I'm way up on this popular dividend stock, but I've thought about selling. The gains have been tremendous at 263% unrealized capital appreciation, but the current yield is quite low. Should I sell this stock and redeploy the proceeds in a higheryielder? That is the question discussed in today’s dividend stock investing video.
#dividend #stock #investing
Timestamps:
0:00 INTRODUCTION
0:41 My simple, 1st tranche dividend yield on cost is 6.03%.
0:55 My equity, share price appreciation is a staggering 263% (unrealized capital gain).
1:03 The dividend stock I'm covering today is Caterpillar (CAT).
1:40 My dreams and aspirations typically hinge on the success of cash flow from my dividend stock portfolio.
1:53 QUESTION: Should I sell this stock and redeploy into a higheryielding stock?
2:53 I could instantly drive more cash flow in my dividend portfolio, should I sell and redeploy.
3:43 SEGMENT 1: CATERPILLAR (CAT) DIVIDEND STOCK METRICS (FROM 2023)
4:03 CAT is experiencing records acrosstheboard. The company is doing well!
4:16 And, there were tough times during 20192021.
4:44 SEGMENT 2: PPC IAN DIVIDEND STOCK ANALYSIS AND THOUGHTS ON THIS STOCK
4:56 CAT METRICS OVERVIEW
5:13 The forward PE is in the 14s, but this is a cyclical company.
5:35 I'm not a buyer of CAT at this level. Here's why.
6:47 Starting yield is only 1.66%. That said, they could increase because payout ratio is under 25%.
7:16 They are increasing the dividend by 8.6% per year, on average.
7:28 MY 1ST TRANCHE PURCHASE
7:35 I have earned a profit of 263% on the equity alone.
7:40 QUESTION: Should I sell this stock and redeploy into a higheryielder OR should I let it ride?
8:38 Fun Metric: PE RatioOnCost (4s and 3s)
9:23 Longterm investors (in quality companies) enjoy a derisking over time (as earnings grow).
9:47 NOTE: I'm sharing a winner today. Of course, not all of my investments are like this. I'm human, I'm always learning as an investor.
10:49 1st Tranche Simple Dividend YieldOnCost is 6.03%.
11:16 DIVIDEND HISTORY ANALYSIS
11:30 The dividend growth paused a bit during 20192021. Business growth is not linear.
12:30 Successful dividend investors hold through ups and downs. This is the had part of longterm dividend investing.
12:48 KEY TAKEAWAYS AND MY DECISION WITH THIS STOCK
13:04 PHILOSOPHY: I don't want to cut winners at this time. I'm letting my winners run.
14:10 CAVEAT: I always like to have contingency plans, in case life changes. CAT is a contingency plan.
15:14 CHALLENGE WITH DIVIDENDS: With any given company, there are times when it's difficult to holdon, because things can look bad.
17:24 PATIENCE: I have seen the best results with my stocks once I have reached 1+ decades of holding time.
18:30 REMINDER: Take motivation from the hard times and the good times.
20:26 DISCLOSURE AND DISCLAIMER
DISCLOSURE: I am long Caterpillar (CAT), Pfizer (PFE), and Realty Income (O). I own these stocks in my personal dividend stock portfolio.
DISCLAIMER: All information and data on my YouTube Channel, blog, email newsletters, white papers, Excel files, and other materials is solely for informational purposes. I make no representations as to the accuracy, completeness, suitability or validity of any information. I will not be liable for any errors, omissions, losses, injuries or damages arising from its display or use. All information is provided AS IS with no warranties, and confers no rights. I will not be responsible for the accuracy of material that is linked on this site.
Because the information herein is based on my personal opinion and experience, it should not be considered professional financial investment advice or tax advice. The ideas and strategies that I provide should never be used without first assessing your own personal/financial situation, or without consulting a financial and/or tax professional. My thoughts and opinions may also change from time to time as I acquire more knowledge. These are, as discussed above, solely my thoughts and opinions. I reserve the right to delete any comments for any reason (abusive in nature, contain profanity, etc.). Your continued reading/use of my YouTube Channel, blog, email newsletters, whitepapers, Excel files, and other materials constitutes your agreement with and acceptance of this disclaimer.
COPYRIGHT: All PPC Ian videos, Excel files, guides, and other content are (c) Copyright IJL Productions LLC. PPC Ian is a registered trademark (tm) of IJL Productions LLC.