I did add Pfizer, symbol PFE to the 2017 portfolio today at a basis of $33.797.  The same amount invested in SDY bought 38.08756 shares at $88.735 and VIG bought 37.4332 shares at $90.31.

M* MoneyMadam

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AstraZeneca (AZN) Risk to Sell

In 2013 I profiled AstraZeneca (AZN) as a Dividend Machine.   At that time the cost basis was about $54.  My personal basis is about $46.    Today, Pfizer (PFE) is making a bid to buy AZN and the results is AZN is up over $10.

AZN is no longer a Dividend Machine because of falling revenues that have caused EPS (earnings per share) to fall below their dividend payout.  All of you know that EPS must exceed dividends for a stock to be considered a Dividend Machine.  

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Should you ever sell a dividend machine?

Deciding if you should sell a dividend machine is an interesting question; a question I faced this last week.  Today, I want to compare two dividend machines in the same industry and use them as an exercise in how to determine if you should sell a dividend machine based on bad news.

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