Thursday, February 7, 2013

Sharebuilder DRIP Purchases

Buys went through on Tuesday.  Picked up:
  • $200 of RDS.B at $70.74. Yield 5.09%. 
  • $100 of EXC at $30.71. Yield 4.04%.  
EXC announced earnings today which were poor as predicted.  Full year 2012 earning per share were 31% lower than 2011.  They also forecast another decline of 10-15% in 2013 EPS.  Poor.

The worst news is that they also announced a dividend cut of 44% from $.525/quarter to $.31/quarter. Piss Poor.

I cant say I am surprised as they hinted at a cut during the Q4 earnings calls and the stock was sporting a 7%ish yield.

The cut stings a bit but I knew it was coming and EXC only makes up around 3.5% of my portfolio.

The stock was up today on a down market day.


  1. Sometimes I do it as well and buy or keep dividend paying stock after the cut if holding the stock is justified by other metrics. I hold ARR which recently cut dividend, but it still pays almost 14% yield (my YOC is 13%), my cost basis is way lower below market price ($6.34, current price $7.12),and it pays dividends monthly. So there is a point when I will sell, but not at current price, dividend rate, and estimated growth.

  2. I hear you Martin and made out very well with adding to my position of GE in 2009 after it's cut. I consider EXC a value play at this point. I will probaly hold and may even add a bit. It is my only utility in my portfolio.