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| FEB 29, 2024TUCCI’S TWO CENTS One Dividend Stock I LOVE — But You Should Probably Avoid I've got a bit of a paradox for you today. It’s about a dividend stock that I absolutely adore — but I’m going to recommend that you completely AVOID it. Confused? Stick with me. The ticker I’m talking about is PTC. Now, if you read my article from yesterday, you know that I’m all-in on dividends. (see yesterday’s newsletter if you missed it) They’re the steady, reliable income that keeps chugging along, rain or shine. PTC falls squarely into that category — it’s a powerhouse when it comes to dishing out dividends. In fact, It’s paid a dividend for at least 20 years. When you look at a chart — especially adjusted for dividends, it’s the kind of stock that makes you want to add it to your portfolio right away. And beyond that, PTC represents one of my favorite markets: India. You see, I have been a big believer in India’s upside for a while now. Because I have a core belief that people (as in real, numberable human beings) are the most important resource in the world. So I believe that where there are large populations — over time — upside will occur. This isn’t a quick process, but I think it’s the most important macro process that exists on the planet. Just check out how China has transformed over the decades (especially when they stopped restricting their population so aggressively). I am a big believer in Indonesia for this reason as well. All that to say, there’s an immense amount of upside in PTC beyond just the dividend. So you might want to buy this stock now… But here’s where I throw a wrench into the works: Don’t do it! (yet) Here’s why: See, PTC has a quirky little habit of underperforming in March and April. Like clockwork, this stock almost seems to like taking a little spring break. So, while I’m over here singing its praises, I’m also waving a big yellow caution flag for the short term. Why the mixed signals, you ask? Well, it’s because I believe in giving you the full picture. I could easily just shout from the rooftops about how great PTC is (because, let’s face it, it is.) But that’s not the whole story. And I’m not about to let you walk into a potential pitfall without a heads-up. Now, I’m not saying PTC is about to nosedive or take your portfolio down with it. Far from it. In fact, the corrections I am referring to aren’t all that significant… but it does tend to dip (10 out of the last 10 years, in fact) around this time. In the long haul, this stock is more like a fine wine — it gets better with time (especially if you’re patient enough to wait out its less stellar months). So, here’s my take: eye PTC like it’s the last piece of pie at Thanksgiving, but maybe don’t reach for it until the calendar flips to May. By then, its spring slump should be in the rear view mirror, and you’ll be positioning yourself for some sweet, sweet dividend income WITHOUT the speed bumps. In the meantime, keep your eyes peeled and your portfolio diversified. Because even if PTC takes its annual nap, there are plenty of other dividend darlings out there ready to work overtime for your investment dollars (like OKE, another energy company). In fact, I just shared at least 11 of them with a group of savvy, patient investors just like you. Oh — and before I forget. I also shared 2 more “dividend darlings” to avoid. Remember, your safer, long term investments shouldn’t be about snagging high flyers — it should be about playing the long game. And sometimes, that means knowing when to hold off, even when every fiber of your being is saying, “Buy, buy, buy!” (believe me, I can relate). Until next time, keep those portfolios healthy and those dividends flowing. And don’t forget to check out my dividend workshop here to grab those 13 tickers. — Nate Tucci Just Just THREE Basic Steps?!? Yes, you read correctly: Just 3 basic steps can get you off on the right foot with a solid dividend portfolio for the ages! Don’e hesitate another minute… Grab more than 10 dividend tickers absolutely FREE! Click here to access the FREE workshop now!SCOTT WELSH’S TICKER TALES The Opposite of a Sin Stock Some traders like to buy “sin” stocks. You know, companies that specialize in gambling, smoking, etc. And those can sometimes pay off. But others prefer to take the “high road” and buy stocks that try to do good, wholesome things. Like organic farms. What could be more healthy than pasture-raised organic eggs? And Vital Farms (VITL) does exactly that. Here’s the chart: VITL has quietly been going sideways for a while now. But if that stored-up energy leads to a break above $18.18, we could see a move up to $30 or beyond. We’ll keep an eye on it. Happy trading, — Scott Welsh P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The charts above use weekly candles and a 30 week simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45. |
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