My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age.

I want to help you take control of your life, have F.I.R.E.

And the platform allows writers to share one article once a week free of charge. So, I like to share them with all my current & future subscribers. (see below).

Inflation rose slightly from February by 0.2% to 3.3%. With oil prices higher because of the war with Iran, this shouldn’t be a surprise. If it continues, investors should expect inflation to trend higher in the coming months.

One way to position your portfolio for inflation is by owning quality, higher yielding stocks. In this week’s article of the week I discuss two high-yielding funds and why you should consider them for your portfolio.

Let me know what you think of the article in the comments!

Happy Investing!

If you’re looking to start investing check out our investment group over on Seeking Alpha.

Here’s How: Click the Seeking Alpha link here. Click investing group, subscribe now, or the blue hyperlink in my bio.

☎️ If you’re looking to create passive income and build your wealth from one of the top-rated analysts, book a call (Let’s Talk Investing or Detailed Portfolio Review) with me to get started.

For educational purposes only. Not financial advice. I am not a licensed professional. Please do your own due diligence.

My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age.

I want to help you take control of your life, have F.I.R.E.

Here at Dividend Collection Agency the goal is to give investors and/or readers a different perspective. We take a simple approach to building wealth. And although investing may seem easy, people often miss opportunities by over complicating it.

But we are here to help.

Current Price: $899.49

Dividend/Yield: $18.00/1.98%

One of the largest financial institutions, The Goldman Sachs Group, Inc. (GS), reported Q1 earnings and delivered what I would consider a solid — but not flawless — quarter.

The company beat on both the top and bottom line. However, the market reaction was muted, with shares pulling back slightly following the release.

In my opinion, this has less to do with the results themselves — and more to do with the macro backdrop.

Ongoing geopolitical uncertainty, particularly the stalled negotiations between the U.S. and Iran, continues to weigh on investor sentiment. If tensions persist, Goldman Sachs could face elevated volatility, potentially leading to near-term underperformance after a strong rally over the past year.

In this article, I break down Goldman’s latest earnings, what’s working, what’s not — and why I still maintain a Buy rating, despite a cautious outlook for 2026.

Previous Buy Rating — And What’s Changed 🎰

I last looked into Goldman Sachs in January, maintaining a bullish stance following strong fundamentals and capital returns.

Since then, the stock has underperformed — down over 9% compared to the S&P 500 (SP500), which has declined roughly 2% over the same period.

That said, I previously warned that the stock’s sharp rally created downside risk, especially as it approached Wall Street price targets near $893.

Q1 Earnings: Strong On The Surface 📝

Goldman Sachs delivered an impressive Q1:

    •    EPS: $17.55 (beat by $1.16)

    •    Revenue: $17.23 billion (beat by ~$300 million)

    •    EPS growth: +23% YoY

    •    Revenue growth: +14% YoY

For context, peer JPMorgan Chase & Co. (JPM) is expected to deliver far more modest growth this quarter.

The standout performer was Goldman’s Global Banking & Markets division, which saw:

    •    +22% revenue growth quarter-over-quarter

    •    +19% growth year-over-year

This signals continued strength in dealmaking and capital markets activity.

But Here’s The Problem: Early Signs Of Weakness ‼️

Despite the strong headline numbers, there are cracks forming beneath the surface.

1. Asset & Wealth Management Slowing

    •    Revenue declined from ~$4.7B → ~$4.1B QoQ

    •    Suggests softer client activity and potential pressure on asset values

2. Rising Credit Loss Provisions

    •    Increased from $287M → $315M

    •    Indicates growing stress in lending markets

3. Platform Segment Weakness

    •    Year-over-year decline driven by markdowns tied to the Apple Inc. (AAPL) card portfolio transition to JPM

4. Net Investment Income Miss

    •    $3.56B vs. $3.67B expected

    •    Down from $3.71B in Q4

Put simply — the core business is still strong, but macro pressures are starting to show up in the numbers.

Macro Risks Are Rising ⚠️

This is where things get more complicated.

We’re seeing a combination of:

    •    Persistent inflation

    •    Higher-for-longer interest rates

    •    Rising geopolitical tensions

    •    Early signs of consumer and business stress

If the Iran conflict continues and energy prices remain elevated, inflation could stay sticky — increasing the risk of a broader economic slowdown.

For banks, that typically means:

    •    Higher credit losses

    •    Slower loan growth

    •    Increased risk-weighted assets

All of which could weigh on earnings.

Balance Sheet Remains Elite ⚖️

Despite the concerns, Goldman Sachs’ balance sheet is still top-tier.

    •    CET1 ratio: 12.5% (down from 14.3%, but still strong)

    •    Well above the Federal Reserve requirement of 4.5%

The decline was driven by:

    •    Increased lending/risk exposure

    •    Aggressive share buybacks

This is something to monitor, but not a red flag — at least not yet.

Capital Returns Still Strong 💵

Goldman continues to reward shareholders aggressively:

    •    Buybacks: $5 billion

    •    Dividends: $1.38 billion

    •    Total returned: $6.38 billion

With net earnings at $5.63 billion, dividend coverage remains solid.

Bottom line: The dividend appears safe, even in a volatile environment.

Valuation & Long-Term Outlook ↗️

Currently, Goldman Sachs trades at:

    •    Forward P/E: ~15.5x

    •    Above its 5-year average (~10.5x)

However, I believe that historical average is somewhat skewed due to:

    •    Pandemic distortions

    •    Rapid rate hikes

Compared to peers like Morgan Stanley (MS) and Citigroup Inc. (C), Goldman is fairly valued — if not slightly premium.

My Thesis Still Stands:

    •    GS can re-rate toward 20x earnings

    •    Driven by earnings growth + macro stabilization

Price Targets:

    •    Near-term (2026): $850–$900 range

    •    2–3 year outlook: $1,000+ per share

But timing matters.

If you’re looking for a stock analyzer tool that gives you future price targets based on historical data, use my code to get 25% off of FAST Graphs, my go-to the stock analyzer tool for research.

Bottom Line ✅

Goldman Sachs delivered a strong quarter — no question.

But the market is forward-looking.

And right now, the biggest risk isn’t Goldman’s execution — it’s the macro environment.

If geopolitical tensions persist and inflation remains elevated:

    •    Volatility will likely increase

    •    Financials could underperform

That said…

For long-term investors with a 2–3 year horizon, this looks like an opportunity — not a reason to panic.

With:

    •    Strong earnings growth

    •    A top-tier balance sheet

    •    Aggressive capital returns

I continue to rate The Goldman Sachs Group, Inc. a Buy.

Do you agree with my buy rating? Let me know in the comments.

Happy Investing!

☎️ If you’re looking to create passive income and build your wealth from one of the top-rated analysts, book a call (Let’s Talk Investing or Detailed Portfolio Review) with me to get started.

If you’re looking to start investing check out our investment group over on Seeking Alpha.

Here’s How: Click the Seeking Alpha link here. Click investing group, subscribe now, or the blue hyperlink in my bio.

Not financial advice. For educational purposes only. I am not a licensed professional. Do your own due diligence.

My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age.

I want to help you take control of your life, have F.I.R.E.

Here at Dividend Collection Agency the goal is to give investors and/or readers a different perspective. We take a simple approach to building wealth. And although investing may seem easy, people often miss opportunities by over complicating it.

But we are here to help.

Current Price: $18.43

Dividend/Yield: $0.46/ 10%

Right now is one of the more interesting environments I’ve seen in a while as an income-focused investor.

On one hand, volatility has picked up, uncertainty is rising, and macro risks continue to build. On the other hand, that same volatility is finally creating better entry points across income-producing assets—something we didn’t have much of in 2024 and early 2025.

But as always, it’s important to remember: with higher reward often comes higher risk.

And that’s exactly how I’m approaching today’s market.

While I do think there are opportunities starting to emerge, I’m still being selective. I’m not rushing back into every high-yield name just because prices have come down. Instead, I’m focusing on quality first—and valuation second.

That brings me to the BDC sector (BIZD).

Why I’ve Been Cautious on BDCs ⚠️

If you’ve followed me for a while, then you already know I’ve been cautious on Business Development Companies for some time now.

In fact, I exited all of my BDC positions back in early 2025. At the time, my thinking was simple:

    •    Interest rates had likely peaked

    •    BDC earnings were near a cyclical high

    •    And forward returns looked less attractive

Since then, that thesis has largely played out.

But now we have a new variable in the equation: geopolitical risk.

The ongoing war with Iran has added another layer of uncertainty to the market. While this doesn’t directly impact BDCs in the way it might impact energy or defense stocks, the indirect effects are what matter most.

Wars tend to be inflationary. Inflation complicates the Federal Reserve’s policy decisions. And when the Fed is stuck between fighting inflation and supporting growth, the result is often economic instability.

That instability is where the risk comes in for BDCs.

Because at the end of the day, BDCs lend to businesses—many of which are smaller, leveraged, and more vulnerable during economic downturns.

So while higher rates can support income, they can also increase default risk.

That’s the balancing act.

Revisiting Sixth Street Specialty Lending (TSLX) 📝

I last looked into TSLX about six months ago. At the time, I acknowledged the company’s strong fundamentals, but I remained cautious due to sector-wide headwinds.

Specifically, I was concerned about their heavy exposure to floating-rate loans. With over 96% of their portfolio tied to floating rates, a decline in base rates was almost guaranteed to pressure earnings.

And that’s exactly what we’ve seen.

Since then, TSLX has underperformed, declining more than 25%, while the broader market—as represented by the S&P 500 (SP500)—has remained relatively flat.

But here’s where things start to shift.

Despite that underperformance, the core of the business has remained intact.

Breaking Down the Latest Earnings 💵

Looking at TSLX’s most recent results, we see a company that is clearly feeling the impact of lower rates—but not breaking under the pressure.

Net investment income came in at $0.52 per share, down slightly from the prior quarter and down more meaningfully year-over-year. That decline was expected given the rate environment.

For the full year, NII declined from $2.33 to $2.18. On the surface, that might look concerning, but context matters.

Even with that decline, TSLX still generated enough income to comfortably cover its dividend.

The company paid out $1.99 in dividends, resulting in coverage of roughly 113%. That’s a very healthy margin, especially in a declining rate environment.

From an income investor’s perspective, this is exactly what you want to see:

    •    Earnings may fluctuate

    •    But the dividend remains supported

That said, not everything was perfect.

One area that stood out to me was the sequential decline in total investment income. Revenue dropped slightly quarter-over-quarter, and investment activity slowed compared to the prior year.

Commitments and funding were both down meaningfully on a year-over-year basis. While some of that can be attributed to a more cautious lending environment, it still signals slower growth.

And over time, growth matters.

Portfolio Trends & Credit Quality 📊

Another area I always focus on when analyzing BDCs is portfolio quality.

This is where TSLX continues to separate itself from many peers.

Non-accruals remain below 1%, which tells us that the vast majority of borrowers are still performing. Additionally, the company continues to focus heavily on first-lien loans, which sit at the top of the capital structure and offer greater protection.

