So this will be my first sell this year. I don’t tend to sell any company that I own because I hold for the long term. Only a few things warrant a sell in my book. The first one is if a company cuts its dividend. The second if the stock is in my view extremely overvalued. The last reason is if there is some kind of fraud in the books.
With this sell, I sold because I felt that the stock is very overvalued.
I completely sold out of my position of W.W. Grainger, Inc (GWW)
13 shares @ $350.35
I first bought shares of GWW on two separate times. The first time was on 6/15/2017. I bought 6 shares @ $176.30. The second time was a month later on 7/14/2017 when I bought 7 shares @ $170.95.
Currently, GWW has a PE of 26.11 and its 5-year average is 21.93. This is a great sign that tells us that GWW is overvalued to slightly overvalued.
I came up with a fair price of $327.00. This means that GWW is 7.6% overvalued.
The company is overvalued to slightly overvalued and I recommend it as a Sell at this time.
The money from this sell I was able to increase my dividend income by $100 but also buy three high-quality dividend growth stock at a very attractive price.
Want to know which three high-quality dividend growth stock I bought?
What do you think of the sell? What do you think of the company?
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