One facet of the Velocity Report newsletter and portfolio that I appreciate is the built-in flexibility in terms of which stocks I select. My other newsletters have more structured strategies, focused on dividends and income. The Velocity Report focuses on generating above-average total returns. That broader goal lets me put what I would say are more interesting investments in the portfolio.
When I saw the launch of the Fitz-Gerald Must Have Portfolio ETF (FITZ), I knew I wanted to own some shares. I know Keith Fitz-Gerald, and I admire his investment strategy and his “Buy the best, ignore the rest” approach to stocks.
And so, I am adding FITZ to the Velocity Report portfolio, replacing Walmart (WMT). Walmart shares have struggled in recent weeks, and it seems that WMT, with a 40 price-to-equity ratio (P/E), is overpriced relative to its annual revenue and profit growth.
The portfolio change, selling WMT and buying FITZ, will be official as of the publication of this issue of the Velocity Report newsletter.
I discuss FITZ in one of the write-ups in this issue of the newsletter. The other two stocks highlighted this month, Antero Midstream (AM) and Kodiak Gas Services (KGS), also make for very interesting reads. While these two are longer term holdings in the Velocity they generated a lot of buzz in early March with the commencement of military activities in the Persian Gulf.
Now that we’re in June we will be discussing the recommended quarterly rebalancing towards the end of the month. If you are a newer subscriber, check out the rebalancing tool in your member area. I currently have a 5% weighting for each of the stocks in the portfolio. With the rebalance, we sell or buy shares to bring our positions in line with the target weight. You can access it here.
Mark your calendar for July 19th through July 22nd as I’ll be giving presentations at the Las Vegas MoneyShow conference hosted in beautiful Caesars Palace. I’ll share investment ideas in the high-yield space. More details and registration information here.
Antero Midstream
Business Operations
Antero Midstream Corporation (AM) is a leading full-service midstream energy company focused on the Appalachian Basin, primarily in West Virginia. It owns and operates an integrated system of assets that support natural gas and natural gas liquids (NGL) production, with a strong emphasis on serving its affiliate, Antero Resources, one of the largest producers in the region. The company’s operations are centered in the Marcellus Shale, one of North America’s premier shale plays, where it provides customized midstream infrastructure to ensure efficient gathering, processing, and delivery of hydrocarbons to market.
The core of Antero Midstream’s business is its Gathering and Processing segment, which includes approximately 708 miles of low- and high-pressure gathering pipelines and 4.6 billion cubic feet per day (Bcf/d) of compression capacity. The Gathering and Processing segment collects natural gas and liquids-rich production from well pads and transports them to processing facilities, including a joint venture (with MPLX) that provides about 1.6 Bcf/d of processing capacity and 40,000 barrels per day of NGL fractionation. These assets serve as the critical first link in the supply chain, enabling delivery to premium markets, including LNG and LPG exports. The company benefits from long-term, fixed-fee contracts that support high utilization and predictable cash flows.
Complementing its gas operations, Antero Midstream maintains a robust Water Handling segment with two independent systems, including 396 miles of fresh water pipelines, 34 storage facilities, and significant recycling capacity (around 100,000 barrels per day). This closed-loop infrastructure delivers fresh water for drilling and completions while managing flowback and produced water, reducing truck traffic and environmental impact.
Overall, Antero Midstream’s highly integrated model in Appalachia drives operational efficiency, supports growing production volumes, and positions it as a key enabler for the region’s energy exports.
Investment Considerations
Antero Midstream has been in the Velocity Report or predecessor portfolios since 2017. In 2019, the company completed the absorption of Antero Midstream Partners LP, an MLP, into Antero Midstream GP, creating what is now known as Antero Midstream Corporation.
AM is a solid profit growth company. Since 2019, its earnings before interest, taxes, depreciation, and amortization (EBITDA) and net income have steadily increased. EBITDA was $530 million in 2019. For 2025, it was $937 million, and it’s $950 million for the current trailing 12 months.
However, it’s worth noting that the annual dividend of $0.90 per share has not changed since 2021. As a result, the AM yield is now down to 4.2%. The company has been using excess free cash flow to pay down debt. The debt-to-EBITDA ratio has dropped from almost six times in 2019 to a projected three times debt-to-EBITDA ratio by the end of 2026.
For the past half-dozen years, management has pointed to three times as the goal. I hope that Antero will resume dividend growth next year.
For now, Antero Midstream is a company with growing profits that provides ever-more necessary natural gas infrastructure services.
Portions of this article were written with the assistance of a large language model (LLM). The article has been vetted and edited by the Investors Alley editorial team. Tim Plaehn wrote the investment analysis.
Editor’s Personal Position: Long AM
Kodiak Gas Services
Business Overview
Kodiak Gas Services (KGS) is a leading provider of contract compression services in the United States, specializing in the large-horsepower natural gas compression infrastructure that is essential for the reliable production, gathering, processing, and transportation of natural gas and associated oil. Headquartered in The Woodlands, Texas, Kodiak operates across all major producing basins in the U.S., with a particularly strong market position in the Permian Basin. The company’s core business revolves around owning and operating a substantial fleet—exceeding 4.5 million revenue-generating horsepower—of compression, gas treating, and cooling equipment under long-term, fixed-revenue contracts with upstream oil and gas producers and midstream operators. This model allows customers to outsource critical infrastructure needs, freeing up their capital for exploration and drilling while ensuring high mechanical availability (often backed by strong uptime guarantees) and operational reliability.
