On the hit list 🎯
My investment case for $PRU was clear when I struck in the middle of the 2020 Corona tumult. > 7% dividend yield, > 10% dividend growth, upside potential.
2 years and ~100% share price gain later, I assess the situation differently. After the price has normalized, no big jumps are to be expected here. However, there is another reason why the stock is now on my hit list.
I took a good look at the numbers and capital disposition decisions over the 2 years. In each of the 2 years of holding, the dividend has only been increased by about 4%, which falls far short of my criteria for a good (dividend) growth investment. Therefore, I will soon trim my position by 50% - to the level of my capital investment at the time.
Nevertheless, to keep my exposure to the financial sector stable, but to diversify more towards (dividend) growth, I have already opened a position in JPMorgan at about the level of my targeted sale of $PRU (+0.7%) opened.
