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Glad I Held These 2 Stocks, But What's Next?

Summary

It was a good move holding on to McDonald's and Chevron.

It was a good move letting go of IBM.

Can I go 5 for 5 with Boston Beer and Procter & Gamble?

Last year, I wrote an article, "Know When To Fold (And When To Hold)", which discussed the various trigger points for selling a stock. I highlighted two, McDonald's (NYSE:MCD) and Chevron Corp. (NYSE:CVX), in my portfolio that I had decided to hold on to and another, International Business Machines (NYSE:IBM), that I had sold.

Six months later I revisited my thinking (it was a rainy day here in New England and I put the yard work on hold for a day). Although hindsight is always 20/20 as they say, it looks like I made the right move. Both of my holds are up 11% to 12%. The stock I decided to sell is lower by 9% with a poor outlook.

The nascent turnaround for burger joint McDonald's has intensified. The company indicated that the all-day breakfast has been a big hit and the streamlining of the menu and operational improvements are taking effect. Management reported better-than-expected results at its recent earnings call. Icing on the cake was a dividend boost in late 2015, which keeps its streak of 41 straight annual increases going.

Chevron's management is still implementing a major cost-cutting program and recently announced the sale of more assets. A 50% increase in crude oil prices didn't hurt either. However, a continuing negative is that the dividend has been the same for eight quarters and income-orientated investors might get a little antsy if the payout doesn't go higher soon. I'll keep...


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