I’m selling Rayonier (RYN) out of the Jubak Dividend Income Portfolio today. Nothing wrong with the stock—when the real estate market does finally turn, this timber and real estate REIT will do quite well.
But that’s part of the problem. The stock has held up so well that the 4.43% yield doesn’t compare favorably to the higher yields offered by stocks that have been beaten up in the recent correction.
I’m selling Rayonier today to make room for one of the higher yielding stocks that I picked in today’s post “The selloff has created big bargains in dividend stocks” http://jubakpicks.com/2010/05/28/4084/.
The stock’s price is up 10.2% since I added it to the earliest version of the dividend income portfolio way back in December 2005. And, of course, the stock has paid that solid, Treasury-note-beating dividend for all that time too.
Full disclosure: I will sell Rayonier out of my personal portfolio three days after this is posted. I will also be selling Rayonier out of my Jubak’s Picks portfolio today.