I really have no turnover strategy. Sooner or later there is bound to be a "problem" stock. Of course the problem could be in my mind. More likely I feel a stocks dividend growth could be traded for something better, or maybe a higher yield without the growth. I haven't followed funds for years, but I vaguely remember that some of the best funds had the lowest turnover rates. I remember there were a few studies that what fund managers sold did better over the next six months/year, than what they kept. Imho, higher turnover rate = lower returns for all but a small minority.
Studies show that once you cast off the 20% highest yielding stocks, the returns on the next 20% out pace the rest. Not really where Achievers and Champions show up. Starting out I wanted to balance high yield and safety. I've mostly kept my highest yielding ( should I say shakiest ) positions small: 400 CIM, 200 BKCC, 158 HTGC, etc.
The plan, which at times I execute poorly, is that any money from sales of non Achievers, etc., can go into non Achievers, etc. All incoming dividends I want to direct to Achievers, Champions, etc., slowly increasing the side of safety and growth. This has been more challenging than I anticipated, with the market moving up. Seems something compelling in the non Achiever line comes along and.... I need to buckle down on this.
As for the BMY sell, in a rising market most stocks we look back on will be higher. I'm usually not much for trimming. MCGC was the only stock that I didn't sell completely last year.
True to form, with my sister not getting cashed out of one of her private reits in time, I had to find something to sell for her. Since BKCC is in my "shaky" box and it is one of the few stocks that overlap her and her husbands accounts I sold at $9.90 last Tuesday. Now $10.52. At least I am consistent. lol!
Since I'm in for the dividends, I don't try to think of selling "tops". Usually ends up not being the top anyhow.
Current case in point CPLP up another 7% since this post:
"..I did sell all from my taxable account to take some of the pressure off holding the 900 in my IRA. So far that was a dumb move."
The dividends really are the bottom line for me. The plan is to never have to liquidate a position because I am in need of the cash. Of course we never know what life brings. The current market is only making it harder to build the bottom line.
Last years sells:
11/11/2010 10:03:11 Sold 300 SSS @ 39.7101 11,902.87 ---
08/11/2010 09:55:34 Sold 100 ED @ 47.97 4,786.96 ---
06/07/2010 10:34:43 Sold 300 EROC @ 4.8001 1,430.05 ---
06/07/2010 10:33:41 Sold 5 EROCR @ 3.05 15.24 ---
06/07/2010 10:33:41 Sold 100 EROCR @ 3.0501 295.05 ---
04/29/2010 13:59:21 Sold 100 O @ 34.45 3,434.99 ---
04/26/2010 10:03:03 Sold 100 EROC @ 7.2101 711.04 ---
04/26/2010 09:58:56 Sold 298 MCGC @ 6.9 2,046.21 ---
03/01/2010 15:07:08 Sold 100 SUG @ 24.3001 2,420.02 ---
02/08/2010 13:18:05 Sold 100 VE @ 31.6101 3,151.01 ---
01/07/2010 15:31:59 Sold 400 AHT @ 5.35 2,129.99 --- |
