So now I have been more focused on mid-yield companies growing at 6% or higher dividend growth rates (some quite a bit higher like TROW, AMGN, LMT, and EOG, for example) with strong dividend safety (mostly the upper ranges of the SSD Safe range on in the Very Safe range) at good valuations, mostly via the yield and PE metrics but I do look at other things.
I call these my four pillars; dividend yield, dividend growth, dividend safety and valuation at time of purchase.
I rarely go below 2.7% yield at time of purchase, though. There are plenty of fish in the seas that I am working.+++
I am going to review 5 of my more recent positions through looking at these four pillars and then I am going to write about my decision on where to spend accumulated dividends.
The order of data below will be ticker, current yield, most recent dividend growth, Simply Safe Dividends safety score and their current timeliness rating and though it is not one of the pillars the share price performance since my purchase.
AMGN 3.2% current yield, 10% most recent raise, 74 DSS, May be Undervalued, up 6.4%
EOG 2.5% current yield, 82% most recent raise, 82 DSS, May be Undervalued, up 37%
D 3.1% current yield, 6% most recent raise, 80 DSS, May be Overvalued, up 12%
STOR 5.2% current yield, 6.9% most recent raise, 70 DSS, May be Undervalued, down 3.2%
TROW 3.4% current yield, 11% most recent raise, 94 DSS, May be Undervalued, up 6.2%
I think I am doing okay in terms of the four pillars on these.
I have some accumulated dividends to spend. Initially I looked at two current positions, AMGN and TROW and have written of my desire to build these positions. At the Vacation Summit discussions, GLW came up.
I had looked at it before and the yield was generally lower than I wanted. Today the yield is 2.97% compared to its 5 year average yield of 2.6%. Current PE is 15.5 compared to its 5 year average of 17.1 and a InfoTech sector PE of 19.4.
I have decided to open a position in GLW. Here is how it does on the four pillars
GLW 2.97% current yield, 13% most recent raise, DSS 77, May be Undervalued.
It is in my range. |
