Ingredion (INGR) has been one of my favorite value names in the last few years, generating a healthy 15% for us on the strength of regular dividends.

Now, however, I think it’s time to let INGR go . . . at least for now. Across our holding period, the stock has struggled to break above $100.

We’ve finally broken that critical ceiling, which is great until you look deeper into the fundamentals. At 14X forward earnings targets, INGR just isn’t as cheap as it was two years ago.

I don’t think I’d buy it here. And if I wouldn’t buy a stock, there’s not a lot of incentive to hold it much longer.

Corn prices remain volatile and global supply chains remain stressed. We just don’t know how well INGR will rise above the tides . . . and the wrong wave could send us right back to $90, which is not a fun scenario to consider.

We’ve booked well over $6 a share here on dividends, which is exactly the kind of cash flow I like to see Value Authority holdings deliver.

However, on a pure yield basis, that’s not quite 3% a year. In an inflationary world, we want to lock in something a little better when we can . . . cutting INGR loose will free up space for that kind of opportunity.

Sell INGR and collect your profit. If you’re an Inner Circle subscriber following the Model Portfolio, this applies to you too.