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I have limit order for a small position in TUP Monday.
If it wasn't for its BBB- credit rating, this would be my top stock pick at this time. It has a good valuation based on forward PE and comparison to corporate bonds. Contributing to this is a high yield and high projected earnings growth rate. Part of the appeal is a vision of retiring baby boomers having Tupperware parties.
I now weight my portfolio based on credit rating, so this stock has a 20% of full weighting.
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Added more GRC at $26.62 yesterday morning.
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Added 75% more GSK this week, after starting position earlier in the month.
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Started my adventure into JNJ. A tiny stack of 6 shares with the USD that I had left in the brokerage account.
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Initiated a new position in Power Corp of Canada (POW.TO) last Friday.
Details here: http://roadmap2retire.com/2015/05/recent-buy-6/
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Sold my position in Baxter (BAX) and opened a new position in Chatham Lodging Trust (CLDT).
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Bought into EZJ (Discussed previously).
Can see some long term gains here with rewarding dividend plans.
I'm aware that airlines are risky business buy am willing to roll the dice on this one.
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The pile of CADs on my brokerage started to look large enough so I added a bit of BCE.
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(05-18-2015, 02:38 PM)EricL Wrote: Sold my position in Baxter (BAX) and opened a new position in Chatham Lodging Trust (CLDT).
Surprised to see that you sold BAX. Its been on my radar, but did I miss something? The upcoming spinoff should be good, no?
I realize there are a few unknowns about the dividends. Is that the reason for the sale?
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(05-21-2015, 01:08 PM)Roadmap2Retire Wrote: (05-18-2015, 02:38 PM)EricL Wrote: Sold my position in Baxter (BAX) and opened a new position in Chatham Lodging Trust (CLDT).
Surprised to see that you sold BAX. Its been on my radar, but did I miss something? The upcoming spinoff should be good, no?
I realize there are a few unknowns about the dividends. Is that the reason for the sale?
The recent dividend announcement was the 5th in a row at the current $0.52 per share level and the current payout ratio based on 2015 earnings estimates of $4.00 is 54%.
Management provided guidance on Monday for the dividend policy of the two companies after spinoff of 35% for BAX and 15% for BXLT, both of which are well below the current payout ratio. They also failed to provide any sort of earnings guidance, just goals for revenue growth, margins and cash flows.
The company has a relatively short history as a dividend growth stock and I'm not convinced that dividend growth is a focus of management. The company also had a 5YR trailing EPS growth rate of just 1.8% and analyst estimates are for low single digit growth going forward.
With a target payout ratios of 35% and 15%, I think there is a decent chance of a dividend cut in the next couple quarters, and if no cut, I expect a frozen dividend from BAX until the payout ratio gets to the 35% target. With a current yield right around 3% and my own low expectations for growth going forward, I felt there are better opportunities out there.
My replacement CLDT has a much higher yield at 4.3%, has grown dividends and FFO at a 20%+ clip since coming public and is projected to grow at a 20%+ rate going forward. It is in a more cyclical industry as a hotel REIT, but at just a $1B market cap has a ton of room to grow.
I still own ABC, ABBV, GILD, MNK, OHI and WBA for health related companies, so still feel I have plenty of exposure to the sector.
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(05-21-2015, 01:30 PM)EricL Wrote: (05-21-2015, 01:08 PM)Roadmap2Retire Wrote: (05-18-2015, 02:38 PM)EricL Wrote: Sold my position in Baxter (BAX) and opened a new position in Chatham Lodging Trust (CLDT).
Surprised to see that you sold BAX. Its been on my radar, but did I miss something? The upcoming spinoff should be good, no?
I realize there are a few unknowns about the dividends. Is that the reason for the sale?
The recent dividend announcement was the 5th in a row at the current $0.52 per share level and the current payout ratio based on 2015 earnings estimates of $4.00 is 54%.
Management provided guidance on Monday for the dividend policy of the two companies after spinoff of 35% for BAX and 15% for BXLT, both of which are well below the current payout ratio. They also failed to provide any sort of earnings guidance, just goals for revenue growth, margins and cash flows.
The company has a relatively short history as a dividend growth stock and I'm not convinced that dividend growth is a focus of management. The company also had a 5YR trailing EPS growth rate of just 1.8% and analyst estimates are for low single digit growth going forward.
With a target payout ratios of 35% and 15%, I think there is a decent chance of a dividend cut in the next couple quarters, and if no cut, I expect a frozen dividend from BAX until the payout ratio gets to the 35% target. With a current yield right around 3% and my own low expectations for growth going forward, I felt there are better opportunities out there.
My replacement CLDT has a much higher yield at 4.3%, has grown dividends and FFO at a 20%+ clip since coming public and is projected to grow at a 20%+ rate going forward. It is in a more cyclical industry as a hotel REIT, but at just a $1B market cap has a ton of room to grow.
I still own ABC, ABBV, GILD, MNK, OHI and WBA for health related companies, so still feel I have plenty of exposure to the sector.
Thanks for the update, EricL.
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Started a small position in MA this week, to match my existing small position in V. I knowingly bought a highly valued, low yielding stock at an all time high, having pretty much accepted the fact that I can't time the market.
I strive to keep the number of stocks in my portfolio from ballooning past 40 or so, and so up until this time I wanted to only hold one credit card processor. I picked Visa because it's the larger company, and because it was fun to buy local (I sometimes drink Starbucks next door to Visa HQ, staring up at their logo). However, MA has better international exposure, and is probably one of the best positioned companies to profit from world economic growth as well as the move toward cashless payments, and I could not ignore it. MA and V together make up 3% of my portfolio, and will serve as a combined core position. Here's hoping they spontaneously correct and I can pick up more of both.
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