Week started off rough when Compass Minerals (CMP) cut their dividend by 80%. CMP only makes up 1% of my portfolio so the damage is limited but it is not all bad news. The dividend is not being cut for lack of cash flow but to allow the company to invest that cash back into the company to accelerate lithium extraction for their recent discovery changing this investment from income to growth. Here are my trades for the week :
- Snap-On Inc. (SNA) – new position – 17.5% off its 52 week high, dividend yield .5% above its 5 year average, 39% payout ratio, P/E less than 15, a 10 year dividend CAGR of 14.24%, and a 13 year dividend growth streak, what is not to like? Grabbed 7 shares @214.59 and a 2.65% yield.
- Leggett and Platt (LEG) – increased position – Slowly building this position out with small buys. Grabbed 4 shares @ $42.24 and a 3.99% yield.