Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Kip S who wrote (32730)	5/12/2020 11:33:42 PM
From: maverick61	2 Recommendations Recommended By B.O. Plenty Kip S Respond to of 34328

I used to own CLX but had sold it a few years ago. Nothing wrong with the company at all. However I believe you are correct to be concerned about valuation. To me CLX is very overpriced right now. No crystal ball but I would definitely consider selling all or a good portion of it due to valuation concerns. For a long time I too did not sell many of my DGI stocks - but changed a few years ago when I felt several were valued too high and other opportunities presented themselves. Of course, there were some I held onto all or half, two of which proved to be a mistake doing so. So I would bite the bullet on the taxes - you may have some losses this year to offset part of the gains - and lose the emotional attachment and sell. And then look to re-enter down the road when the valuation comes back to earth good luck

To: Kip S who wrote (32730)	5/13/2020 1:50:58 PM
From: The Alchemist	2 Recommendations Recommended By Graustus Kip S Read Replies (1) \| Respond to of 34328

Hi Kip, Certainly one of those "good" problems to have as I'm sure you recognize. I agree CLX appears overvalued, but there is no telling how long it might stay that way - one month? one year? I think it boils down to can you tolerate/stomach a ~20% drawdown in the capital value of the position if needed while your income remains the same or potentially grows? If you can, it sounds like you should keep it. If you have gotten too used to see that high value of the position and would not feel good if the stock returned to the 160s, probably best to cut ties and get ready to pay the tax man. Let's say 4 years from now CLX is at $205 and it has raised the dividend 5% per year - would you regret continuing to own it? Would it somehow fail to meet your investment criteria at that point? Will be interested to hear what you decide.