However, there are some subtle shifts worth watching.

The company’s NAV declined slightly both quarter-over-quarter and year-over-year. While not alarming on its own, consistent NAV erosion can sometimes signal underlying pressure in the portfolio.

For comparison, peers like Ares Capital (ARCC) and Capital Southwest (CSWC) have shown more stability—or even growth—in their NAV over the same period.

That doesn’t mean TSLX is in trouble. But it does reinforce the idea that this is not a risk-free environment.

If economic conditions worsen, we could see:

    •    Higher non-accruals

    •    Increased risk ratings

    •    Pressure on earnings

For now, though, those risks remain manageable.

A Strong Balance Sheet Provides Flexibility ⚖️

One of the biggest reasons I’m comfortable revisiting TSLX is its balance sheet.

The company is operating with a debt-to-equity ratio of 1.10x, which is below the sector average. That gives management room to maneuver if conditions tighten.

Liquidity is also strong, with over $1.1 billion in available capacity. Near-term debt maturities are limited, and the next major maturity after August isn’t until 2028.

That level of flexibility matters more than ever in today’s environment.

It allows the company to:

    •    Maintain dividend stability

    •    Take advantage of new opportunities

    •    Navigate potential downturns

Valuation Has Finally Reset

Perhaps the most important shift—and the reason for my upgrade—is valuation.

Historically, TSLX has traded at a significant premium to NAV, often exceeding 20%. At one point, the stock traded at nearly 1.45x NAV.

Today, that premium has compressed to roughly 5–8%.

That’s a major change.

And it’s what transforms TSLX from a “wait and see” name into a potential buying opportunity.

You’re now getting:

    •    The same high-quality platform

    •    The same disciplined underwriting

    •    But at a much more reasonable price

Bottom Line

I want to be clear—I’m still cautious on the BDC sector overall.

There are real risks in this market:

    •    Ongoing geopolitical tensions

    •    Inflation uncertainty

    •    Rising recession probabilities

And BDCs, by nature, are more sensitive to economic stress.

But investing isn’t about avoiding risk altogether. It’s about being compensated for the risk you take.

With TSLX, I believe you are.

A ~10% yield, supported by strong coverage and a solid balance sheet, combined with a significantly reduced premium, creates a much more balanced risk/reward profile.

This is a classic case of:

👉 Quality name + better price = opportunity

Not a “load the boat” moment.

Not a “no-brainer” buy.

But a disciplined, income-focused entry point.

If you’re building an income portfolio, this is the type of position that makes sense to start—or slowly add to.

Because at the end of the day:

You’re getting paid to wait.

Let me know in the comments.

Happy Investing!

☎️ If you’re looking to create passive income and build your wealth from one of the top-rated analysts, book a call (Let’s Talk Investing or Detailed Portfolio Review) with me to get started.

If you’re looking to start investing check out our investment group over on Seeking Alpha.

Here’s How: Click the Seeking Alpha link here. Click investing group, subscribe now, or the blue hyperlink in my bio.

Not financial advice. For educational purposes only. I am not a licensed professional. Do your own due diligence.

My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age.

I want to help you take control of your life, have F.I.R.E.

Here at Dividend Collection Agency the goal is to give investors and/or readers a different perspective. We take a simple approach to building wealth. And although investing may seem easy, people often miss opportunities by over complicating it.

But we are here to help.

Current Price: $57.49

At the time of writing, markets are pushing higher as investors begin to assume that the ongoing conflict with Iran is nearing an end. This shift in sentiment has helped fuel a short-term rally across equities after weeks of volatility.

However, I’m not fully convinced.

In my opinion, the market may be underestimating the likelihood of continued tension. Geopolitical conflicts rarely resolve quickly, and if negotiations stall, we could see another wave of volatility hit risk assets.

For long-term investors, though, this is where opportunity begins to show up.

Tech Weakness Is Creating Opportunity 💻

The recent pullback has been led by Technology (XLK) — the same sector that carried markets in 2025.

    •    Tech (XLK) is down double digits YTD

    •   Nasdaq (NDAQ) is down ~13%

    •   S&P 500 (VOO) is down ~6%

Meanwhile, dividend-heavy funds like Schwab U.S. Dividend Equity ETF (SCHD) have held up well due to Energy (XLE) exposure benefiting from the war.

But markets rotate.

What’s outperforming today isn’t always what leads tomorrow.

Why FDVV Stands Out 🎯

One ETF that looks increasingly attractive after the pullback is the Fidelity High Dividend ETF (FDVV).

After the recent correction:

    •    💰 Yield has moved above 3%

    •    📉 Price sits around $55 (vs. $60 highs)

    •    ⚖️ Less severe drawdown vs. pure tech funds

What makes FDVV compelling is its structure. It’s not just chasing yield — it’s combining income with growth exposure, which is exactly what many investors are missing.

Built Different: Growth + Income 🧩

FDVV’s portfolio is designed to balance offense and defense.

    •    💻 ~24% Technology exposure (growth driver)

    •    🏦 Financials for income stability

    •    🛍️ Consumer sectors for resilience

    •    🌍 International exposure for diversification

Top holdings include:

    •    NVIDIA Corporation (NVDA)

    •    Apple Inc. (AAPL)

    •    Microsoft Corporation (MSFT)

    •    The Coca-Cola Company (KO)

    •    Procter & Gamble (PG)

    •    McDonald’s Corporation (MCD)

This mix helps limit downside while still giving exposure to long-term growth trends like AI.

Rebalance: A Long-Term Bet 🔄

FDVV recently made a bold move by removing Energy exposure (~9%).

Short term, that may look like bad timing given Energy’s rally.

Long term, I think it’s intentional.

    •    ❌ Reduced reliance on cyclical Energy

    •    📈 Increased focus on sustainable dividend growth

    •    🌍 Maintained global diversification

This is a portfolio built for where the market is going — not where it’s been.

Income That’s Actually Growing 💰

FDVV isn’t just about yield — it’s about growth in that income.

    •    📈 Latest distribution: $0.44/share

    •    🚀 ~18% year-over-year growth

    •    💵 Yield: ~3.07%

Comparison to Schwab U.S. Dividend Equity ETF:

    •    Yield: ~3.46%

    •    Expense ratio advantage (0.06% vs 0.15%)

    •    Better tax efficiency

But here’s the trade-off:

FDVV offers faster dividend growth + more upside potential

The AI Tailwind 🤖

FDVV’s performance over the last few years has been driven by its exposure to Technology.

    •    2025 return: ~17%

    •    Outperformed SCHD in recent years

    •    Benefited from AI-driven market leadership

Looking ahead, I don’t see AI slowing down anytime soon. Capital spending in AI is still in the early innings, and FDVV is positioned right in the middle of it.

FDVV vs SCHD (Simple Breakdown) ⚖️

FDVV:

    •    More growth exposure

    •    Faster dividend growth

    •    Slightly lower yield

SCHD:

    •    Higher yield

    •    More defensive

    •    Better cost + tax efficiency

Best move? Use both together for a balanced income strategy.

Risks to Keep in Mind ⚠️

Let’s not ignore the downside.

    • Prolonged Iran conflict → market volatility

    • Continued tech weakness

    • Potential recession scenario

If markets pull back further, FDVV could underperform in the short term.

But long term?

👉 That’s where opportunity tends to show up.

Bottom Line ✅

While markets are currently pricing in a resolution to geopolitical tensions, I remain cautious. Volatility is likely to stick around, and we could see more downside before things stabilize.

That said, this environment is exactly where long-term investors should be paying attention.

FDVV offers:

    •    ✔️ A growing income stream

    •    ✔️ Exposure to long-term tech trends

    •    ✔️ A balanced, diversified portfolio

And after the recent pullback, it’s starting to look a lot more attractive. FDVV looks like a core holding candidate for investors who want both income and upside.

Would you put FDDV in your portfolio? Let me know in the comments.

Happy Investing!

☎️ If you’re looking to create passive income and build your wealth from one of the top-rated analysts, book a call (Let’s Talk Investing or Detailed Portfolio Review) with me to get started.

If you’re looking to start investing check out our investment group over on Seeking Alpha.

Here’s How: Click the Seeking Alpha link here. Click investing group, subscribe now, or the blue hyperlink in my bio.

Not financial advice. For educational purposes only. I am not a licensed professional. Do your own due diligence.

I want to help you take control of your life, have F.I.R.E.

Here at Dividend Collection Agency the goal is to give investors and/or readers a different perspective.

We take a simple approach to building wealth. And although investing may seem easy, people often miss opportunities by over complicating it.

But we are here to help.

As we head into another data-heavy week, investors will be watching closely as the Federal Reserve delivers its final round of commentary before entering the pre-meeting “quiet period” ahead of the April 29th FOMC decision.

With markets still digesting the recent oil price shock, the key question remains: Will inflation reaccelerate enough to shift the Fed’s outlook on rate cuts?

Inflation Back in Focus 🧘🏾‍♂️

The main event this week comes on TUESDAY with the March Producer Price Index (PPI) report.

Expectations are pointing to a notable reacceleration:

    •    Headline PPI: +4.6% YoY (highest since early 2023)

    •    Core PPI: +4.2% YoY (three-year high)

After last week’s CPI print showed clear signs of energy-driven inflation, this report will be critical in determining whether those pressures are beginning to bleed into broader parts of the economy.

If wholesale prices continue rising at this pace, it could signal that inflation is becoming more entrenched—something the Fed cannot ignore.

Housing Market Still Under Pressure 🏡

We’ll also get a fresh look at the housing market, with:

    •    Existing Home Sales (MONDAY)

    •    NAHB Homebuilder Sentiment (MONDAY)

Both reports are expected to reflect continued sluggish activity.

After briefly dipping below 6% in late February, mortgage rates have moved higher again, putting pressure on affordability. Despite limited housing supply, elevated borrowing costs are likely keeping buyers on the sidelines.

Labor Market: Holding the Line (For Now) ✋🏾

Labor data will continue to provide insight into the health of the economy:

    •    ADP Employment Change (TUESDAY)

    •    Weekly Jobless Claims (THURSDAY)

So far, the labor market has maintained its “low-hire, low-fire” dynamic—a sign of stability, but also one that suggests limited upside momentum.

This week’s data will help confirm whether that trend is still intact or beginning to crack under macro pressure.

Why It Matters ‼️

This week serves as a critical checkpoint before the Fed goes silent ahead of its next decision.

With inflation showing signs of reaccelerating—largely driven by energy—markets will be watching for any indication that:

    •    Rate cuts could be delayed

    •    Inflation risks are becoming more persistent

    •    The Fed may need to stay restrictive longer than expected

DCA Take 🫡

Uncertainty is rising again—and that’s not necessarily a bad thing.

For long-term investors, especially those focused on income and dividend growth, volatility continues to create opportunity.

