When we include dividends, we have close to a 20% return in Public Service Enterprise Group (PEG).

With interest rates on the rise, the stock’s 3.5% dividend looks less attractive when juxtaposed alongside many other stocks, many of which have better free-cash-flow characteristics and greater earnings upside should the recovery continue.

Sell PEG. I will have a replacement prior to next Tuesday’s monthly issue.

If you are an Inner Circle subscriber who is following the Model Portfolio, sell PEG.