Recent Buy & Sell – ABBV and PFE

20 Sep 2018 20:59

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AbbVie (ABBV) continues to be range bound and on Wednesday its stock price bounced along the bottom of that range and I just couldn’t resist adding to my position so I purchased ABBV at $90.80/share with a 4.23% dividend yield.

Unfortunately I already have a full position in Healthcare Pharmaceutical stocks with sizable positions in J&J, Pfizer, and Merck. The purchase of ABBV threw my sector weightings out of balance and instead of being overweight I simply rotated out of one company and into another by selling 20% of my Pfizer (PFE) position at $43.75/share on Thursday.

This was not a hard decision as I bought PFE two years ago and the price has since gained 36% not including dividends. At $43.75/share PFE had a dividend yield of 3.11% versus my ABBV pickup at 4.23%. By using a rotation instead of using new funds I was allowed to increase my income, maintain my sector weighting and add diversity to my pharmaceutical stocks. You gotta love it when your money is working hard at making money so you don't have to.

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