonal adjustments.

The CPI in May 2022 climbed 1.0%, when seasonally adjusted, while all items other than food and energy increased 0.6% in that month to equal a 6.0% annual rise. The biggest contributors to the surge in the broad-based index were shelter, gasoline and food. The energy index jumped 3.9% in May, despite dipping in April, with the gasoline index leaping 4.1% last month. The food index increased 1.2% in May, while the food at home index gained 1.4%.

Mark Skousen, head of Forecasts & Strategies, meets with Paul Dykewicz.

Five Grain Investments to Buy for Income Include MOO

Another food supply investment to buy is ETF VanEck Agribusiness (NYSE ARCA: MOO). I bought shares in the fund years ago to tap the growing need for food from a finite supply of land that increasingly is used for development.

Bob Carlson, a pension fund manager who also leads the Retirement Watch investment newsletter, recommends the fund to track the MVIS Global Agribusiness Index. The index is composed of companies that produce at least 50% of their revenues from agrichemicals, animal health and fertilizers, seeds and traits, farm/irrigation equipment, farm machinery, aquaculture, fishing, livestock and more.

Bob Carlson, who leads Retirement Watch, meets with Paul Dykewicz.

MOO’s largest holdings recently included Deere & Co. (NYSE: DE), Nutrien (NYSE: NTR), Bayer (OTCMKTS: BAYRY), Zoetis (NYSE: ZTS) and Archer-Daniels Midland (NYSE: ADM). The ETF owns more than 50 stocks and has nearly 60% of its holdings in the 10 largest positions.

Chart courtesy of www.stockcharts.com

Fertilizer Stocks Are Among Five Grain Investments to Buy for Income

Both funds favored by Carlson also are recommended by Bryan Perry, who heads the Cash Machine investment newsletter, as well as the Premium IncomeQuick Income TraderHi-Tech Trader and Breakout Options Alert advisory services. Perry also likes fertilizer manufacturers as investments.

Such companies are likely to profit from Russia’s attack against Ukraine, a major agricultural producer, Perry said. “Demand destruction” may occur in energy markets but not reduce the need for food, he added.

Paul Dykewicz interviews Wall Street veteran Bryan Perry, who heads the Cash Machine newsletter.

CF Industries Listed Among Five Grain Investments to Buy for Income

Wheat, corn and soybean prices jumped after Russia attacked of Ukraine, Perry continued. One of the big winners from pure demand and sanctions will be CF Industries Holdings, Inc. (NYSE: CF), a manufacturer and distributor of agricultural fertilizers that include ammonia. The company, based in the Chicago suburb of Deerfield, Illinois, is incurring increased distribution costs, particularly for transportation.

In addition, the cost of producing nitrogen fertilizers is highly dependent on the price of natural gas, a principal raw material and primary fuel source used in ammonia production at the company’s manufacturing facilities. For many producers, more than 70% of the total cost to produce ammonia is due to the cost of natural gas.

The cost of natural gas varies significantly between geographic locations. For example, European customers are seeing their fertilizer prices rise significantly.

Chart courtesy of www.stockcharts.com

Five Grain Investments to Buy for Income Include Nutrien

Nutrien Ltd. (NYSE: NTR), a Canadian fertilizer company based in Saskatoon, Saskatchewan, is the largest producer of potash and the third-largest provider of nitrogen fertilizer in the world. The company’s interim chief executive Ken Seitz said Nutrien will boost potash production if supply problems worsen in Russia and Belarus, the world’s second- and third-largest potash-producing countries, respectively, after Canada.

The economic sanctions imposed by the United States, the EU and others against Russia may hurt the warring country’s exports of natural gas, potash and nitrogen. Belarus, regarded widely as a puppet state of Russia, has joined the invasion of Ukraine and must adjust to economic sanctions that have restricted its potash exports, Perry said.

The decision by Putin to wage war against Ukraine further has raised concerns about wheat, corn and vegetable oil supply problems in the Black Sea region. The result is sharply rising world prices for these agricultural products.

Chart courtesy of www.stockcharts.com

REIT Ranks Among Five Grain Investments to Buy for Income

Real estate investment trusts (REITs) that focus on distribution centers benefit from food inflation, said Michelle Connell, a former portfolio manager who heads Dallas-based Portia Capital Management. One of the largest customers of distribution and industrial centers are the food and beverage industries, she added.

Michelle Connell, CEO, Portia Capital Management

The use of multiple distribution centers reduces shipping costs for food and beverage companies. For example, a beverage business that does business on the West Coast and the East Coast benefits from having nearby distribution centers. Shipping from a close distribution center to a retail facility reins in costs.

Connell said her top choice for a REIT engaged in storage and warehousing is Boston-based Stag Industrial Inc. (NYSE: STAG). Distribution centers became more imperative during the pandemic due to the switch from bricks and mortar to online shopping, she added.

“The demand for distribution centers is expected to continue to grow,” Connell continued. “While e-commerce sales have grown 167% in the past five years, they are expected to grow another 50% in the next five years.”

Chart courtesy of www.stockcharts.com

World Health Organization Recommends Further Investigation into Origin of COVID-19

The World Health Organization (WHO) announced on Friday, June 10, that it is recommends investigation of the theory that COVID-19 leaked from a laboratory in Wuhan, China, to trigger the global pandemic. Initially, WHO discounted such a possibility, but it subsequently has shifted its position to consider a further probe into the origin of the virus.

In addition, the U.S. government is taking an action that could boost tourism and give the American economy a bit of a boost by announcing it no longer will require visitors to present a negative COVID test at points of entry. The Centers for Disease Control and Prevention (CDC) announced the policy change on Friday, June 10, and planned to put it into action on Sunday, June 12. European countries previously had abandoned that requirement.

Food and Drug Administration (FDA) advisors agreed Tuesday, June 7, to recommend a more traditional type of shot as a potential fourth vaccine choice. The FDA next would need to decide whether to approve the protein vaccine of Gaithersburg, Maryland-based Novavax (NASDAQ: NVAC).

COVID-19 vaccines from Novavax already are available in Australia, Canada and parts of Europe, as well as other countries. Its vaccines can be used either for initial doses or booster shots.

Pfizer (NYSE: PFE), Moderna (NASDAQ: MRNA) and a lesser-used vaccine from Johnson & Johnson (NYSE: JNJ) already are approved for use of their respective versions in America.

Increased U.S. vaccinations should be good for the American economy, businesses, consumers and workers. The restrictions of the past before vaccines became widely available in the United States led many businesses to go out of business and put their employees out of work.

Supply Chains Should Recover as China Scales back COVID-19 Curbs

China’s economic center of Shanghai is trying to rebound economically after easing its two-month lockdown to prevent the spread of COVID-19. Supply chains that had been disrupted now are starting to normalize again but further progress is needed. China’s lockdowns have affected an estimated 373 million people, including roughly 40% of the country’s gross domestic product (GDP).

Disrupted supply chains hurt shipping of products such as rice, oil and natural gas. Shanghai, home to 25 million residents and the world’s largest port, has strained to unload cargo due to strict regulations that have caused shipping containers to stack up. Some Shanghai residents posted videos online that went viral to complain about a lack of food during the lockdown.

U.S. COVID Deaths Top 1.01 Million and Keep Climbing

U.S. COVID-19 deaths rose to 1,011,012 as of Friday, June 10, according to Johns Hopkins University. Cases in the United States jumped to 85,424,469, as of June 10. America retains the dreaded distinction as the country with the highest numbers of COVID-19 deaths and cases.

COVID-19 deaths worldwide totaled 6,307,617 on June 10, according to Johns Hopkins. Cases across the globe have grown more than 1 million in the past few days to hit 534,607,728.

Roughly 78% of the U.S. population, or 258,896,220, have obtained at least one dose of a COVID-19 vaccine, as of June 10, the CDC reported. Fully vaccinated people total 221,640,799, or 66.8%, of America’s population, according to the CDC. The United States also has given at least one COVID-19 booster vaccine to 104.3 million people, up more than 300,000 in the past three days.

The five grain investments to buy for income also can help investors to profit from capital appreciation, aside from offering dividend payouts. With the highest inflation in more than 40 years, the Fed’s plan for further interest rate boosts to limit price hikes, rising federal deficits and Russia’s persistent attacks on Ukraine, these five grain investments to buy for income offer much better near-term prospects than the stock market overall.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, Guru Focus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others. Call 202-677-4457 for multiple-book pricing.

While stock investing resources are abundant online, finding quality guides to learn about dividend investing proves to be much more difficult.

Access to this information used to be reserved for institutional investors or those with direct mentors in the dividend investing world. Today, the same information is available to retail investors and young professionals alike.

And yet, there is a problem. There is far too much information online for any reasonable person to sift through and find what they are looking for. Although the guides and tools retail investors need are there, many of the most useful are buried behind 15 pages of search engine results.

We at Dividend Investor aimed to solve that problem. There are so many useful directories for dividend investing tools, and we wanted to put all of the best ones in one place — call it a directory of directories — so that you can find the best information circulated by our peers in educational dividend investing.