Kodiak’s operations are primarily organized into two segments: Contract Services and Other Services.
The Contract Services segment, which generates the vast majority of revenue (more than $1 billion in recent full-year figures), focuses on deploying and maintaining company-owned or customer-owned compression assets under predictable, fee-based contracts that are largely insensitive to short-term volume fluctuations. These services support high-volume gas-gathering systems, processing facilities, multi-well gas-lift applications, and transmission pipelines.
Complementing this, the Other Services segment provides ancillary support, including compressor station design and construction, maintenance and overhauls, freight, crane services, and time-and-materials offerings, enhancing customer relationships and generating additional revenue streams. Kodiak emphasizes innovation in compression technology, real-time emissions monitoring, and turnkey solutions to optimize efficiency and meet evolving environmental and operational demands.
Kodiak’s partnership-focused approach and scale—bolstered by strategic acquisitions like CSI Compressco and, more recently, Distributed Power Solutions (DPS), which has introduced power infrastructure capabilities for data centers and microgrids—position it as a critical enabler in the energy value chain amid growing global demand. By prioritizing large-horsepower applications and exceptional service, the company builds long-term customer stickiness in an asset-intensive industry where reliability directly impacts production economics. This infrastructure-centric model supports stable cash flows while aligning with broader trends in U.S. shale development and energy infrastructure modernization.
Investment Considerations
Kodiak’s compression services business supporting oil and gas production provides steady, contract-based revenue and profits. The company first came to market with a June 2023 IPO, and I added it to what is now the Velocity Report portfolio in September 2023. From the IPO through the end of 2025, the stock was a strong performer in the energy midstream sector. During that period, the KGS share price gained 138%, and the total return, including dividends, was 170%.
In February 2026, Kodiak announced its agreement to acquire Distributed Power Solutions (DPS). In May, Kodiak made a $750 secondary stock offering to fund the acquisition, which closed on April 1.
According to Kodiak’s press release about the acquisition, DPS is “a leading provider of turnkey, scalable and highly-reliable distributed power solutions, serving a diverse set of customers and end markets. Those customers include data centers, microgrids, and energy infrastructure companies. With the DPS purchase, Kodiak entered the rapidly growing data center power requirements space, making it an AI infrastructure services provider.
Image courtesy of magnifi.com.
Investors have noticed the shift, and for 2026 year-to-date, the stock is up 80%. I expect the share price to continue to appreciate.
Portions of this article were written with the assistance of a large language model (LLM). The article has been vetted and edited by the Investors Alley editorial team. Tim Plaehn wrote the investment analysis.
Editor’s Personal Position: Long KGS
Fitz-Gerald Must Have Portfolio ETF (FITZ)
Keith Fitz-Gerald is a well-known stock market guru, thanks to thousands of TV appearances and a popular newsletter service. On May 27, XFunds by Nicholas Wealth launched the Fitz-Gerald Must Have Portfolio ETF (FITZ). Via the XFunds website:
Fund Summary
FITZ is an actively managed exchange-traded fund that seeks to achieve its investment objective by investing primarily in equity securities of companies selected using a proprietary “Must Have Portfolio®” framework. The framework reflects more than 40 years of ongoing investment research developed by Keith Fitz-Gerald. The fund employs a thematic investment process designed to identify companies that we believe are well positioned to benefit from long-term structural changes taking place over multi-year and multi-decade time horizons that may reshape economic activity, competitive dynamics, and corporate profitability.
Fund Strategy
The Fund’s objective is to seek total returns. In selecting investments, the Sub-Adviser employs the Must Have Portfolio® proprietary, top-down research and screening framework designed to evaluate cross-sector structural themes and translate those themes into security selection. The fund applies a multi-step process to construct the Fund’s portfolio, using theme screening, linkage analysis, and security selection to evaluate companies for alignment with one or more of five structural theme categories (the “5D’s”): Digitalization, Defense, Diffusion, Distribution, Dislocation.
