Tax selling season is underway and will likely pick up as year end approaches. Usually it's dominated by investors dropping their losers for the year to take tax losses.
This year we might get a double whammy with investors unloading more winners facing what many believe will be higher capital gains tax rates in 2022.
There's an old saying that when the paddy wagon arrives it takes the good girls along with the bad downtown. That's quilt by association in case you don't recognize it.
This tax season we believe guilt by association will toss out some of 2021's poorest performers that in 2022 will surprise to the upside.
We will be adding to some of these equities since we already have on purpose positions in them. Call it being early to the party. We like to buy things when they're cheaper.
Here is one. This is just information and not meant to be a recommendation. We do some strange contrarian things in life. You need to do your own research.
Usually these fallen beauties we pick this way likely pay a decent in our view dividend. The dividend yield is 3.17% with $0.44 annual dividend at the current price $13.57.
"The last stock to pass our screen was Viatris, formed last year through a merger of the generic drugmaker Mylan and a Pfizer (PFE) division that sold off-patent drugs in overseas markets. Viatris shares are down 27.8% this year.
"Viatris is more thinly covered than some of the other stocks on our list, with 16 analysts tracked by FactSet maintaining ratings on the stock. Of those, seven rate it Overweight or a Buy, while nine rate it a Hold. Their average target price is $18.85, implying a 38.9% gain over the stock's recent price of $13.57.
"Many of those target prices have not been recently updated, however, and were made when the stock was trading higher. That suggests that the average target price may be overstating analysts' enthusiasm.
"Still, some analysts do like Viatris. "In our view, '21 execution, sound long-term guidance, a cogent/clearly communicated dividend policy and value creating business development strategy are key to overcoming VTRS' historical discount to the peer group," wrote Bank of America analyst Jason Gerberry in a note out Oct. 12."
We often like things others don't. We do not put much faith in analysts reports. We cite this here simply for information.
Be bold. The only person you’re going to spend your whole life with is you. Take advantage of that.
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