If you are a content creator and would like your resource list included below, please send us an email here.
The Best Investor Websites for Dividend-Paying Stocks
https://www.thebalance.com/resources-for-investors-dividend-paying-stocks-2388687

Seeking Alpha, Dividend Growth Stocks

https://seekingalpha.com/article/3980171-10-favorite-resources-for-dividend-growth-investing

Sure Dividend, These 71 Free Dividend Stock Resources Will Make You a Better Investor

https://www.suredividend.com/free-resources/

Top 100 Dividend Blogs, Websites & Influencers in 2022

https://blog.feedspot.com/dividend_blogs/

Drip Investing, The Dividend Investing Resource Center

https://www.dripinvesting.org/tools/tools.asp

MarketBeat, Dividend Investing Beginners Guide

https://www.marketbeat.com/dividends/dividend-investing-guide/

Dividends Diversify, Guide to Dividend Investing

https://dividendsdiversify.com/dividend-stocks/

Dividend Growth Investing & Retirement, 7 Dividend Growth Resources

https://www.dividendgrowthinvestingandretirement.com/2020/12/7-dividend-growth-investing-resources-i-cant-live-without/

The Money Sprout, Dividend Stock Resources

https://www.themoneysprout.com/dividend-stock-resources

Benzinga, How To Invest In Dividend Paying Stocks

https://www.benzinga.com/money/how-to-invest-in-dividend-stocks/

Clear Eyes Investing, Dividend Investing Resources and Tools

http://www.cleareyesinvesting.com/p/dividend-resources.html

Forbes, Guide To Dividend Investing For Beginners

https://www.forbes.com/advisor/investing/dividend-investing/

Fool, How to Invest in Dividend Stocks

https://www.fool.com/investing/stock-market/types-of-stocks/dividend-stocks/how-to-invest-in-dividend-stocks/

New Academy of Finance, List of Free Dividend Resources

https://newacademyoffinance.com/free-dividend-resources/

Five inflation-shield stocks to purchase for income provide paths for profiting amid Russia’s President Vladimir Putin ordering his troops to attack neighboring Ukraine, the highest inflation in 40-plus years, the Fed’s plan for further interest rate increases to slow price hikes and a rocketing national debt that has zoomed to $30.49 trillion.

The need for inflation protection is shown by a 7% surge in the Consumer Price Index (CPI) 2021, jumping to an annual rate of 8.5% in March before dipping slightly to 8.3% in April. The U.S. Bureau of Labor Statistics (BLS) reported that the biggest contributors to seasonally adjusted inflation in April came from indexes for shelter, food, airline fares and new vehicles.

The energy index leaped 30.3% in the past year, while energy commodities zoomed 44.71% during the past 12 months. The food index rose 9.4% to mark the largest 12-month increase since the end of April 1981. From March to April 2022, the food index increased 0.9%, while the food at home index added 1.0% for the same month, the BLS reported.

Five Inflation-Shield Stocks to Purchase for Income as EU Cuts Import of Russia’s Oil

The 27-nation European Union voted on Tuesday, May 31, to remove 90% of its Russian crude oil imports in 2022 to limit funds that could be used to sustain the nation’s ongoing attack of Ukraine. The vote exempted Hungary, the Czech Republic and Slovakia, as well as oil delivered by pipeline rather than ships.

To pressure Putin to withdraw his troops from Ukraine, Russia’s invasion spurred economic sanctions to be placed on it by an inter-governmental political forum known as the Group of Seven (G7), consisting of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States, as well as the European Union and other countries that include South Korea and Australia. Since Russia is a significant producer of oil, natural gas, grain and other exports, the sanctions are aimed at swaying Putin to stop using his country’s military might and soldiers in violation of international law to thus far take control of one-fifth of Ukraine’s territory in the first 100 days of its attack that is estimated to have killed tens of thousands of civilians.

Commodity prices for products such as oil, natural gas and grains have risen since Russia’s Feb. 24 invasion of Ukraine that Putin, a former KGB officer who is seasoned in “disinformation” campaigns, has called a “special military operation” rather than announcing that he had started a war that would cause major economic disruption to his country. Nonetheless, the actions of Russian troops have included the shelling of hospitals, schools, residential areas, churches, nuclear power plants, oil refineries and a theater used as a shelter, along with reports of brutally raping, torturing and executing Ukrainian civilians.

Those acts caused leaders such as Ukraine’s President Volodymyr Zelenskyy, U.S. President Joe Biden, U.K. Prime Minister Boris Johnson, France’s President Emmanuel Macron and European Commission President Ursula von der Leyen to accuse Putin of war crimes. The UN General Assembly adopted a resolution on Thursday, April 7, calling for Russia’s suspension from the body’s Human Rights Council.

Even German President Frank-Walter Steinmeier, who previously had close ties with Russia’s leaders, said Putin and his Foreign Minister Sergey Lavrov should face a war crimes tribunal. President Steinmeier added that the invasion “shocks” him, as Putin risks the “total political, economic and moral ruin” of his country in an act of “imperial madness.”

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Five Inflation-Shield Stocks to Purchase for Income as Oil Prices Climb

Even though the United States ranks as the world’s top oil producer, Russia and Saudi Arabia following closely behind. With Russia providing roughly 10% of the world’s oil, the price of WTI Crude climbed to $116.68 per barrel by Friday morning, June 3, following the EU’s May 31 vote to cut 90% of its Russian crude oil imports in 2022. For American oil users, the average price of regular gas hit a record $4.76 per gallon on June 3, rising 15 cents from $4.61 a week ago, on top of a 56.51% jump in the past year.

Investors can profit from the continuing rise of oil prices by purchasing shares of Houston-based Enterprise Products Partners (NYSE: EPD). The oil producer’s stock has soared more than 32.38% year to date through the close of trading on Thursday, June 2, to rank as the “best performer” during that time in the Forecasts & Strategies investment newsletter led by Mark Skousen, PhD.

Chart courtesy of www.stockcharts.com

Skousen, who also leads the Five Star TraderHome Run Trader, Fast Money Alert and TNT Trader services, recently served as a featured speaker at the Vancouver Resource Investment Conference, where he recommended oil as an investment, especially for those seeking inflation protection. I bought shares of Enterprise Products Partners shortly after the 2020 stock market crash to benefit from what I viewed as an inevitable recovery.

Mark Skousen, a descendant of Benjamin Franklin, meets with Paul Dykewicz.

The stock is projected to keep climbing along with oil prices as Russia continues waging war in eastern Ukraine and seizing control of additional land in the industrial Donbas region in a breach of international law. News reports quoted Mayor Oleksandr Striuk of the eastern Ukrainian city of Sievierodonetsk as saying Putin’s forces are advancing block by block amid heavy street fighting with artillery barrages that are threatening the lives of an estimated 13,000 civilians taking shelter there. The city had a pre-invasion population of more than 100,000 people.

EPD Headlines Five Inflation-Shield Stocks to Purchase for Income

Enterprise Products Partners is one of the largest publicly traded partnerships and a key North American provider of midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, refined products and petrochemicals. In addition, the company’s services include natural gas gathering, treating, processing, transportation and storage.

The company further provides NGL transportation, fractionation, storage and import and export terminals. It also offers crude oil gathering, transportation, storage and terminals, along with petrochemical and refined products transportation, storage and terminals, as well as a marine transportation business.

Many other oil and natural gas companies offer inflation protection, too. They range from large to small public companies.

Exxon Mobil Joins Five Inflation-Shield Stocks to Purchase for Income

Irving, Texas-based Exxon Mobil (NYSE: XOM), another inflation-protection stock, is one of the biggest producers of oil and natural gas worldwide. The ascent of the stock has slowed in the past week, but it still gained 1.07% during that time, 14.05% in the past month, 22.38% in the past three months, 62.49% so far in 2022 and 66.03% in the past year, prior to the market’s open on June 3.

Amid an ongoing bull market in oil, Exxon Mobil became a recommendation in the Fast Money Alert advisory service co-led by Skousen and Jim Woods. Exxon Mobil is one of the biggest and best large-cap energy companies in the world, they wrote to their subscribers.

Paul Dykewicz talks to Jim Woods, head of Bullseye Stock Trader, Successful Investing and Intelligence Report.

In 2021, Exxon Mobil, the world’s largest refiner, produced 2.3 million barrels of liquids and 8.5 billion cubic feet of natural gas per day. At the end of 2021, its reserves reached 18.5 billion barrels of oil equivalent, 66% of which were liquids. The company’s global refining capacity totals 4.6 million barrels of oil per day and ranks as one of the biggest manufacturers of commodity and specialty chemicals.

As oil prices have soared due to a combination of robust demand dynamics and constricted supply partly stemming from Russia’s invasion of Ukraine, Skousen and Woods wrote that the “smart money” is betting on higher energy prices. Even smarter, faster money is betting on XOM, they added.

