As I write this, the Velocity Report portfolio is up just over 6% year-to-date. The overall results have been very satisfying, even in the face of recent stock market volatility. Over the last three months, there has been a rotation out of tech stocks, which have driven the markets for the last three years, into other market sectors. Our portfolio is heavy on energy and finance, which have both benefited nicely from the rotation.
Walmart is doing nicely for us—up 14% this year to date. I just saw a news item announcing that the company recently passed the $1 trillion market cap milestone.
On the negative side, Blue Owl Capital Inc. (OWL) is down 19% year to date. The company’s earnings will come out two days after I turn this issue in. By the time you’re reading this they should be out. I will review its results to determine whether my thesis about the company remains intact.
Only three of our stocks have reported earnings as I write this. Liberty Energy (LBRT) had an outstanding quarter and is up almost 50% year-to-date. This is why I recently sent a note to trim your LBRT position to take some gains and get it back close to the 5% position weight target.
For most stocks in the portfolio, quarterly earnings reports provide most of the information I use for analysis. By the end of this month, I will understand how stocks are doing and if any need to be replaced.
There are three stock reports in this newsletter. I think they are interesting. Check them out.
Be sure to mark your calendar for our two events this month.
Monthly video mailbag: recorded and sent to you via email on the second Wednesday of every month just after 6:00 p.m. eastern. In it I answer your questions and those of other subscribers. You can watch the most recent mailbag here and send your questions for the next on here.
Live monthly webinar: we’ll discuss our portfolio stocks and strategy along with updates. There will be time for your questions. The webinar starts at 4:30 p.m. on the fourth Wednesday of the month.The next one will be February 25th. Save this link to join us then: https://us02web.zoom.us/j/89682189402.
InfraCap Small Cap Income ETF
The InfraCap Small Cap Income ETF (SCAP) is the only ETF in the Velocity Report portfolio.
Overview
The SCAP Fact Sheet provides the following details about the fund:
KEY FEATURES
- Dividend Income: Target an above-average yield through small-capitalization common equity and the use of convertible and preferred securities. As of 12/31/2025, the 30-day SEC yield was 7.07%.
- Active Management: Seek positive security selection using price targets based on the link between earnings growth and price earnings ratios (growth at a reasonable price, or GARP).
- Covered Calls: Employ a selective option writing strategy and modest leverage (typically 5-20%) to generate additional income while retaining upside market exposure.
- Small-Cap Companies: Opportunity to gain exposure to companies earlier in their growth cycle, with potential for upside relative to market expectations, given less research coverage.
INVESTMENT PROCESS
- Screen for small-capitalization securities with positive earnings and free cash flow.
- Maintain proprietary company models and relationships with issuer management teams to determine earnings estimates and forward-looking outlooks.
- Using these estimates, establish price targets using a dynamic relative valuation framework based on the relationship between price, earnings, and growth (growth at a Reasonable Price—GARP).
- Seek enhanced yield by writing index and single-stock options that reflect our company price targets.
- Use modest leverage (typically 5-15%) to provide market exposure that reflects our market and economic outlook.
Here are the top 10 holdings in the SCAP portfolio:
| % of Net Assets | Name | Ticker |
|---|---|---|
| 4.78% | Global Net Lease Inc | GNL |
| 4.45% | Casey's General Stores Inc | CASY |
| 4.35% | East West Bancorp Inc | EWBC |
| 4.23% | StandardAero Inc | SARO |
| 3.97% | Bank of NT Butterfield & Son Ltd/The | NTB |
| 3.89% | StoneX Group Inc | SNEX |
| 3.57% | Wynn Resorts Ltd | WYNN |
| 3.44% | Halozyme Therapeutics Inc | HALO |
| 3.30% | Braemar Hotels & Resorts Inc | BHR |
| 3.23% | Huntington Ingalls Industries Inc | HII |
Investment Results and Considerations
For 2025, SCAP posted a total return of 11.4%. Since its inception on December 11, 2023, the fund has returned 42.3%. SCAP has the potential to hit our target returns of 15% to 20% per year.
The fact that it owns a diversified portfolio, pays monthly dividends, and yields 6.5% brings stability to one of the Velocity Report portfolio positions.
Editor’s Personal Position: Long SCAP
Liberty Energy
Over its first year in the Velocity Report (formerly Monthly Dividend Multiplier) portfolio, Liberty Energy, Inc. (LBRT) was a disappointment, dropping by more than 40%. Over the past months, however, the stock has surged, up 43% over the last year and 125% over six months.
Business Overview
Liberty Energy was founded by Chris Wright, who is the current United States Secretary of Energy. The IPO was in January 2018.
The company offers a broad range of oilfield services. Here is a list of those services, as compiled by Grok:
- Primary Focus: Provides hydraulic fracturing (frac) services and related completion technologies to onshore oil, natural gas, and enhanced geothermal energy producers across North America.
- Core Service—Hydraulic Fracturing: Operates one of the largest fleets in the industry (approximately 40 active frac fleets as of late 2024), including advanced low-emission technologies like digiFleets (electric/hybrid fleets powered by natural gas for reduced emissions and improved fuel efficiency), and Quiet Fleets for lower noise operations.
- Complementary Services: Offers wireline services, including pump-down perforating (PDP), to support efficient operations in unconventional wells.
- Proppant and Logistics Solutions: Supplies Proppant delivery solutions (via acquisitions like PropX for containerized last-mile storage and delivery), sand mine operations (owns and operates sand mines, including in the Permian Basin), and well site fueling/logistics.
