Dividend Growth Investments for September 15th
I bought shares in an existing postilion, which is available at a fair price today.
In my opinion, this is a type of company that would likely be around in a few decades, earning more per share, paying more per share and worth more per share. It sells a product that is Lindy. Nothing is 100% guaranteed of course, but I would take my chances. This is the type of business to buy and hold for many years in my opinion. The interests of its largest long-term shareholder, the Hershey Trust, are in my opinion aligned as well. They've been "living off" those dividends for many decades, putting them to good use for charitable purposes. In addition, they have been instrumental in keeping the company publicly traded, and not letting someone else acquire it. If you hold a great business, it would likely be worth more, earn more and distribute more in the future. Hence, it makes little sense to sell it, and let someone else benefit from the future wealth accumulation.
That being said, from a risk management perspective, I would likely have room for about 2 more purchases as of today. So I would likely try to make those at lower valuations, if possible. It is very likely that the stock price would keep going down over the next year or so, which would be a good opportunity to buy quality at a good price. If you have a good business in my opinion, it's better to buy it a good price, than to wait for a bargain price that never arrives. The next hard thing to do is to simply wait.
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