Chart courtesy of www.stockcharts.com

Five Inflation-Shield Stocks to Purchase for Income Include Kayne Anderson Energy

Houston-based Kayne Anderson Energy Infrastructure Company (NYSE: KYN), a closed-ended stock mutual fund launched and managed by KA Fund Advisors, LLC., provides the largest payout of the five high-income inflation-shield investments to purchase. KYN offers a current dividend yield of 8.3% and is a recommendation of Bryan Perry, a high-income aficionado who is a veteran of Wall Street firms and the editor of the Cash Machine investment newsletter.

Chart courtesy of www.stockcharts.com

The plan that Perry shared with his subscribers is to use KYN to increase the weighting of the newsletter’s model portfolio to ride a secular transition to natural gas from coal at America’s largest electric utilities. The mutual fund provides exposure to the rising demand for exporting natural gas to Europe and Asia through liquified natural gas (LNG).

Paul Dykewicz interviews Bryan Perry, head of Cash Machine, at a MoneyShow.

KYN seeks to provide high after-tax total return with an emphasis on giving dividend payouts to its stockholders. The fund intends to invest at least 80% of its total assets in securities of energy infrastructure companies.

Its investment focus spans the spectrum of North American energy infrastructure companies engaged in traditional midstream energy, natural gas infrastructure, renewable infrastructure and utilities. Renewable infrastructure companies and utilities tend to have reduced volatility and correlation to the broader equity markets, contracted or regulated cash flows, multi-year growth visibility and attractive environmental, social and governance (ESG) characteristics.

Kayne Anderson MLP Investment Co. (NYSE: KYN) has jumped 3.44% in the last week, 7.72% in the past month, 11.06% in the past three months, 29.11% so far in 2022 and 24.93% in the past year, as of the close of trading on June 2.

BCC Gains Place with Five Inflation-Shield Stocks to Purchase

Woods, who also heads the High Velocity Options advisory service, along with the Successful Investing and Intelligence Report investment newsletters, added a new recommendation to his Bullseye Stock Trader advisory service that is involved in another commodity sector sweet spot: lumber and wood. He chose Boise Cascade Co. (NYSE: BCC), of Boise, Idaho.

Boise Cascade is a producer of engineered wood products (EWP) and plywood. The company operates in two segments, Wood Products and Building Materials Distribution.

The Wood Products segment manufactures EWP, consisting of laminated veneer lumber (LVL), I-joists and laminated beams. The Building Materials Distribution segment is engaged as a wholesaler of building materials.

Boise Cascade distributes plywood and lumber items, along with siding, doors, metal products, insulation and roofing, EWP and others. The company generates a majority of its revenue from the Building Materials Distribution segment.

Chart courtesy of www.stockcharts.com

Deere Plows Among Five Inflation-Shield Investments to Buy

Farm machinery company Deere (NYSE: DE), of Moline, Illinois, offers an inflation hedge in the agricultural field. The stock’s double-digit-percentage share price drop after it recently reported earnings offers a discounted entry opportunity, Connell said.

Michelle Connell, CEO, Portia Capital Management

Deere’s key issues are supply-related, since demand for agricultural equipment remains robust, especially by making machinery that is more environmentally friendly than its rivals, Connell continued. The company also has a feature that can block the operation of the machinery if it is stolen. That has prevented Deere machinery, pilfered from Ukraine during Russia’s invasion of the sovereign nation, from operating for the thieves who stole it.

Wall Street analysts expect Deere to have a better story and performance in the second half of 2022 and in full-year 2023, Connell counseled. Among her reasons:

-If the war in Ukraine continues, U.S. farmers will benefit from higher prices for their crops.

-Increased agricultural profits mean that that farmers and farming corporations will be more likely to buy large, expensive farm equipment.

Deere has fallen back since its recent high on April 20, so investors can purchase shares at reduced prices, despite a budding rebound, Connell continued.

Chart courtesy of www.stockcharts.com

Five Inflation-Shield Stocks to Purchase as Russians Raid Ukrainian Wheat

With significant producers of grain such as Russia and Ukraine not providing their usual supply amid Putin’s war, farm machinery may be aided by increased demand. European Commission President von der Leyen cautioned this week that Russia is weaponizing food supplies as prices of grain, cooking oil and other food commodities rise after the Putin-ordered invasion of Ukraine, one of the world’s largest wheat producers.

In the industrial part of Ukraine that Russia is occupying and attacking to seize additional land, Putin’s army is confiscating grain stocks and machinery, von der Leyen said. Russian warships in the Black Sea are blockading Ukrainian ships from exporting full loads of wheat and sunflower seeds, she added during a May 24 address at the World Economic Forum in Davos, Switzerland.

Russia is hoarding its own food exports as a form of blackmail by holding back supplies to increase global prices, or trading wheat in exchange for political support for its invasion of Ukraine, von der Leyen said. In effect, Russian leaders are using hunger and grain to wield power, she added.

Fledgling Dividend-paying ETF Merits Monitoring as Inflation-Protection Prospect 

The Harbor All-Weather Inflation Focus ETF (HGER), designed as a commodities futures exchange-traded fund (ETF) to hedge against inflation, is a recently launched fund that I learned about from Michelle Connell, a former portfolio manager who heads Dallas-based Portia Capital Management. The fund is sub-advised by Quantix Commodities LP, a commodities solution boutique firm of former senior Goldman Sachs traders.

HGER, intended to guard against the adverse effects of inflation, weighs multiple factors such as money supply, wage growth, supply chain constraints, surging demand for goods and chronic underinvestment in commodities. The ETF allows investors a way to protect themselves in an Inflationary environment by using commodity futures that have a proven record of providing diversification and a safe haven during rising prices.

In contrast, broad-based commodity indices are not designed with inflation protection as a targeted objective, according to HGER’s managers. To that end, Harbor All-Weather Inflation Focus ETF developed an inflationary hedging index with Quantix Commodities LP to help both institutional and retail investors pursue profits from rising consumer prices.

The ETF is worth considering at a time when the Consumer Price Index (CPI) has risen during the past year to levels not seen in recent history. Connell has been researching and monitoring the fledging fund as a possible inflation-protection strategy.

Chart courtesy of www.stockcharts.com

Supply Chains Should Recover as China Eases COVID-19 Curbs

China’s economic center of Shanghai faced renewed lockdowns of multiple neighborhoods on Thursday, June 2, just a day after city-wide restrictions were lifted. The quick reversal after the detection of seven new COVID-19 cases in the city’s Jing’an and Pudong districts shows that China’s stringent policy of seeking zero cases of the virus is hampering the financial hub’s return to business as usual.

Most of Shanghai’s 25 million residents now can leave their communities after the government lifted its two-month lockdown in the city this week but nearly 2 million people were still confined to their homes in areas that the government designated as “high risk.” Analysts had been forecasting that goods may start to flow normally again in the weeks and months ahead after the lifting of the lockdowns that affected an estimated 373 million people and roughly 40% of the country’s gross domestic product (GDP).

Disrupted supply chains are hindering the availability of products such as rice, oil and natural gas. Shanghai, home to the world’s largest port, has strained to unload cargo due to strict regulations that have caused shipping containers to stack up.

Some Shanghai residents posted videos online to complain about needing food during the lockdown, even though government officials tried to block such public expressions of frustration. Chinese authorities further drew public criticism for forcibly separating young children with COVID-19 from their parents in an attempt to stop the spread of the contagious subvariant of Omicron, BA.2. The variant also has caused new infections in European countries such as Germany, the Netherlands and Switzerland.

U.S. COVID Deaths Rise Past 1 Million

U.S. COVID-19 deaths have grown by more than 1,000 in the past few days to reach 1,008,045, as of Friday, June 3, according to Johns Hopkins University. Cases in the United States on that date hit 84,549,593, up more than 300,000 since May 31. America retains the dreaded distinction as the country with the highest numbers of COVID-19 deaths and cases.

COVID-19 deaths worldwide totaled 6,292,450 on June 3, rising more than 4,000 since May 31, according to Johns Hopkins. Cases across the globe have climbed to 530,982,578, up nearly 100,000 in the past few days.

Roughly 77.9% of the U.S. population, or 258,685,370, have obtained at least one dose of a COVID-19 vaccine, as of Thursday, June 2, the CDC reported. Fully vaccinated people total 221,406,167, or 66.7%, of America’s population, according to the CDC. The United States also has given at least one COVID-19 booster vaccine to 103.6 million people, up about 200,000 in the past few days.

Unclear is whether data released on May 24 about a high percentage of “long-haul” COVID patients enduring persistent symptoms may cause Medicare to relax requirements for seniors who contracted the virus to continue to receive physical therapy even if they need extra time to progress toward walking. The Northwestern Medicine Neuro COVID-19 Clinic found that most of the 52 patients monitored in its study reported “brain fog,” numbness or tingling, headaches, dizziness, blurred vision and fatigue, even 15 months after diagnoses of COVID-19.

The five inflation-shield stocks to purchase are intended to guard against rising prices and produce profitable exposure to equities. Despite the market’s volatility, the highest inflation in 40 years, the Fed’s plan for further interest rate hikes to limit price increases and rocketing federal deficits, investors still have viable ways to profit.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, Guru Focus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others. Call 202-677-4457 for multiple-book pricing.

