Todays Sell PNM

Made a tough decision but it was one that needed to be made i believe as the company has done good but they have financed a lot of debt for dividend payment the last couple of years.

I believe they either have to cut or suspend the dividend in the near future to get this straightened out. one problem is what they charge. A recent rate change was approved, but it is not enough. They needed about a 15 percent rate hike but only got about 9 percent so it means more debt being financed. I could have waited till the dividend posted in NOV but decided to go ahead and do it and look for its replacement. I am not looking at any month in particular just to replace it. No timeline as i want a good stock.

It was borrowing 410 percent to finance its dividend. which is not good. Now i have some reits close to that but those are a different animal. I expect a reit to shave off a cent or 2 when it becomes out of alignment.

I generally dont like to sell but i do believe this is a good time to sell this company and it was the first company i bought. If they get everything straightened out i will rebuy.

I sold 66.149 this will drop my November dividends by 14.55. i did make a nice profit off the sell so hopefully the next company does the same but i wont have to sell it.

Author: dividendsandhobbies

A Christian first and foremost. I love to invest fish grow a garden etc.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.