05-21-2022, 05:16 AM
Not sure where to post this so I'll toss it in here.
These market pullbacks have usually provided me with an opportunity to strengthen my portfolio. I'm going to take the weekend to see if this is the case now. I'll offer an example from a company I already own.
BBY now yields nearly 4.9%. Other relevant information from when I last ran #'s in February include:
- 18 consecutive years raising the dividend
- 5-yr DGR of 20.11%
- Most recent hike from $.70 to $.88 or 25.7%
- 26% payout ratio
- .40 debt to ebitda ratio
I'll be running a screen this weekend looking for companies yielding 4% and above with strong DGRs and good financials. Candidates to sell include WHR, T and VZ. There aren't many opportunities to replace the yield the last two provide while increasing DGR but now may be one of them. WHR may seem an outlier as it has a double-digit 5-yr DGR but my thesis for the company is long-term mid-single digit revenue growth which usually tracks dividend growth. The massive recent hike has skewed that figure and isn't something I see as sustainable.
This is all in my taxable account so taking a tax loss is part of the equation but not the number one objective; just a fringe benefit I may be able to get right now.
I'll post what I come up with - which may be nothing - once I get through it.
These market pullbacks have usually provided me with an opportunity to strengthen my portfolio. I'm going to take the weekend to see if this is the case now. I'll offer an example from a company I already own.
BBY now yields nearly 4.9%. Other relevant information from when I last ran #'s in February include:
- 18 consecutive years raising the dividend
- 5-yr DGR of 20.11%
- Most recent hike from $.70 to $.88 or 25.7%
- 26% payout ratio
- .40 debt to ebitda ratio
I'll be running a screen this weekend looking for companies yielding 4% and above with strong DGRs and good financials. Candidates to sell include WHR, T and VZ. There aren't many opportunities to replace the yield the last two provide while increasing DGR but now may be one of them. WHR may seem an outlier as it has a double-digit 5-yr DGR but my thesis for the company is long-term mid-single digit revenue growth which usually tracks dividend growth. The massive recent hike has skewed that figure and isn't something I see as sustainable.
This is all in my taxable account so taking a tax loss is part of the equation but not the number one objective; just a fringe benefit I may be able to get right now.
I'll post what I come up with - which may be nothing - once I get through it.
Solid buy here. Best restaurant balance sheet we are going to find.