If inflation remains elevated and the Fed stays cautious, we could see muted market returns in the near term—which reinforces the case for:

    •    Building income streams

    •    Staying disciplined

    •    Focusing on quality over quantity

Because at the end of the day:

You don’t need to time the market… you need to stay in it.

How do you think this week’s reports will affect the market? Let me know in the comments.

Happy Investing!

If you’re someone who looking to start investing and need help creating passive income to achieve financial freedom, check out our investment group iREIT+HOYA Capital over on Seeking Alpha.

Here’s How: Click the Seeking Alpha link here. Click investing group, subscribe now, or the blue hyperlink in my bio.

☎️ If you’re looking to create passive income and build your wealth from one of the top-rated analysts, book a call (Let’s Talk Investing or Detailed Portfolio Review) with me to get started.

My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age.

I want to help you take control of your life, have F.I.R.E.

And the platform allows writers to share one article once a week free of charge. So, I like to share them with all my current & future subscribers. (see below).

No one knows where inflation will end up in 2026. While we were on a downtrend in recent years despite the stubborness, the war with Iran could throw a wrench in the FED’s plans to lower interest rates.

At least for the near-term.

Higher oil prices will impact overall inflation, thus increasing the need for higher yielding investments. In this week’s article of the week, I highlight two, attractively-priced stocks that pay monthly with an average yield of 10%.

Let me know what you think of the article in the comments!

Happy Investing!

If you’re looking to start investing check out our investment group over on Seeking Alpha.

Here’s How: Click the Seeking Alpha link here. Click investing group, subscribe now, or the blue hyperlink in my bio.

☎️ If you’re looking to create passive income and build your wealth from one of the top-rated analysts, book a call (Let’s Talk Investing or Detailed Portfolio Review) with me to get started.

For educational purposes only. Not financial advice. I am not a licensed professional. Please do your own due diligence.

My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age.

I want to help you take control of your life, have F.I.R.E.

Here at Dividend Collection Agency the goal is to give investors and/or readers a different perspective. We take a simple approach to building wealth. And although investing may seem easy, people often miss opportunities by over complicating it.

But we are here to help.

Over the past month, uncertainty has continued to build around the ongoing conflict with Iran.

At one point, President Donald Trump suggested that Iran was “desperately” seeking a deal. Shortly after, reports surfaced disputing those claims. Since then, markets have been stuck trying to interpret conflicting signals — and that uncertainty is starting to impact everything from oil prices to rate expectations.

The longer this conflict drags on, the more pressure it puts on:

• Inflation

• Consumer spending

• Federal Reserve policy

• Overall market stability

And if tensions escalate further — especially involving the Strait of Hormuz — we could see even higher energy prices and increased recession risk heading into 2027.

Why 2026 Could Bring Muted Returns 📈

Despite strong trailing performance from the S&P 500 (SP500), Dow Jones Industrial Average (DJI), and Nasdaq Composite (NDAQ), the market has started to show signs of weakness this year.

Here’s what’s driving that shift:

• ⛽ Rising oil and gas prices

• 🌎 Increased geopolitical risk

• ⏳ Delayed or uncertain rate cuts

• 🧠 Weakening investor sentiment

Higher energy costs ripple through the entire economy — raising input costs, squeezing margins, and impacting consumers directly.

Even personally, I’ve felt it — choosing to drive my Tesla more often instead of my Camaro.

That may seem small, but it reflects a broader trend:

👉 Consumers are adjusting behavior.

And when that happens at scale, economic growth slows.

Why I’m Leaning Into Dividend Growth 💸

If we do enter a recession, markets will likely see volatility and potential downside.

But not all strategies perform the same.

Historically:

• Dividend stocks have shown less severe drawdowns

• Income helps offset price declines

• Dividend growth strategies tend to outperform over time

Early in my investing journey, I focused too heavily on yield:

• REITs like Real Estate Select Sector SPDR Fund (XLRE)

• BDCs like VanEck BDC Income ETF (BIZD)

The income was strong — but the lack of growth held my portfolio back.

Now?

👉 I focus on dividend growth + quality

What I’m Buying Right Now 🧾

During this recent volatility, I’ve been adding to two positions that I believe offer strong long-term upside.

#1 Visa Inc. — High-Quality Compounder 💳

Visa (V) continues to be one of the most consistent businesses in the market.

Even with recent underperformance, the long-term story remains intact.

What stands out:

• 💰 ~15% dividend CAGR (5-year)

• 🛡 Low payout ratio (~21%)

• 🏦 Strong balance sheet + liquidity

• 🔁 Ongoing share buybacks

Yes, a recession could slow transaction volumes.

But:

👉 Visa doesn’t need perfect conditions to grow.

Even in slower environments, I expect:

• 10–12% dividend growth

• Continued earnings expansion over time

My outlook:

• 🎯 Price target: $445 by 2028

• 📈 Upside: ~48%

• 📊 Near-term: Likely rangebound

#2 Otis Worldwide Corporation — Undervalued Opportunity 🛗

Otis (OTIS) is one of the most overlooked dividend growth names right now.

Shares have pulled back significantly — but that’s exactly what makes it attractive.

Why I’m buying:

• 📉 Trading below historical valuation (~18x vs ~24x avg)

• 📊 Solid earnings growth despite headwinds

• 💸 ~16% dividend CAGR since 2020

• 🔁 Consistent share buybacks

Current challenges:

• 🇨🇳 China weakness

• ⚖ Tariff-related uncertainty

• 📉 New Equipment segment pressure

But I view these as temporary.

My outlook:

• 🎯 Price target: $132.51 by 2028

• 📈 Upside: ~71%

• 💰 Yield now above historical average (~2%+)

Risks to Watch ⚠️

No matter how strong a company is, macro still matters.

For Visa:

• Lower consumer spending = fewer transactions

• Potential short-term earnings pressure

For Otis:

• Continued China weakness

• Slower growth in key segments

Both could see volatility if we enter a recession.

My Strategy Going Forward 📝

I’ve raised some cash — but I’m not sitting out.

Instead, I’m:

• ✅ Buying high-quality dividend growers

• ✅ Using volatility to accumulate

• ✅ Focusing on long-term income growth

• ✅ Balancing income + growth

Because at the end of the day:

👉 Volatility is temporary.

👉 Income is consistent.

👉 Compounding is powerful.

Bottom Line ✅

Markets may continue to struggle in the near term.

Geopolitical risks, rising energy prices, and shifting rate expectations are creating a challenging environment.

But for long-term investors? This is where opportunities are created.

Visa and Otis may face short-term pressure — but their long-term fundamentals remain strong.

Which stock are you picking up during this investing opportunity? Let me know in the comments.

Happy Investing!

☎️ If you’re looking to create passive income and build your wealth from one of the top-rated analysts, book a call (Let’s Talk Investing or Detailed Portfolio Review) with me to get started.

If you’re looking to start investing check out our investment group over on Seeking Alpha.

Here’s How: Click the Seeking Alpha link here. Click investing group, subscribe now, or the blue hyperlink in my bio.

Not financial advice. For educational purposes only. I am not a licensed professional. Do your own due diligence.

My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age.

I want to help you take control of your life, have F.I.R.E.

Here at Dividend Collection Agency the goal is to give investors and/or readers a different perspective. We take a simple approach to building wealth. And although investing may seem easy, people often miss opportunities by over complicating it.

But we are here to help.

As I write this, uncertainty surrounding the U.S. economy is building rapidly.

Coming into the year, I was bullish on the broader market—mainly driven by expectations for multiple interest rate cuts. Now, I’m not so sure.

But here’s the reality: in chaos comes opportunity.

And from where I sit, this may be one of the best environments in years to be an income-focused investor.

I’ve said this before and I’ll say it again:

👉 Every investor should have at least two portfolios.

👉 One of those should be 100% focused on income.

With the market likely facing muted returns in the near-to-medium term, income strategies can help bridge the gap—providing steady cash flow while the market figures itself out.

In this article, I’ll break down:

• Why uncertainty is rising

• Why income investing makes sense right now

• Two high-yield ETFs I believe are well-positioned

Uncertainty Is Rising ↗️

In 2025, despite ongoing concerns, the market held up well.

The S&P 500 (SP500) finished the year up over 16%, led primarily by strength in the Technology Select Sector SPDR Fund (XLK) thanks to AI enthusiasm.

But 2026 is telling a different story.

Through the first few months of the year, sentiment has shifted. The market is beginning to price in a reality that many may have overlooked:

👉 The economy may not be as strong as advertised.

Personally, I’ve felt this disconnect for a while—based on what I’ve seen from everyday Americans.

And looking ahead, things may get worse before they get better.

We’re now dealing with:

• Rising geopolitical tensions (including conflict with Iran)

• Higher oil prices following disruptions like the Strait of Hormuz

• Renewed inflation concerns

• Mortgage rates climbing again

All of this matters because it directly impacts Fed policy expectations.

If inflation stays sticky, rate cuts get pushed out.

If rate cuts get pushed out, markets struggle.

Translation: More volatility. Potentially lower returns.

Why Income Investing Makes Sense Now 💵

If we enter a period of:

• Sideways markets

• Increased volatility

• Slower economic growth

Then traditional “growth-only” strategies may struggle.

That’s where income investing shines.

Instead of relying purely on price appreciation, you:

• Generate consistent cash flow

• Reduce reliance on market timing

• Stay invested while still getting paid

In uncertain markets, cash flow = flexibility + peace of mind.

High-Yield Pick #1

The first fund I like is: Goldman Sachs S&P 500 Premium Income ETF (GPIX)

Current Price: $50.12

Current Yield: ~8.8%

Unlike some competitors, GPIX:

• Holds actual equities (not synthetic exposure)

Owns top-tier companies like:

• NVIDIA (NVDA)

• Apple (AAPL)

• Microsoft (MSFT)

• Amazon (AMZM)

• Meta Platforms (META)

Technology remains its largest exposure via Technology Select Sector SPDR Fund.

The Strategy Advantage:

GPIX uses a dynamic covered call strategy, selling options on only 25%–75% of its portfolio.

That’s key.

Compared to peers like NEOS S&P 500 High Income ETF (SPYI), which often overwrite nearly 100%:

✔ More upside participation in bull markets

✔ Still generates strong income in flat markets

✔ Better balance between growth + income

Why It Works Right Now 👍🏾

In sideways or volatile markets:

• Options premiums increase

• Income generation improves

And that’s exactly the type of market we may be entering.

Add in:

• Monthly distributions

• Lower expense ratio (0.35% vs ~0.68% peers)

And you get a strong long-term income vehicle.

High-Yield Pick #2

Next up is: Goldman Sachs Nasdaq-100 Premium Income ETF (GPIQ)

Current Price: $49.68

Current Yield: ~10.9%

What Makes It Different 📝

GPIQ tracks the Nasdaq-100 (NDX).

