Chasing the Yield – September 27, 2021
Episode 22
Value 4 Value podcasting
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News
https://www.chasingtheyield.com/2021/09/22/microsoft-announces-new-surface-devices/
Company Focus – Albemarle (ALB)
I got very lucky with Albemarle. When I purchased this stock it was part of a group of 50 stocks for my IRA. I chose these stocks because they were relatively safe companies to invest in and their financials were solid enough to not worry about any cuts in dividends. I was very new to dividend income investing and safety was my main concern. The stock price rise over the last two years is impressive. I lucked out with my timing by purchasing at $59.06/share. The price at close on September 24, 2021 is $226.40 giving me a whopping 296.4% return. The dividend yield is rather anemic, however, at only 0.68%. I’m at the point where I’m considering taking the profit and putting that money into stocks with higher yields.
Below is the chart from the day I purchased my holdings to present.
Albemarle’s P/E is 37.15 and seems crazy overvalued. This is why I’m considering cutting my holdings of this company. Along with the tiny dividend yield their dividend growth is also just average at about 6% over the last 5 years.
I think this is a safe company in which to invest. I’m not sure if I would buy at this point with their stock price at such highs. The risk is buying at the peak and suffering solid losses should the stock market go through a correction. If the price remains stable it’s a solid company to hold because at the very least you should do better than a savings or a money market account. But, if you’re really concerned about maintaining principle and minimizing risk you might be better off with purchasing a 24 month CD.
Albemarle Corporation develops, manufactures, and markets engineered specialty chemicals worldwide. It operates through three segments: Lithium, Bromine Specialties, and Catalysts. The Lithium segment offers lithium compounds, including lithium carbonate, lithium hydroxide, lithium chloride, and lithium specialties; and reagents, such as butyllithium and lithium aluminum hydride for use in lithium batteries for consumer electronics and electric vehicles, high performance greases, thermoplastic elastomers for car tires, rubber soles, plastic bottles, catalysts for chemical reactions, organic synthesis processes in the areas of steroid chemistry and vitamins, life sciences, pharmaceutical industry, and other markets. It also provides cesium products for the chemical and pharmaceutical industries; zirconium, barium, and titanium products for pyrotechnical applications; technical services for the handling and use of reactive lithium products; and lithium-containing by-products recycling services. The Bromine Specialties segment offers bromine and bromine-based fire safety solutions; specialty chemicals, including elemental bromine, alkyl and inorganic bromides, brominated powdered activated carbon, and other bromine fine chemicals for use in chemical synthesis, oil and gas well drilling and completion fluids, mercury control, water purification, beef and poultry processing, and other industrial applications; and other specialty chemicals, such as tertiary amines, biocides, disinfectants, and sanitizers. The Catalysts segment provides hydroprocessing, isomerization, and akylation catalysts; fluidized catalytic cracking catalysts and additives; and organometallics and curatives. The company serves the energy storage, petroleum refining, consumer electronics, construction, automotive, lubricants, pharmaceuticals, crop protection, and custom chemistry services markets. Albemarle Corporation was founded in 1887 and is headquartered in Charlotte, North Carolina.
Fidelity ALB
You can find investor information at Albemarle’s website Investor Overview | Albemarle Corporation
Portfolio Update
| Low Yield | Medium Yield | High Yield | |
| Week | +0.22% | +0.00% | +1.45% |
| Month | -3.25% | -3.65% | -0.52% |
| 2021 | +13.94% | +9.32% | -8.43% |
| Inception | +34.20% | +5.20% | -8,90% |
| Dividends Received this Week | Amount |
| No dividends | $0.00 |
Dividends
- Artesian Resources Corporation (ARTNA) announced its next dividend of $0.2675 per share, a 2.5% increase over the company’s previous payout of $0.261.
- First of Long Island Corporation (FLIC) announced its next dividend of $0.20 per share, a 5.3% increase over the company’s previous payout of $0.19.
- Clorox (CLX) announced its next dividend of $1.16 per share, in line with the company’s previous payout.
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Disclaimer
ChasingTheYield.com and Kevin Bae are not registered investment advisors, brokers or dealers. Kevin Bae may have positions in any financial instrument, product, or company mentioned on chasingtheyield.com or on the Chasing the Yield podcast. Information provided by chasingtheyield.com and the Chasing the Yield Podcast is provided for information and entertainment purposes only and are not intended as advice or a recommendation or an offer or solicitation for the purchase or sale of any security or financial instrument. All opinions are based upon sources believed to be accurate and are provided in good faith. No warranty, representation, or guarantee, expressed or implied, is made as to the accuracy of the information contained herein. Past performance is not an indicator of future results.
Please contact an investment professional if you have any questions regarding an investment.
Contact
For questions or comments contact me at mail@chasingtheyield.com