Well, the TBTF banks have had their stress tests. The good news is that JPM will be able to increase their dividend (by 27%) and buy back mo shares. The bad news is that they are being put in timeout, largely for the London Whale incident from a year ago. That is okay by me. That is way over blown and it (IMHO) is simply some lawmakers trying to make political hay. It will depress the stock price for a quarter or two and the net result will be that I will be able to buy more shares with my reinvested dividend. Does anybody REALLY believe that Citigroup is better run and less risky today than JPM?
My portfolio has been slightly under performing the broader market recently. I took a look at individual securities and it is largely as I expected, some of my investments that have bond elements are doing worse. I can live with that.
In past week BHK is down 3.6%, CSQ is down 0.7%, KMF is down 0.4%, O is down 2.5% and JQC is down 0.3%. Those securities are there to provide steady dividends, and if they fluctuate in value, I really do not care. Only if their dividends get cut do I care.
Still, I am up (overall) 11.08% year to date, still beating (barely) the Russell 3000 (up 10.37%). Not planning on selling any dividend or MFI stocks in the short term. Pretty happy with everything. I will keep an eye on my few shorter term holdings, GTAT, SD and NUGT.
Have a happy Friday everybody
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