Yeah, the story with BGS seems OK, but since they cut their dividend I think I'm going to sell my shares. My theory was hold for a few years, and it probably returns to the high $20's, and I collect ~10% while I wait.
The new dividend is about a 5% yield, and not enough for me to invest long term (many years) in a so so food company. Maybe it's valuation is reasonable, but the dividend was the main thing that attracted me to BGS. Cutting it and paying down debt is perhaps the smart thing to do, and positions them better for long term performance, but I don't see the reason to invest in a so so food company that is going to spend a few years deleveraging.
I'll take my losses, and put the money into QCOM. I sold Dec $15 calls today for 78 cents, if my shares get called away I don't mind. If not, maybe I change my mind in Dec, who knows?
BGS isn't enough of a blue chip for me to put away and forget about. I'm trying to shift my portfolio to hold forever blue chips over the next few years. BSG lured me with it's $1.90 per annum dividend. With a $0.78 per annum dividend, not for me, |
