Trade Alert – Equity & Dividend Equity Models
I give up! I have tried a couple of times to add value and fundamentals to the portfolio with CVS (CVS) which trades at an insanely cheap valuation with a good dividend. However, it is just one bad piece of news after another. The latest earnings announcement is just the latest catastrophe for the company. As such, we are swapping CVS for American Electric Power (AEP) in the Dividend Model and bringing Meta (META) to target weight. We are overweight electric utilities in the portfolio based on the coming power consumption needs of data centers for Artificial Intelligence.
In the Equity Model, Stanley Black & Decker (SWK) reported earnings that were better than estimates, and executive commentary was very upbeat. They are well positioned for a slower growth economy where DIY house projects will become more common. As such, we are using yesterday’s selloff to bring SWK up to 3.5% of the portfolio today.
Equity Model
- Increase Stanley Black & Decker (SWK) to 3.5% of the portfolio
Dividend Equity Model
- Increase Meta (META) to 5% of the portfolio.
- Sell 100% of CVS (CVS) in the portfolio.
- Initiate a 3.3% position in American Electric Power (AEP)
Want These Alerts Via TEXT?
To receive trade information via text, click on your user name in the upper right corner of the website. Then click My Account and the title SMS Notification Preferences.
NOTE: You must add your country code in front of your number. The U.S. code is 1.
Please let us know if you have any problems.
Lance Roberts is a Chief Portfolio Strategist/Economist for RIA Advisors. He is also the host of “The Lance Roberts Podcast” and Chief Editor of the “Real Investment Advice” website and author of “Real Investment Daily” blog and “Real Investment Report“. Follow Lance on Facebook, Twitter, Linked-In and YouTube
Customer Relationship Summary (Form CRS)