Dividend Growth Investment for November 6th

Good Morning,

I wanted to let you know that I added to an existing position today, in a dividend aristocrat that has a 30 year track record of annual dividend increases under its belt. The stock sells for 23 times forward earnings, yields 2.62% and has a ten year annualized dividend growth of 11%.

The stock seems to be one of the biggest losers in portfolio today. It looks like Mr Market thinks that the new presidential administration is going to affect the green business earnings power. They may or may not do that. Mr Market's assessment may or may not be correct. One thing is for sure is that Mr Market overreacts on the upside and on the downside.

The decline could also be a result of an increase in interest rates, which could also affect valuations of interest rate sensitive companies like Utilities or REITs. Whether those expectations materialize, it is yet to be determined as well. As we also know, for each action, there is a counter-action as well. Interest rates could rise for a variety of reasons - either because the economy is too hot or perhaps because we have a high inflation. Of course, noone can predict interest rates over a single period or two, even the FED Chairman themselves. Hence, I am not even going to attempt to play this game. I do believe that a utility like NextEra will be around for the foreseeable future, providing its services to customers. 

The moves of Mr Market are also an example of a Keynesian Beauty contest, where the prize doesn't go to the one who picks the prettiest face, but the one who picks the prettiest face as determined by the crowd.