1Semana·

Sell LVMH?

Greetings,

I have been in the red for several months now. Now I am back at my EK & have always gladly accepted the dividends... :)

Now I'm thinking about selling LVMH & putting the money into another dividend stock. I have stocks in mind like $O (+0,26 %) or $WM (-0,78 %) What do you think? The investment amount is around €10,000.

Best regards

5Puestos

118.360,39 €

7,20 %

26 Comentarios

Christian@Investor-College

1Semana

I don't know how well diversified you already are. If that's not the case, I would take the opportunity to start with exactly that. 10k is a good place to start.
If you - like me 70% - are building a dividend portfolio (rest growth 10% and ETF 20%), here is my approach in brief:

Personally, sustainable quality is important to me. That's why I apply the following criteria to every value. Please don't focus on dividend yields!

1. payout ratio (POR) --> <75% (über drei Jahre hinweg; 1 Punkt)
2. Verschuldungsgrad --> <200% (über drei Jahre hinweg; 1 Punkt)
3. Dividendenwachstumsrate (Dividend Growth Rate DGR) -->>6% ideally over 1,3,5,10 years (up to 4 points)
4. return on sales --> >5% (over 3 years; 1 point)
5. equity ratio --> >=30% (over 3 years; 1 point)
6. return on equity (RoE) --> >=15% (over 3 years; 1 point)
7. free cash flow margin (FCM) --> between 5% and 30% (over 3 years; 1 point))
8. Annual earnings growth --> 8%-12% (over 5 years; 1 point)
Makes a maximum of 11 possible points.
9. add the total return (price gain + dividend), it should be >10% for 1, 3, 5 and 10 years, we want to beat the inflation rate properly (maximum 4 points).

This makes a maximum total of 15 points.

Note: The criteria values differ slightly depending on the sector; for example, REITS are legally obliged to distribute up to 100% of their profits. Or in the capital-intensive Materials sector, the maximum pay-out ratio should be low (these companies need a lot of capital for their investments).

Let me give you my favorites per sector (score is calculated with the adjusted criteria of the sector).

Materials (4%)
$CRH (14/15)
$LIN (14/15)
$HILS (14/15)

Communication (10%)
$DTE (12/15)
$KPN (12/15)

Consumer Discretionary/Cyclical (6%)
$WSM (15/15)
$HD (12/15)
$9956 (12/15)
$TXRH (14/15)

Consumer Staples (5%)
$CCEP (15/15)
$MDLZ (13/15)

Energy (5%)
$MPC (14/15)
$CNQ (13/15)
$DR0 (13/15)

Financial / Insurance (23%)
$HSBA (13/15)
$ALV (14/15)
$MUV2 (13/15)
$NN (13/15)
$TLX (13/15)

Healthcare (10%)
$ABBV (10/15)
$DGX (13/15)
$UNH (10/15)

Industrial (15%)
$6301 (15/15)
$FAST (13/15)
$SNA (14/15)
$WSO (13/15)

Technology (8%)
$MSFT (15/15)
$AVGO (13/15)
$QCOM (13/15)
$APH (14/15)

REIT (6%)
$VICI (13/15)
$PLD (13/15)
$O (7/15) ---> I would never buy

Utilities (8%)
$NEE (14/15)
$WM (14/15)
$WEC (15/15)
$LNT (14/15)

Hope it helps.

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IntrinsicMind@IntrinsicMind

I wouldn't sell LVMH right now, even if it looks like a good time after the lows of the last few months.

I believe that LVMH has a good future. For me, it's a share for the ages.

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wasi@wasi

1Semana

How about $BATS or $PM?

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Mav83!@Maverick4831

1Semana

$PG with just under 3%?

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SteelDiv@FinSteel

1Semana

If you don't have to buy, you could leave it for the time being or invest little by little. I guess they could be a good fit and I think they are solid in the long term: $HNR1 $MUV2 $CSCO $DTE or $TMUS $BMY (currently cheap, speculation on rebound, also take profits if the stock is doing well) or $BATS but I would also want to get back in 5-10% lower.

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Ruben Schoff@Sand

1Semana

I would rather add to lvmh if it falls back into the 540-480 range.
T.rowe Price or Franklin resources could be worth a look as solid divi alternatives.

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Thomas@Thomas_1963

1Semana

In terms of price, they wouldn't appeal to me. How about $RIO?

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RW@SeidoPacero

1Semana

$O is also just getting back to the starting point. Why not put the 10k in the main pot $VWRL?

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Christian@Investor-College

Can someone explain to me why one should invest in $O?
- The payout ratio (ø3y) is 254% (much too high and goes to the substance of the company)
- The dividend growth rate is -6.2% for ø1y, 1.1% for ø3y, 1.6% for ø5y and 3.1% for ø10y. With these growth rates, I am not even beating inflation.
- The return on equity is 2.36% (15% would be healthy)
- Profit growth is negative and stands at -6.4% (8-12% would be healthy)

In my opinion, there are more lucrative stocks in this sector.
So what is convincing about $O?

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