In the past 30 days, four analysts have boosted their EPS estimates for our first pick, a consumer products company that has a current annual dividend yield of 2.08%, paid quarterly. Our second recommendation is some hefty profit-taking on a previous idea.
Spectrum Brands Holdings, Inc. (SPB)
From Cabot Dividend Investor
Spectrum Brands Holdings, Inc. is a home essentials retailer that has been slightly lower since being added to the portfolio earlier this month as the delta variant has hurt consumer confidence. But this is no ordinary retailer. Demand for home products is stronger with bad virus news. Plus, demand for home products is likely to remain strong after the pandemic stuff is long over. It’s still a good entry point for the stock if you don’t own it already. BUY.
Tom Hutchinson, Cabot Dividend Investor, cabotwealth.com, 978-745-5532, August 25, 2021
Partial Sell: Eli Lilly and Company (LLY)
From Cabot Dividend Investor
Updated from WSBD 832, August 27, 2020
Eli Lilly and Company is a phenomenal big pharma player with a fantastic pipeline and a well-run business. Those things are big winners longer term. In the near term, LLY has blown away it peers. The stock is up 57% YTD and 144% over the last two years. The overachieving stock had a huge run recently on the prospects of its Alzheimer’s drug. But that story won’t change for a long while as it will be submitted for approval near the end of the year. LLY tends to pull back and consolidate after a big run as well. For those reasons, we’ll take some money off the table for now. SELL 1/3.
Tom Hutchinson, Cabot Dividend Investor, cabotwealth.com, 978-745-5532, August 25, 2021