12-17-2016, 05:23 PM
Here is what I am pondering today.
TGT and APU. TGT on the possibility that it gets Amazoned over time, even though it does some online sales. It has strong dividend safety and growth scores (98 and 75), but sometimes it can be good to be ahead of the curve.
APU has a great yield (8.2%), and moderate dividend growth - but very nice for such a high yielder . The current cold snap seems to be helpful. A recent analyst report I read - either M* or Simply Safe Dividends - talked about a projected 2% annual decline in LPG use going forward and suggested APU could make up for this in acquisitions. It also noted that as interest rates increase, those acquisitions could become more expensive and difficult.
So, while I have not made any decisions, here is what I worked on this morning - to make the sales and acquisitions as close to income neutral as possible.
Sell all shares of TGT and APU.
Split TGT proceeds equally between T and SO.
Spilt APU proceeds equally between O and UTG
Would reduce income produced by TGT/APU by 10%. Not too bad. Now the two generate about 8% of the portfolio's dividend income.
I could go another way and buy some lower yield / higher divvy growth companies, but at the age of 65 :-)
Feel free to comment, make suggestions, etc...
TGT and APU. TGT on the possibility that it gets Amazoned over time, even though it does some online sales. It has strong dividend safety and growth scores (98 and 75), but sometimes it can be good to be ahead of the curve.
APU has a great yield (8.2%), and moderate dividend growth - but very nice for such a high yielder . The current cold snap seems to be helpful. A recent analyst report I read - either M* or Simply Safe Dividends - talked about a projected 2% annual decline in LPG use going forward and suggested APU could make up for this in acquisitions. It also noted that as interest rates increase, those acquisitions could become more expensive and difficult.
So, while I have not made any decisions, here is what I worked on this morning - to make the sales and acquisitions as close to income neutral as possible.
Sell all shares of TGT and APU.
Split TGT proceeds equally between T and SO.
Spilt APU proceeds equally between O and UTG
Would reduce income produced by TGT/APU by 10%. Not too bad. Now the two generate about 8% of the portfolio's dividend income.
I could go another way and buy some lower yield / higher divvy growth companies, but at the age of 65 :-)
Feel free to comment, make suggestions, etc...