I’ve got to sell something out of the Dividend Income portfolio today to make room for my buy of Telkom Indonesia. After Suburban Propane (SPH) announced a 34 cent a share earnings miss on February 4 the choice is pretty easy.
Revenues, which fell 17% from the December quarter of 2008, also missed analyst projections. By volume propane sales fell 9%. Some of that was due to warmer than average weather but the biggest part of the decline came in the non-residential sector where the slow economy ate into volumes.
I added this stock to the Dividend Income portfolio on December 9, 2008 at a price of $28.61. I’m selling today at $44.95 for a gain in price of 57.11%. With dividends the total return in a little more than a year came to 71%. (That’s what getting the timing on 60% plus rally that began in March 2009 even vaguely right (just luck, I’d be the first to admit in this case) will do for returns.