In preparation for a bunch of dividends being paid over the next week and a half, I have reviewed our holdings today. There are multiple ones that, according to SSD, are reasonably valued or likely undervalued. Most of those are full weight or overweight and I do not want to add to them at this time.
A couple that I have been building up and are underweight are getting overvalued. I do not want to add to them while they are likely overvalued and, with the exception of PG, they are over half weight and in sectors where I already have overweight positions (financials, for example).
So, I think I have narrowed it down to one current holding and one new candidate. The current holding is SCHD, that has dropped back down into my buy range, namely under $80 a share (77.66). It is overweight, but my intention is to take it more overweight over time. I am not going to treat it like an ordinary position as it holds around 100 dividend growth companies. The top 15 positions, the last time I looked were all in the SSD Safe or Very Safe dividend safety ratings.
The new one one would be STOR.
STOR is a REIT, current yield a bit over 5%. Five year DGR is 6% with a most recent dividend raise of 6.9%. Dividend safety score is smack dab in the middle of the SSD Safe range, having been increased twice in the past couple of years - due to improved rent collections.
On the chopping block: PTY, a bond CEF and, contingent on their dividend increase announcement in Feb., a trim of CSCO. If either of those got chopped, those funds, along with accumulated dividends could go to one or both of the above.
One caveat: with market volatility things may move pretty rapidly and knock down this plan |
