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Strategies & Market Trends : Dividend Growth Investing and chit chat.

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From: SeeksQuality	1/25/2022 1:18:53 PM
	5 Recommendations Read Replies (3) of 2146

Dilemma... AMZN is looking like a remarkable bargain here! I know the P/E is still high, but (as a SA article today observed) that is partly because they are investing heavily in growth. Unless you believe their investments in infrastructure will be a flop, and will never pay off, it should only take a couple years at this point for the growth to normalize the P/E. I'm willing to look five years out -- over which time frame it looks like an outstanding bargain. Potential mid-double-digit returns. Yet I'm also happy with the value here on my other Discretionary holdings -- LOW, NKE, WSM, and MCD. That last might be the most richly valued, but it is also in a somewhat different sector niche and pays a solid dividend. So I'm not seeing the opportunity here to trim one of those to add to AMZN. The alternative is to expand my allocation to the sector, presently at 8.0%. I guess I can slip a small purchase in without making any large changes, but I won't be able to bring the position up to size until I find something else to trim. Edit: Trimmed 1/3 of LOW, doubled AMZN. Now all five positions are comparably sized, MCD a little smaller than the others. I like that mix and balance!

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