Bank of the Ozarks has been a part of my portfolio for a couple of years. I felt it was overpriced when I initially bought it and feel the same today. However, since I bought it has appreciated about 60%. Plus increased their dividend quarterly.
OZRK was not top of the list today but when it dropped 4% midday I decided to pounce, particularly since its’ size in my portfolio had dropped to about 1% and my target weighting is 3%. So my order was executed at $49.85 and should be eligible for January’s dividend.
Top on my list were FLIC and FMBI since they are more underweight – but their prices held. I also looked at KMI and was a little surprised that it was up. Good assets, questionable management and up on the news of a dividend cut? Perhaps it’s short covering. Well I can always initiate a new position – or not.
Final note on OZRK – historically they perform a stock split between $50 and $60 so a s.plit in 2016 wouldn’t surprise me.