Sunday, August 19, 2012

1 Sale = 3 Purchases

I sold half of my holdings in WMT and purchased CVX, TCAP and UHT this month.  This will help my dividend income stream while providing additional diversification in the portfolio.

WMT: I set a personal price target of $68.50 for WMT and as it stands, has been overvalued for a bit.  With the release of their most recent earnings, I knew stock prices would decline if it didn't beat the 'stock analysts' expectations, so I had to be proactive and sell.  Seeing a yield of 2.15% didn't slow me down either...

TCAP = Triangle Capital has a great management team and if you visit Pulling ourselves up financially you can see a good fellow blogger's review of the company.  Using my dividend investing strategy, TCAP had an RRR value of 10.05 at time of purchase.

CVX = In my opinion this stock is way under-valued.  With a 26% payout, there is lots of room for the dividend to grow over the years.  The RRR value was 11.88.

UHT = a REIT that deals with hospitals and other medical facilities, this great dividend play had a yield around 5.75% and an RRR value of 14.50

In case you didn't know, the RRR is simply pairing up the payout ratios with the dividends themselves to measure the "Risk Reward Ratio".  You can learn more about the strategy at here on my blog.

Disclaimer: I am not a financial planner, advisor, or accountant. The financial actions mentioned were only suited for my own risk tolerance, strategy, and ideas. Copying another's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

1 comment:

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