Cabot Dividend Investor Weekly Update

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Article Excerpt

After a mixed performance last week, the market opened significantly lower yesterday, and the Dow and S&P 500 both hit their lowest level since the start of October. One of Cabot’s long-term market timing indicators just turned negative, which tells us it’s time to get more defensive. As a result, we are doing some selling today and moving two position to Hold.

Comments

  • Thanks for the PGX info. I have read that the Cabot intermediate term indicator is down. The long term indicator was still indicating a up trend. So this looks to be a correction phase in a bull market?

  • PGX hasnt been this low in quite a while
    I like the dividend but it’s getting eaten up by the latest price drop Still a buy?

    • Chloe L.

      PGX declined 2%-3% earlier this month due to the spike in interest rates, but has stabilized over the past couple weeks.
      The ETF’s history only goes back to 2008, so it’s hard to say exactly what will happen if interest rates continue to rise. However, it’s worth noting that PGX has rarely traded below the mid-13s, even back in 2010-2011 when interest rates were significantly higher than they are now.
      Whether to buy now depends on your goals, risk tolerance and cash position. The 6% yield is very secure, and most declines will be much smaller than that, making PGX much safer than most investments. But still isn’t guaranteed not to lose money.

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