In keeping with our focus on stocks with high QDVs and good growth prospects, we sold more positions into this rally. Sold today were PEY, UPS, C, TTH, and TCHC.
Some random thoughts...
I have noticed that the participants in this recent move up have been a selective group, and our relative performance has suffered.
Still, this trimming is a healthy approach and the result is that we have now a "weighted QDV" of 21%. In other words, at the portfolio level dividends are growing at greater than a 20% annual rate.
It's not easy to find high QDV candidates that are also not trading at too high a premium; not without venturing into much smaller cap companies. I don't mind doing that some, but I won't risk much capital for them. And, we already hold more than a few small caps.
It was a difficult decision to sell our Telecom HLDRs ETF (TTH), because it has been a great performer and has had a decent yield. But, if our policy is to stick with dividend growers, TTH is just not a viable candidate. Frankly, none of the telecoms have a decent track record when it comes to growing much less maintaining dividends. This is unfortunate since we lose some sector diversification by passing them by.
Also, since selling Chevron, we don't have any energy exposure right now.
Cash position is up to 23.6% right now. We may or may not get a correction, but the market just doesn't seem to be screaming to be bought right now. On the other hand, I really suck at timing , especially short term timing, so I will just buy the best quality QDV candidates and hope the timing is right on at least some of them.
Some random thoughts...
I have noticed that the participants in this recent move up have been a selective group, and our relative performance has suffered.
Still, this trimming is a healthy approach and the result is that we have now a "weighted QDV" of 21%. In other words, at the portfolio level dividends are growing at greater than a 20% annual rate.
It's not easy to find high QDV candidates that are also not trading at too high a premium; not without venturing into much smaller cap companies. I don't mind doing that some, but I won't risk much capital for them. And, we already hold more than a few small caps.
It was a difficult decision to sell our Telecom HLDRs ETF (TTH), because it has been a great performer and has had a decent yield. But, if our policy is to stick with dividend growers, TTH is just not a viable candidate. Frankly, none of the telecoms have a decent track record when it comes to growing much less maintaining dividends. This is unfortunate since we lose some sector diversification by passing them by.
Also, since selling Chevron, we don't have any energy exposure right now.
Cash position is up to 23.6% right now. We may or may not get a correction, but the market just doesn't seem to be screaming to be bought right now. On the other hand, I really suck at timing , especially short term timing, so I will just buy the best quality QDV candidates and hope the timing is right on at least some of them.
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