That means:

• Heavier tech exposure (~50%+)

• More concentration (≈100 holdings vs ~500 in GPIX)

It also leans more into:

• Communication services via Communication Services Select Sector SPDR Fund (XLC)

Same Strategy, Higher Income 💸

Like GPIX, GPIQ:

• Uses dynamic covered calls (25%–75%)

• Maintains upside exposure

• Generates strong income

Compared to peers:

• JPMorgan Nasdaq Equity Premium Income ETF (JEPQ)

• NEOS Nasdaq-100 High Income ETF (QQQI)

GPIQ has held up competitively while offering:

✔ Higher yield

✔ Lower expense ratio

✔ Stable distributions

Why These Two Stand Out 👏🏾

So why GPIX and GPIQ?

1. Smarter Covered Call Strategy

• Partial overwrite (not 100%)

• Better long-term balance

2. Lower Costs

• 0.35% expense ratio

• Less drag on returns

3. Tax Advantages

• Use Section 1256 contracts

• Favorable tax treatment

• High portion classified as return of capital

4. Built for This Market

• Thrive in flat/volatile conditions

• Generate income when growth stalls

Risks to Consider ⚠️

Let’s be clear—these aren’t risk-free.

If we see:

• A prolonged recession

• Severe market drawdowns

• Extended geopolitical conflict

👉 These funds will still decline.

High yields do not eliminate downside risk.

Bottom Line ✅

We’re entering a market environment where:

• Growth may slow

• Volatility may increase

• Returns may be harder to come by

That’s exactly where income strategies can shine.

GPIX and GPIQ won’t outperform in every scenario—but they are designed for the environment we’re likely heading into.

And if your goal is to:

✔ Generate consistent income

✔ Stay invested

✔ Reduce reliance on market timing

Then building (or adding to) an income-focused portfolio right now may be one of the smartest moves you can make.

What do you think of the two covered call ETFs? Let me know in the comments.

Happy Investing!

☎️ If you’re looking to create passive income and build your wealth from one of the top-rated analysts, book a call (Let’s Talk Investing or Detailed Portfolio Review) with me to get started.

If you’re looking to start investing check out our investment group over on Seeking Alpha.

Here’s How: Click the Seeking Alpha link here. Click investing group, subscribe now, or the blue hyperlink in my bio.

Not financial advice. For educational purposes only. I am not a licensed professional. Do your own due diligence.

My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age.

I want to help you take control of your life, have F.I.R.E.

Here at Dividend Collection Agency the goal is to give investors and/or readers a different perspective. We take a simple approach to building wealth. And although investing may seem easy, people often miss opportunities by over complicating it.

But we are here to help.

Current Price: $15.14

Dividend/Yield: $2.04 /14.3%

With the past few years dominated by inflation and interest rate volatility, demand for higher-yield investments has surged. Covered call funds have grabbed much of the spotlight — but one sector I’ve consistently favored is Business Development Companies (BDCs).

Historically, BDCs have carried a stigma. Because they lend to private — and sometimes financially stressed — businesses, many investors have avoided them as long-term holdings.

More recently, the sector has faced another headwind: what some are calling the “SaaSpocalypse.” With AI disrupting software businesses, BDCs with heavy exposure to the sector have seen increased volatility.

That’s where Trinity Capital (TRIN) stands out.

While TRIN does have exposure to software, it’s significantly lower than many peers. Combined with a strong loan structure and disciplined management, the company has been able to navigate a challenging macro environment far better than most.

And despite a yield now above 14% — a level that often signals risk — I don’t believe TRIN’s dividend is in danger.

In this article, I’ll break down:

• Recent earnings and performance

• Key fundamentals

• Why TRIN is now one of my top 5 BDCs

• And why I believe the dividend remains safe through 2026

Over The Last Year 🗓️

This time last year, I expected the sector — including TRIN — to potentially underperform despite attractive yields.

Since then:

• TRIN is down ~6%

• The S&P 500 (SP500) is up ~5%

Despite this relative underperformance, the business itself has executed extremely well.

Highlights include:

• AUM reaching $2 billion

• Dividend coverage at 106%

• Additional liquidity of $64.5 million

In short — the stock hasn’t moved much, but the fundamentals have improved.

Why TRIN Moved Into My Top 5 BDCs 🏅

While many of my top BDC picks have remained consistent, TRIN has climbed into the top tier based on execution alone.

1. Lower Software Exposure = Lower Risk

One of the biggest differentiators:

• Ares Capital (ARCC): ~24% software exposure

• FS KKR Capital Corp (FSK): ~16.4%

• Blue Owl Corporation (OBDC): ~11.1%

• TRIN: just 9.2%

In today’s environment, that matters.

Less exposure to a volatile sector has helped TRIN outperform peers that have seen sharper drawdowns.

2. Strong Earnings (Even in a Falling Rate Environment)

• NII: $0.52 (flat QoQ)

• Down from $0.58 YoY (due to lower rates)

But here’s what matters…

Total earnings grew:

• $34.6M → $39.9M YoY

• Full-year NII hit a record $144M ($2.08/share)

Revenue also climbed:

• +17.5% to $83M

This is why I focus on total growth — not just per-share figures.

3. Portfolio Growth + NAV Stability

• Portfolio: $1.7B → $2.4B

• Commitments: $2.1B

• Fundings: $1.5B (+21% YoY)

NAV also held steady:

• $13.35 → $13.42

That may not seem like much — but in this environment, stability is a sign of quality.

4. Superior Loan Structure (Underrated Advantage)

This is where TRIN really separates itself. Most of their loans include interest rate floors.

Translation:

When rates fall, income doesn’t drop proportionally. Management confirmed this directly: “When rates fall, our income does not fall proportionately.”

Compare that to peers:

• FSK: NII dropped $0.14

• OBDC: NII dropped $0.11

• TRIN: only down $0.06

That’s a massive difference — and it explains their resilience.

5. High Portfolio Quality

• Non-accruals: <1%

• Only 4 borrowers on non-accrual

That’s elite for a BDC.

6. Internally Managed Structure

This gives TRIN a structural advantage.

I view them as a:

• “Mini” Capital Southwest (CSWC)

• “Mini” Main Street Capital (MAIN)

Lower costs. Better alignment. Stronger long-term performance.

A 14.3% Yield That Looks Sustainable

Let’s address the big question…Is the dividend safe? I believe the answer is yes — through 2026.

Here’s why: Dividend Coverage & Cushion

• Coverage: 106%

Undistributed taxable income:

• $0.84/share

• ~$69M total

That provides a meaningful buffer.

Monthly Dividend Shift

TRIN recently transitioned to a monthly payout structure (like CSWC). That’s typically a sign of confidence — not weakness.

Because of their loan structure:

• Future rate cuts should have minimal impact on earnings

That’s a huge advantage vs peers.

Balance Sheet Strength

• Debt-to-equity: 1.18x

  • Below sector average (~1.25x)

• Manageable maturities

• Premium to NAV provides:

  • Capital raising flexibility

  • Dividend support

  • Growth funding

Valuation & Risks ⚠️

Wall Street price target: $16.61. That said — I remain cautious.

Key Risks:

• Ongoing geopolitical tensions (Iran conflict)

• Potential recession

• Rate uncertainty

• Lack of near-term catalysts

Even with strong fundamentals, these factors could limit upside.

Bottom Line ✅

Trinity Capital has quietly become one of the most resilient BDCs in the market.

✔ Strong loan structure

✔ Low non-accruals

✔ Stable NAV

✔ Solid dividend coverage

✔ Limited exposure to high-risk sectors

Despite the lack of catalysts, the fundamentals are hard to ignore. In recent years, TRIN has earned its place among my top 5 BDCs. While macro uncertainty keeps me cautious in the short term, I believe the market is mispricing the risk here.

This isn’t a broken business. It’s a high-quality lender trading at a discount because of sentiment.

And that’s why I believe:

TRIN’s 14.3% yield is sustainable — and one of the safest high yields in the BDC space today.

Do you think Trinity Capital will be able to sustain their dividend in the near to medium term? Let me know in the comments.

Happy Investing!

☎️ If you’re looking to create passive income and build your wealth from one of the top-rated analysts, book a call (Let’s Talk Investing or Detailed Portfolio Review) with me to get started.

If you’re looking to start investing check out our investment group over on Seeking Alpha.

Here’s How: Click the Seeking Alpha link here. Click investing group, subscribe now, or the blue hyperlink in my bio.

Not financial advice. For educational purposes only. I am not a licensed professional. Do your own due diligence.

I want to help you take control of your life, have F.I.R.E.

Here at Dividend Collection Agency the goal is to give investors and/or readers a different perspective.

We take a simple approach to building wealth. And although investing may seem easy, people often miss opportunities by over complicating it.

But we are here to help.

Inflation Takes Center Stage This Week 🎬

We’re heading into another data-heavy week, with markets laser-focused on a fresh batch of inflation readings that could play a major role in shaping expectations for the Federal Reserve’s next moves.

The Main Event: CPI (FRIDAY) 🏟️

All eyes will be on FRIDAY’S Consumer Price Index (CPI) report, which is expected to show a reacceleration in headline inflation for March.

• Headline CPI: Expected to rise to 3.4% YoY, up from 2.4% in February

• Core CPI (ex-food & energy): Expected to hold steady at ~2.8%

The anticipated increase in headline inflation is largely tied to the recent surge in global oil prices, raising concerns about whether energy-driven inflation could begin spilling over into broader categories.

For investors — and policymakers — the key question is simple:

Is this a temporary energy-driven spike, or the beginning of a broader inflation resurgence?

PCE Inflation (Earlier in the Week) ‼️

We’ll also get the delayed February reading of the PCE Price Index, the Fed’s preferred inflation gauge.

• Expected to remain in the upper-2% range

• Still above the Fed’s 2.0% long-term target

• Down significantly from the ~7% peak during the pandemic

While progress has been made, inflation remains sticky enough to keep the Fed cautious.

Consumer Sentiment & Inflation Expectations 🧐

On FRIDAY, we’ll also see the preliminary April reading of Michigan Consumer Sentiment.

Investors should pay close attention to:

• 1-year inflation expectations

• 5-year inflation expectations

These metrics are critical because they reflect consumer psychology — and whether inflation expectations remain anchored or begin to drift higher.

Labor Market Check-In 💼

The labor market will remain in focus throughout the week:

• TUESDAY: ADP Employment Change

• THURSDAY: Weekly Jobless Claims

While not the primary drivers this week, these reports will help round out the broader economic picture — particularly whether the labor market continues to show resilience.

Final Thoughts 💭

This week’s data could be pivotal.

If inflation comes in hotter than expected — especially on the headline side — it could delay rate cuts and reinforce a “higher-for-longer” narrative.

On the flip side, if core inflation remains contained and expectations stay anchored, it may support the case for easing later this year.

Either way, expect volatility.

How do you think this week’s reports will affect the market? Let me know in the comments.

Happy Investing!

If you’re someone who looking to start investing and need help creating passive income to achieve financial freedom, check out our investment group iREIT+HOYA Capital over on Seeking Alpha.

