I'm way up on this popular dividend stock, but I've thought about selling. The gains have been tremendous at 263% unrealized capital appreciation, but the current yield is quite low. Should I sell this stock and re-deploy the proceeds in a higher-yielder? That is the question discussed in today’s dividend stock investing video.
#dividend #stock #investing

Timestamps:
0:00 INTRODUCTION
0:41 My simple, 1st tranche dividend yield on cost is 6.03%.
0:55 My equity, share price appreciation is a staggering 263% (unrealized capital gain).
1:03 The dividend stock I'm covering today is Caterpillar (CAT).
1:40 My dreams and aspirations typically hinge on the success of cash flow from my dividend stock portfolio.
1:53 QUESTION: Should I sell this stock and redeploy into a higher-yielding stock?
2:53 I could instantly drive more cash flow in my dividend portfolio, should I sell and redeploy.
3:43 SEGMENT 1: CATERPILLAR (CAT) DIVIDEND STOCK METRICS (FROM 2023)
4:03 CAT is experiencing records across-the-board. The company is doing well!
4:16 And, there were tough times during 2019-2021.
4:44 SEGMENT 2: PPC IAN DIVIDEND STOCK ANALYSIS AND THOUGHTS ON THIS STOCK
4:56 CAT METRICS OVERVIEW
5:13 The forward PE is in the 14s, but this is a cyclical company.
5:35 I'm not a buyer of CAT at this level. Here's why.
6:47 Starting yield is only 1.66%. That said, they could increase because payout ratio is under 25%.
7:16 They are increasing the dividend by 8.6% per year, on average.
7:28 MY 1ST TRANCHE PURCHASE
7:35 I have earned a profit of 263% on the equity alone.
7:40 QUESTION: Should I sell this stock and re-deploy into a higher-yielder OR should I let it ride?
8:38 Fun Metric: PE Ratio-On-Cost (4s and 3s)
9:23 Long-term investors (in quality companies) enjoy a de-risking over time (as earnings grow).
9:47 NOTE: I'm sharing a winner today. Of course, not all of my investments are like this. I'm human, I'm always learning as an investor.
10:49 1st Tranche Simple Dividend Yield-On-Cost is 6.03%.
11:16 DIVIDEND HISTORY ANALYSIS
11:30 The dividend growth paused a bit during 2019-2021. Business growth is not linear.
12:30 Successful dividend investors hold through ups and downs. This is the had part of long-term dividend investing.
12:48 KEY TAKEAWAYS AND MY DECISION WITH THIS STOCK
13:04 PHILOSOPHY: I don't want to cut winners at this time. I'm letting my winners run.
14:10 CAVEAT: I always like to have contingency plans, in case life changes. CAT is a contingency plan.
15:14 CHALLENGE WITH DIVIDENDS: With any given company, there are times when it's difficult to hold-on, because things can look bad.
17:24 PATIENCE: I have seen the best results with my stocks once I have reached 1+ decades of holding time.
18:30 REMINDER: Take motivation from the hard times and the good times.
20:26 DISCLOSURE AND DISCLAIMER

DISCLOSURE: I am long Caterpillar (CAT), Pfizer (PFE), and Realty Income (O). I own these stocks in my personal dividend stock portfolio.

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