Scott Mlin |: CNBC:
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We will buy 75 shares after receiving this letter Danaher (DHR) for about $ 308.47. Upon completion of the sale, the charity will acquire 250 shares of Danaher. This purchase will increase the weight of DHR in the portfolio from about 1.26% to about 1.80%.
This afternoon we are re-establishing our position in Danaher as we continue to delve deeper into our newest name at gradually lower prices. We do not worry about the fact that DHR has been idle since we first purchased it on Monday. We welcome this weakness because we like it when high quality companies are sold. Our investment period is long, usually lasting at least 6 to 12 months, which gives us enough time to expand our position, above average.
For more information on why we think Danaher is a fantastic, high-quality bioscientific արտադր diagnostics company, see Monday’s article.
Update at Nucor
Separately, we want to point out the strong action Nucor (NUE). Nucor is one of the top performers in the S&P 500 on Wednesday, with shares already up about 8% to start the year. One of the reasons for Nucor’s hot start to 2022 is that investors continue to spin a few tech stocks to buy at a few low-cost, cyclically-driven companies that are “doing business.” to make a profit.
This recovery of Nucor was so impressive that for a while last month the real shares remained dead. As you recall, the stock fell more than 8% to $ 108 a share on December 15, after the management presented a profit guide for the fourth quarter. At the time, we were defending Nucor in the event of a sale, stating that we would be buyers if we did not already have it. We thought the punishment was not commensurate with the crime, as the revenue update was not so bad (it was missed, contrary to estimates, but it was still a steady increase). We believe that the industry will move through a longer environment of higher steel pricing. Many analysts estimate that profits will fall from the rock over the next two years, or that the resumption of auto production, new investments in oil and gas should stimulate demand.
But after this hot start to the year, we think Nucor shares have moved a little too fast, especially as the Federal Reserve is more inclined to curb inflation. For these reasons, we would be trading 150 shares of our 750 stock today to make a big profit if we were not restricted to NUE trading.
As a reminder, we are not allowed to sell any of the shares that Jim mentions on television for three full days. At Mad Money on Monday, Nucor emerged as the top performing S&P aristocrat in 2021, meaning it is the S&P 500 company that has increased its dividends over the past 25 years. Investors may be looking for better dividend aristocrats this year, as many are offering higher dividend yields than the 10-year treasury yield, and backwardly rising payments are a way to stay ahead of inflation.
The long history of shareholder-friendly equity policies is one of the reasons why we invest in Nucor. Last month, Nucor announced a 23% increase in its regular quarterly cash dividend (representing its 49th straight year of dividend growth) և $ 4 billion.
Whether or not we can trade for a charity trust, our restrictions will never stop us from telling the Investment Club what to buy or sell and when to do so. We will never allow our restrictions to limit what the Investment Club can do.
CNBC Investing Club is now the official home of my charity. This is where you can see every step we take in our portfolio և get my market insights first. The Charitable Trust և My posts are not affiliated with Action Alerts Plus in any other way.
As a subscriber to CNBC Investing Club with Jim Cramer, you will receive a trading notice before Jim trades. Jim waits 45 minutes after sending a trade notice before buying or selling a stake in his charity portfolio. If Jim talked about the stock on CNBC, he waits 72 hours after the trading announcement is made before trading. For investment denial, see here.
(Jim Cramer’s Charitable Trust is a long DHR, NUE).