- Additional Support Services: Includes field gas processing and treating, compressed natural gas (CNG) delivery, data analytics, and technologies to enable lower-emission completions.
- Manufacturing Division: Through Liberty Advanced Equipment Technology (LAET), designs and builds next-generation equipment for hydraulic fracturing, wireline, and sand logistics.
- Diversified Energy Platform: Owns and operates Liberty Power Innovations LLC, which provides advanced distributed power and energy storage solutions (supported by partnerships in advanced nuclear, enhanced geothermal, and battery systems) to serve commercial/industrial, data center, energy, and mining sectors.
Liberty Energy has focused on technology innovation and leadership. Traditionally, fracking operations were powered by diesel generators. Liberty developed truck-transportable, natural-gas-powered generators for the oilfields. These power generators drastically reduced the noise and emissions associated with fracking operations.
Investment Considerations
It’s the Diversified Energy Platform discussed above that turned investors’ sentiment toward Liberty Energy positive. The company’s portable natural gas generation systems are a natural (pun intended) fit to provide power to the power-hungry data centers under development.
I have already once recommended trimming our position in LBRT back to the 5% target. When we get a fast-moving stock price, I like to lock in profits.
LBRT has a 1.4% dividend yield. The company increased its dividend rate by 13% in October 2025.
Editor’s Personal Position: Long LBRT
Bank OZK
I like having Bank OZK (OZK) in the Velocity Report portfolio because the company increases its dividend every quarter. The current yield and dividend growth make this stock a compelling investment for the portfolio.
Business Overview
Bank OZK (OZK) is a regional bank offering retail and commercial banking services across multiple U.S. states. It provides deposit accounts, loans (including real estate, consumer, and business), treasury management, and trust/wealth services. The company emphasizes relationship-based lending and operates branches primarily in the South and Southeast.
Here are some highlights directly quoted from the company’s investor relations pages:
- Named one of the Top 25 Best U.S. Banks in Bank Director’s 2025 RankingBanking Study.
- Forbes America’s Best Banks 2019-2025: Forbes 2025 America’s Best Banks
- Since 1979, George Gleason has served as chairman and CEO of Bank OZK.
- The company’s charter dates back to 1903 in Jasper, Arkansas.
- Publicly traded company on the Nasdaq Global Select Market, under the symbol OZK.
- All information prior to June 26, 2017, refers to Bank of the Ozarks, Inc.
- Changed name from Bank of the Ozarks to Bank OZK on July 16, 2018.
Investment Considerations
As noted above, the steady quarterly dividend increases are the primary appeal of OZK as an investment. The shares currently yield 3.8%.
The OZK dividend has grown for 28 consecutive years. Over the last five years, the dividend has grown at an average annual rate of 10.2%.
Editor’s Personal Position: Long OZK
Portfolio Update
Dividend Changes
On January 2, Bank OZK (OZK) declared a $0.46/share quarterly dividend, a 2.2% increase from its prior dividend of $0.45. This dividend was paid on January 20;, ex-dividend was January 13.
Here is a rundown on the current dividend status for each of the Velocity Report portfolio stocks:
Abbvie Inc. (ABBV) declared a $1.73 dividend on October 31. Payment is February 17; ex-dividend was January 16. The current yield is 3.10%.
American Financial Group (AFG) declared a $0.88 dividend on January 2. Payment was January 27; ex-dividend was January 15. The current yield is 4.24%.
Federal Agricultural Mortgage Corp. (AGM) declared a $1.50 dividend on November 5. Payment was December 31. The current yield is 3.54%.
Antero Midstream (AM) declared a $0.225 dividend on January 14. Payment is February 11; ex-dividend was January 28. The current yield is 4.78%.
CME Group Inc. (CME) declared a $1.25 dividend on November 6. Payment was December 30. The current yield is 3.74%.
EQT Corporation (EQT) declared a $0.165 dividend on October 16. Payment was December 1. The current yield is 1.14%.
Diamond Back Energy, Inc (FANG) declared a $1.00 dividend on November 4. Payment was November 20. The current yield is 2.44%.
Fidelity National Financial (FNF) declared a $0.52 dividend on November 7. Payment was December 31. The current yield is 3.82%.
Kodiak Gas Services (KGS) announced a $0.49 dividend on January 29. Payment is February 20; ex-dividend is February 13. The current yield is 4.67%.
Liberty Energy (LBRT) announced a $0.09 dividend on January 20. Payment is March 18; ex-dividend is March 4. The current yield is 1.46%.
Marathon Petroleum Corp (MPC) declared a $1.00 per share dividend on January 30. Payment is March 10; ex-dividend is February 18. The current yield is 2.27%.
Blue Owl Capital, Inc. (OWL) announced a $0.225 dividend on October 31. Payment was November 24. The current yield is 6.60%.
Bank OZK (OZK) announced a $0.46 dividend on January 2. Payment was January 20; ex-dividend was January 13. The current yield is 3.87%.
Royal Gold, Inc (RGLD) declared a $0.475 per share dividend on November 18. Payment was January 16; ex-dividend was January 2. The current yield is 0.72%.
InfraCap Small Cap Income ETF (SCAP) declared a $0.240 monthly dividend on December 29. Payment was December 31. The current yield is 6.68%.
Simon Property Group (SPG) announced a $2.20 dividend on February 3. Payment will be on March 31; ex-dividend is March 10. The current yield is 4.60%.
VICI Properties Inc. (VICI) announced a $0.45 dividend on December 4. Payment was January 8. The current yield is 6.41%.
Walmart Inc, (WMT) announced a $0.235 dividend on September 2. Payment was January 5. The current yield is 0.79%.