Five high-income commodities investments to purchase offer protection against the unabated attack of Ukraine ordered by Russia’s President Vladimir Putin, the largest inflation in 40 years and Fed rate hikes that are expected to continue in 2022.

The five high-income commodities investments to purchase include those involved in oil and grain production that are proving to be in short supply with no relief in sight. Putin’s launch of what he called a “special military operation” to send Russian troops to invade Ukraine on Feb. 24 has disrupted the neighboring nation’s agricultural production, led to theft of the grain and imposed an ongoing blockade in the Black Sea to stop Ukrainian farmers from exporting their crops.

Crude oil inventories are down to a “dangerously low point” across Europe, North America and Organisation for Economic Co-operation and Development (OECD) Asia, while spare production capacity from OPEC+ nations slid to the lowest levels since April 2020, according to BofA Global Research. Inventories of petroleum products also have fallen to “precarious levels” for middle distillates and even gasoline as the peak U.S. driving season approaches this summer, the investment firm added.

Refined petroleum cracks — caused by the differences between crude oil and the prices of wholesale petroleum products such as gasoline — recently have “spiked to record levels,” contributing to volatility, BofA wrote. In addition, strategic oil barrels held by OECD governments already are low and likely to decline steeply going forward, leaving consumers exposed to future negative supply shocks, BofA predicted.

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Seasoned Wall Street Veteran Chooses KYN as One of Five High-Income Commodities to Purchase

Kayne Anderson Energy Infrastructure Company (NYSE: KYN), a Houston-based closed ended equity mutual fund launched and managed by KA Fund Advisors, LLC., provides the largest payout of the five high-income commodities investments to purchase. KYN offers a current dividend yield of 8.6% and is a recommendation of Bryan Perry, a high-income aficionado who is a veteran of Wall Street firms and the editor of the Cash Machine investment newsletter.

The plan that Perry shared with his subscribers is to use KYN to increase the weighting of the newsletter’s model portfolio to tap into a secular transition to natural gas from coal at America’s largest electric utilities. The mutual fund provides exposure to the rising demand for exporting natural gas to Europe and Asia through liquified natural gas (LNG).

KYN seeks to provide high after-tax total return with an emphasis on giving dividend payouts to its stockholders. The fund intends to invest at least 80% of its total assets in securities of energy infrastructure companies.

Its investment focus spans the spectrum of North American energy infrastructure companies engaged in traditional midstream energy, natural gas infrastructure, renewable infrastructure and utilities. Renewable infrastructure companies and utilities tend to have reduced volatility and correlation to the broader equity markets, contracted or regulated cash flows, multi-year growth visibility and attractive environmental, social and governance (ESG) characteristics.

Kayne Anderson MLP Investment Co. (NYSE: KYN) has jumped 1.54% in the last week, 3.71% in the past month, 11.89% in the past three months, 23.61% so far in 2022 and 24.04% in the past year, as of March 26.

Chart courtesy of www.stockcharts.com

Pension Fund Chairman Recommends Broad Dividend-paying Energy Fund

Bob Carlson, a pension fund chairman who also leads the Retirement Watch investment newsletter, currently is recommending New York’s Cohen & Steers MLP & Energy Opportunity Fund (MLOAX) in all the portfolios he detailed in his June 2022 issue.

Oil and natural gas should be good investments as Europe looks to reduce dependence on Russian exports, Carlson told me. Energy producers in the United States are seeking to boost cash flow and earnings, not maximize drilling expenses in the short run to increase output, he added.

Bob Carlson, who leads Retirement Watch, meets with Paul Dykewicz.

Good investment opportunities can be found with companies that provide the pipelines, storage facilities and other infrastructure to supply the world with oil, natural gas and other energy sources, Carlson continued.

“One of the attractive qualities of these investments is that their revenues are independent of the prices of the commodities,” Carlson counseled. “The firms charge fees for their services, and the fees often are adjusted for inflation. Their revenues and earnings depend on the volume of commodities passing through their facilities, not the price of the commodity.”

Key energy service companies provide total returns, aided by current income and price appreciation, through investments in energy-related master limited partnerships (MLPs) and securities of industry companies, Carlson pointed out. Those businesses are expected to derive at least 50% of their revenues or operating income from exploration, production, gathering, transportation, processing, storage, refining, distribution or marketing of natural gas, crude oil and other energy resources.

Chart courtesy of www.stockcharts.com

Cohen & Steers Fund Leads List of Five High-Income Commodities Investments to Purchase 

Cohen & Steers MLP & Energy Opportunity Fund recently held 55 positions and had 48.7% of its portfolio in the 10 largest positions. Top holdings of the fund included Enbridge (NYSE: ENB), Cheniere Energy (NYSEAMERICAN: LNG), Targa Resources Corp. (NYSE: TRGP), Oneok Inc. (NYSE: OKE), Williams Companies (NYSE: WMB) and Energy Transfer (NYSE: ET).

The fund has achieved strong returns since April 2020. In fact, it has been on an upward trajectory since the second half of December 2021.

“Crucially, oil prices have held up well even in the face of a slowing Chinese economy and widespread lockdowns,” according to BofA. “Given that most China indicators point to a major decline in mobility across the country, any improvement in the COVID-19 situation in large Chinese cities could send oil prices much higher.”

Exxon Mobil Earns Berth Among Five High-Income Commodities Investments to Purchase

Exxon Mobil Corp. (NYSE: XOM), of Irving, Texas, is another of the five high-income commodities investments to purchase. The oil and natural gas company has spiked 6.23% in the last week, 18.14% in the past month, 24.85% in the past three months, 60.25% so far in 2022 and 71.32% in the past year, as of March 26.

With a bull market currently underway in the oil patch, Exxon Mobil became a recent recommendation in the Fast Money Alert advisory service co-led by Mark Skousen, PhD, and Jim Woods. Exxon Mobile is one of the biggest and best, large-cap energy companies in the world.

In 2021, Exxon Mobil, the world’s largest refiner, produced 2.3 million barrels of liquids and 8.5 billion cubic feet of natural gas per day. At the end of 2021, its reserves reached 18.5 billion barrels of oil equivalent, 66% of which were liquids. The company’s global refining capacity totals 4.6 million barrels of oil per day and ranks as one of the largest manufacturers of commodity and specialty chemicals.

Another plus is that oil prices have soared due to a combination of robust demand dynamics and constricted supply caused in part by the war between Russia and Ukraine, Skousen and Woods wrote in their May 2 issue of Fast Money Alert. With no end in sight to Russia’s ongoing invasion of adjacent Ukraine, the “smart money” is betting on higher energy prices, and the even smarter, faster money is betting on XOM, they added.

Chart courtesy of www.stockcharts.com

Skousen Selects EPD of One of the Five High-Income Commodities Investments to Purchase

Oil has done much better lately as an inflation hedge than gold, said Mark Skousen, who is recommending Enterprise Products Partners (NYSE: EPD) in his Forecasts & Strategies investment newsletter. Houston-based Enterprise Products Partners has jumped more than up 28.92% year to date and ranks as the newsletter’s “best performer” so far in 2022, Skousen added.

Skousen, who also leads the Five Star Trader, Home Run Trader and TNT Trader services, recently was a featured speaker at the Vancouver Resource Investment Conference and recommended oil as an investment, especially for those seeking inflation protection.

The company is one of the largest publicly traded partnerships and a key North American provider of midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, refined products and petrochemicals. In addition, the company’s services include natural gas gathering, treating, processing, transportation and storage.

Plus, Enterprise Products Partners provides NGL transportation, fractionation, storage and import and export terminals. It further offers crude oil gathering, transportation, storage and terminals, along with petrochemical and refined products transportation, storage and terminals, as well as a marine transportation business.

Mark Skousen, head of Forecasts & Strategies, meets with Paul Dykewicz.

I personally have owned Enterprise Products Partners since shortly after the 2020 stock market crash when I purchased the stock as it started to recover. The stock has been trending upward since the end of 2021 and is projected to keep climbing as oil prices remain high or even rise further with Russia waging its war in Ukraine and seizing control of additional land in that nation’s eastern region in violation of international law. Russia in facing economic sanctions from the 27-nation European Union (EU), the United Kingdom, the United States, Canada, Japan, South Korea, Australia and other countries to pressure Putin to withdraw his troops from Ukraine.

Putin’s actions have caused so many civilian deaths and injuries that U.S. President Joe Biden, U.K. Prime Minister Boris Johnson and key European Union leaders have accused the Russian leader of “war crimes.” Indeed, the International Criminal Court in the Netherlands is obtaining evidence of potential war crimes in Ukraine ordered by Putin, but Russia does not recognize the tribunal’s jurisdiction.

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Chart courtesy of www.stockcharts.com

Money Manager Picks One of Five High-Income Commodities Investments to Purchase

Michelle Connell, a seasoned investment professional, told me that she likes farm machinery company Deere (NYSE: DE) to profit from agriculture. A former portfolio manager, Connell now serves as president of Dallas-based Portia Capital Management, said she still favors Deere despite its 14% drop after it reported results last week.

