Friday, June 26, 2020

COVID RELATED SELL AND BUY


Over the past three months, we've seen a fair share of dividend cuts, suspensions, and overall shaky ground for earning dividends.

My portfolio was hit with eight companies that suspended their dividends (APLE, BA, BBBY, CLDT, DAL, EAT, GM, and LVS)

In addition, I saw cuts to three companies (TWO, WRK, and AMNF).

No fun at all, but not the end of the world.  It's a good reason to have a widely diversified portfolio.  I still have shares in 90 companies that are holding steady or raising their dividend.  But it made me fell very "Meh", like Gudetama.. 

Yes, I felt like a melancholy yolk...

When looking at the options I had, I saw that one of my erased dividends, Boeing (BA), was still above water in terms of equity.  I was still up 8% from my original cost basis.   That's great when looking at others that were between 335% to 70% underwater. 

There is no point in selling and locking in 70% losses on a company that will eventually return when life straightens itself out.

But with Boeing, I could take my original investment plus 8% and invest in a currently solid company that will pay a nice dividend to make up for the losses.

So I sold out of Boeing.  Sold 25 shares for $4,240.12.   Someday, I may get back into them.

I took that cash and bought 71 shares of Pfizer (PFE) for $2,253.90.   With a low dividend ratio and one that pays at 4.79%, it was a no brainer.  It added $107.92 to may annual dividend income.

I spent the rest on Target (TGT).  Bought 17 shares for $2030.26 and will earn $46.24 annually in dividends.   It fulfills my goal of matching my Target spending of 2019 with share purchases.

I wrote about that here:  Annual spend = share buy   With the Target purchase, I have fulfilled my goal for share purchases of all on this list.  And 2020 is only 50% in....

So to summarize, I harvested some profits from a company that was paying me ZERO in dividends and bought into solid companies that will pay me $154.16 in dividend annually.

Sweet.  Now on to solve that Peppa Pig jigsaw...



2 comments:

  1. John - Absolutely love the pickup of PFE and TGT with the BA funds. BA is dealing with a lot right now and there will be a lot of boom or bust days. PFE and TGT are in a much more stable position today.

    Bert

    ReplyDelete
    Replies
    1. Thanks Bert. Someday BA will be a good buy again, but I want to see my money in action. Take care.

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