11-08-2013, 10:57 AM
Been doing some internal debating on my portfolio.
Vectren Corp. (VVC), announced earnings recently and once again had a disappointing increase in the dividend of just $0.01. The stock provides a yield of around 4% and has a 53 year history of increasing dividends. I'm fairly certain this utility will continue to provide a 4% yield and a 4% EPS growth rate and total return of around 9% with reinvested dividends just as it has for the last 20 years.
A near guaranteed 9% return is certainly nothing to sneeze at, but I just keep thinking I can do better.
I've been looking at TAL International, Inc. (TAL) as a replacement. It is a shipping container leaser that currently yields 5.7% that has grown EPS by 24% and the dividend by a similar rate since it went public in 2006. The company is projected to grow earnings by 10% over the next 5 years, which coupled with the high dividend should provide outstanding total returns.
Do I make the switch?
Vectren Corp. (VVC), announced earnings recently and once again had a disappointing increase in the dividend of just $0.01. The stock provides a yield of around 4% and has a 53 year history of increasing dividends. I'm fairly certain this utility will continue to provide a 4% yield and a 4% EPS growth rate and total return of around 9% with reinvested dividends just as it has for the last 20 years.
A near guaranteed 9% return is certainly nothing to sneeze at, but I just keep thinking I can do better.
I've been looking at TAL International, Inc. (TAL) as a replacement. It is a shipping container leaser that currently yields 5.7% that has grown EPS by 24% and the dividend by a similar rate since it went public in 2006. The company is projected to grow earnings by 10% over the next 5 years, which coupled with the high dividend should provide outstanding total returns.
Do I make the switch?