AMCR - Taking A Small Position In Amcor
2024-05-15 15:25:32 ET
Summary
- I have shifted my investment philosophy to focus on dividend-paying stocks, particularly "dividend aristocrats.".
- Today I review packaging company Amcor plc to determine if it is a good investment based on its valuation and dividend coverage.
- Amcor's recent financial performance has been soft, but I believe the stock is reasonably priced and has potential for growth.
I have a terrible confession to make, dear readers: I’m ageing. It’s as much of a shock to me as it is to thee. Anyway, among the behavioural changes such unpleasantness demands is a slight change to my investment philosophy. I’m now focusing on buying dividend paying stocks, and I’ll be limiting myself to so-called “dividend aristocrats.” My goal is to find the top 15 stocks from this universe. I’ll be judging them for their ability to maintain and grow dividends, and, of course, valuation. As is frequently the case, I’ll be comparing these companies to the risk free alternatives available to investors, chiefly the 10-Year Treasury Note. I mean, why take on the risk of owning shares when you can earn as much or more from risk free alternatives? I also want to review insider activity on each of these stocks, as I think we can glean much from the actions of the people who know these businesses best, but I’ll only note this when it’s, uh, noteworthy. On occasion, I’m going to enhance the yield on these investments by selling covered calls against them. I want to write about my process for picking the best strike prices and maturity dates when relevant. With that long preamble over, I'm going to review packaging company Amcor plc ( AMCR ) today to see whether or not it makes sense to buy the future dividend payments at current prices....
Taking A Small Position In Amcor