Here’s How: Click the Seeking Alpha link here. Click investing group, subscribe now, or the blue hyperlink in my bio.

☎️ If you’re looking to create passive income and build your wealth from one of the top-rated analysts, book a call (Let’s Talk Investing or Detailed Portfolio Review) with me to get started.

My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age.

I want to help you take control of your life, have F.I.R.E.

And the platform allows writers to share one article once a week free of charge. So, I like to share them with all my current & future subscribers. (see below).

Due to the ongoing war with Iran, macro uncertainty has increased dramatically in the past month or so. The price of oil has skyrocketed, which has resulted in an increase in gasoline prices.

Wars are highly inflationary. And the longer it goes on, the higher likelihood of a recession. In my opinion, I think a recession is very possible in the next year.

As investors, we should begin to view recessions as normal. But the key is to be positioned well to benefit, or at least protect your portfolio as best as you can. In this week’s article I discuss how investors can do this with a proper strategy.

Let me know what you think of the article in the comments!

Happy Investing!

If you’re looking to start investing check out our investment group over on Seeking Alpha.

Here’s How: Click the Seeking Alpha link here. Click investing group, subscribe now, or the blue hyperlink in my bio.

☎️ If you’re looking to create passive income and build your wealth from one of the top-rated analysts, book a call (Let’s Talk Investing or Detailed Portfolio Review) with me to get started.

For educational purposes only. Not financial advice. I am not a licensed professional. Please do your own due diligence.

My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age.

I want to help you take control of your life, have F.I.R.E.

Here at Dividend Collection Agency the goal is to give investors and/or readers a different perspective. We take a simple approach to building wealth. And although investing may seem easy, people often miss opportunities by over complicating it.

But we are here to help.

Current Price: $64.06

Dividend/Yield: $2.04/3.20%

Over the past year, the consumer landscape has quietly begun to shift. Between the rise of weight-loss drugs and a broader push toward healthier lifestyles—amplified by movements like Robert F. Kennedy Jr.’s MAHA campaign—demand for certain food categories is evolving.

One category that continues to stand out is protein.

And that’s exactly where Tyson Foods (TSN) finds itself well-positioned.

After its latest earnings report, Tyson’s stock surged to a new 52-week high, reflecting renewed investor confidence in the company’s turnaround. While the momentum is undeniable, the key question now becomes:

👉 Is there still meaningful upside left?

A Look Back: Early Signs Of Stabilization 📖

Last November, the company was navigating a challenging environment. Inflationary pressures, margin compression, and uneven segment performance were weighing on results.

Still, there were clear signs of improvement.

Tyson closed out 2025 with solid momentum:

• Earnings per share climbed 33% to $4.12

• Revenue increased 3.3% to $54.4 billion

• The dividend remained well-covered with a payout ratio of 58%

Performance across segments was mixed but improving. Beef and Chicken posted respectable sales growth, while Pork continued to lag. Despite this, overall results were supported by higher volumes and steady demand for protein products.

However, one key signal stood out at the time: the company’s dividend increase failed to keep pace with inflation. That suggested that while operations were improving, underlying pressures had not fully disappeared.

Since then, the stock has rewarded investors. Shares of Tyson have climbed roughly 16%, significantly outperforming the broader market, while the S&P 500 has experienced increased volatility.

Momentum Continues, But Not Without Friction 📊

Tyson’s most recent quarter reinforced the idea that the company’s turnaround is gaining traction.

Revenue grew 5.1% year-over-year to $14.3 billion, driven by a 6.2% increase in sales. The company also delivered a modest earnings beat, reporting $0.97 per share.

At first glance, the results appear strong. But a deeper look reveals some ongoing challenges.

Operating income declined 13% to $572 million, highlighting continued margin pressure. This suggests that while demand is improving, cost dynamics remain a headwind.

From a segment perspective, performance was encouraging overall:

• Chicken stood out with double-digit volume growth, benefiting from its relative affordability compared to other proteins.

• Pork showed signs of stabilization, with modest declines in sales but improving volumes.

• Beef remained under pressure, as constrained cattle supply and elevated costs weighed on profitability.

One of the more notable takeaways from the quarter was Tyson’s ability to grow volumes despite a broader decline in total food and beverage consumption. While industry-wide volumes fell 1.8%, Tyson managed to expand across key segments.

This reinforces a critical point: protein demand remains resilient, even in a tighter consumer environment.

Growth Drivers: Chicken And Prepared Foods Lead The Way 🐔

Looking ahead, Tyson’s growth story appears increasingly tied to two key segments: Chicken and Prepared Foods.

Chicken continues to benefit from strong consumer demand, particularly as households look for more affordable protein options amid lingering inflation. The segment’s volume growth suggests that this trend is not only intact but accelerating.

Prepared Foods also delivered solid results, with sales rising 8.1% year-over-year. While volume growth was modest, the segment benefits from higher margins and brand strength, making it an important contributor to overall profitability.

Together, these segments provide a foundation for more stable and predictable growth going forward.

Guidance: Stable, But Not Explosive ➡️

Tyson’s full-year guidance reflects a company that is stabilizing rather than accelerating.

Management expects revenue growth between 2% and 4%, alongside free cash flow that exceeds last year’s $1.2 billion.

While the lower end of that range suggests some caution, I believe the company is more likely to trend toward the higher end, assuming inflation remains contained.

That said, the outlook also highlights an important reality: Tyson is not currently positioned for rapid growth. Instead, it is in a phase of steady recovery and operational improvement.

Dividend And Balance Sheet: A Clear Strength ⚖️

One of the most encouraging aspects of Tyson’s story is its improving financial position.

Free cash flow for the quarter totaled $690 million, comfortably covering the $177 million paid out in dividends. This provides a strong margin of safety and reinforces the sustainability of the company’s payout.

In addition, Tyson continues to make progress on its balance sheet:

• Leverage has improved to 2.0x, down from 3.9x just two years ago

• Long-term debt has been reduced meaningfully

• Liquidity remains robust at $4.5 billion

This combination of improving cash flow and deleveraging positions the company well for future capital allocation, including dividends and share repurchases.

Valuation: The Market Has Taken Notice 📈

While Tyson’s fundamentals are improving, the stock’s valuation reflects much of that progress.

At a forward P/E of 16.4x, Tyson now trades above the sector median of 14.75x. It also commands a premium relative to peers such as Hormel Foods and General Mills.

Although the stock still sits slightly below its five-year average multiple, the recent expansion suggests that investors are already pricing in continued improvement.

In other words, the margin of safety has narrowed.

Price Outlook: Modest Upside, Strong Long-Term Potential ↗️

In the near term, I believe Tyson could continue to trend higher if current momentum persists. A move toward $70 by year-end is certainly within reach, particularly if economic conditions stabilize.

However, upside from current levels appears limited. Much of the easy upside has already been captured during the recent rally.

Longer term, the story becomes more compelling. If Tyson can fully normalize margins and return to its historical valuation range, a price target closer to $89 by 2028 is achievable.

But that outcome will depend heavily on execution and the broader macro environment.

Macro And Industry Risks Remain ⚠️

Despite the improving outlook, several risks remain.

Geopolitical tensions—particularly the ongoing conflict involving Iran—could drive inflation higher and delay potential rate cuts. This would put additional pressure on both consumers and corporate margins.

There are also industry-specific risks to consider, including:

• Cattle supply constraints impacting the beef segment

• Potential outbreaks of animal disease

• Continued volatility in input costs

Any of these factors could slow Tyson’s recovery or lead to renewed earnings pressure.

A Quality Business At A Fair Price 🏷️

There’s no denying that Tyson Foods is executing well. The company has made meaningful progress in stabilizing operations, improving its balance sheet, and capitalizing on favorable demand trends.

But investing is not just about identifying good companies—it’s about finding them at the right price.

At current levels, Tyson appears fairly valued. While the long-term outlook remains attractive, near-term upside is more limited.

Bottom Line ✅

Tyson Foods is doing a lot right:

• Strong operational improvements

• Resilient demand for protein

• Improving financial health

But:

• Valuation reflects much of the progress

• Macro uncertainty remains

For now, patience is key.

A more attractive entry point may emerge over the next few months, especially if market volatility picks up.

And that’s why I’m staying on the sidelines—for now.

Do you think Tyson is worth a buy or agree that it’s best to sit on the sidelines until further clarity? Let me know in the comments.

Happy Investing!

☎️ If you’re looking to create passive income and build your wealth from one of the top-rated analysts, book a call (Let’s Talk Investing or Detailed Portfolio Review) with me to get started.

If you’re looking to start investing check out our investment group over on Seeking Alpha.

Here’s How: Click the Seeking Alpha link here. Click investing group, subscribe now, or the blue hyperlink in my bio.

Not financial advice. For educational purposes only. I am not a licensed professional. Do your own due diligence.

My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age.

I want to help you take control of your life, have F.I.R.E.

Here at Dividend Collection Agency the goal is to give investors and/or readers a different perspective. We take a simple approach to building wealth. And although investing may seem easy, people often miss opportunities by over complicating it.

But we are here to help.

Current Price: $51.24

Dividend/Yield: $1.64/3.20%

Nike, Inc. (NKE) has been a frustrating hold for investors. Despite its dominance as a global brand, the stock has significantly underperformed over the past decade, weighed down by slowing growth, rising competition, and persistent macro headwinds.

While the company is actively working through a turnaround, I believe meaningful upside remains at least 12–24 months away.

That said, if execution improves and macro conditions stabilize, there is a path toward $60 by year-end.

What Went Wrong ✏️

Nike’s struggles aren’t due to one issue—they’re layered:

• Growth slowdown following a strong 2015–2021 run

• Margin compression, with gross margins falling ~300 basis points to 40.6%

• International weakness, particularly in Greater China (-17%)

• Soft demand in legacy brands like Converse

• Rising competition from both premium and niche athletic brands

The result: a once high-growth story now facing a reset period.

Recent Performance: Mixed Signals 🚦

Nike’s latest quarter showed signs of stabilization—but not enough to change the narrative.

• EPS: $0.53 (beat by $0.16)

• Revenue: $12.4B (+1% YoY, beat expectations)

• North America: Strength driven by resilient consumer spending

• International: Continued weakness, led by China

Despite the beat, the market remained unconvinced—and the stock continued to slide.

Macro Is Driving the Bus 🚌

Recent volatility has less to do with Nike—and more to do with the broader environment.

The ongoing geopolitical tensions involving Iran have:

• Increased inflation concerns

• Reduced expectations for rate cuts

• Raised recession probabilities

For a consumer discretionary name like Nike, this is a direct headwind.

If rates stay higher for longer—or rise further—it delays the entire turnaround story.

What Could Change the Narrative 📖

Nike isn’t standing still. Several developments could improve sentiment:

• Tariff relief following a favorable Supreme Court ruling → potential margin expansion

• Partnerships with Apple Inc. (AAPL) (Beats) and SKIMS → brand momentum

• Product innovation (Aero-Fit launch) tied to global events like the World Cup

• International rollout of new product lines

These won’t fix fundamentals overnight—but they can rebuild investor confidence.

