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Scoreboard Pick of the Week - $CARR
This week's Pick of the Week is Carrier Global, $CARR! I usually pick the top holdings in my Scorecard to review, but there has not been much change at the top of the list recently. The reason I am highlighting $CARR this week is because it has been one of my most successful holdings, but just hit a 52-week low. I have done a quick synopsis of $CARR in a previous Weekly Buys post. I hold $CARR in both my Taxable and Roth IRA accounts.

$CARR is a major player in the HVAC space. Additionally, Carrier has Refrigerations and Fire & Safety business units as well.

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Carrier re-listed on the public market in March of 2020. I began my position shortly after and have seen some nice price appreciation along the way. Below is the price history chart of $CARR since its listing:

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There have been some slight dips in the past going into earnings season, and maybe that is what we are seeing now with next earnings report coming on April 28. Based on the below numbers, I am not concerned with this recent price movement and it could be a potential opportunity to add more.

Some helpful info from my new favorite tools, Track Your Dividends and Koyfin:

2020
  • Dividend per Share: $0.16
  • Payout Ratio: 7%
  • Revenues: $17.46B
  • Earnings: $1.64B

2021
  • Dividend per Share: $0.48 (+200%)
  • Payout Ratio: 25%
  • Revenues: $20.61B (+18%)
  • Earnings: $2.87B (75%)

2022
  • Dividend per Share: $0.60 (+25%)
  • Payout Ratio: 19%

In just a short period, there is already the potential for Carrier to be a strong dividend growth opportunity. It will be interesting to see if payout ratio can continue to decrease as the dividend continues to increase. Additionally, we are seeing both top and bottom line growth with Revenues and Earnings increasing. I believe that this company has room to grow - HVAC needs are not going away any time soon, and as technology advances and ventilation standards increase, I expect Carrier to be a major player.

Some history on my Taxable $CARR position:
  • Initial Purchase Date: 4/24/2020
  • Average Cost Basis: $25.42
  • Current Unit Price: $42.11
  • Price Appreciation (vs S&P): +159.14% (+102.39%)
  • EPS: $1.87
  • P/E: 22.52
  • Annual Dividend: $0.60
  • Dividend Yield: 1.42%
  • Yield on Cost: 2.36%
  • Portfolio Weighting: 1.42% (6.5% target)
  • Scoreboard Scorecard Rating - 3.5/5

So how does $CARR achieve the 3.5/5 on my Scorecard?
  • Stock Price Appreciation (+1)
  • Dividend Yield Lower than Portfolio Average (0)
  • Underweight versus holding target (+1)
  • P/E under 25 (+1)
  • Personal Conviction Score (+0.5)


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