I currently have a weird trend established where I have been selling out of my positions in the financial sectors a little sooner then I would like to.
I originally had a very good position in the financial sector when I owned shares of WFC. I however was very disappointed with the company when I first heard about the scandal the company was going through. I really didn't want to stick with a company that actively knew about this problem for many years without even lifting a finger to fix the problem. It would have been a different story if the company put and end to it immediately once they had found out, but they continued to allow the situation to happen.
After the sale, I wanted to keep my capital diversified within the financial sector. I did my research and I wasn't to satisfied with the dividend statistics of any of the current US big banks and I decided to but my bet into RY. They were sporting a great dividend yield, a nice low payout ratio and a 4 year trend of increasing dividends. I was hoping the company was going to continue the trend to increase it's yearly dividend payout. After the last announced dividend payout, the company failed to increase the payout which was a big disappointment for me.
The stock was on a very bullish trend and I was very comfortable in my position. However, RY was the second company in my portfolio that failed to increase their dividend for the next year. The first being Ford. It got me thinking that I have been to focused on other numbers and that I needed to get back on track with chasing companies with a very well established history of increasing dividend payouts. I missed the Trump Bump on many of the US banks seeing as many have increased in current share price by 30-90%!! Big miss on my part... Any who, hind sight is 20/20.
I did end of leaving the position with a nice capital gain of $238.23. I know it's nothing amazing but it was a 22% increase which I'll take any day. I was able to transfer a bit more funds into my account and I made an amazing purchase!
I initiated a position on TROW at a great price of $70.75 per share! I picked up 23 shares of TROW which has affected my annual dividend payout by $52.44 per year. I have already adjusted my numbers with the sale of RY and my new dividend payout is now at $1,086.55. I purchased in right at the heals of the news that TROW had increased their dividend payout by a nice 5.6% This is exactly what I need to stay focused on in my current goal of dividend investing.
I got caught up chasing the numbers for a bit and I was really searching for companies with dividend yields in the 4% range. This however can lead to sloppy results and unwanted changes such as dividend decreases or failure to increase payouts.
This searching has leas lead me up to this little gem. I have been conscious of TROW for some time now but I never did any research on it. Here are some of the stats I love about the company.
Dividend Yield 3.21%
Payout Ratio 47.8%
Dividend Growth 30 years
Free Cash Flow 1.32 billion
I'm still on the hunt for a good bank currently, but It is not one of my top diversification priority's right now. I have a very good watch list that I'm composing for the next two months that I will be writing about shortly. My plan is to come up with a list of stocks that I'm ready to purchase into once I receive my tax return money. I will be basing my decisions by current share price, up coming dividend ex dates, along with all the usual research I do before purchasing into a company.
I'm hoping this allows me to delegate my capital in the right areas ASAP without sitting on cash in my brokerage account. The market is currently in a very bullish pattern and I would like to get in without wasting any time.
Has anyone else made any reallocation of capital within their portfolio? if so, leave me a comment below and tell me how it went! Thanks for reading and stopping by.
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