12-16-2013, 12:31 AM
Say JNJ does not keep growing the dividend at an acceptable rate?
My mantra is buy and monitor, sell and replace. None of the companies I own are exempt from that. If the dividend growth rates drops below a certain percentage, most would go on probation. A second year of dividend increase lower than the percentage, it gets sold. The exact percentage depends on the company and its yield, to some extent, along with an analysis of its future prospects. A buggy whip maker like Pitney Bowes would be gone more quickly than a MCD, for example
T is gone, COP is gone, CINF is gone, LLY is gone and others are gone under that rule. I would not necessarily wait for two years, depending on the company, nor is it my only sell criteria. DRI's last earning report and guidance sucked so much I sold it.
It is the safety and sustainability of the dividend and the dividend growth that are my guidelines. It is what can help you avoid owning companies with decreasing dividend growth rates.
My mantra is buy and monitor, sell and replace. None of the companies I own are exempt from that. If the dividend growth rates drops below a certain percentage, most would go on probation. A second year of dividend increase lower than the percentage, it gets sold. The exact percentage depends on the company and its yield, to some extent, along with an analysis of its future prospects. A buggy whip maker like Pitney Bowes would be gone more quickly than a MCD, for example
T is gone, COP is gone, CINF is gone, LLY is gone and others are gone under that rule. I would not necessarily wait for two years, depending on the company, nor is it my only sell criteria. DRI's last earning report and guidance sucked so much I sold it.
It is the safety and sustainability of the dividend and the dividend growth that are my guidelines. It is what can help you avoid owning companies with decreasing dividend growth rates.