Week 10, 2020 – First Week of March

Wow, what a week we just had in the market! Those were some serious down days. For those of you that have only ever invested in a market that always goes up, these last couple of days were probably a shock. Just don’t panic. This is normal market behavior and the great thing about dividends is that even if the market goes down, we still get paid!

For Monday the pick is Kellogg (K). We traded this twice last year with positive returns. I really wanted to find stocks this week that won’t be too affected by panic over the coronavirus. I can’t imagine that a 100+ year old packaged food company will get hit that hard. They’ve been raising dividends for the last 15 years and the current yield is 3.6%

Next up is Israel Chemicals (ICL). We traded this in Week 23 and Week 49 last year with returns of 4.7% and 1.7%. The recent quarterly report looks good and I can’t see how the coronavirus threat will impact the production of potash and bromine. The current yield is 5.3%.

Houlihan Lokey (HLI) gets the mid-week slot. This investment bank helps corporations around the world with mergers and acquisitions, financial restructuring and valuations. They have $1.5 billion in assets and revenues were up 12% in the most recent quarter. Dividends have been raised the last four years and the current yield is 2.3%.

American National Bankshares (AMNB) is next. This community bank has 28 offices in Virginia and North Carolina. They’ve been in business for 111 years and have $2.5 billion in assets. Earnings look reasonable to me and the current yield is 3.2%

Molson Coors (TAP) will close out the week. We traded this last summer and made a 1.2% return in under two weeks. They’re still experiencing slowdowns, but actively cutting costs, reducing debt and modernizing their portfolio of brands. The current yield is 4.2%.