Week 29, 2020

For Monday, July 13 the pick is MSC Industrial Direct (MSM). We originally purchased this stock in Week 4 and held it through Week 16. We’ll continue to hold as they seem to be handling the crisis well with plenty of cash on the balance sheet and transparency regarding sales by releasing monthly stats. The current yield is 4.2%.

Next up is RGC Resources (RGCO) – a natural gas utility in Virginia. As with other utilities we’ve seen, they are not experiencing the same impacts as many other businesses since energy needs fluctuate with weather, not the economy. The most recent numbers look fine, but they did issue slightly lower guidance for the remainder of the year. The current yield is just under 3%.

IDEX Corporation (IEX) gets the midweek slot. They make thousands of products and parts used behind the scenes in manufacturing and industry. IDEX, a component of the S&P 500, is in a strong financial position to endure the COVID crisis and the current yield is 1.27%.

PNC Financial (PNC) is next. We traded this three times last year and again this year back in April with success. They are struggling just like everyone else but still managed to squeeze out nearly $1 billion in profits last quarter. While not quite the 5% from a few months ago, the yield is still a very attractive 4.5%.

Finally, we’ll close out the week with a holdover from Week 3Caterpillar (CAT). Our position is down 13%, but they are still profitable and I’m willing to hang on to this one.