Why I'm Overweighting My Position in Hormel
I'm a dividend investor, which really changes the way I think about companies. Dividend safety and growth tend to play an outsize role in my selection process. Earnings, while important, aren't the key figure for me. That's why Hormel Foods (NYSE: HRL), which is facing inflationary headwinds, is a holding I added to recently, giving it an overweight position in my portfolio. Here's why I made that move.
I invest an equal amount of money into each stock I own when I initiate a position. This helps me to avoid putting all of my eggs into one basket and simplifies the diversification process because I tend to hold on to my investments until something changes at the company. I don't try to rebalance, preferring to let my winners run, as they say on Wall Street. But there are times when an investment I own becomes attractive again, and at that point, I need to make a judgment call: Buy more or just sit tight with what I own?
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Source Fool.com
