| | | Re: Young Folk Portfolio ... Buy and Sell Adjustments.
This portfolio currently has a yield of 2.33% and a dividend growth rate (last 5 years) of 6.60%. Since this is a young person's portfolio, I do want to generate more dividend cash flows to reinvest so I'd like to raise the dividend growth rate.
The moves I made today are in a Roth and no new cash is going into this account because the maximum cash contribution for 2021 was met many months ago, so any moves made in this account must come from profit taking or selling a losing asset in order to generate cash to invest.
With this is mind, the first asset I looked at was TSLA. This position was by far the largest position in the portfolio. A full position is now $5,000 and TSLA was over $15,000 so I decided to take some of those profits today bringing the TSLA position down to $10,000. I still believe TSLA will be an excellent long term position but it doesn't pay a dividend so it can't generate cash to reinvest unless I take some profits.
I also decided to take some profits from O. I like O as part of my REIT exposure but it has under-performed the market in recent years so since it too was an overweight position, I thought I'd trim it back some and put those proceeds to work elsewhere.
I sold the position in MSA. I may buy this one back at a later date but following the most recent earnings report, it left much to be desired. MSA missed earnings and revenue expectations, forward guidance was lower, and this usually indicates price may fall even further. As to analysts, of the 15 analysts covering MSA all 15 have revised MSA to the downside. I didn't want to sit and wait for a turnaround, especially when I can use the cash to buy something I've been waiting to buy, so I made the move today. The position was showing a 1% loss.
Trimmed:
TSLA - 4 shares
O - 28 shares
MSA - 7 shares
With the proceeds from those sales I started new positions in:
APD - 4 shares
LLY - 4 shares
LSI - 8 shares
MS - 10 shares
TSCO - 5 shares
Here are the important facts.
The positions I sold represent the following:
Market Value - $7,701
Income - $94
Yield - 1.23%
Dividend Growth - 3.80%
The positions I bought represent:
Market Value - $7,439
Income - $120
Yield - 1.62%
Dividend Growth - 12.2%
Bottom Line:
A little more immediate income, a slightly better yield, but more importantly much greater dividend growth going forward. |
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