04-29-2020, 12:14 PM
(04-29-2020, 11:52 AM)EricL Wrote: Thanks for sharing your thoughts fenders.
I can see why people wouldn't be a fan of WFC, but I think its a good value here, and being able to pick it up at a near 7% yield is a heck of a deal. It announced its next dividend payment yesterday, so if it was going to cut, that would have been the time to do it. I bought today to get it ahead of the May 7 ex-div.
Decided to hold IBM until ex-div next week, and then will likely sell and move the proceeds into AVGO and BMY.
I agree that the income growth goal could be difficult to maintain. Which is partly the reason for some of these moves. Re-balancing is part of my approach, as I can sell off overweight stocks that have run up and are trading at lofty valuations, and then use the proceeds to add to underweight stocks that are trading at fair value and offering higher yields.
Got a 10% raise from AWK this morning, and will hopefully be getting one from AMP yet this week as well. KMI announced a 5% raise, which coupled with dividend reinvestment at a 6.7% yield gives double-digit income growth as well.
Will be interesting to see what AAPL does. It is due for an increase announcement as well.
Best,
Eric
I will enjoy that AWK raise as well. One of a few stocks you put me on to. The reality is WFC is probably shenanigan safer now.
They know they messed up, they are on the radar and consumers forget the news in a year or two. I closed a rental property sale last week. My attorney and I chatted it up some about stocks. He knows my port is large and the only stock he asked my opinion of is WFC lol. I told him you gotta love that Div and left it there. You and I don't need to agree on every stock. It's just an investment, not something important like disagreeing on baseball teams. It's my belief it's beneficial if we raise concerns to each other on this forum. I only bring up the income goal because I don't want you to over-react to missing an arbitrary goal. It's a lofty one long term. SA will get over it lol. Maybe you'll only get 8% some years, and 12% others. I wouldn't let it drive my every decision. That said I'll drop a Div cutter in a heartbeat. It fails to support the strategy. It's rare when you don't get a better chance to get back in later at a better price if you desire to.