Here are FITZ’s top 10 holdings as of June 4:
| Name | CUSIP | Shares | Price | Market Value | Weightings ▼ |
|---|---|---|---|---|---|
| JPMORGAN CHASE & CO. | 46625H100 | 13,530.00 | $330.62 | $4,473,288.60 | 5.53% |
| NVIDIA Corp | 67066G104 | 21,120.00 | $204.12 | $4,311,014.40 | 5.33% |
| Apple Inc | 037833100 | 13,530.00 | $313.39 | $4,240,166.70 | 5.24% |
| Palantir Technologies Inc | 69608A108 | 30,360.00 | $132.22 | $4,014,199.20 | 4.96% |
| Crowdstrike Holdings Inc | 22788C105 | 19,800.00 | $191.12 | $3,784,176.00 | 4.68% |
| Tesla Inc | 88160R101 | 9,570.00 | $394.06 | $3,771,154.20 | 4.66% |
| Advanced Micro Devices Inc | 007903107 | 7,260.00 | $517.41 | $3,756,360.30 | 4.65% |
| Eli Lilly & Co | 532457108 | 2,970.00 | $1215.83 | $3,611,015.10 | 4.47% |
| RTX Corp | 75513E101 | 18,480.00 | $194.91 | $3,601,936.80 | 4.45% |
| AbbVie Inc | 00287Y109 | 13,530.00 | $252.74 | $3,419,572.20 | 4.23% |
Investment Considerations
I have known Keith for years, due to my own appearances at MoneyShow conferences. (Note that I’ll be a speaker at the Las Vegas MoneyShow coming up next month, details here.) I subscribed to his quite pricey newsletter for a year. I really like his approach to stock market investing, but following his newsletter’s portfolio would, in my opinion, require a million dollar-plus account.
Keith has trademarked his “Buy the best, ignore the rest” motto. He focuses on stocks that he believes will provide long-term share price appreciation for investors. His style is very much focused on long-term investing, with tactical trading to capitalize on price disruptions.
I see the launch of the FITZ ETF as a great way to get exposure to the hottest growth stocks in the Velocity Report portfolio, without requiring a million dollars to invest. From the holdings list above, I know there will be dividends paid, but I suspect the yield will be quite small.
Portions of this article were written with the assistance of a large language model (LLM). The article has been vetted and edited by the Investors Alley editorial team. Tim Plaehn wrote the investment analysis.
Editor’s Personal Position: Long FITZ
Dividend Changes
On May 4, Diamond Back Energy, Inc (FANG) declared a $1.10/share quarterly dividend, a 5% increase from the prior dividend of $1.05. This dividend was paid on May 24; ex-dividend was May 14.
On May 27, InfraCap Small Cap Income ETF (SCAP) declared a $0.245/share monthly dividend, a 2.1% increase from prior dividend of $0.240. This dividend was paid on May 29; ex-dividend was May 28.
On May 12, Simon Property Group (SPG) announced a $2.25/share quarterly dividend, a 2.3% increase from prior dividend of $2.20. This dividend will be paid on June 30; ex-dividend was June 9.
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 February 19. Payment was May 15. The current yield is 3.27%.
American Financial Group (AFG) declared a $0.88 dividend on April 1. Payment was April 24. The current yield is 5.27%.
Federal Agricultural Mortgage Corp. (AGM) declared a $1.60 dividend on May 14. Payment is June 30; ex-dividend is June 15. The current yield is 3.60%.
Antero Midstream (AM) declared a $0.225 dividend on April 15. Payment was May 13. The current yield is 4.29%.
CME Group Inc. (CME) declared a $1.30 dividend on May 7. Payment is June 25; ex-dividend was June 9. The current yield is 4.15%.
EQT Corporation (EQT) declared a $0.165 dividend on April 14. Payment was June 1; ex-dividend was May 6. The current yield is 1.20%.
Diamond Back Energy, Inc (FANG) declared a $1.10 dividend on May 4. Payment was May 24; ex-dividend was May 14. The current yield is 2.30%.
Fidelity National Financial (FNF) declared a $0.52 dividend on May 7. Payment is June 30; ex-dividend is June 16. The current yield is 4.39%.
Kodiak Gas Services (KGS) announced a $0.49 dividend on May 8. Payment was May 28; ex-dividend was May 18. The current yield is 2.93%.
Liberty Energy (LBRT) announced a $0.09 dividend on April 23. Payment is June 18; ex-dividend was June 4. The current yield is 1.23%.
Marathon Petroleum Corp (MPC) declared a $1.00 per share dividend on April 29. Payment was June 10; ex-dividend was May 20. The current yield is 1.61%.
Blue Owl Capital, Inc. (OWL) announced a $0.23 dividend on April 30. Payment was May 27; ex-dividend was May 13. The current yield is 8.95%.
Bank OZK (OZK) announced a $0.47 dividend on April 1. Payment was April 20. The current yield is 3.89%.
Royal Gold, Inc (RGLD) declared a $0.475 per share dividend on May 21. Payment is July 16; ex-dividend is July 2. The current yield is 0.85%.
InfraCap Small Cap Income ETF (SCAP) declared a $0.245 monthly dividend on May 27. Payment was May 29; ex-dividend was May 28. The current yield is 6.94%.
Simon Property Group (SPG) announced a $2.25 dividend on May 12. Payment is June 30; ex-dividend is June 9. The current yield is 4.39%.
VICI Properties Inc. (VICI) announced a $0.45 dividend on March 5. Payment was April 9. The current yield is 6.38%.
Walmart Inc. (WMT) announced a $0.2475 dividend on February 19. Payment was May 26; ex-dividend was May 8. The current yield is 0.86%. We’re removing WMT to make room for FITZ, covered earlier in this month’s newsletter issue.