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Strategies & Market Trends : Young and Older Folk Portfolio

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To: chowder who wrote (781)1/31/2022 9:58:04 PM
From: chowder1 Recommendation

Recommended By
The Beard

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Re: Young Folk Portfolio ... Add On Buy's -- LLY and ASG

Today I added to LLY in the Roth account. LLY is the smallest position in the portfolio having been one of the most recent additions to the portfolio. Today's add on buy was simply an attempt to bring LLY up a little more in size. I will continue to add to this one as the year goes on and funds hit the account.

Simply Safe Dividends gives LLY a dividend safety rating of 96. It is a low yield, high dividend growth company, the yield is 1.60% and the last dividend increase was for 15%.

Argus Research, The Street and CFRA all have Buy ratings on LLY, Reuters gives them an Outperform rating.

Of the sources I use for analyst ratings, there are 18 analysts following LLY -- 15 are Bullish, just 3 are Neutral, and there are no Sell ratings.

As to valuations -- The Price to Sales ratio is less instructive than the PE since the company has positive earnings. Therefore LLY seems highly valued with a PE value of 37.44x, one of the highest in the Pharmaceuticals industry.

When I add it all up, LLY is a Buy but due to the valuations, I am buying in small increments, a few shares at a time.

I did have some cash left over that I put into ASG which is a CEF yielding 8.47%.
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