Pier One looks like it is up against the ropes. Today it fell 6.95% and was the largest decliner among the Dividend Achievers. Due to decreased cashflow, earnings and the issuance of new debt the rating agency Standard and Poor’s lowered PIR credit rating.
PIR has a technical support level of $8.50; if the stock falls below this level we could expect PIR to go to $5.25. $5.25 is a major support/resistance level which would hold major significance. PIR has increased its dividend every year for 13 years and has a tangible book value of $7 per share.
Biggest percentage gainer of the day: Protective Life (PL)
Protective Life was up 7.60% on an increase of net income. PL has also announced that it will purchase the stock of five insurance companies from JP Morgan Chase. PL has reached a new multi-year high with the most recent increase. In 1990, PL was at $2.40, today it trades at $49.01 an increase of 2000%.
PL has increased its dividend every year for 15 years. Any Dividend Achiever that sells insurance should be considered for every portfolio. $35 billion investor Warren Buffett made his start by investing in insurance companies.
