Well, I got behind so fast last month when it came to posting about my stock transactions, that I figure I’d better get this one out sooner rather than later.
I didn’t waste any time getting to work in November when it came to stock transactions. I made a partial sale on the 1st day of the month, and added to an existing position on the 2nd day.
These moves may look very similar to ones I made last month… mainly because they are similar! I continue to re-position my Portfolio. Again, this is more re-shuffling, as opposed to new capital investment.
Here are the details for my two transactions…
Omega Healthcare Investors (OHI)
OHI is a REIT operating in the long-term healthcare industry, primarily skilled nursing and assisted living facilities. As you may recall, I’ve been paring down this position in an effort to reduce my exposure to this REIT. I had a partial sale last May, and another one last month. I think I like where I’m at with OHI after this most recent sale, as OHI has assumed the bottom spot with regard to weighting within my Portfolio. However, it’s dividend is still fairly significant for me, thanks to its high yield of ~7.5%
On 11/1/18, I sold almost 20% of my OHI position, 20 shares at $33.48/sh. I waited until the stock traded ex-dividend in order to keep November’s dividend payment from dwindling further. After the commission and SEC fee, the sale proceeds were $667.59.
The sale resulted in a long-term capital gain of $36.74. The gain was minimized, as I chose to sell some of my shares with the highest cost basis.
A reduction of $52.80 in annual forward dividend income also occurred with the sale.
Abbvie (ABBV)
ABBV is a biotech in the Healthcare sector, with a blockbuster drug generating good revenue, but drawing concerns about its future impact on the stock.
I mentioned last month, after my 2nd addition of ABBV, that I would be interested in continuing to add to my position below $80, and that’s what I did. ABBV has been on a nice run up the past week, so I’m happy to have added when I did.
On 11/2/18, I added 14 shares of ABBV at $79.85/sh, for a total of $1,119.90 after commissions. The additional 14 shares brings my ABBV share total to 107.494 shares.
This purchase also results in the addition of $59.92 in annual forward dividend income.
Summary
I had a partial sale of OHI and an additional purchase of ABBV – that simple. I like where these two positions stand in my Portfolio after this latest round of transactions, so I’ll probably avoid these two stocks when considering other near-term Portfolio adjustments.
The net effect of these two transactions with regard to my forward annual dividend income is a small addition of $7.12. I’ll take it!
Let me know if you’ve been busy reshaping your portfolio. I look forward to your comments!
Very nice moves ED! It is nice that you have both of these positions at levels that you’re comfortable with right now. That has been my focus as well as I am trying to bring up some of my underweight positions, but just haven’t been finding the right price points just yet.
We just need to remain patient… we’ll get our opportunity to purchase eventually.
Like the ABBV pick up. I have my eye on that name too this month even though it as bounced nicely from its recent lows. Both buys will bring in a nice income with those juicy yields. Keep the buying coming along.
I do like the level of my ABBV purchase, DivHut… especially if to continues to pull away from that $80 mark. I look forward to the new dividend income the purchase will provide.
Hi Paul, I have been pretty quiet this year on the transaction side letting my dividends accumulate in cash. Similar to DH, I did have ABBV in my sights, but it rallied hard and fast off the lows and I missed it. You got a great price! Congrats. Tom
It was a quick recovery by ABBV, Tom. However, as you know, ABBV is a bit more volatile that your average stock… so you may yet get another chance to add.
Sounds like you’ll have a good chunk of capital to deploy once you find some prices to your liking. That’s a nice position to be in.
Hey ED,
Great job on pulling the trigger for ABBV below $80. By the time I made the move, I initiated a position around $88 a few days ago. It’s one that I would definitely be receptive to averaging down on over time. The Humira drop-off will be significant, but I liked what I read from management on their recent call about where the future is going.
Take care,
Ryan
Thanks, Ryan. I was happy to add to ABBV below $80. Of course, I was averaging down my October purchases of ABBV at $93.93 and $84.85.
ABBV did recover quite quickly. We’ll see if it can hold the $90 level it’s reached. I’m also optimistic the company and find other winning drugs to offset the eventual decline in Humira sales.
AbbVie looks like a bargain at that price! Bought some shares myself one day earlier.
I also have some OHI in my portfolio and the price has increased a lot lately. OHI doesn’t feel like a SWAN anymore, but it’s looking better than it did earlier this year.
PS. another engineer here (electrical though)!
Welcome DD. Similar timing on the ABBV purchase for sure. You must have had the same thoughts as me.
OHI has certainly made a nice recovery from the depths reached earlier in the year. I’ve been slowly reducing my exposure to OHI, as I believe it’s got the riskiest dividend of the stocks in my Portfolio. I suspect I’ll keep reducing my OHI share count over time as I slowly reduce the impact of REITs in my taxable account.
Glad to have another engineer in the DGI community. Hope to have you stop by again!