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There are superior alternatives to T and CFG, including TU, WFC, BNS, TD, and CFR. This means I would personally only recommend buying ADM, ABBV, ETN, and SPG today.

ET - Energy Transfer

Energy Transfer LP provides energy-related services. The company owns and operates natural gas transportation pipeline, and natural gas storage facilities in Texas and Oklahoma; and approximately 20,090 miles of interstate natural gas pipeline. It also sells natural gas to electric utilities, independent power plants, local distribution and other marketing companies, and industrial end-users. In addition, the company owns and operates natural gas gathering pipelines, processing plant, and treating and conditioning facilitie

ET-24Q1-Energy Transfer Reports Strong First Quarter 2024 Results.pdf.  link

2024 Q1 results

• $.32 per share
• operating volumes increased > 11% yoy
• increasing NG pipeline capacity
• expect yoy EBITDA up 3%
• dividend very safe now
• current dividend rate 8.25%

ARCC - Ares Captial Corp 

ARCC is a BDC specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. 

• ARCC is the market leading BDC lender 
• flexible asset strategy should continue to adapt well to changing market conditions
• eps continues to grow 
• dividend coverage averages 125%,  rate about 8.2%, dividend growth averages 4% with low dividend risk
• AUM - Credit loans are 65% of assets, equity types most of the rest

OBDC - Blue Owl Development Corp

OBDC is a BDC that specializes in direct and fund of fund investments. The fund makes investments in senior secured, direct lending or unsecured loans, subordinated loans or mezzanine loans and also considers equity-related securities including warrants and preferred stocks also pursues preferred equity investments, first lien, unitranche, and second lien term loans and common equity investments. Within private equity, it seeks to invest in growth

• lender with 81% senior secured,  73% first lien investments, 97% floating rate debt investments
• 12% ROE rate given leverage
• risk is floating rate will impact future earnings as rates drop
• dividend is 10.3% but coverage is only 105% so the dividend is only moderately safe
• loans are 60%, equity investments are 40%
• avoids cyclical industries

RITM - Rithm

RITM is an asset manager focused on real estate, credit, and financial services. It operates through Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights (MSR), and MSR financing receivables, title, appraisal and property preservation, excess MSRs, and services advance investments; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments. 

• Q1 eps = $.54 up from a loss in 2023
• dividend is 8.2% ( $1.00 dps ) with coverage now at 175% and dividend risk is moderate
• earnings vary highly with interest rates
• some mortgage loans and MBS with risk

Potential Challenges

Candidate Solutions

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