It's been a very busy stock month in terms of account activity which is rare for me. The market has had a lot of opportunities that I wanted to take advantage of and also a few positions that I have wanted to liquidate. I know as a dividend growth investor the long term picture is the key to success in the market. I try to make solid investment decisions and I also try to look at the future of the company.
Both of the companies I sold last week may have a long future ahead of them, but for me personally they no longer fit the investment needs I'm looking to fulfill for my portfolio.
The first sale in my Independence Fund was Kroger. I first purchased in a month ago after the company took two back to back days of declines. I was never going to pursue a long term buy and hold position with this company however. Ideally what I was looking for in this company was a solid bounce back from an over dramatic dip. I had purchased in at $21.95 per share and my exit goal was $30 with profit taking past $28. The company did make a nice recovery into the $25 range but I held on expecting more.
I finally had enough of the volatility with this company however. Anytime a competitor announced an update to their online grocery pick up, price cuts, or frankly anything the stock would experience an unnecessary amount of turbulence. The last a final straw was the earnings report that Kroger released. The company announced amazing numbers with traffic increases also. This apparently was overshadowed by the acquisitions finalization of Whole Foods and the price cut news article that popped up the same day. Kroger took another massive loss and my Limit loss order initiated at $21.75 protecting my precious capital.
I truly believe the market is being way to over dramatic about this whole situation. Kroger is going to be around for a very long time. They have solid financial numbers and people still need to eat and visit the grocery store.
The second sale I made of the month was my Ford Position. I have slowly been liquidating portions of my position and I have finally sold the last of it. I did end up taking a pretty big lose of $421. This is a pretty big chunk of pocket change to lose but I said enough was enough. I have been wanting to eliminate my Ford position since the day the announced they would not be increasing the new yearly dividend payout. I was really bummed when the company announced this but I totally understand since the cyclical nature of the auto industry plays a big factor into payouts.
That combined with the doom and gloom in the auto industry along with the monthly car sale reports just drove me to annoyance with the company. The rest of my portfolio positions were fairing very well while Ford was floundering like a fish out of water. The only reason I had't sold sooner was because they were maintaining their insanely high dividend payment yield of 5.7% which is hard to come by in the market.
I sold all 311 shares I had left for a total of $3,562. This combined with Kroger Proceeds of $1,714 gave me a lot of extra cash flow to throw around.
First I picked up 54 shares of MAIN. This is my first purchase into a monthly paying dividend company and I'm feeling really good about the concept of monthly dividend payments compounding upon each other.
I then added 30 more shares to my T position. This was to good to pass up considering I was able to get roughly the same dividend yield as F. Better yet T is a dividend aristocrat and I can trust that a dividend increase will be announced. Also with the TWX coming to a close before the end of the year I see incredible value with the current share price.
I added another new company and bought 16 shares of MO. It was a tough call between PM and MO but MO has the better value, Payout ratio and Yield. WIN, WIN, WIN. Also their has been insider buying around it's current price so I'm feeling pretty solid about it's current support.
and last but not least I added an additional 44 shares of SKT to average down my position. This company has been ravaged over the past 6 months and I love a good old beaten down stock near it's 52 week low. It offers an amazing yield and great value at it's 52 week low that should be turning around once earnings are released this month.
As you can tell, I have had a lot of account activity and honestly it's to much work to calculate the annual dividend adjustments per purchase and sale for the purpose of this article.
I took my time to write down all my current share positions, dividend payouts and recalculate my annual expected dividend since I had so many adjustments happening. I'm happy to report that I did surpass my expected dividend income goal of $1,800 for 2017. I guess I should have made my goal a little higher but that has all been due to the higher yield investments I have been making. My new expected income is now $1,810.12. I'm super pumped about hitting this goal so early and I may even be able to break the $2k mark by years end.
I do have plans to pick up a lot of companies that yield in the 3% range so I won't see as big of increases as I have in the past few months. One of my biggest bumps was WHF with it's $106 annual boost. This investment is actually fairing pretty well for me so far and I may even want to add more as long as the P/E stays as low as it has. I'm not planning on adding anything to this position until they release next earnings statements.
All that being said it has been an incredible month so far and I'm really happy with the new balance and diversification I have within my portfolio. I want to continue to add more companies to my holdings and hit my 20 holding goal mark end the next month. This is also a 3 paycheck month for me and I'm expecting to have another $1k in fresh capital before months end that I will be able to shuttle into the Independence Fund. I may not be making a move with this money however and I most likely will be using it as opportunity money.
I also have noticed a trend when I purchase into positions. It feels that I see more success with my purchase when I purchase in before ex dividend dates. I feel that this is all in my head but honestly I have seen a lot of success with lower volatility when I purchase closer to ex dividend dates. This also goes along with position additions.
Has anyone else noticed this or is it just in my head?
Thanks for stopping by and feel free to leave me a comment down below on what you think about my portfolio additions and diversification!