August 2022 Investing Update

Posted by

For the month of August, the DOW lost 1288 points. That gave back most of the ground gained in July. YTD the DOW down by 12.5%. Interest and dividend income was $1,032 for the month. Withdrawals for living expenses came to $1,057 for August. For the last few months, I have been paying my credit card bill and mortage with the interest and dividends from my investments. I pay the monthly utility bills from my checking account. This has been a challenge this year because my mortage payments have increased by 25%. This was due to property tax and interest rate increases. That was money that was being used to pay utility bills. I will need to pay off the mortage loan by July 2023 or risk depleting my checking account at a faster rate.

In August I bought 50 more shares of Walgreens (WBA) at $39.30. I sold all of my OGE Energy stock (OGE) and used the money to by Kraft Heinz (KHC) and Kontoor Brands (KTB). These two stocks have a similar dividend to OGE, and I thought that it was time to sell OGE at $41.72 and take the long-term gain of $761. As of today, OGE is down by 1% and the two stocks I bought are down 8%. Kontoor Brands is an appeal company that produces Wrangler, Lee, and Rock & Republic brands. I felt that the lower priced clothing that this company produces would do well as people cut back on higher priced brands for back to school. They also beat earnings estimates by 10 cents on Aug 10th. Kraft Heinz reported earnings 2 cents above estimates on July 27th and Kraft Mac & Cheese and Oscar Mayer products should do well with higher food prices. Campbell Soup (CPB) is another good food company with many well-known brands. They beat earnings by 9 cents on June 8th. I decided to go with Kraft because the stock looked like a better value and the dividend was bit higher.

My big disappointment is with Walgreens stock. The price is down 20% from when I bought it. The stock continues to break through down-side resistance levels. I don’t understand how they can be held liable for playing a part in the opioid epidemic. That’s like saying gun shops are responsible for all of the murders in the US. How come we don’t hear about smaller pharmacies being sued for filling opioid prescriptions? Going after the manufacturer of the drug I could understand, especially if they heavily promoted it to doctors. But trying to get money from the big drug stores is only going to make it harder to get our prescriptions filled down the line. No one will want to work as a pharmacist if they are liable for a negative outcome on a prescription. Walgreens and other big drug stores should not have to pay the huge financial penalties being awarded by the courts. Similar to the argument that fast food workers should make $22 an hour. A fast-food job is an entry level job not a career. If you want to make more money, finish school and get a better job. The impact of these misguided decisions always has a negative financial impact on someone.

Leave a Reply