In recent posts I have been discussing Europe, songs and also looking at the Compound Income scores in the context of some individual stocks such as Centrica. Today I am going to explore these themes further as I have another sell recommendation for you. This however, will I suspect be of quite limited interest, unless you hold it, so I'll try and keep it brief.
The stock concerned, as you may have guessed from the title is Phoenix Group (PHNX) - the closed life insurance business. I first switched into this one back in 2013 as a bond alternative with the prospect of some modest dividend growth. Since then it had a wobble about a year ago when the chancellor announced dramatic changes to the pensions industry, but has recovered well since then as you can see in the chart below. However I'm getting worried about this one now and thinking I should run for the exit.
So with a 6.3% bond busting yield, what's the problem? Well I said I would try and keep it brief so you can then do your own research and make your own mind up. So my three main reasons to run are as follows:
I prefer to try and avoid that type of thing in advance so as I don't like the look of the above three factors which makes me nervous and want to say or sing run run run, now seems like a good time for me to head for the exit as a precaution. However I could be wrong and if it just carries on churning out the dividends from its closed books I guess it could be OK, so do your own research and make your own mind up if you do hold it.
Finally talking of run run run and bringing back in the European theme I came across the following video from a French band which seems appropriate to this note, au revoir.