Michelle Connell, CEO, Portia Capital Management

Deere’s key issues are supply-related, since demand for agricultural equipment remains strong, especially for the company’s machinery that is more environmentally friendly than its rivals, Connell continued. The company also provides the farming industry with autonomous equipment, Connell added.

Wall Street analysts expect Deere to have a better story and performance in the second half of 2022 and in full-year 2023. Connell cited the following to support her recommendation of Deere:

-More than half its revenues come from large agriculture.

-If the war in Ukraine continues, U.S. farmers will benefit from higher prices for their crops.

-Increased agricultural profits mean that that farmers and farming corporations will be more likely to buy large, expensive farm equipment.

Deere has fallen back since its recent high on April 20, so investors should be able to purchase shares at reduced prices, Connell continued. It already has been rebounding in the past week.

Chart courtesy of www.stockcharts.com

Supply Chains May Improve as China Starts to Lower COVID Curbs

As China has started to relax its COVID-19 restrictions, the country may allow goods produced there to start flowing normally again in the weeks ahead. China’s lockdowns have affected an estimated 373 million people, including roughly 40% of its gross domestic product (GDP). Disrupted supply chains have affected products such as rice, oil and natural gas.

Shanghai, home to the world’s largest port and 25 million residents, has strained to unload cargo due to strict regulations that have caused shipping containers to stack up. Some Shanghai residents posted videos online to complain about a lack of food, even though government officials tried to block such public expressions of frustration.

Chinese authorities also drew criticism for forcibly separating young children with COVID-19 from their parents to in trying to stop the spread of a new, contagious subvariant of Omicron, BA.2. The variant also has been causing new infections in European nations such as Germany, the Netherlands and Switzerland.

U.S. COVID Deaths Rise Past 1-Million Threshold

U.S. COVID-19 deaths crossed the 1-million threshold last week and have jumped further to 1,004,121 as of May 27, according to Johns Hopkins University. Cases in the United States, as of that date, hit 83,837,114. America holds the dubious distinction as the country with the highest numbers of COVID-19 deaths and cases since the global pandemic began.

COVID-19 deaths worldwide totaled 6,284,534 on May 27, according to Johns Hopkins. Cases across the globe have climbed to 527,841,016.

Roughly 77.8% of the U.S. population, or 258,562,059, have obtained at least one dose of a COVID-19 vaccine, as of May 26, the CDC reported. Fully vaccinated people total 221,128,528, or 66.6%, of America’s population, according to the CDC. The United States also has given at least one COVID-19 booster vaccine to 103.1 million people, up roughly 500,000 in the past week.

New data on so-called “long-haul” COVID patients released on May 24 reported that even though some symptoms improve others may persist, according to Chicago’s Northwestern Medicine Neuro COVID-19 Clinic. Most of the 52 patients included in the Northwestern study reported “brain fog,” numbness or tingling, headache, dizziness, blurred vision and fatigue, even 15 months after initial diagnoses of COVID-19.

The five high-income commodities investments to purchase are intended to profit from rising energy and grain prices. Despite the market’s volatility, the highest inflation in 40 years, the Fed’s plan for further interest rate hikes to curb price hikes and increasing federal deficits, investors are finding profitable opportunities in energy and grains.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, Guru Focus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others. Call 202-677-4457 for multiple-book pricing.

 

Five natural gas investments to purchase for income and capital appreciation offer ways to dodge the worst effects of Russia’s invasion of bordering Ukraine as many countries either are banning or looking to trim their use of energy provided by the attacking nation.

The five natural gas investments to buy as energy prices climb offer opportunities to tap into growing demand for alternatives to energy sources that previously had been provided by Russia before it incurred economic sanctions for its invasion of Ukraine. The United States is among many countries that have chosen to stop importing Russia’s oil and natural gas, while Germany and other countries that lack immediate access to substitute sources of energy are seeking to scale back those imports that are funding a war against Ukraine initiated on Feb. 24 by Russia’s President Vladimir Putin, whose troops have shelled hospitals, schools, nuclear power plants, residential areas, churches, oil refineries and a theater used as a shelter.

U.S. natural gas prices have rocketed higher since mid-March by rising more than $4/MMBtu to $8.80/MMBtu. The latter level of production is the highest since 2008, according to a recent report by BofA Global Research. MMBtu, a standard unit of measurement for natural gas financial contracts, equals one million British Thermal Units.

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U.S. Drilling Restrictions Contribute to Rising Energy Prices

President Joe Biden “aggravated the energy shortage” last week by canceling three oil & gas leasing sales in the Gulf of Mexico and off the coast of Alaska, removing millions of acres from possible drilling amid record-high gas prices, wrote Mark Skousen, PhD, to subscribers of his Forecasts & Strategies investment newsletter.

Not surprisingly, crude oil recovered after that move and is now back to $110 a barrel, boosting the share price for Houston-based pipeline and energy storage company Enterprise Products Partners (NYSE: EPD) to 52-week highs, wrote Skousen, a descendant of Benjamin Franklin. Aside from leading the Forecasts & Strategies newsletter, he also heads the Five Star Trader, Home Run Trader, TNT Trader and Fast Money Alert services.

EPD, offering a dividend yield of more than 7%, has been a stellar stock recommendation for Skousen during 2022 by rising more than 25.41% through Thursday, May 19. In contrast, the S&P 500 and the Dow Jones Industrial Average have plunged 18.16% and 13.99% during that time.

Mark Skousen, head of Forecasts & Strategies, meets with Paul Dykewicz in Philadelphia.

EPD Leads Five Natural Gas Investments to Purchase for Income and Capital Appreciation

Enterprise Products Partners is a large publicly traded partnership and a key North American provider of midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, refined products and petrochemicals. The company’s services include natural gas gathering, treating, processing, transportation and storage.

In addition, Enterprise Products Partners provides NGL transportation, fractionation, storage and import and export terminals. It further engages in crude oil gathering, transportation, storage and terminals, along with petrochemical and refined products transportation, storage and terminals, as well as a marine transportation business.

I bought shares in Enterprise Products Partners shortly after the 2020 stock market crash when the stock began to rebound after the initial shock of the COVID-19 pandemic. At the market’s close on May 19, the stock had gained 2.78% for the past week, 1.29% for the last month, 15.26% for the past three months, 25.41% so far in 2022 and 18.95% for the last year.

Chart courtesy of www.stockcharts.com

XOM Makes List of Five Natural Gas Investments to Purchase for Income

Irving, Texas-based Exxon Mobil Corp. (NYSE: XOM) zoomed during its time as a recommendation in the Cash Machine newsletter between July 2021 and May 17, 2022, providing investors with exposure to liquefied natural gas (LNG), oil refining and strong returns. The company ranks as the world’s second-largest supplier of natural gas and jumped about 55% since its addition to the newsletter’s Safe Haven Portfolio.

Perry, leader of the Cash Machine investment newsletter, also heads the Premium Income, Quick Income Trader, Hi-Tech Trader and Breakout Options Alert advisory services, and explained he recommended the stock’s sale when the company’s dividend yield dipped below his 4% limit. With tight energy supply, Perry predicted XOM’s share price would remain well fueled by investors seeking an alternative to the sagging stock market so far in 2022, even if Exxon Mobil no longer fit his requirement for a high-yield dividend stock.

Paul Dykewicz interviews Bryan Perry, whose services include Quick Income Trader.

Exxon Mobil reported strong first-quarter adjusted earnings of $8.8 billion, up from $2.8 billion for the same period a year ago. Adjusted earnings excluded a $3.4 billion after-tax impairment charge stemming from Exxon Mobil’s Russia Sakhalin-1 operation, which the company intends to exit. Its earnings barely missed meeting analysts’ consensus estimates.

XOM has continued to shine amid the market’s slid. The company’s share price has soared 5.46% during the past week, 3.37% in the last month, 18.32% in the past three months, 51.02% thus far in 2022 and 55.82% for the last year.

Chart courtesy of www.stockcharts.com

Pension Fund Chief Provides a Pick for the Five Natural Gas Investments to Purchase for Income

Bob Carlson, a pension fund chairman who also heads the Retirement Watch investment newsletter, recommended the Cohen & Steers MLP & Energy Opportunity Fund (MLOAX) to all the portfolios in his latest issue.

“Natural gas should continue to be a good investment, as long as Europe is looking for ways to reduce dependence on Russia,” Carlson counseled. “In addition, the natural gas drillers in the U.S. are focused on increasing cash flow and earnings. They’re not inclined to maximize drilling expenses in the short run to increase output.”

Bob Carlson, who leads Retirement Watch, meets with columnist and author Paul Dykewicz.

Good investment opportunities exist through companies that provide the pipelines, storage facilities and other infrastructure needed to supply customers with natural gas and other energy sources, Carlson continued.

