Dividend Dispatch — Header
| 💰 |
| Dividend Dispatch |
| Income is everywhere. I find it. |
|
|
| MONDAY, JUNE 8, 2026·6 min read |
|
|
|
|
|
|
|
|
Dividend Dispatch — Today's Theme
| Today's Theme |
| Friday's chip crash, surprise jobs print, and where income still works |
| I spent the weekend in spreadsheets so you don't have to. Friday was the worst stock day since October — Nasdaq down 4.18% to 25,709.43, the biggest one-day drop since April 2025. The S&P 500 fell 2.64% to 7,383.74, and the Dow shed 695 points to close at 50,866.78. The catalyst: May payrolls came in at 172,000 — more than double the 80,000 consensus. Bond yields surged, Fed rate cut hopes dimmed, and chip stocks led a brutal sell-off — Marvell -16%, Micron -13%, Intel and AMD each -11%, Nvidia -5.93%, Broadcom -7% on top of Thursday's -12.59%. The strong jobs print might be inflated by World Cup hiring starting June 11. Today's picks are about income that works regardless: Trinity Capital at 12.1% monthly with 103.9% coverage and an ex-date Thursday; Fidus Investment at 9.3% base + supplemental upside; McDonald's, a 50-year King paying next Tuesday; and a REIT on watch with coverage slipping. |
|
|
|
|
|
|
| |
| |
[SpaceX IPO WARNING] Elon Never Saw This Coming… |
Could this leaked NASA video DESTROY SpaceX at the worst possible moment? |
That's what hundreds-of-thousands of Americans who've seen it are asking. |
The IPO is here… |
And trillions of dollars are at stake. |
But Elon never accounted for THIS. |
Official NASA audio is blowing this whole thing wide open… |
And could sink the entire company before it ever gets off the ground. |
See the truth here now and judge for yourself. |
P.S. See how a terrifying secret discovered by Apollo astronauts could DESTROY Elon's biggest dreams for SpaceX just as it goes public. Wall Street does NOT want this getting out, so watch it here now before it's wiped from the internet for good. |
|
|
|
| |
|
Dividend Dispatch — Main Post
|
|
The High Yield
Income ideas at 8%+ yields
|
| TRINTrinity Capital — 12.1% monthly venture BDC, ex-dividend Thursday, 103.9% Q1 coverage |
Trinity Capital is an internally managed business development company that lends to growth-stage venture-backed companies — primarily in technology, life sciences, and sustainability sectors. "Internally managed" matters here: external BDC managers extract fees that consume 2-3% of assets annually before shareholders see a dime. TRIN's internal structure means more of the spread reaches the dividend.
The monthly distribution is $0.17 per share — annualized $2.04. On the recent $16.81 stock price, that's a 12.1% yield. $10,000 = $2,040 a year, paid as monthly $170 checks. The next ex-dividend date is this Thursday, June 11. Q1 2026 net investment income hit $0.53 per share against the $0.51 quarterly dividend rate ($0.17 × 3) — that's 103.9% coverage, excellent for a venture BDC at this point in the credit cycle.
Supporting metrics: portfolio value grew 39% year-over-year, total investment income +38%, non-accruals at just 1.1%. NAV $13.27. TRIN just acquired Equipment Leasing Services, adding a new income line, and priced $300 million of 7.0% notes due 2031 — investment-grade funding locked in. BBB ratings from Egan-Jones and Morningstar DBRS, plus Baa3 from Moody's.
Risk to know: venture BDCs lend to companies that often don't have positive free cash flow yet — they're betting on future revenue and follow-on equity rounds. If venture funding freezes, some portfolio companies struggle to make payments. The 1.1% non-accrual rate suggests credit quality is fine right now, but watch this number carefully each quarter. The stock trades at roughly 27% premium to NAV — meaning even a small disappointment can compress the multiple sharply. |
| Yield: 12.1% |
$10K invested = $2,040/yr |
Paid: Monthly |
|
|
| FDUSFidus Investment — 9.3% base yield + supplementals, $1.14/share spillover buffer |
Fidus is a smaller BDC focused on the lower middle-market — businesses generating $10-150 million in EBITDA. Roughly one-third of the portfolio sits in software and IT services, well above the typical 20-25% BDC weighting, but with stricter underwriting: 79.5% first-lien debt, 42% loan-to-value on the software book, and at least two maintenance covenants on every software loan.
