In mid-November I discussed my purchase of Ventas (NYSE: VTR) and how I likely overpaid for those initial shares in my 11/18/16 article. The Seeking Alpha community responded with great feedback offering comments that I will not regret the purchase even at the price I paid. Within the comments I mentioned the possibility of selling my long time Caterpillar (NYSE: CAT) holding primarily as my return on CAT had been extremely poor. CAT was initially purchased in my Rollover401k portfolio in 2011 and dividends were automatically reinvested for (time period). My cost basis was $95.41 per share. On November 23, 2016, I sold my position out for $95.00 per share. I reviewed several articles by Michael Boyd (11/2/16) and Ron Honig (11/15/16). Michael’s thesis was that the dividend is safe regardless of the current payout ratio because of the cash flow. His point was cash flow is king and CAT produced over $1B in cash in excess of dividend and its business obligations. Ron focused on the declining earnings per share since 2012 highs and the price per earnings (PE) ratio being about 3 times above historical PE. Since selling, CATs performance has been mediocre. My total return with dividends… Read full this story
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What Should I Buy After Selling Caterpillar? 2 Strong Candidates - Eaton Corp. plc (NYSE:ETN) have 225 words, post on seekingalpha.com at January 31, 2017. This is cached page on Vietnam Art News. If you want remove this page, please contact us.