I’m always thinking about how I can improve the dividend portfolio. Certainly adding new positions or adding to existing ones is an improvement!
However, when that’s not possible, I look over the portfolio and decide if there are any adjustments I’d like to make.
As the portfolio currently stands, I’m looking to sell about 100 shares of AL, or 1/4 of the position. The main reason is that it’s currently the largest position in the portfolio and the sale would bring its size down to a comparable level of the other largest positions at approximately $11K-$12K. I would be inclined to sell above $41. A recent run-up in price has brought it close to this mark.
On the small end of the position spectrum is SBUX. I’d like to add about 50 shares, essentially doubling the size of this position. This would allow SBUX to deliver $100/yr in dividend income, usually the minimum I like to see for any of the portfolio holdings. I’d consider adding these shares now, but would prefer to see the price drop to about $55 before buying.
My largest REIT holding is OHI, and I’d like to sell 50 shares at $35+. This position is a tad larger than I originally planned. It got that way when I purchased 50 shares at $29.14 last November in a move to average down my share price. I like the yield on this REIT, but the ordinary income tax treatment REITs get in taxable accounts makes me prefer to keep the position smaller.
We’ll see what transpires here in the near future. Perhaps I’ll be able to execute one or more of these portfolio changes.
‘Til next time…