Q3 Preview: Expectations Are Low 📊

Nike reports Q3 earnings next week, and expectations are modest:

• EPS: ~$0.30–$0.35 (decline from $0.53)

• Revenue: ~$11.3B–$11.6B (down sequentially)

• Margins: Additional pressure expected (175–225 bps impact)

The key variable isn’t the headline numbers—it’s international performance, especially China.

👉 If China stabilizes → stock likely rallies

👉 If weakness persists → downside risk remains

Dividend & Balance Sheet: The Safety Net ⚖️

One bright spot: income investors are getting paid to wait.

• Dividend yield: ~3%

• FCF payout ratio: ~70%

• Credit rating: A-rated

• Liquidity: ~$7B, matching long-term debt

Nike’s financial position remains strong, giving it flexibility to navigate the downturn.

Valuation: Still Not Cheap… But Interesting 💸

• Forward P/E: ~33x (still elevated)

• Peer comparison: Higher than lululemon athletica (~12x forward P/E)

• PEG ratio: More attractive relative to history

This creates a split narrative:

• Short-term: Expensive, limited upside

• Long-term: Potentially attractive for risk-tolerant investors

Upside Scenario: Path to $60 📉

Nike doesn’t need perfection—it needs progress.

A realistic bullish path:

• Sequential improvement in international markets

• Stabilizing margins

• Easing macro uncertainty (rate cuts or geopolitical resolution)

If those align, a move toward $60 is achievable. Long-term, NKE offers strong upside to their average price target of $75 set by Wall Street.

Risks to Watch ⚠️

• Prolonged geopolitical conflict

• Higher-for-longer interest rates

• Continued China weakness

• Consumer spending slowdown

• Potential recession

These risks disproportionately impact discretionary companies like Nike.

DCA Take 🤔

Nike isn’t broken.

It’s in a transition phase, caught between:

• A fading growth cycle

• A rebuilding global strategy

• And a difficult macro backdrop

For now, I remain neutral (Hold).

👉 Downside appears limited near-term

👉 Upside requires patience and macro improvement

For long-term investors with higher risk tolerance, Nike may be worth accumulating gradually—but expectations should remain grounded.

Bottom Line ✅

Nike is doing the right things operationally—but timing matters.

Until macro conditions improve and international growth stabilizes, the stock is likely to remain range-bound.

Patience is required.

How do you think Nike will recover? Let me know in the comments.

Happy Investing!

☎️ If you’re looking to create passive income and build your wealth from one of the top-rated analysts, book a call (Let’s Talk Investing or Detailed Portfolio Review) with me to get started.

If you’re looking to start investing check out our investment group over on Seeking Alpha.

Here’s How: Click the Seeking Alpha link here. Click investing group, subscribe now, or the blue hyperlink in my bio.

Not financial advice. For educational purposes only. I am not a licensed professional. Do your own due diligence.

I want to help you take control of your life, have F.I.R.E.

Here at Dividend Collection Agency the goal is to give investors and/or readers a different perspective.

We take a simple approach to building wealth. And although investing may seem easy, people often miss opportunities by over complicating it.

But we are here to help.

Macro Outlook: Jobs Data Takes Center Stage 🎭

Investors should prepare for a data-heavy, holiday-shortened week, with a critical focus on labor market conditions as recession fears and rate-cut expectations continue to shape market sentiment.

U.S. equity and bond markets will be closed on FRIDAY in observance of Easter Weekend, but that won’t stop the most important data release of the week from hitting the tape.

The Main Event: March Jobs Report 💼

The spotlight will be on FRIDAY’S release of the Bureau of Labor Statistics (BLS) Nonfarm Payrolls report for March.

Expectations call for:

• +56,000 job gains, signaling modest growth

• A continuation of recent weakness after February’s disappointing report — marking the third decline in five months

• Unemployment Rate: expected to hold steady at 4.4%

• Average Hourly Earnings: projected at +3.7% YoY, nearing the slowest pace since June 2021

This report will be critical in shaping expectations for the Federal Reserve’s next move. A continued cooling in wage growth could reinforce the narrative that inflation pressures are easing, potentially opening the door for rate cuts later in 2026.

Labor Market Trends: Cracks or Normalization? 📊

Beyond FRIDAY’S headline report, investors will get a deeper look into labor conditions throughout the week:

• TUESDAY: Job Openings & Labor Turnover Survey (JOLTS)

• WEDNESDAY: ADP Private Payrolls

• THURSDAY: Challenger Job Cuts & Weekly Jobless Claims

Together, these reports will help determine whether the labor market is gradually normalizing or showing early signs of broader economic weakness.

Consumer Check: Retail Sales 🛍️

On WEDNESDAY, markets will also digest Retail Sales data, offering a key read on the strength of the U.S. consumer.

After a weather-impacted slowdown in January, expectations are for a rebound in February spending, as conditions normalize following a historically harsh winter across much of the country.

Given that consumer spending accounts for roughly 70% of U.S. GDP, this report will be crucial in assessing whether economic momentum remains intact.

Housing Market: Cooling Continues 🏠

TUESDAY’S Case-Shiller Home Price Index will provide further insight into housing trends.

Data is expected to show:

• Continued flat-to-modest home price appreciation

• A sustained cooldown following the pandemic-era housing boom

Since early 2023, national home prices have risen at an average annual rate of ~3.5%, significantly below the ~7.0% growth in disposable income over the same period.

While this moderation is a step in the right direction, affordability challenges remain a key issue for prospective homebuyers.

Bottom Line ✅

This week’s data will play a pivotal role in shaping the near-term macro narrative.

• A soft but stable labor market could support the case for rate cuts

• A strong rebound in retail sales would reinforce economic resilience

• Continued cooling in housing may help ease inflation pressures

As always, volatility tends to follow uncertainty — but for long-term investors, this environment continues to create opportunity within the noise.

How do you think this week’s reports will affect the market? Let me know in the comments.

Happy Investing!

If you’re someone who looking to start investing and need help creating passive income to achieve financial freedom, check out our investment group iREIT+HOYA Capital over on Seeking Alpha.

Here’s How: Click the Seeking Alpha link here. Click investing group, subscribe now, or the blue hyperlink in my bio.

☎️ If you’re looking to create passive income and build your wealth from one of the top-rated analysts, book a call (Let’s Talk Investing or Detailed Portfolio Review) with me to get started.

My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age.

I want to help you take control of your life, have F.I.R.E.

Here at Dividend Collection Agency the goal is to give investors and/or readers a different perspective. We take a simple approach to building wealth. And although investing may seem easy, people often miss opportunities by over complicating it.

But we are here to help.

In a market increasingly driven by hype around artificial intelligence and high-growth tech, it’s easy to overlook the value of stable, income-generating assets. But for dividend-focused investors, consistency often beats speculation.

That’s where Gaming and Leisure Properties (GLPI) and VICI Properties (VICI) stand out.

Both REITs currently offer yields north of 6%, backed by durable business models that are largely insulated from technological disruption.

While AI continues to reshape sectors like software, semiconductors, and even parts of finance, it has little impact on the core operations of these gaming-focused real estate companies.

Simply put—people still visit casinos, and operators still need physical properties.

Built on Long-Term Cash Flow 💰

What makes GLPI and VICI particularly attractive is their lease structure.

Both companies operate under long-term, triple-net lease agreements. This means tenants are responsible for property-level expenses such as maintenance, insurance, and taxes—leaving the REITs with predictable, high-margin rental income.

These leases are often structured with:

• Long durations (10–30 years)

• Built-in rent escalators

• Strong tenant commitments

This creates a reliable stream of income that holds up even during economic slowdowns.

We saw this play out during prior periods of stress, where rent collection remained strong despite volatility in the broader market.

High Barriers to Entry = Competitive Advantage 🏅

Gaming REITs benefit from something many sectors lack—extremely high barriers to entry.

Regulatory hurdles, licensing requirements, and the capital-intensive nature of casino properties make it difficult for new competitors to enter the space. This protects incumbents like GLPI and VICI and allows them to maintain strong pricing power and long-term tenant relationships.

Additionally, both REITs partner with some of the largest and most established gaming operators in the country, further reducing risk.

Attractive Valuation with Upside Potential 📉

Despite their strong fundamentals, both GLPI and VICI continue to trade below the sector median on a price-to-AFFO basis.

This disconnect presents an opportunity.

As macroeconomic conditions improve—particularly if we begin to see interest rate cuts—REIT valuations could expand. Lower rates tend to reduce financing costs and increase the attractiveness of yield-oriented assets, which historically benefits the sector.

In that scenario, investors could see not only steady income but also double-digit total return potential driven by multiple expansion and modest growth.

Risks to Keep in Mind ⚠️

Of course, no investment is without risk.

Near-term headwinds include:

• Ongoing macro uncertainty

• Higher-for-longer interest rates

• Potential recessionary pressures

These factors can weigh on REIT sentiment and valuation multiples in the short term.

However, it’s important to separate price volatility from business performance. The underlying fundamentals of GLPI and VICI remain intact, supported by contractual income and strong tenant quality.

Bottom Line ✅

In a market filled with noise, GLPI and VICI offer something refreshingly simple—predictable income and stability.

Their business models are easy to understand:

Own high-quality real estate → lease it long-term → collect rent → pay dividends.

For investors focused on building passive income, these are the types of assets that can anchor a portfolio.

They may not be flashy.

They may not 10x overnight.

But they continue to do exactly what income investors need them to do—pay you consistently.

Do you own VICI or GLPI? Why or why not? Let me know in the comments.

Happy Investing!

☎️ If you’re looking to create passive income and build your wealth from one of the top-rated analysts, book a call (Let’s Talk Investing or Detailed Portfolio Review) with me to get started.

If you’re looking to start investing check out our investment group over on Seeking Alpha.

Here’s How: Click the Seeking Alpha link here. Click investing group, subscribe now, or the blue hyperlink in my bio.

Not financial advice. For educational purposes only. I am not a licensed professional. Do your own due diligence.

My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age.

I want to help you take control of your life, have F.I.R.E.

Here at Dividend Collection Agency the goal is to give investors and/or readers a different perspective. We take a simple approach to building wealth. And although investing may seem easy, people often miss opportunities by over complicating it.

But we are here to help.

Current Price: $10.04

Dividend/Yield: $0.45/17.9%

Buying beaten-down stocks when they’re out of favor can sometimes lead to outsized returns. Some of the best investments are made when sentiment is at its worst and expectations are low.

That said… not every beaten-down stock is a hidden gem.

Some are simply deteriorating businesses.

For income-focused investors, FSK KKR Capital Corp (FSK) may look incredibly attractive at first glance. The stock currently offers a yield near 18% and trades at a steep discount to net asset value (NAV). At roughly $10 per share, many investors may be wondering if the worst is already priced in.

And it’s a fair question.

