Penn West Energy dropped from Income Portfolio
Today I have “sold” the position in Penn West Energy (PWE: 12.38 -0.26 -2.06%) out of this site’s Income Portfolio. The combination of falling oil and natural gas prices, a stronger dollar and growing unfavorable Canadian tax laws have driven down the stock price. I believe the next shoe to fall is a cut in the distribution. U.S. shareholders have already taken a 17% payout reduction on the dollars strength.
I will be looking to replace the position with some possibilities of early dividend capture. I have sold 2 positions, PWE and City Bank (CTBK: 2.03 -0.15 -6.88%) without adding any replacement to the portfolio. High on my list of possible additions is the Claymore/Zacks Yield Hog ETF (CVY: 14.27 -0.34 -2.33%). I will also scan through the income stocks on my Watch List. Tune in next week for updates.
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