This Dividend Stock Just Bounced - Buy Now?
Williams Sonoma (WSM) experienced an unexpected jump of nearly 7% in share price over the past week. While it may not have moved in the desired direction for those of us with this stock on our "buy list," I believe there are still some good reasons to consider adding Williams Sonoma to your portfolio.
Source: Seeking Alpha
First and foremost, despite its recent run-up, Williams Sonoma's valuation still looks great. Taking a quick glance at the price-to-earnings (P/E) ratio, it is currently sitting at a low 9.54. Remarkably, this is still about 26% below the company's 5-year average P/E ratio, and suggests that there may still be room for further upside potential.
Source: Seeking Alpha
Also, the company is financially firing on all cylinders with growing revenue and earnings. What's even more impressive is that they have no long-term debt, which further solidifies their financial stability. Additionally, Williams Sonoma has been rewarding its shareholders generously through aggressive dividend growth and share buybacks.
Source: My Stock Analyzer Spreadsheet
Speaking of dividends, this brings me to yet another reason why I'm still a fan of this company. They've demonstrated a strong commitment to consistent dividend growth, having increased their dividend payout for the past 16 straight years.
Furthermore, with an impressive five-year compound annual growth rate (CAGR) of over 15%, Williams Sonoma's dividend growth has been truly remarkable. Such a track record of consistent and robust dividend increases reflects the company's dedication to delivering value to its shareholders, and is exactly what I'm looking for in a long-term investment.
Source: Seeking Alpha
While the recent jump in share price may have caught us off guard, Williams Sonoma still maintains its position at the top of my "Buy List". I'm still planning to start a position in this company pretty soon, which I'll tell you more about in this video here.
With that, I want to hear from you. Write to me here and let me know which stocks you have on your "buy list" and are planning on adding to your portfolio.
DIVIDEND INVESTING DEMOCRATIZED
Join 10k+ savvy investors in the pursuit of early retirement. Get Retire With Ryne delivered straight to your inbox every week as you build your perpetually growing, cash-flowing dividend stock portfolio.
IN MY PORTFOLIO
Want to get my Dividend Portfolio Tracking Spreadsheet? Click here to get it for free.
SEEKING ALPHA PREMIUM (FREE 14-DAY TRIAL)
Nothing has been more responsible for my development as an investor than Seeking Alpha. It's the one stock research tool I could never go without, and I think it's the BEST one out there - hands down.
Fortunately, Seeking Alpha is currently offering a 14-Day FREE Trial to their Premium platform, which gives you unlimited access to their library of articles, personalized portfolio tracking tools, and a ton of other great features. You can see the full list here.
You can try Seeking Alpha Premium risk-free for two weeks, and can cancel anytime before the free trial ends to avoid being charged. No harm, no foul.
Click here to start your 14-Day FREE Trial to Seeking Alpha Premium.
CAREFULLY CURATED
Closed-End Fund Crash Course w/ Jeremy! | Closed-end funds can be a fantastic resource for building a high-yielding portfolio. If you haven't come across closed-end funds before, this insightful conversation between Russ and Jeremy from Dividend Stockpile is the perfect starting point.
Hitting A Brick Wall With DIVIDEND INVESTING | The journey of a dividend investor is a long one, full of growth and change. In this video, PPC Ian explores the evolution of the dividend stock investing journey, from the initial phase of accumulating a portfolio to the subsequent stage of optimizing its performance.
The Best Unknown Investor Alive | We all know and admire legends like Warren Buffett, Charlie Munger, Peter Lynch, and the rest. However, in this video, Joseph Carlson introduces us to a lesser-known yet remarkable super-investor who just might deserve a place on the investing Mount Rushmore.
ICYMI
Get v1.0 of my Stock Analyzer Spreadsheet! This spreadsheet is perfect for those of you who love dividend investing, and are looking for a FREE and easy-to-use resource for viewing a comprehensive snapshot of a company’s financials and calculating intrinsic value.
In this portfolio update video for the month of June, I'm spilling the beans on what's cooking in my portfolio - the dividend stocks I've been buying, how much my income has grown, and the juicy details on which stocks are currently sitting on my watchlist.
This recent Dividend Happy Hour is more casual than most, but is still a whole lot of fun. It mostly consists of Q&A, but I also share a quick thought on my favorite thing about dividend investing.
SINCE YOU ASKED
"What do you think of the quadfecta approach for early retirement? It's basically putting your money into 4 covered call ETFs?"
- The Ghost of Toby | YouTube
This strategy is completely new to me, but to be honest, I can't say it's my favorite.
Even in early retirement, I don't believe having four different covered call ETFs is necessary. While I understand the appeal of aiming for a generally higher yielding portfolio, it's important to consider the potential challenges of growing your dividend income over the years with this strategy. You might miss out on the important dividend growth that lower yielding assets can provide.
If you plan on relying on this income to sustain your lifestyle, it's essential to ensure it continues to grow and keeps up with inflation. Otherwise, it could become increasingly difficult to maintain your financial stability over an extended period.
Disclaimer: This page contains some affiliate links that might just lead you to the promised land of awesomeness (or at least some cool products). We may receive commissions for purchases made through links in this post. It's nothing fancy, but it certainly does the job!