Tuesday, September 20, 2016

Recent buy: MO

Since MO is correcting I added to MO. It yields 3.9% and has a 8% dividend growth rate with a dividend that is basically covered with a payout ratio around 74%. With the SABMiller deal coming to close hopefully soon, I find MO attractive.

I only used $300 this week to add to my position.

I plan to move some of my stock holdings around next week to overweight in select dividend stocks that I find provide potentially higher returns. For example, MO is one of the companies I want to be overweight in. I am doing the re-balancing since I am moving the bulk of my funds from Capital One to Fidelity and Fidelity is offering me free trades for signing up. I will also take this time to do whatever tax loss harvesting I can for 2016.

I'll create a post on what I decide on swapping in the coming days.



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2 comments:

  1. Passive Income PursuitSeptember 21, 2016 at 5:33 AM

    MO is definitely getting interesting here. If I had some free trades like you then I'd nibble, but unfortunately I don't. I'm curious how low it'll go it the share price dips under the 200 DMA. All the best.

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    1. UnknownSeptember 21, 2016 at 8:17 PM

      "how low".., it will go to its normal P/E of 15 at some point, probably soon by looking at that chart. That's a price of about $47-$50. MO is WAY overvalued at the moment and it has been for so long it was a matter of time before it came down. Now it is, but is nowhere near FV. Great company of course, I am long, but I can only watch at these levels and wait.

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