Friday, January 6, 2012
Final Recent Sell...
My apologies for not writing in awhile. I have been very busy as of late, and can officially say I am now I proud homeowner as well. Pretty cool!
In other news, my wife and I have been all around the country for the holidays to see my family (nothing like driving 1359 miles in one day! It is definitely a different feeling, let me tell you, when you hear your GPS say "continue 520 miles on I-40"). Things are finally now starting to settle down affording me the time to write once again.
Anyway, those who have followed the latest posts on DividendPartisan know that I have recently been selling my "dividend" paying holdings in an attempt to amass enough capital to effectively participate in the day trading game. Many warned me; many even openly disagreed with me in my divergence from the safe dividend stalwarts that used to make up my portfolio. And I appreciate their honesty and caution. Let me be the first to stay that day trading has some "stressful" moments! That said, however, I cannot be more pleased with my results thus far. I hesitate to say this for fear of sounding like I'm bragging, but so far this month I have already earned $697 dollars. Praise God for that; goodness. And with 16 trading days left this month, it is possible I will break $1000.
Consequently, it is hard to understand why I would stick with a 100% dividend strategy that would have only earned around $170 this month.
Nevertheless, I made my final two sales within the last several weeks and am excited to have this new part of my strategy now going full steam. The following two companies were the last on my "sell" list:
Waste Management (WM): Waste Management is another great dividend company, and was part of my "Original Six" companies that I purchased back in the beginning of 2010 that I have frequently written about. It has been paying higher dividends for 9 straight years and currently yields a large 4.17% dividend. Hands down a great company for the long term investor in my opinion. And I doubt trash removal from the largest waste service provider is going anywhere anytime soon. Nevertheless, with WM only making up around 6% of my portfolio, and its slow capital growth, I decided to sell.
General Electric (GE): General Electric slashed it's dividend back in early 2009 and many people were pissed, to be honest. I felt that it would restore it's dividend as it's balance sheet improved, and held around 150 shares patiently waiting. Fortunately GE has done just that, and has raised its distribution several times in 2011 alone. Nevertheless, I got somewhat impatient with this particular stock, and sold a little too early in this stock's recent price increase. As a result, I earned very little in capital gains, but was thankful for the 3.5% or so yield as a shareholder.
Well, that is the end of the dividend selling, I can assure you. This leaves me with 5 great dividend paying companies: Abbott Labs (ABT), Johnson and Johnson (JNJ), Proctor and Gamble (PG), Realty Income (O), and Anworth Mortgage (ANH).
What are your thoughts? I'd love to hear them as I've tried to be completely open and honest with my change in strategy.
Posted by Dividend Partisan at 9:17 PM