United Parcel Service (UPS 1.38%) is a selection for the real-money Inflation-Protected Income Growth portfolio. In this brief video, portfolio manager Chuck Saletta gives three reasons why he's considering selling it if it rises above $100 per share.
To summarize those three reasons:
- Its balance sheet leverage has grown due to pension-plan funding.
- Its market capitalization has grown past Chuck's fair-value estimate.
- Its ability to aggressively raise its dividends in the future may be at risk from that additional leverage.
To follow the iPIG portfolio as buy and sell decisions are made, watch Chuck's article feed by clicking here. To join The Motley Fool's free discussion board dedicated to the iPIG portfolio, simply click here.
