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Read it this morning, Eric. Nice read.
Most everything is in the upper range of valuation or over to me so I can understand the paucity of choices. Ingredion intrigues me but I have a couple of small positions to fill up first. I have to watch them. Sometimes the most interesting companies are the ones that aren't household names.
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“Remember, things are never clear until it’s too late.”; Peter Lynch, One Up On Wall Street
Good overview article. The only one that comes even close to my minimum yield hurdle of 5% is PM. But that's just me, I am retired and the low yielders do not put enough cash in my pocket.
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"I am retired and the low yielders do not put enough cash in my pocket"
I agree with that sentiment. Buying a solid lower yield company on the dip, then selling calls about six months out usually gives a combined cash flow of 8%-10% for the period. Not too shabby if you don't mind what usually ends up being a transient holding. T is one of my current CC favorites. Buy the shares on a dip under $33., then sell six month out calls for $0.95-$1.10. The call income effectively doubles, or slightly more, the dividends such that the CC play kicks out about 6% for the period or 12% annualized. The small capital gain will pay for the trading costs.
Alex
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I am retired and have a mix of higher yield (4-6%) and lower yield (2.5-3.5%) positions. I pay close attention to dividend increase rates as I require the pay raises to stay in a stock. What does this mean? It means I own BCE rather than T, for example. Overall portfolio yield is ~4%, and I plan to continue reinvesting dividends for another 3 years at which time my early retirement incentive stipend will stop.