But as Peter Lynch famously said: “A stock could go to zero”

I’m not suggesting that FSK is going to zero — I believe that scenario is unlikely. However, I do believe the company is likely to continue underperforming due to ongoing fundamental deterioration.

In this article, I’ll walk through FSK’s latest earnings, its financial position, and why — despite the high yield and discount — I remain cautious.

The Early Warning Signs ‼️

In November 2025, the company reported Q3 earnings and introduced a new dividend policy targeting a 10% yield.

At the time, this may have sounded like a positive adjustment.

But in reality, it was a reset lower.

Management essentially reduced the dividend while framing it in a way that softened the impact. At that time I thought investors should remain cautious, as I expected further dividend pressure across the BDC sector amid rising economic uncertainty.

To be fair, there were a few positives in Q3:

• Non-accruals declined slightly quarter-over-quarter

• NAV increased modestly by $0.06 to $21.99

However, those improvements proved short-lived.

Since then, the stock has declined roughly 35%, significantly underperforming the broader market, which has been relatively flat over the same period.

A Chronic Underperformer 📈

While many BDCs have faced headwinds over the past year, FSK’s performance stands out — and not in a good way.

• Down more than 50% over the past year

• Down roughly 32% year-to-date

This level of underperformance goes far beyond typical sector volatility.

Yes, the BDC sector (BIZD) has been impacted by:

• Falling interest rates

• Increasing recession risks

• Weakness in certain sectors like software

However, FSK’s decline appears to be driven by something more structural.

AKA - credit quality concerns.

It’s Not Just Macro — It’s the Fundamentals 🧱

One of the most concerning aspects of FSK is the continued deterioration in its financial performance during Q4 released in February.

Net investment income (NII) continues to trend lower:

• $0.66 → $0.52 year-over-year

• Down from $0.57 in the prior quarter

While dividend coverage currently sits at around 108%, this is far from comfortable. There is very little margin for error.

Declining Total Performance ↘️

What’s more concerning is that the decline isn’t just on a per-share basis — it’s happening across the entire business.

• Total investment income fell 14% ($407M → $348M)

• Adjusted NII declined from $185M → $147M

• Portfolio value dropped from $13.5B → ~$13B

Even as borrower count increased from 214 to 232, overall performance weakened.

That’s a major red flag.

For comparison, peers like Trinity Capital (TRIN) saw per-share declines but total income growth, suggesting underlying business strength. FSK is showing the opposite.

NAV Decline: The Biggest Red Flag 🚨

When analyzing BDCs, one of the most important metrics I focus on is NAV.

Why? Because NAV reflects the true value of the underlying portfolio.

And in FSK’s case, it’s moving in the wrong direction.

• Q3 NAV: $21.99

• Q4 NAV: $20.89

• Down 11.63% over the past year

This decline was driven by:

• $0.87 in markdowns on borrowers

• Dividend payouts exceeding earnings

While some NAV fluctuation is normal, consistent and meaningful declines are not.

In contrast:

• Ares Capital (ARCC) has maintained relatively stable NAV

• Capital Southwest (CSWC) has shown NAV recovery

FSK’s trend stands out — and not in a positive way.

Rising Non-Accruals Signal Trouble 🔥

If NAV tells the story… non-accruals confirm it.

FSK’s non-accruals now stand at:

• 5.5% (cost basis)

• 3.4% (fair value)

That’s well above the industry average of ~3.8%. Personally, I prefer BDCs with non-accruals below 2%. Once they move above 2.5%, it starts to raise concerns.

What’s even more troubling is the trend:

• 5 new non-accruals added in Q4

• Only 1 removed

That’s not stabilization — that’s deterioration.

Management even acknowledged: “…higher than we would like…”

Dividend Risk Is Still Very Real 💵

While the dividend is currently covered, the outlook is becoming less certain.

Management has already adjusted expectations:

• Initial target: ~10% yield

• Revised: ~9% of NAV

That’s a clear signal.

And if conditions worsen:

• Falling rates

• Rising defaults

• Economic slowdown

Another dividend cut is very possible within the next 6–12 months.

Balance Sheet: A Relative Strength ⚖️

To give credit where it’s due, FSK’s balance sheet is not the primary concern.

• $3.8B in liquidity

• No major debt maturities until 2027

• Debt-to-equity ratio: 1.22x (reasonable)

However, liquidity alone doesn’t offset poor credit performance.

Risk vs. Reward 📝

The Bull Case:

• High income (18% yield)

• Deep discount (0.48x NAV)

• Potential rebound if credit stabilizes

The Bear Case:

• Declining NAV

• Rising non-accruals

• Weak earnings trend

• Dividend cut risk

The Risks: High Yield ≠ Safe Income ⚠️

This is a classic example of why investors need to look beyond yield.

FSK may appear attractive on the surface…

But underneath, the business is facing real challenges.

👉 Credit quality is deteriorating

👉 Earnings are declining

👉 NAV is trending lower

What Would Change My View? 🧐

I’m not ruling FSK out long-term.

However, I would need to see:

• A meaningful decline in non-accruals

• Stabilization (or growth) in NAV

• Improvement in earnings trends

If those conditions are met, and the yield and discount remain attractive, I would consider revisiting my rating.

Bottom Line ✅

FSK KKR Capital has significantly underperformed its peers, and for good reason.

While the ~18% yield and steep discount may look appealing, the underlying fundamentals suggest caution is warranted.

At this point, the downside risks — particularly the potential for further dividend cuts and continued credit deterioration — outweigh the upside potential.

For now, I maintain a Hold rating.

What do you think of FSK KKR Capital? Would you hold long term or do you think it is just an quick income play? Let me know in the comments.

Happy Investing!

☎️ If you’re looking to create passive income and build your wealth from one of the top-rated analysts, book a call (Let’s Talk Investing or Detailed Portfolio Review) with me to get started.

If you’re looking to start investing check out our investment group over on Seeking Alpha.

Here’s How: Click the Seeking Alpha link here. Click investing group, subscribe now, or the blue hyperlink in my bio.

Not financial advice. For educational purposes only. I am not a licensed professional. Do your own due diligence.

I want to help you take control of your life, have F.I.R.E.

Here at Dividend Collection Agency the goal is to give investors and/or readers a different perspective.

We take a simple approach to building wealth. And although investing may seem easy, people often miss opportunities by over complicating it.

But we are here to help.

A Breather Week-But Still Plenty to Watch

After several weeks of heavy, market-moving headlines, the economic calendar slows down in the week ahead. That said, there are still a handful of key data points that could shape near-term sentiment.

MONDAY: Construction Spending

We kick things off with January Construction Spending, which comes on the heels of a notable development:

2025 marked the first annual decline in construction spending since 2011.

Despite strong tailwinds from:

⚡ Data center expansion

🏗️ Infrastructure investment

…it wasn’t enough to offset:

🏠 Weak residential activity

🏢 Sluggish commercial development

This continues to highlight the post-pandemic normalization across real estate—especially as higher rates remain a headwind.

TUESDAY: Productivity + PMI Data

Tuesday brings a mix of forward-looking indicators:

📊 Nonfarm Productivity Report

• Offers insight into economic efficiency vs. labor costs

• Increasingly tied to AI-driven productivity gains

📈 PMI Reports (Manufacturing & Services)

• Early read on business activity and demand trends

• Key signal for economic momentum heading into Q2

👷 Labor Market Check-In

• ADP Employment (TUESDAY)

• Jobless Claims (THURSDAY)

These will help gauge whether the labor market is cooling, stabilizing, or re-accelerating.

FRIDAY: Consumer Sentiment

The week wraps with Michigan Consumer Sentiment (March)—one of the most important soft data indicators right now.

Why it matters:

• 🛢️ Rising energy prices are pressuring households

• 📉 Sentiment has weakened in recent months

• 📊 Inflation expectations remain a key focus for the Fed

Consumer confidence will be critical in determining whether spending resilience can hold up.

Bottom Line ✅

While this week lacks a major “headline” catalyst like a Fed decision or CPI print, the data still matters.

📌 Key themes to watch:

• Real estate softness vs. infrastructure strength

• AI’s impact on productivity

• Labor market stability

• Consumer confidence under pressure

In a market already grappling with rates, geopolitics, and inflation, even a “quiet” week can move sentiment.

How do you think this week’s reports will affect the market? Let me know in the comments.

Happy Investing!

☎️ If you’re looking to create passive income and build your wealth from one of the top-rated analysts, book a call (Let’s Talk Investing or Detailed Portfolio Review) with me to get started.

If you’re looking to start investing check out our investment group over on Seeking Alpha.

Here’s How: Click the Seeking Alpha link here. Click investing group, subscribe now, or the blue hyperlink in my bio.

Not financial advice. For educational purposes only. I am not a licensed professional. Do your own due diligence.

My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age.

I want to help you take control of your life, have F.I.R.E.

And the platform allows writers to share one article once a week free of charge. So, I like to share them with all my current & future subscribers. (see below).

Due to the ongoing war with Iran, markets seem to be pricing in higher inflation and the potential to see interest rate hikes. While no one knows how long the war will last, I think we can expect market volatility to continue until there is more clarity.

And I think if it continues, volatility will intensify, possibly resulting in a market crash. Especially, if we end up sending ground troops into Iran. As this likely means the U.S. anticipates being at war with Iran for a longer time.

However, market volatility equals opportunity.

And there are already some quality stocks presenting attractive entry points. In this week’s article I discuss a dividend stock that currently offers more than 60% upside.

Let me know what you think of the article in the comments!

Happy Investing!

If you’re looking to start investing check out our investment group over on Seeking Alpha.

Here’s How: Click the Seeking Alpha link here. Click investing group, subscribe now, or the blue hyperlink in my bio.

☎️ If you’re looking to create passive income and build your wealth from one of the top-rated analysts, book a call (Let’s Talk Investing or Detailed Portfolio Review) with me to get started.

For educational purposes only. Not financial advice. I am not a licensed professional. Please do your own due diligence.

My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age.

I want to help you take control of your life, have F.I.R.E.

Here at Dividend Collection Agency the goal is to give investors and/or readers a different perspective. We take a simple approach to building wealth. And although investing may seem easy, people often miss opportunities by over complicating it.

But we are here to help.

Current Price: $27.25

Dividend/Yield: $1.20/4.41%

One of my favorite things about investing is uncovering hidden gems—companies overlooked by the market that quietly deliver outsized returns.

OUTFRONT Media Inc. (OUT) was exactly that.

Over the last 18 months, the stock has significantly outperformed the broader market—more than tripling the returns of the S&P 500 (SP500) Index.

Shares recently hit a new 52-week high before pulling back ~9%.

And while the macro backdrop could still provide tailwinds—particularly if geopolitical tensions ease and rate cuts materialize—I’m maintaining a Hold rating after this massive run-up.