“One of the attractive qualities of these investments is that their revenues are independent of the prices of the commodities,” Carlson told me. “The firms charge fees for their services, and the fees often are adjusted for inflation. Their revenues and earnings depend on the volume of commodities passing through their facilities, not the price of the commodity.”

“Leading” energy service companies provide total returns, aided by current income and price appreciation, through investments in energy-related master limited partnerships (MLPs) and securities of industry companies, Carlson said. Those businesses are expected to derive at least 50% of their revenues or operating income from exploration, production, gathering, transportation, processing, storage, refining, distribution or marketing of natural gas, crude oil and other energy resources, he added.

Chart courtesy of www.stockcharts.com

Cohen & Steers Fund Finds Place Among Five Natural Gas Investments to Purchase for Income 

The Cohen & Steers MLP & Energy Opportunity Fund recently held 53 positions and had 50% of the fund in the 10 largest positions. Top holdings of the fund were Enbridge (NYSE: ENB), Cheniere Energy (NYSEAMERICAN: LNG), Williams Companies (NYSE: WMB), TC Energy (NYSE: TRP) and Energy Transfer (NYSE: ET).

The fund has notched strong returns since April 2020. It is up 3.20% in the last week after dipping 2.89% in the past month. It also rose 13.47% in the last three months, 20.73% so far in 2022 and 29.08% in the last year.

Connell Chooses Two of Five Natural Gas Investments to Purchase for Income

U.S. LNG inventory is currently below its five-year average for this time of year by double-digit percentages, said Michelle Connell, CFA, president and owner of Portia Capital Management, of Dallas, Texas. A key issue for the U.S. LNG industry is that production of the energy source has never been profitable on its own, but it is as a byproduct of oil production, she added.

“There isn’t enough oil being produced,” Connell said. “Currently, only 11.6 million barrels/day are being produced. Pre-pandemic, we produced 13 million barrels/day.”

Rather than invest to expand capacity, oil companies have been focusing on hiking their dividends, Connell continued. If they pivot, these companies face a backlash from investors who could sell their shares, Connell added.

“Their market value could get crushed,” Connell said.

Former portfolio manager Michelle Connell, CEO, Portia Capital Management

EOG Resources Joins List of Five Natural Gas Investments to Purchase for Income 

LNG companies cannot step up production quickly, Connell cautioned. It takes oil companies a minimum of six to eight months to increase their oil and LNG production, Connell counseled.

Production of oil via shale recently created the largest share of the America’s natural gas reserves, Connell continued. Unfortunately for proponents of increasing output to meet soaring demand, shale production has “decreased exponentially” since the pandemic began and the buildup of LNG reserves has declined, Connell explained.

However, Houston-based EOG Resources Inc. (NYSE: EOG) is producing substantial amounts of oil via shale, and thus considerable LNG. The company’s Chief Executive Officer Ezra Yacob called its recent financial results “outstanding” and said 2021 was a “tremendous year” for EOG with record earnings, record free cash flow and return of cash to shareholders that places it among industry leaders.

Income investors will appreciate that the company’s long-standing focus on free cash flow led to payment of another $1.00 per share special dividend, while also strengthening its balance sheet.

Chart courtesy of www.stockcharts.com

Reasons why Connell likes EOG include:

-Wall Street analysts at investment firms Wells Fargo and Raymond James continue to increase their future earnings estimates and target prices, despite the company’s strong performance of advancing more than 40% so far in 2022;

-Based on its fundamentals, the stock may have another 25% of 12-month upside;

-Its relatively new gas resource in the Gulf Coast could provide additional potential and cash flow for the company;

-Strong cash flow gains are expected for the foreseeable future, powering annualized cash flow growth in excess of 25% per year.

EOG Resources is up 1.06% in the past week and down 0.60% in the last month, after rising 11.39% during the past three months, 40.81% so far in 2022 and 55.36% in the past year.

Pioneer Natural Resources May Be Worth Purchasing After a Share Price Pullback 

Pioneer Natural Resources Co. (NYSE: PXD), a hydrocarbon exploration company headquartered in Irving, Texas, has soared in recent weeks, causing Connell to reconsider her recommendation of the stock due to its increased share price. The company has a market capitalization of $61.72 billion, offers a dividend and has never missed paying a dividend, she added.

In addition, Pioneer Natural Resources has produced an earnings yield of 3.25%, an adjusted cash earnings yield of 7.48% and a five-year average return on equity of 6.61%, Connell said. At the end of 2021, Pioneer Natural Resources had compiled 2.22 billion barrels of oil equivalent, with 44% of its proved reserves from petroleum, 30% natural gas liquid and 16% natural gas.

At PXD’s current price, Connell no longer calls it a buy, but she still spoke positively about the company. The stock has jumped 8.55% in the past week, 5.61% in the last month, 17.77% for the past three months, 51.12% so far this year and 77.51 in the past 12 months.

Chart courtesy of www.stockcharts.com

Supply Chains Woes May Subside as China Lowers COVID Curbs

China has begun to ease its COVID-19 restrictions during the past week, potentially signaling goods produced in that country may start to flow normally again in the weeks ahead to smooth out supply chain snags. Lockdowns in China have affected at least 373 million people, including roughly 40% of the country’s gross domestic product (GDP). Worldwide supply chain disruptions have slowed the delivery of products such as rice, oil and natural gas.

Shanghai, home to the world’s largest port and 25 million residents, has strained to unload cargo due to strict regulations that have caused shipping containers to stack up. Some Shanghai residents posted videos online to complain about needing food. Government officials sought to block dissemination of such expressions of frustration.

Chinese authorities also drew public scorn for forcibly separating young children with COVID-19 from their parents. The country’s leaders prioritized stopping the spread of a new, contagious subvariant of Omicron, BA.2. The variant also has been causing new infections in European nations such as Germany, the Netherlands and Switzerland.

Russia’s sustained attack of Ukraine not only has caused massive destruction but a humanitarian crisis in which the United Nation estimates more than 12 million people in the embattled country have fled their homes since Putin ordered the attack to begin on Feb. 24. That timing coincided with peak  COVID-19 cases in Ukraine from the Omicron variant of the virus. Poland has accepted 3,418,077 refugees who have fled Ukraine to escape Putin’s war through May 17, according to the United Nations, with Romania ranking a distant second by becoming a safe haven for 937,082 people seeking to escape the onslaught of Russian troops.

President Biden, U.K. Prime Minister Boris Johnson and others have called for the investigation and potential prosecution of Russian troops and their leaders for war crimes of rape, torture and outright executions of Ukrainian civilians. The United States, the United Kingdom, the European Union, Canada, Japan, Australia, South Korea and many other countries have united to place economic sanctions on Russia in response to Putin’s brutal treatment of his neighboring nation, violation its sovereign borders and more than 10,000 alleged war crimes against its people.

U.S. COVID Deaths Surmount 1-Million Milestone

U.S. COVID-19 deaths topped 1 million, with the number of lives claimed by the virus reaching 1,001,609 as of May 19, according to Johns Hopkins University. Cases in the United States, also as of May 19, hit 83,060,963. America retains the dubious distinction as the nation with the most COVID-19 deaths and cases.

COVID-19 deaths worldwide totaled 6,273,201 on May 19, according to Johns Hopkins, with cases across the globe numbering 523,949,956.

Roughly 77.7% of the U.S. population, or 258,074,668, have obtained at least one dose of a COVID-19 vaccine, as of May 19, the CDC reported. Fully vaccinated people total 220,811,434 or 66.5% of the U.S. population, according to the CDC. America also has provided at least one COVID-19 booster vaccine to 102.5 million people.

New York City Reaches “High” COVID-19 Alert; Mask Wearing Encouraged by Its Officials

New York City leaders reported reaching a “high” COVID-19 alert, indicating a growing spread in the area that is straining the health care system. The city’s health department urged people to wear high-quality masks in public, indoor settings and crowded outdoor gatherings.

Roughly 40% of people in the northeastern United States are in counties considered to have high levels of COVID-19 cases. To promote COVID-19 testing, the Biden administration opened CovidTests.gov for a third round of orders on May 18, with White House officials calling for Congress to approve additional funding to fight the virus.

U.S. households now can order an additional eight “free” COVID testing kits to use at home. COVIDTests.gov has increased the total number of tests available to each household for free to 16 since the start of the program, White House officials said.

The five natural gas investments to purchase offer an opportunity to profit from rising energy prices. The market’s drop earlier this week reduced valuations of many positions and any further pullbacks may give investors a chance to buy natural gas investments at less lofty valuations as hedges against the growing risks of inflation, of the Fed’s plan for further interest rate hikes to combat climbing consumer and producer prices and of increased federal deficit spending.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, Guru Focus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others. Call 202-677-4457 for multiple-book pricing.

Seven farming investments to purchase for income investors to reap robust returns seem to be strong choices even as Russia’s President Vladimir Putin keeps ordering new attacks against Ukraine and its people who are putting up staunch resistance.

The seven farming investments to purchase feature stocks and broad commodity funds that offer investors multiple catalysts. Key reasons for purchasing agricultural stocks and funds are that grain and oilseed prices are rising.

