I purchased my holdings in Albemarle (ALB) on August 28, 2019 at $59.06/share. The stock price is up 282% since then and I think it now may be overvalued. In addition, Albemarle’s current dividend yield is only 0.72%. I’m going to reduce my holdings in Albemarle back to my original investment of $5,000, take those profits and spread them out over three different companies that are also in the materials sector.
The reason I’m keeping the money inside the materials sector is it is only 7% of my Low Yield Portfolio. It’s already weighted a little heavy in financials and I’d like to keep the ratios about the same for now. I’m also considering making another change to reduce my exposure to financial stocks in that portfolio. The stocks I’m looking to reduce are Bank OZK (OZK), Cullen/Frost (CFR), and Franklin Resources (BEN). When I make those moves I’ll post it.
The stocks I will be purchasing with the profits from ALB are Air Products and Chemicals (APD), Cabot Corporation (CBT), and NewMarket Corporation (NEU). I’ll post more information on each company later.