Undervalued to Outperformer 📉

When OUT first came onto my radar in September 2024, the story was simple:

• ~7% dividend yield

• Trading at just 9.65x FFO

• Significant upside potential

Fast forward to today:

• Stock up ~55% vs. ~18% for the S&P 500

• Valuation has normalized

• Yield compressed to ~4.2%

What was once a deep-value opportunity is now closer to fairly valued.

Transit & Digital Driving Growth ↗️

OUT delivered a solid Q4 earnings:

• Revenue: $513M (+4.1% YoY)

• AFFO: $130M (+8.3% YoY)

Key drivers:

✔ Transit revenue surged 16%

• Led by strong performance from New York MTA (~20% growth)

✔ Digital revenue jumped 10.6%

• Continued shift toward higher-margin digital inventory

✔ Billboard revenue flat

• Impacted by contract exits in LA and NYC

Despite that, overall execution remained strong.

Compared to Lamar Advertising Company (LAMR), OUT actually outpaced growth in key areas—particularly AFFO.

Outlook: Momentum Continues 🚀

Management expects:

• Accelerating Q1 revenue

• Double-digit AFFO growth

• Continued strength in Transit + Digital

Additional catalysts:

• 🌍 2026 World Cup advertising demand

• ⚡ Formula E partnership (Miami)

• ☁️ Partnership with Amazon to enhance digital capabilities

The growth engine is clearly intact.

Dividend: Safe, But No Growth (Yet) 💵

OUT currently yields ~4.2%, with:

• Dividend: $0.30/share (unchanged since 2022)

• Payout ratio: ~62% of AFFO

That’s a well-covered dividend, but:

👉 No raises despite strong performance

👉 Capital being reinvested into growth + acquisitions

Long term, this is a positive signal—but income investors may want to see increases before getting more bullish.

Balance Sheet: Quiet Strength ⚖️

OUT’s financial position remains solid:

• Net debt / EBITDA: 4.7x (manageable)

• No major maturities until late next year

• Liquidity:
  

  • $100M cash

  • $500M revolver

  If rates fall, refinancing could become a tailwind.

Valuation: Fair, Not Cheap 📊

At current levels:

• Forward multiple: ~12.3x FFO (2026)

• Below LAMR (~15.6x), but no longer discounted

Yes, there’s still upside potential if execution remains strong…

But the easy money has already been made.

Risks to Watch ⚠️

The biggest risk isn’t company-specific—it’s macro:

• Ongoing geopolitical tensions (Iran conflict)

• Inflation risk → fewer/delayed rate cuts

• Rising long-term yields → pressure on REITs

If volatility picks up, OUT could easily see a 10–20% pullback.

A Hold After a Big Win 🧭

OUTFRONT Media has:

✔ Delivered strong execution

✔ Outperformed the market

✔ Built a solid growth + digital story

But…

❌ Valuation is no longer compelling

❌ Dividend growth has stalled

❌ Macro risks remain elevated

Bottom Line ✅

OUTFRONT Media is no longer a hidden gem—it’s a proven performer now trading at a reasonable valuation.

With limited upside after a massive run, I’m maintaining a: 👉 HOLD

If shares pull back 10–20%, I’d revisit adding.

Until then… sometimes the best move is simply to hold your winners and stay disciplined.

At what price would you consider adding OUTFRONT Media? Let me know in the comments.

Happy Investing!

☎️ If you’re looking to create passive income and build your wealth from one of the top-rated analysts, book a call (Let’s Talk Investing or Detailed Portfolio Review) with me to get started.

If you’re looking to start investing check out our investment group over on Seeking Alpha.

Here’s How: Click the Seeking Alpha link here. Click investing group, subscribe now, or the blue hyperlink in my bio.

Not financial advice. For educational purposes only. I am not a licensed professional. Do your own due diligence.

My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age.

I want to help you take control of your life, have F.I.R.E.

Here at Dividend Collection Agency the goal is to give investors and/or readers a different perspective. We take a simple approach to building wealth. And although investing may seem easy, people often miss opportunities by over complicating it.

But we are here to help.

Current Price: $15.44

While I remain somewhat skeptical of crypto assets like Bitcoin (BTC-USD), their rapid adoption has made them difficult to ignore.

Recently, I added crypto exposure to my portfolio through the iShares Bitcoin Trust ETF (IBIT). However, another fund that has been on my radar for some time is the Nicholas Crypto Income ETF (BLOX).

With the ongoing crypto winter, it’s becoming increasingly difficult to ignore BLOX’s 36% distribution yield.

If you’ve followed my work for any amount of time, you know I recently launched a new portfolio focused entirely on generating income. That makes funds like BLOX particularly intriguing.

While I expect continued volatility for BLOX and other crypto-related assets, I remain long-term bullish on crypto due to its growing global acceptance. In my view, the recent sell-off appears largely driven by macro-driven liquidation rather than structural weakness.

As a result, I believe Bitcoin will eventually recover, and BLOX may become an interesting option for income-focused investors willing to tolerate volatility.

In the meantime, investors can collect weekly distributions currently equating to roughly a 36% yield while waiting for that recovery.

The Stock Recently 📈

Previously, BLOX had been outperforming peers like the YieldMax Crypto Industry & Tech Option Income ETF (LFGY), making it particularly appealing despite its short track record.

But more recently, BLOX has underperformed significantly, declining more than 21%, while the S&P 500 (SP500) is down only around 3% over the same period.

Strategy: Capital Appreciation 1st, Income 2nd 📉

What differentiates BLOX from many other crypto-focused ETFs is its “capital appreciation first, income second” strategy.

Rather than directly holding cryptocurrencies, BLOX gains exposure through a synthetic call strategy.

This means the fund generates exposure through options, rather than physically owning crypto assets.

Within its portfolio, BLOX holds other crypto-related ETFs such as:

• Fidelity Wise Origin Bitcoin Fund ETF (FBTC)

• iShares Ethereum Trust ETF (ETHA)

• VanEck Bitcoin ETF (HODL)

These are among the ETF’s top holdings.

However, BLOX does not rely solely on crypto exposure.

The fund also holds growth companies with real earnings power, including:

• NVIDIA (NVDA)

• Taiwan Semiconductor (TSM)

• Riot Platforms (RIOT)

In my opinion, this hybrid approach makes BLOX more appealing for long-term investors, as it blends crypto exposure with real operating businesses capable of generating growth.

However, like most covered-call style income funds, the strategy comes with risks.

The primary risk is high volatility, which is already common within the crypto ecosystem.

Crypto Volatility Continues ↕️

Over the past year, both Bitcoin and BLOX have experienced significant volatility.

Both assets are down double-digits, while the S&P 500 has gained over 20% during the same period.

In recent months, volatility increased further.

Both BTC-USD and BLOX declined roughly 38% during the recent crypto drawdown.

Since October, Bitcoin has pulled back sharply from its high near $126,000, and has largely traded within a range between $60,000 and $70,000.

At the time of writing, Bitcoin sits near $71,000.

Encouragingly, the past week has shown signs of stabilization.

Both Bitcoin and BLOX have moved higher, with BLOX leading the recovery and rising roughly 7.5% over the last five days.

How BLOX Attempts To Manage Risk ⚠️

To help reduce drawdowns, BLOX utilizes a put spread strategy.

This involves selling puts at multiple strike prices simultaneously, which helps limit downside risk during periods of elevated volatility.

This approach allows the fund to:

• Maintain larger distributions

• Provide partial protection against NAV erosion

However, investors should understand that selling puts does not eliminate downside risk entirely.

Recent NAV performance illustrates this clearly.

BLOX has experienced negative NAV growth across the past 1-, 3-, and 6-month periods due to the crypto sell-off.

Year-to-date, NAV has declined roughly 9%.

This marks a significant change from my previous article, when BLOX had delivered 16.95% and 25.48% NAV growth over the prior 1- and 3-month periods.

Distributions Have Declined Slightly 💸

Because covered-call funds rely heavily on underlying asset performance, distribution levels can fluctuate alongside NAV.

Back in October 2025, when Bitcoin was near its highs, BLOX distributions averaged approximately $0.18 per share.

Year-to-date, those distributions have declined to roughly $0.12 per share.

While any reduction in income is disappointing, the decline has been relatively modest considering the severity of the crypto pullback.

Expense Ratio Improvement 💲

Because BLOX is actively managed, it carries a higher expense ratio than passive ETFs.

However, the fund has actually reduced its expense ratio since my last article, declining from 1.03% to 0.99%.

Within the crypto income ETF space, this is relatively competitive.

For comparison:

• NEOS Bitcoin High Income ETF (BTCI): 0.98%

• YieldMax Bitcoin Option Income ETF (YBIT): ~1%

• YieldMax Crypto Industry & Tech Option Income ETF (LFGY): 1.02%

For actively managed crypto strategies, I generally view expense ratios below 1% as fairly attractive.

Understanding Distribution Taxes 🧾

Another important consideration is tax treatment.

BLOX distributions consist of two components:

• Return of Capital (ROC)

• Net Investment Income

Return of capital can be tax-advantaged, as taxes are deferred until:

• The investment is sold

• Or the cost basis reaches zero

However, the net investment income portion is taxable, and high-income investors may also be subject to an additional 3.8% Net Investment Income Tax (NIIT).

Below is an example of the different thresholds depending on your filing status:

Here’s an example of how much you would owe should you go over the threshold:

Because of this, BLOX may be better suited for tax-advantaged accounts such as IRAs or Roth accounts, depending on an investor’s tax situation.

How BLOX Likely Performs In Different Markets 🤔

Covered-call ETFs tend to perform differently depending on market conditions.

In crypto bear markets:

BLOX will likely underperform significantly, as declining crypto prices reduce option premiums and pressure NAV.

In sideways markets:

BLOX can perform quite well, as option income becomes the primary driver of returns.

In strong crypto bull markets:

BLOX will likely underperform Bitcoin itself, because covered calls cap upside potential.

However, investors may still see solid total returns thanks to the fund’s income generation.

Track Record So Far 📊

BLOX launched relatively recently, with an inception date of June 16, 2025.

Despite its short track record, the ETF has experienced a smaller drawdown than many peers, declining approximately 24.25% since inception.

This may be partially due to:

• Lower distribution levels relative to peers

• Exposure to growth companies like NVDA, COIN, and TSM

In comparison, some competing funds rely more heavily on futures contracts and treasury exposure.

Bottom Line ✅

If you are long-term bullish on crypto, the Nicholas Crypto Income ETF (BLOX) may be worth considering—particularly for investors focused on income generation.

Despite its short track record, the fund has demonstrated smaller drawdowns than many competing crypto income ETFs.

Additionally, the fund’s active management and weekly distributions help soften the blow during crypto downturns.

That said, BLOX remains a high-risk investment due to the inherent volatility of crypto assets.

However, for investors comfortable with that risk, the ETF’s 36% distribution yield and capital appreciation-first strategy may provide a compelling way to gain crypto exposure while generating significant income.

Do you have exposure to crypto assets? Let me know in the comments.

Happy Investing!

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Not financial advice. For educational purposes only. I am not a licensed professional. Do your own due diligence.