01-20-2021, 12:21 AM
(01-19-2021, 09:46 PM)vbin Wrote: Curious if you guys follow a strategy arround these div announcements?
Not generally, but there are times when it can be a good time to buy.
For instance, ABBV announced a 10% dividend increase back in October, which pushed the forward yield to nearly 6.5%. This was a bigger increase than many expected, and locking in the higher yield at the time was a good move to make. Shares are up $30 since the announcement.
Can be a good time to add to utilities as well. With some now down 20% from 52-week highs, adding a 7% increase to the payout on top of that is a nice way to pick up a little extra yield.