BKH. Thanks. I appreciate your sharing your thorough dissection and analysis of the company. I have held all my shares. They have only been few though.
Your post indicates a quandary some of us may have who've bought utility stocks in early '09. And that is, that the stock prices have come up on most, if not all of these stocks, and with that, the dividend yields have come down (even on those that have raised their distribution). So what do we do now? While with BKH the dividend yield was 8% at the time, with the stock price rise it's now 4.6%. The stock may (or may not)be an okay or good holding, but it's not so attractive (imo) that if we go into another, second recession, the stock won't drop down from levels that are now still near the high of the year. (BKH trading roughly at $32 now, is closer to $34 hoy, than to $23, loy.) So I see more risk to the stock now at its current price and current dividend yield.
I'm one who would consider harvesting BKH to fund new investments elsewhere. Except as I said in an earlier post, I've just raised my cash holdings.
I'm using BKH as a general example. I face the same decision with several other utility stocks. If I sell, the issues are: which to sell, how much to sell, and what do I have as suitable replacements for these utility stocks.
Anyway, if/when BKH breaks to a new high on no positive news, I will consider selling at least some shares. |
