05-06-2014, 11:01 PM
Well, I trimmed the CVX as I mentioned earlier. I had a trigger set to open a stop limit order at $126.10 when it reached $126.20. Just sold a small portion to bring it down to a little over 6% of the portfolio versus almost 9.5%. Used some of the idle cash and the proceeds to open positions in MAT and GE.
MAT is not planned to be a very long term holding at this juncture. Every time I looked at it I saw an A credit rating, 50% payout ratio, P/E around 15-16 and more licensing deals. I'm willing to hold for a couple years to see if the the Barbie situation corrects itself or if Mega Blocks can make up some of the lost sales. In the meantime, a 4% yield seems pretty interesting.
GE may turn out to be a core holding if they keep going in the same direction. I like their shedding much of the financial business. Earnings are up even as sales drop due to losing the finance income; it appears they're putting their capital to more productive use. Their cost reduction program seems to be helping also. I'll watch over the next several years to see if the dividend growth continues and the various business segments can increase margins.
I have open limit orders on AVA, OHI and an add to MAT at a lower price than my first purchase. I'm also thinking of adding a small position in BBL to get into the materials sector. 11 years of dividend increases despite the volatility of the ore markets interests me.
In the wife's portfolio, we bought a first tranch of WPC at a little over $58.00. The higher income stream made up for KRFT and JNJ staying higher than I want them. Now working on the next pile of cash to either wait for JNJ or KRFT to 'come to mama' or move on to something new that's on the watch list.
MAT is not planned to be a very long term holding at this juncture. Every time I looked at it I saw an A credit rating, 50% payout ratio, P/E around 15-16 and more licensing deals. I'm willing to hold for a couple years to see if the the Barbie situation corrects itself or if Mega Blocks can make up some of the lost sales. In the meantime, a 4% yield seems pretty interesting.
GE may turn out to be a core holding if they keep going in the same direction. I like their shedding much of the financial business. Earnings are up even as sales drop due to losing the finance income; it appears they're putting their capital to more productive use. Their cost reduction program seems to be helping also. I'll watch over the next several years to see if the dividend growth continues and the various business segments can increase margins.
I have open limit orders on AVA, OHI and an add to MAT at a lower price than my first purchase. I'm also thinking of adding a small position in BBL to get into the materials sector. 11 years of dividend increases despite the volatility of the ore markets interests me.
In the wife's portfolio, we bought a first tranch of WPC at a little over $58.00. The higher income stream made up for KRFT and JNJ staying higher than I want them. Now working on the next pile of cash to either wait for JNJ or KRFT to 'come to mama' or move on to something new that's on the watch list.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan