Parting With a Company
It's not to often that I sell my position in a company. The goal of my investing is to purchases stock in good solid companies that have a safe and secure future that I can grow my investment and dividend in.
I made the decision to part with IBM after only holding onto the position for two months.
When I first purchased the shares of IBM I had a feeling the company would finally post a quarterly earnings report with a positive growth in revenue. The company has failed to meet earning estimates for 16 quarters in a row now. It is a very common trend for massive tech companies. They shine bright during one era and have a very hard time adapting to a new one. The company has made a lot of good moves that can hopefully have some good pay offs down the road. But for now, I'm going to sit on the sidelines on this one and possibly get back in once, or if ever they finally have a good earnings quarter.
Another reason I chose to exit this position was because I had too much money in the technology sector, and wanted to diversify my portfolio more. I purchased 11 shares of AAPL last month and was sitting on 3.2k In the technology sector.
Taking My Profit
Selling my IBM position allowed me to take my investment profit and my dividends away from it.
I sold 11 shares at a price of $145.82 which netted me an income of $189.11. This is not bad at all considering I only held this position for 2 months. I also recieved my IBM dividend last month which was in the amount of $14.30.
All in all I walked away with $203.41 in profit.
Due to selling this position, my annual dividend income has now dropped by $57.20. This now puts my annual dividend amount at $187.80. I do plan on making another purchase very soon though. I will be posting that article hopefully tomorrow.
After reading the outlook for the company on the rest of the year, I just wasn't to happy about how little the upper management had planned on how to deal with shrinking profits. IBM has purchased a lot of smaller companies which it hopes to turn into a profit, but at the moment I'm just not seeing it. Hopefully one day I will be wrong and I will be able to purchase back into this company because from a dividend standpoint, they have amazing potential to grow.
Full Disclosure. I do not own any shares of IBM. Long AAPL.
This image is from the portfolio of "Stuart Miles"