Re: Old Folk Portfolio ... Portfolio Adjustments
Yesterday I trimmed JNJ and purchased;
AEP .. AMGN .. BEP .. BIPC .. CNP .. CVS .. D .. GD .. HD .. MSFT .. RFI .. TGT.
JNJ was an overweight position at more than 3x a full sized position. It is now around 2x the size of a full position, so it's still overweight.
Although JNJ is a very reliable dividend paying company, and a high quality company at that, the dividend growth rate is still expected to slow. The company is facing a number of significant law suites and they have plans on spinning off part of the business to minimize the loss to the company. This on its own isn't enough for me to want to sell JNJ, but it is enough for me to want to trim part of the position and lowerthe downside exposure in these uncertain times.
Sold -
JNJ .. 279 shares
Balance .. $50,106
Annual Income .. $1,182
Yield .. 2.36%
5 Year Dividend Growth .. 5.90%
Bought -
AMGN .. 124 Shares
CVS .. 96
MSFT .. 16
TGT .. 23
Balance .. $50,146
Annual Income .. $1,295 .. +9.5%
Yield .. 2.58%
5 Year Dividend Growth Rate .. 9.80%
These moves will minimize the risk of litigation, the spinning off of assets and diminishing dividend growth, while replacing it with higher income, a higher yield and a significant increase in dividend growth, something that will be counted on in a high inflation environment.
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As to the dividends that have been accumulating in the portfolio, I used those dividends to do the following:
Bought ..
AEP - 20 shares
CNP - 65 shares
D - 23 shares
GD - 8 shares
BEP - 48 shares
BIPC - 26 shares
HD - 7 shares
RFI - 130 shares |
