02-12-2022, 08:48 AM
It was an okay week in Ron's dividend land. Februrary is a slow month, so just got one dividend this week, TXN. Used the proceeds to buy some STOR.
Got a nice raise from PEP announced last week, 7%. It was higher than last year's PEP raise of 5.1%, so I like that. It was high enough to make me smile, but not high enough for a fist pump
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This coming Friday is SO's ex-div date. That might be significant because SO is both a bit overvalued and a bit overweight - those conditions make it a candidate for a trim. Here is what SSD writes about the valuation:
+++
SO's current dividend yield of 3.95% is 13% below its 5-year average of 4.52%. The stock could be overvalued unless you believe the company's long-term outlook has strengthened.
In addition, SO's forward P/E ratio of 19.7 is well above its 5-year average of 17.3. Simply put, the stock looks pricey compared to how the market has valued it in recent years.
+++
I am strongly leaning in the direction of trimming SO back to a full position as I type this. I would spend the trim on and end up with full positions in STOR, TU - and still have one in SO.
While I call it my @peace4 strategy, trimming overweight and overvalued positionsand reinvesting proceeds into companies with faster dividend growth, there are many more of us who do that from time to time. I guess it could be called Reinvest, Rinse and Repeat - the Triple R's.
As thing are looking now - with no further dividend increases (and there will be a couple of more in Feb.) no further dividend reinvestments (and there will be) or dividend/distribution cuts and our 2022 dividend increase over 2021 will be about 12%, so I am targetting a 14% portfolio income growth for 2022. I would be very pleased with that.
As to the next company up? It is looking like it will be a new company, TROW, but I will review that later in Feb and March as I get ready to reinvestment the next 3 or 4 batches of dividends accumulated for reinvestment.
Have a great weekend everyone!!
Got a nice raise from PEP announced last week, 7%. It was higher than last year's PEP raise of 5.1%, so I like that. It was high enough to make me smile, but not high enough for a fist pump
.This coming Friday is SO's ex-div date. That might be significant because SO is both a bit overvalued and a bit overweight - those conditions make it a candidate for a trim. Here is what SSD writes about the valuation:
+++
SO's current dividend yield of 3.95% is 13% below its 5-year average of 4.52%. The stock could be overvalued unless you believe the company's long-term outlook has strengthened.
In addition, SO's forward P/E ratio of 19.7 is well above its 5-year average of 17.3. Simply put, the stock looks pricey compared to how the market has valued it in recent years.
+++
I am strongly leaning in the direction of trimming SO back to a full position as I type this. I would spend the trim on and end up with full positions in STOR, TU - and still have one in SO.
While I call it my @peace4 strategy, trimming overweight and overvalued positionsand reinvesting proceeds into companies with faster dividend growth, there are many more of us who do that from time to time. I guess it could be called Reinvest, Rinse and Repeat - the Triple R's.
As thing are looking now - with no further dividend increases (and there will be a couple of more in Feb.) no further dividend reinvestments (and there will be) or dividend/distribution cuts and our 2022 dividend increase over 2021 will be about 12%, so I am targetting a 14% portfolio income growth for 2022. I would be very pleased with that.
As to the next company up? It is looking like it will be a new company, TROW, but I will review that later in Feb and March as I get ready to reinvestment the next 3 or 4 batches of dividends accumulated for reinvestment.
Have a great weekend everyone!!