Global grain and oilseed markets were tight heading into 2022, and the Putin’s war in Ukraine has caused a decreased supply, according to a recent report from BofA Global Research. Since the start of 2022, Chicago Board of Trade (CBOT)  wheat prices nearly doubled from $7.80 per bushel to $14.25 before settling back down to $11.67.

The U.S. Department of Agriculture released its latest World Agriculture Supply and Demand Estimates (WASDE) report on May 12, offering initial projections for the industry marketing year 2022/23. The report trimmed the outlook for global wheat production by 3.6 million metric tons (MMT) MT to 774.8 MMT. Reduced supply is projected from Ukraine, Argentina and Australia, while increases were forecast for Canada, Russia and the United States.

Global consumption is projected at 787.5 MMT, while the U.S farm gate price is forecast to be 65% higher than the same time a year ago, according to U.S. Wheat Associates.

Meanwhile, corn prices have climbed past $8.08 per bushel, an increase of more than 30% so far this year, while soybean prices have rallied more than 30%, reached $17.40 per bushel late last month and traded at $17.23 per bushel on May 13. The three commodities repriced significantly higher, reflecting the likelihood of prolonged disruptions to Ukraine’s agriculture exports and concerns about rising input costs, as well as fertilizer shortages. While prices look high from a historical perspective, tight fundamentals likely will boost spot prices, according to BofA.

Seven Farming Investments to Purchase Amid Fertilizer Shortages

Ukraine grain and oilseed shipments have reportedly fallen more than 80% from approximately 5-6mn mt per month in 2020-21 to roughly 1mn mt per month recently, BofA wrote in a recent research note. These lost exports, if annualized, equate to about 10 days of world food supply, BofA added.

“Fuel, fertilizer and seed shortages, and Russian military presence could disrupt Ukraine’s spring planting and wheat crop harvest this summer, which could lead to sustained shortfalls,” BofA warned. “Drought in U.S., Canada and China has the potential to further add to the tightness, especially for wheat.”

Buyers have leaned on other places to source grain, but ultimately the world has less food than before the war, BofA cautioned. If supply shortfalls outside Ukraine materialize, more food security measures may be needed, push prices even higher and hit emerging market economies the hardest.

Seven Farming Investments to Purchase Navigate 300% Fertilizer Price Hike

Global fertilizer prices have zoomed at least 300% since 2020 due to soaring energy costs, economic sanctions and hoarding, BofA wrote. The fertilizer price spike added about $1 per bushel and $0.60 per bushel to corn and soybean costs, respectively. Many farmers pay the increase, while others could opt to cut their use of fertilizer and risk reduced yield.

“Estimating the impact of lower fertilizer use on crop yields is a challenge due to limited data and other factors affecting yields, but there is a positive relationship between fertilizer use on agricultural lands and cereal crop yields,” BofA wrote.

Click here for a free two-week trial of Stock Rover.

Seven Farming Investments to Purchase for Income Aided by Economic Sanctions Triggered by Putin

The shelling of hospitals, schools, residential areas, churches, nuclear power plants, oil refineries and a theater used as a shelter became a precursor to brutal rapes, torture and outright executions of Ukrainian civilians that caused many countries to put sanctions on Russia. The sanctions include scaling back or severing ties with Russia as a producer of grain, oil and natural gas.

Russia’s loss directly from Putin’s invasion are leading to potential gains for Western oil companies that are trying to fill the void for European and other customers seeking to wean themselves away from buying Russian commodities that are helping to fund the war against Ukraine. As an old adage goes, there always is a bull market somewhere. One of the newest is in agriculture.

Fertilizer Stocks Are Among Seven Farming Investments to Purchase for Income

Fertilizer manufacturers appear most likely to profit from Russia’s attack against Ukraine, said Bryan Perry, head of the Cash Machine investment newsletter, as well as the Premium Income, Quick Income Trader, Hi-Tech Trader and Breakout Options Alert advisory services. While there may be “demand destruction” in energy markets, there will not be in the global food supply and demand curves, he added.

Paul Dykewicz interviews Bryan Perry, who leads the high-income Cash Machine newsletter.

Wheat, corn and soybean prices jumped upon the full revelation of the Russian attack of Ukraine, Perry continued. One of the biggest winners from pure demand and sanctions will be CF Industries Holdings, Inc. (NYSE: CF), a manufacturer and distributor of agricultural fertilizers that include ammonia. The company, based in the Chicago suburb of Deerfield, Illinois, is facing increased distribution costs, particularly for transportation.

Plus, the cost of producing nitrogen fertilizers is highly dependent on the cost of natural gas, which is the principal raw material and primary fuel source used in ammonia production at the company’s manufacturing facilities. For many producers globally, more than 70% of the total cost to produce ammonia is from the cost of natural gas.

The cost of natural gas varies significantly between geographic locations. For example, European customers may see their burden grow, since natural gas prices there have been surging.

Chart courtesy of www.stockcharts.com

Seven Farming Investments to Purchase for Income Include Nutrien

Nutrien Ltd. (NYSE: NTR), a Canadian fertilizer company based in Saskatoon, Saskatchewan, is the largest producer of potash and the third-largest producer of nitrogen fertilizer in the world. The company’s interim chief executive Ken Seitz said Nutrien will boost potash production if supply problems worsen in Russia and Belarus, the world’s second- and third-largest potash-producing countries after Canada.

The economic sanctions imposed by the United States, the European Union and others against Russia may hurt the country’s exports of natural gas, potash and nitrogen. Belarus, a puppet state of Russia, has joined the invasion of Ukraine and must adjust to economic sanctions that have restricted its potash exports.

The decision by Putin to wage war against Ukraine further has raised concerns about wheat, corn and vegetable oil supply problems in the Black Sea region. The result is sharply rising world prices for these agricultural products.

Chart courtesy of www.stockcharts.com

CVR Partners Joins Seven Farming Investments to Purchase

CVR Partners LP (NYSE: UAN), of Sugar Land, Texas, makes and provides nitrogen fertilizer products as a subsidiary of Coffeyville Resources, a unit of CVR Energy Inc. UAN is another of Perry’s four farming picks. Income investors should appreciate the stock’s 9.2% dividend yield.

The company’s nitrogen fertilizer manufacturing facility includes a 1,300-ton-per-day ammonia unit, a 3,000 ton-per-day urea ammonium nitrate (UAN) unit and a dual-train gasifier complex that can produce 89 million standard cubic feet of hydrogen per day. The UAN solution, produced by combining urea, nitric acid and ammonia, is a liquid fertilizer product with a nitrogen content ranging between 28% and 32%.

UAN can be applied more uniformly than non-liquid forms of fertilizer. The solution also can be mixed with herbicides, pesticides and other nutrients to let farmers cut costs by applying several materials simultaneously rather than making separate applications.

Chart courtesy of www.stockcharts.com

Mosaic Ranks Among Seven Farming Investments to Purchase for Income

The fourth farming investment favored by Perry is Mosaic Company (NYSE: MOS), a Fortune 500 company headquartered in Tampa, Florida, mines phosphate and potash and urea. The largest U.S. producer of potash and phosphate fertilizer, Mosaic operates through segments such as international distribution and Mosaic Fertilizantes.

Russia is a major producer of potash, a key crop nutrient used in farming production. Mosaic reported solid earnings on Feb. 22 that were in line with expectations.

Mosaic’s year-over-year earnings per share (EPS) growth rose about 242%. In addition, pricing pressure in the industry caused by less supply from Russia has lifted the share price of MOS.

Chart courtesy of www.stockcharts.com

Money Manager Picks One of Seven Farming Investments to Purchase for Income

A seasoned investment professional who favors farming machinery company Deere (NYSE: DE) is Michelle Connell, a former portfolio manager and the current president of Dallas-based Portia Capital Management.

Michelle Connell, CEO, Portia Capital Management

The rationale for recommending Deere, Connell said, includes:

-More than half its revenues come from large agriculture.

-If the war in Ukraine continues, U.S. farmers will benefit from higher prices for their crops.

-Higher farm profits mean that that farmers and farming corporations will be more likely to buy large expensive farm equipment.

Deere has fallen back more than 15% from its recent high on April 20, so investors might find its current price to be a good entry point, Connell continued.

Chart courtesy of www.stockcharts.com

KROP Becomes the Final of Seven Farming Investments to Buy

Global X AgTech & Food Innovation ETF (NASDAQ: KROP) looks interesting as a possible buy, Connell continued. KROP is an agricultural technology ETF.

KROP holds companies that focus on ecological ways of feeding the world, Connell commented. The fund has done well this year, but several of its individual holdings have retreated with the market sell-off, she added.

However, KROP might be a less risky way to invest in these innovative companies, Connell mentioned.`

A few key holdings of KROP include:

  • Nutrien, the world’s largest fertilizer producer; and
  • Corteva, a spin-off from Dupont that focuses on the development of seeds that are more pest and weather-resistant, while using more environmentally friendly crop chemicals.