The dividend structure is a "managed dividend policy" — meaning a steady base dividend plus a variable supplemental when earnings exceed the base. Q2 2026 dividends: $0.43 base + $0.19 supplemental = $0.62 total, payable June 29, ex-dividend June 16. At the $18.40 stock, the base alone yields 9.32%, while the total annualized run-rate yields 13.2% if Q2 supplementals continue at this pace. $10,000 = $932 a year at the base rate, $1,320 if supplementals hold.
What makes me comfortable with the math: Q1 2026 adjusted NII of $0.62 per share fully covered the prior quarter's $0.52 dividend AND the upcoming $0.62 dividend with no spillover drawdown. Fidus also carries $43.4 million in spillover income — taxable income earned but not yet distributed — equivalent to $1.14 per share, or nearly two quarters of base dividend already banked. NAV $19.55 per share. P/E 7.88x. Wall Street rating: 5 analysts at Strong Buy, target $21.50.
Risk to know: software/IT exposure is the obvious concern given Friday's tech sell-off, though Fidus's covenant-heavy underwriting and senior position should limit damage even if AI multiples compress. Supplemental dividends are NOT guaranteed — they depend on quarterly earnings being above base. Use the 9.32% base yield as your floor expectation, not the 13.2% total. |
| Base yield: 9.32% |
$10K base = $932/yr |
Paid: Quarterly |
|
|
|
|
|
Safety & Watchlist
Reliable picks + red flags
|
| Safe Pick |
| MCDMcDonald's — 50-year King, $1.86 pays June 16, the defensive trade after Friday's crash |
McDonald's is exactly the kind of stock that gets bid up when chip stocks crash. 50 consecutive years of dividend increases — full Dividend King status, paying dividends since 1980. The business has compounded earnings through every recession since: 1980-82, 1990, 2001, 2008, 2020, and the 2022 inflation scare.
The dividend is $1.86 quarterly, annualized $7.44. Yield 2.66% on the $280 stock. $10,000 = $266 a year. The next check pays Tuesday, June 16 — though the ex-dividend date was last Tuesday, June 2, so buying today doesn't get the next payment until September. Worth knowing.
Q1 2026 adjusted EPS came in at $2.78-$2.83 against the prior $2.70. Global comparable sales grew 3.8% with U.S. same-store sales up 3.9%. Systemwide sales rose 6% in constant currency. The McValue platform is gaining traction with around 10 items under $3, and McDonald's continues building out specialty beverages, energy drinks, and the new Big Arch burger. The earnings payout ratio is 60%, the cash payout ratio 72% — both covered but the stretched side of King-territory, which is why the 10-year dividend CAGR has eased to 8.1% from earlier double-digit years.
Risk to know: lower-income consumers are visibly under pressure — McDonald's has called out this exact dynamic on recent earnings calls. Commodity costs and U.S. franchise margins are headwinds. The stock has been a relative underperformer in the AI-driven market because the growth rate isn't 20%. But on a Monday after a violent tech sell-off, the dividend math is what you want: predictable, growing, covered. |
| Yield: 2.66% |
$10K invested = $266/yr |
Paid: Quarterly |
|
|
| Watchlist |
| GNLGlobal Net Lease — 8% yield, AFFO coverage projected to slip 116% → 108% |
GNL is an internally managed net-lease REIT with a global portfolio across the U.S., Western Europe, and Northern Europe. Quarterly dividend $0.19, annual $0.76. On the $9.50 stock the yield is 7.98%. $10,000 = $798 a year. Last ex-date April 13, paid April 17. Stock is up 27% over the past year on a recovery story.
