Recent Buy -PNC

pnc

I just couldn’t let March go by without making a purchase.  With the market generally up for the month, financials were the laggards.  So on March 24th I added to my existing PNC position at $84.08.  By averaging down, I effectively reduced my cost basis by about $.50.

Although I consider PNC a core position I haven’t been aggressive in getting it to my 3% target weight, primarily due to the 2.4% yield.  I’m still lacking in this regard but am considering this purchase a down payment.

  • Benefits: Poised to benefit with a continuation of interest rate increases
  • Negatives – economic slowdown will disproportionately impact

I believe any downsides are mitigated through their 20% ownership of Blackrock.

 

 

 

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4 thoughts on “Recent Buy -PNC

  1. The biggest complaint is the financial crisis dividend cut and the fact that it still has yet to return to previous levels.Next biggest issue is their loan book under performs. Since their book includes loans to other banks (WSBC for one) I think the higher quality vs. lower return is a viable trade off. And they’ve now recaptured Dividend Challenger status with an increase anticipated next payout.

    Thanks for commenting!

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  2. I never looked at this company either for my portfolio. I also have yet to make a March buy. I will this week as I want to keep to my own rule of consistent buying every month in all market conditions. At least you got to average down on a position you like long term. Thanks for sharing.

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  3. I try to follow a similar process as you do, but this month was just rough trying not to overpay. Ironically, I was late pulling the trigger on increasing my BLK position as it moved out of my PT range. It appears the markets aren’t making your decision any easier this morning.

    I’ll be looking for your choice this week!

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