I've been looking forward to writing this piece for the whole month.
My purchasing activity for October 2020 has been unforgettable.
Well, this was the month I decided to divorce myself from Best Buy (BBY). You can read all about that here: SOLD SHARES FOR ETHICAL REASONS.
Long story short, they ripped me off selling me a broken TV and refusing to return it. So I cashed out. I refuse to be a part of a company that shows this kind of blatant disregard for its customer.
The resulting activity was huge increase in my annual dividend payout. So much so, I closed out of another company (QCOM) that was not paying a fat dividend, took the profits and purchased shares that have a higher return. QCOM had performed well, but was only growing their dividend by 6% over 5 years. That is not keeping up with inflation.
The final tally was that I invested a total of $662.60 new dollars and will earn an additional $448.46 in dividends per year. That's a 73.7% return!
My equity gain was over 100% for both BBY and QCOM. BBY was only earning me 1.89% on the investment. QCOM was earning only 2%. Selling them cost me $374.60 per year in dividends.
With the finds from the sales and the additional $662.00 I put in, my new purchases will earn me $863.06, a 4.37% rate. More than doubled my dividend income.
Take a look at the details....
You may have noticed that I sold some shares of HBAN. That was a mistake. I was intending to buy a bunch, and hit "sell" like the dumbass I am. (made up for that later)
The only one I started a new position in was Orrstown Financial Services (ORRF). Learned of them from a purchase by Lanny over at the dividend Diplomats. Dividend Stock Purchase: Lanny’s September 2020 Summary
Loved the look of this company, and decided to dip my toes in.
The other major purchases was a good sized chunk of Citibank (C), the Vanguard Exchange Traded Fund VYM, and of Macatawa Bank (MCBC), which I was longing to get more of with their low P/E at this time and a 4% yield.
What do you think? Was it smart of me to cash out of QCOM and go shopping for higher dividends? I feel good about it.