You are currently viewing Corporate Profits Are Up… But Guess Who Paid for That

Corporate Profits Are Up… But Guess Who Paid for That

very time the government drops a big, shiny headline number, I have the same reaction:
Cool… but that’s not what this feels like.

This week’s GDP report says the economy is absolutely ripping. Corporate profits are up, consumer spending is up, and on paper everything looks fantastic. Meanwhile, prices are still elevated, wallets are lighter, and a government shutdown has turned a lot of “data” into a guessing game.

So we’re going to do what we always do:
Take the report, poke it with a stick, trust our eyes more than headlines — and then put money to work anyway.

Because whether the numbers are right or wrong, dividends still show up.

Contents show

Economic News

1️⃣ GDP: Strong on Paper, Questionable in Practice

Q3 GDP was reported at 4.3% growth, well above the 3.3% expectation. Normally that’s something to celebrate. The problem? This data is coming out of a government that just went through a shutdown, so accuracy is… let’s call it flexible.

Here’s what stood out under the hood:

  • Consumer spending increased 3.5%
    Not exactly shocking when prices are still running 2.8%–2.9% higher YoY. Spending more doesn’t always mean buying more — sometimes it just means paying more.
  • Corporate profits rose by $166 billion in Q3
    Again, if consumers are spending more because prices are higher, profits going up is kind of baked into the math.

I hope this report is accurate. A humming economy is good for markets and good for portfolios. But until we see more consistent data, I’m still trusting my eyes and my wallet more than a single GDP print.

Top 10 IINvestments Going Ex-Dividend Next Week

This list is top-heavy, so if you’re dipping a toe in, I’d stick mostly to the top five.

A few highlights worth noting:

  • FCBC is paying a $1.00 special dividend this week
    (Normal $0.31 dividend goes ex-dividend in January.)
    If you like FCBC long term, this is a nice head start on compounding.
  • MSIF is run by the same team behind MAIN
    Which means competent management — and that matters more than people realize.
  • TRIN continues to be one of my personal favorites.
    It has never failed to make me money.

This Week’s Breakdown: 

  • 4 BDCs: MSIF, TRIN, GSBD, CCAP
  • 2 mREITs: EFC, ARI
  • 1 Emerging Markets CEF: AEF
  • 1 Tobacco: BTI
  • 1 Oil Play: NOG
  • 1 Bank: FCBC

Yes, it’s financial-heavy this week.

Current Holdings: TRIN, AEF, BTI
Future Target: MSIF (likely in 2026)

Portfolio Updates

The condo sale money ($152K) is officially in the account — which means a lot of activity in the vanning portfolio. The theme here was quality first, yield second.

What We Did In The Vanning Portfolio’s Main Account

  • Added 6 dividend growers
  • Added 1 ultra-reliable CEF
  • Added 1 preferred stock
  • Added 1 severely undervalued tech/internet play
  • Still added to income ETFs (because travel isn’t free)

Below are the notable additions 👇

1️⃣ DLR/PRL — Data Centers, Leveraged Smartly 🏗️

We added a lot here. Now holding 195 shares.

  • $1.30 per share annually
  • $253.50/year in dividends

Data centers feel like they’re still in the early innings of a multi-year boom, and this is a way to play it with income and less volatility.

2️⃣ ES — Powering the Data Center Boom ⚡

If data centers grow, power demand follows.

  • 59 shares
  • 26-year dividend growth streak
  • $3.00/share annually
  • $177/year in dividends

3️⃣ HTO — The Overlooked Bottleneck: Water 💧

Data centers need a lot of water.

  • 80 shares
  • 57-year dividend growth streak
  • $1.68/share annually
  • $134/year in dividends

4️⃣ KMB — Packaging Pays (Whether You Like It or Not) 📦

America burns through ~82 million tons of packaging per year (EPA data). Love it or hate it — it’s profitable.

  • 39 shares
  • 53-year dividend growth streak
  • $5.04/share annually
  • $197/year in dividends

5️⃣ OPRA — International Internet Exposure 🌍

We forget sometimes that the internet isn’t just Comcast and Google.

  • 215 shares
  • $0.80/share annually (variable dividend)
  • $172/year in dividends

No growth streak, but solid income.

6️⃣ OZK — Regional Banks’ Turn Is Coming 🏦

Big banks dominated 2025. I think 2026 belongs to regional banks.

  • 83 shares
  • 31-year dividend growth streak
  • $1.80/share annually
  • $149/year in dividends

7️⃣ PDI — Bonds Are Back 📉

Bonds are going to matter again in 2026.

  • 226 shares
  • 124 straight months of $0.2205
  • $598/year in dividends

Consistency is king with CEFs.

8️⃣ SON — Doubling Down on Packaging 📦

Same thesis as KMB.

  • 92 shares
  • 42-year dividend growth streak
  • $2.12/share annually
  • $195/year in dividends

9️⃣ SWKS — Undervalued Semiconductors 🧠

Most semis are expensive. SWKS isn’t.

  • 61 shares
  • 11-year dividend growth streak
  • $2.84/share annually
  • $173/year in dividends

What We Did In The Vanning Portfolio’s Income Account 💰

We added to:

  • PLTW (+195 shares)
  • NVDW (+163)
  • COIW (+213)
  • TSLW (+119)
  • WPAY (+183)

The goal? Fund travel without selling off assets or touching our quality main account stocks.

Retirement Portfolio

Dividend cash this week went into LTC.

FYI – We will be doing a podcast to recap all the additions to our Van Living Portfolio on New Year’s Day.

Want Instant Notifications For These Investing IINsights?

We post these updates to several places where you can subscribe and get notified as soon as we post.

Email Sign Up

Leave a Reply