Here's the teaching point. For REITs, look at AFFO coverage, not earnings payout ratio. GAAP says GNL's payout ratio is 360% on trailing twelve-month EPS of negative $1.21 — because real estate depreciation is a huge non-cash GAAP expense that doesn't reflect actual cash flow. The cash payout ratio is a more reasonable 85.3%. And the AFFO (adjusted funds from operations — the REIT equivalent of free cash flow) coverage was 116% in 2025 and is projected to slip to 108% in 2026 per the company's own guidance. AFFO coverage at 108% is still positive but slim — much tighter than 116% was last year.
What's improving: Fitch upgraded GNL to investment-grade BBB- in April 2026 after GNL repaid $2.2 billion of debt since 2024. That's real progress. What's not improving: the dividend has actually been CUT multiple times over the past 10 years. The current $0.76 annual rate is below where it was in 2018 and 2019.
Why this matters today: Friday's spike in Treasury yields makes life harder for all REITs because their dividends compete with bond yields. If the AFFO coverage slips below 100% — meaning GNL pays out more cash than it generates — the dividend math breaks. Watch the Q2 results in August. Until then, this is exactly what watchlist means: own it if you already do, but understand the coverage is narrowing. |
|
|
|
|
The Extra Yield
This week's calendars, screens & answers
|
| This week's ex-dates: TRIN this Thursday June 11 ($0.17 monthly). ADP Friday June 12 ($1.70, pays July 1 — the 51st King raise). 3M pays Friday June 12 ($0.78, ex was May 22). IRM Monday June 15 ($0.864). FDUS Tuesday June 16 ($0.62 base + supplemental, pays June 29). MCD payment lands Tuesday June 16 ($1.86 to existing holders). And TGT's contested proxy vote at its annual meeting Wednesday June 10 — a watchlist event from last week. |
| The weekend's biggest dividend question: "Should I sell my dividend stocks after Friday's crash?" Different question, different answer. Friday hurt CHIPS specifically — Marvell -16%, Micron -13%, Nvidia -5.93%, Broadcom -7%. The dividend-rich sectors that led Thursday's rotation (UnitedHealth, JPMorgan, Eli Lilly) generally held up better Friday than the Nasdaq decline implies. The Dow lost only 1.35% while the Nasdaq dropped 4.18% — that gap tells you where the pain was concentrated. For income investors who own ADP, MCD, JNJ, PG, KO, COST, and similar Aristocrats and Kings, Friday was largely a story about other people's portfolios. |
| Someone asked me: "Is the strong jobs number actually a good thing or a bad thing for dividend investors?" Honest answer: depends on which stocks you own. Higher yields hurt rate-sensitive sectors (REITs, utilities, mREITs) because their dividends compete with Treasury yields — GNL is a poster child for this exact dynamic. Higher yields help banks because they earn more on loans (JPM, BLK rallied Thursday on similar logic). For Aristocrats and Kings with strong cash flow coverage, the jobs print is mostly noise. The dividend was raised because cash flow grew, not because the Fed signaled a path. ADP, MCD, CINF — these companies don't change their plans based on one payroll number. |
|
|
| The Dispatch |
| Four names this morning. Trinity Capital at 12.1% monthly with 103.9% Q1 coverage, ex-dividend Thursday. Fidus Investment at a 9.3% base yield plus supplemental upside. McDonald's — a 50-year King paying $1.86 next Tuesday. Global Net Lease at 8% with AFFO coverage slipping. Tomorrow brings Aristocrats and Growth Stars — and Caterpillar's June raise still hasn't been announced. Watch the wire. See you in the morning. |
| — Charlie |
|
|
|
|
|
|
Dividend Dispatch — Footer
| 💰 |
| Dividend Dispatch |
| The High Yield · Aristocrats · Growth Stars · The Weird Yield · Safety |
|
|
|
|
|
|
|
