Devon Energy (NYSE: DVN) is my “two-for-one and done” for dividends and energy.
https://www.devonenergy.com/about-us
Current dividend yield is a fat 9% at today’s close of $63.50
My scoring system’s explained here.
i1, DVN turned bullish at $63 in early October m2, plunging, so entries not yet ideal by my methods
I’ve bought a bit the past couple months, avg. cost some $5 higher than it sits today.
Will go in bigger when m eventually goes to 0 then flips to 1.
Energy is a major and increasing portion of my portfolio the past couple years (mostly uranium & battery metals). Other than FNGU (a tech ETF I wrote about last week that’s already up 31%) or crypto (MARA up over 100% in the week since I suggested it), gotta go well outside my top-10 by dollar value before finding anything not in these categories or related to gold, and that’s perennial dividend golden goose Altria.
But that’s not all!
Bonus Dividend Two-Fer
Altria Group (NYSE: MO)
Every investor knows this one, or should. https://www.altria.com
Yield is 8.25% based on today’s close of $45.16
i2, last turned bullish around $41 at start of October. m1, turned bullish ~ $39 back in July.
I’ve held Altria for a very long time, adding when m flips from 0 to 1 and my Sentries score isn’t bearish. I’ll post when these dual conditions coincide.
Simpler system: any time mainstream news - not financial news, but regular news - leads with a story about markets crashing then buy Altria and Berkshire and hold very long term.
In other words do differently than da masses, or do differently than dumbasses. You’ll by far outperform the vast majority of “experts” and indexes by doing so.
Qurate Retail 8.0% Fixed Rate Cumulative Redeemable Preferred (NASDAQ: QRTEP) yields 18.71% based on today’s close of $42.41
Even more impressive than the lengthy name and high yield is how much of it Dr. Michael Burry disclosed purchasing in November of last year.
Hockey has “The Great One”, Wayne Gretzky. Finance has two “great ones” of value investing. You guessed it! Buffett and Burry.
Dr. Michael “Big Short” Burry is often characterized as a dark, brooding Batman-like value vigilante. He’s a living legend for calling out and very heavily shorting widely-owned trash while it was still the celebrated flavor-of-the-day at the top of the news, most famously the CDO/housing bubble credit default swaps that triggered the crash of 2008 and more recently Tesla, ARKK and other hyper-valued stocks with cult-like followings that crashed in 2022.
He’s great at going long too, so if Burry buys then why complicate things?
Qurate owns a bunch of retail outlets: QVC, HSN, Zulily, Ballard Designs, Frontgate, Garnet Hill, and Grandin Road. It spiked during COVID like most home shopping and home improvement brands, and it tanked last year like other stocks that benefitted from people staying home and spending during COVID.
Two major questions: did the sell-off render Qurate undervalued, and is the yield sustainable? It has a lot of debt and a lot less cash.
Qurate’s website states the company has “infinite possibilities”.
See? Complicated.
Burry in his grace lights the path past all that, and whenever his moves pair well with my scoring I’m comfortable following along.
i3, turned bullish in October around $45 and QRTEP has paid a $2 dividend since.
m can’t be calculated on this preferred issuance, but on the common shares it’s on track to flip bullish by February barring an immediate and material sell-off.
I’ll add to make it a full position when m signals bullish on the common, and will make note of it when that happens, but the Burry Bat-Signal was enough for me to start chipping in with an avg. cost of $41.50 so far.
Act now! Keep reading for even more content at no extra cost!
Dyadic Charts
LL Flooring (NYSE: LL) - formerly Lumber Liquidators, soon to repeat?
Natural Gas
No reason to add these charts other than I found the trends interesting and to continue the shopping channel and “twos” themes.
Whitney Tilson is the 2nd famous caller of tops and short seller I give thanks for today, and Lumber Liquidators was his “big short” with a fascinating twist.
Spoiler alert! Tilson covered after the stock plunged 90%. Later he befriended the company’s CEO while turning bullish on it in 2019, after its flooring no longer “poisoned its customers” and Tilson came to view it as a resilient value play.
I heard of this saga in early 2020 when he was pounding the table bullish on LL. The COVID selling panic chopped its price in half shortly after, and I bought big into its shares and calls based purely on Tilson’s confidence and my lines on the chart. By early 2021 it was up 800%, and though I didn’t hold on nearly that long I did extremely well.
Been patiently waiting for my 2nd round in LL and with housing so out of favor again, fears of recession again, and a 2-year down trend broken again, it seems a good time to buy back in.
Fun facts: The drop from the top, when Tilson exposed the safety issues, and the subsequent low was two years. The run-up to the subsequent top? Two years. That’s where the chart above begins, showing the most recent two 2-year down trends.
Also 2 years: an 800% run to the “Tilson top” from November 2011 to November 2013.
If there’s a three-peat moonshot in LL’s future, I want to catch it for a 2nd time.