A Great Question From a Member
publication date: May 11, 2013
author/source: Valuentum Editorial Staff
Please note that this Q&A article is dated May 11, 2013.
Q: I am thinking of starting to follow your dividend growth portfolio but question the inclusion of some of your holdings. You rate several either "Poor" or "Very Poor" on both growth and safety criteria. Why do you still hold these companies? Why use these rating criteria if you don't follow them yourselves? Are you planning a change soon to unload some of these names that your own rating system deems undesirable at the present time?
A: Thank you for your question. We may hold on to a dividend growth firm that does not score highly on our rating system as we look for an exit point. A really good example as to how this worked out effectively was in the case of Republic Services (RSG).
We have pasted a link below to an article that walks through the importance of having patience during the exit process:
The Most Important Tactic in Money Management: Don't Overreact - The Path of Republic Services -- dated January 28, 2013.