Chart courtesy of www.stockcharts.com

Pension Head Picks MOO as One of the Seven Farming Investments to Buy

Investors should weight the purchase of the ETF VanEck Agribusiness (MOO), said Bob Carlson, a pension fund chairman who also leads the Retirement Watch investment newsletter. The fund, which I personally have owned for years, seeks to track the MVIS Global Agribusiness Index. The index is composed of companies that generate at least 50% of their revenues from agrichemicals, animal health and fertilizers, seeds and traits, farm/irrigation equipment, farm machinery, aquaculture, fishing, livestock and more.

Bob Carlson, who leads Retirement Watch, meets with Paul Dykewicz.

MOO’s largest holdings recently included Deere & Co. (NYSE: DE), Nutrien (NYSE: NTR), Bayer (OTCMKTS: BAYRY), Zoetis (NYSE: ZTS) and Archer-Daniels Midland (NYSE: ADM). The ETF owns more than 50 stocks and has nearly 60% of its holdings in its 10 largest positions.

Income investors cannot be blamed if they lack excitement about MOO’s almost non-existent dividend. With a dividend per share of just 0.02%, Stock Rover shows the yield as 0.00%.

Chart courtesy of www.stockcharts.com

Supply Chains at Risk as China Tightens COVID Restrictions Further

China risks a “tsunami” of COVID-19 infections and an estimated 1.6 million deaths if its government abandons its 0% policy and allows the highly-infectious omicron variant to spread unrestrained, according to researchers at Shanghai’s Fudan University. Shanghai is tightening its COVID-19 restrictions again after fleetingly easing them, frustrating residents who had hoped more than a month-long lockdown was on the verge of scaling back. However, new cases occurred in the city’s financial center. Also this week, authorities suspended service on the city’s last two subway lines that still had been operating. The shutdown idled the city’s entire subway system.

The lockdowns in China have affected at least 373 million people, including roughly 40% of the country’s gross domestic product (GDP). A key effect is continued disruption of the world’s supply chain for products, such as rice and oil.

Most of Shanghai’s 25 million residents remain in lockdown, with Chinese military and additional health workers assisting in the response. Shanghai, home to the world’s largest port, has been unable to keep up with unloading cargo due to strict regulations that have caused shipping containers to stack up.

Some frustrated Shanghai residents have taken videos that went viral to show residents yelling from high-rise buildings about needing food. But government officials are trying to crack down on the posting of such expressions of discontent.

Also in China, young children with COVID-19 have been separated forcibly from their parents by authorities, who have sparked public discord, as Chinese leaders seek to stop the spread of the latest contagious subvariant of Omicron, BA.2. The variant also is causing new infections in European nations such as Germany, the Netherlands and Switzerland.

U.S. COVID Near 1 Million 

As the U.S. COVID-19 deaths topped 1 million this week, a report indicated a rising proportion of COVID-19 deaths are occurring among vaccinated people. U.S. COVID-19 cases, as of May 13, hit 82,401,197, with deaths rising to 999,470. America still has the dubious distinction as the country totaling the most COVID-19 cases and deaths.

COVID-19 deaths worldwide exceeded 6.26 million to total 6,261,872 on May 13, according to Johns Hopkins University. Cases across the globe have jumped to 520,451,021.

As of May 13, 257,738,565 people, or 77.6% of the U.S. population, have obtained at least one dose of a COVID-19 vaccine, the CDC reported. Fully vaccinated people total 220,502,022 or 66.4% of the U.S. population, according to the CDC. America also has topped a key milestone by giving a COVID-19 booster vaccine to 102.1 million people.

The seven farming investments to purchase for income investors to reap returns are fortified by rising food prices. Investors may find price drops in farming stocks and funds lately offer discounts to purchase shares at reduced prices.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, Guru Focus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others. Call 202-677-4457 for multiple-book pricing.

The best dividend stock nobody is talking about is an undervalued, high-dividend chemical company poised to grow at an exponential rate.

The company we’re talking about is Westlake Chemical (NYSE:WLKP), of Houston. Westlake Chemical operates primarily in the United States and uses its operating interests through Westlake Chemical OpCo. Through OpCo, the company invests in and acquires ethylene production facilities, which it uses to convert ethane into usable ethylene.

In addition to ethylene, OpCo also sells propylene, crude butadiene, hydrogen and pyrolysis gasoline to Westlake and other United States companies.

Shown below is its price over a trailing one-year period

Chart generated using Stock Rover.

The Best Dividend Stock Nobody is Talking About has Strong Upward Momentum

Momentum indicators indicate WLKP is oversold and trading at a meaningful discount. We can uncover this by checking out the moving average convergence divergence (MACD).

Chart generated using Stock Rover.

If you’re not familiar with MACD, here’s a brief explanation:

We can calculate MACD by subtracting the 26-period exponential moving average (EMA) — a trading indicator that determines when to enter and exit positions for short-term trades — from a shorter 12-period EMA. Comparing these two moving averages of the same security can give us insight as to where the stock price will go next.

The resulting line is the MACD line, shown in dark blue above. Then, a nine-day EMA of the MACD is plotted on top of the line, and can be used as a trigger for buy and sell signals. Traders may buy the underlying security when the MACD crosses above the signal line (then resulting in positive divergence, shown in orange) and sell when the MACD crosses below the signal line (resulting in negative divergence).

High divergence means a price increase is possible. Low divergence means it is more likely to drop than go up. In the case of this MACD chart, we see positive divergence as the MACD line crosses over the signal line, indicating the bullish tendencies of WLKP are strengthening and it may be a good time to buy.

To see more momentum data, you can generate plenty of technical charts like this through a free trial with Stock Rover.

The Best Dividend Stock Nobody is Talking About is More Profitable than Industry Norms

With a gross profit margin of 36.4% — among other high markers — WLKP is considered more profitable than 84% of other publicly traded companies. Its gross margin is 35.8% higher than the industry average of 26.8%, and this sharp difference continues further when we analyze operating margin.

Chart generated using Stock Rover.

Although the industry average is favorable in net margin and return on assets, the return on equity is considerably higher, and return on invested capital (ROIC) is approximately the same.

The Best Dividend Stock Nobody is Talking About Pays a Consistent, High Dividend

Westlake Chemical has paid out a dividend every quarter since it began dividend distribution at the end of 2014. It currently pays $0.47 per quarter, annualizing to $1.89 distributed for each share. This, with the current share price of WLKP, means the company is consistently maintaining a dividend yield of 6.9%.

Shown below is the historical dividend yield for the entire history of WLKP’s dividend.

Chart generated using Stock Rover.

For nearly all of its time paying dividends, Westlake Chemical has kept its yield above 5%, an impressive feat. It is also worth noting that the current high dividend yield of 6.9% is surprisingly low for what the company typically delivers.

With an average dividend growth rate of 6.4% over the last 5 years, Westlake Chemical’s dividend payments — and its dividend yield — are likely to grow. It could become a massive payer in the savvy dividend investor’s portfolio.

Chart generated using Stock Rover.

The Best Dividend Stock Nobody is Talking About Has Fallen in Price

In both dividend distributions and profitability, Westlake Chemical is excelling, either reaching or surpassing its already high historical expectations. These expectations remain high for valuation metrics, but despite the price being low, several of these metrics indicate WLKP is a better value than it has ever been.

To visualize this clearly, we can use an analytical tool affectionately called the “Football Field.”

Chart generated using Stock Rover.

The Football Field is a graphic representation of historic values in several metrics. It plots the historical range of WLKP metrics over the trailing one-year period, then plots the current values relative to where they have been in the last year. In general, we hope to see the centerline (current values) in the green.

The company’s enterprise value / earnings before interest, taxes, depreciation and amortization (EV/EBITDA) is incredibly favorable right now, alongside its price-to-earnings ratio (P/E ratio) and its price-to-sale ratio (PS ratio). While price to free cash flow ratio (P/FCF) appears high at 2.9, compare this to the industry average of 12.0 and the S&P 500 average of 23.6. Although WLKP may not be as undervalued as it has been historically, the ultimately low P/FCF points to a significant and current undervaluation.

Investors interested in the historical range of WLKP’s P/E ratio can refer to the chart below. The red indicates a yearly maximum, while the green indicates a yearly minimum. The blue line is the actual trailing value.

Chart generated using Stock Rover.

Due to all of these indicators, we believe WLKP may be undervalued by as much as 35%, and expect it to rise to $36.00 as the market catches up.

The Best Dividend Stock Nobody is Talking About is Undervalued and Largely Undiscovered

With growth potential like this while still maintaining an absurdly high dividend, investors have the potential to make a major profit off Westlake Chemical. Yet, even though the stock seems to promise high returns, there is always some risk involved. Use a disciplined sell strategy and be sure to diversify one’s portfolio with other assets as well.

Jonathan Wolfgram is an investment analyst who writes website content at Eagle Financial Publications. He graduated from the University of Minnesota with Bachelor’s degrees in Finance and Philosophy. Jonathan writes for www.DividendInvestor.com and www.StockInvestor.com.

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