Week 4, 2020

Markets are closed on Monday, January 20 for the Martin Luther King Jr. holiday.

For Tuesday the choice is MSC Industrial Direct (MSM). I love this stock. We traded it four times last year earning returns of 1.3%, 2.5%, 1.1% and 3.9%, each time within a week. As a reminder, they sell metal products to machine shops, manufacturers and the government. The numbers still look good and, in fact, recent earnings were so good they announced a special $5 dividend a couple months ago. We’ll be collecting the regular dividend of $0.75 per quarter which represents a current yield of approximately 4%.

Next up is Argan (AGX), a holding company that provides a full range of services to the power industry. As with many companies I’ve looked at in the energy business, the financials are all over the place. So, if you’re risk-averse you may want to avoid this one, but it looks good enough to me. The current yield is 2.5%.

For Thursday we’ll go with Pentair (PNR) – the water filtration company. They have 10,000 employees and annual sales of $3 billion. Recent earnings look fine and Pentair has been raising dividends for 42 years. The current yield is 1.7%.

We’ll finish out the week with Royal Bank of Canada (RY) – a name we traded twice last year with success. They have 85,000 employees and over 17 million clients in 36 countries. Royal Bank has been around for 150 years and was recently named Canada’s Most Valuable Brand by Brand Finance. The recent annual report looks great and this seems like a very solid choice. The current yield is 4%.