-Dividend Growth Investing is a great strategy, but many
people forget to include the "growth" aspect in their analysis.
-Changes in secular trends, consumer habits, regulation,
debt and other factors can set companies, and your portfolio, way back.
-Here is a formerly great investment with big headwinds
making it mediocre that you should sell and replace.
Before I put out a bearish call on a company that I know
many people have done well with, arousing their suspicion and emotions, I want
to point out that I have a 4-step process for picking stocks that has been
tracked and shown to be generally successful. It includes watching secular
trends, analyzing government and central bank influence, learning company
fundamentals and respecting price trends.
The company I cover below is not a "going to zero"
candidate anytime soon. But it is at risk for no dividend growth, future
dividend cuts and a dramatic drop in share price. While this company was once
great for dividend growth and really any investors (even if it was a bit evil),
it is clearly mediocre now. I believe that investors should sell now, as the
company has problems in all four categories I monitor and I don't believe there
is much relief on the horizon.
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