Recent Sell F

24 Jun 2018 18:02
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Earlier in the month I did a semi-annual portfolio analysis and identified Ford (F) and General Motors (GM) whose dividend growth has been zero for two years in a row. As a follow-up, F hit my sell price of $12.09 but GM however got tangled up in the trade tariff issue and has yet to hit my sell price of $45/share. The sale of F netted a capital gain of 4.98% plus two years of dividends for a total return of 16.4%. Not the best return but good enough to bank roll.

To replace the lost income I bought shares in Lexington Realty (LXP) at $8.66/share with 2% annual dividend growth which was at the upper end of my buy price but saw momentum in REITS and wanted to secure some shares before it went beyond the buy price. Good thing I did as the share price continued to increase to $8.99/share. Since LXP had a significantly higher dividend yield I was able to keep 1/3 of the F sale as cash to invest later and still maintain the same income (including F's special annual dividend). Ordinarily, I would not swap a qualified dividend for an ordinary dividend due to tax reasons (15% vs. 25%) but since I had the holding in an IRA the point was moot as all withdrawals from an IRA are taxed at your income rate (25%).

Hopefully some good news will come GM’s way and trigger my sell price. I already have targets for reinvesting the cash into AbbVie (ABBV), International Business Machines (IBM), and Prudential Financial (PRU) if share prices remain where they are.

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