Recent Investment for April 13h
I wanted to let you know that I added to existing position this morning. While the stock is not cheap at 25.50 times forward earnings, it is rarely selling at a low P/E multiple, due to the defensibility of its cash flows. The stock yields 2.76% today.
The company has a 24 year track record of annual dividend increases, a ten year annualized rate of dividend growth of 12.90%. The last dividend increase was a 12.90% hike in January 2023.
This is one of my smallest positions, and I am adding to it in an effort to build it up over time. Sadly, that company is rarely available at a low enough multiple. I would love to add to it at a larger discount from here.
I am basically liking the company, I dislike the valuation, but I believe it is a good long-term holding that is of good quality. I am unhappy that my position is so low, so I am trying to increase it. I would love to buy more at 20 times forward earnings. Unfortunately, if that happens, there would likely be a widespread selling of other quality companies and they would be available at good valuations too. Hence, it would be hard to pick and choose.
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