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Strategies & Market Trends : Dividend investing for retirement
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To: Kip S who wrote (32730)5/13/2020 1:50:58 PM
From: The Alchemist2 Recommendations

Recommended By
Graustus
Kip S

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Hi Kip,

Certainly one of those "good" problems to have as I'm sure you recognize.

I agree CLX appears overvalued, but there is no telling how long it might stay that way - one month? one year?

I think it boils down to can you tolerate/stomach a ~20% drawdown in the capital value of the position if needed while your income remains the same or potentially grows? If you can, it sounds like you should keep it.

If you have gotten too used to see that high value of the position and would not feel good if the stock returned to the 160s, probably best to cut ties and get ready to pay the tax man.

Let's say 4 years from now CLX is at $205 and it has raised the dividend 5% per year - would you regret continuing to own it? Would it somehow fail to meet your investment criteria at that point?

Will be interested to hear what you decide.
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