Last month was quite busy with regard to Portfolio transactions. While February has been nowhere near as active, I do have a couple of recent transactions to report.
I had one sale and one purchase recently. The sale was a trim of one of my REITs, while the purchase was a follow-on purchase to a stock I initiated a position in just last month.
Since the sale was just a trim and the purchase was to add to an existing position, the number of stocks in my Portfolio remained at 48.
I used the proceeds from this current sale, as well as some leftover proceeds from last month’s activity (and a little bit of cash), to make my most recent purchase. Thus, my purchase was larger than my sale. Also, the dividend yield on my purchase was larger than the yield for the stock I trimmed. Therefore, I had a net increase to my annual forward dividend income.
Here are the details for my 2 transactions…
Crown Castle International (CCI)
Weeks ago, I trimmed a different REIT in my Portfolio, Realty Income (O). My O position was getting bigger than I wanted, so I trimmed it by about 20%.
With that O trim, cell tower REIT CCI become the largest REIT in my Portfolio. However, CCI moving up in the ranks wasn’t all due to the O trim. The stock price for CCI has been on a tear since I purchased it back in Dec. 2016. In fact, thanks to the recent price surge, the stock price has now doubled for me in a tad over 4 years. I wouldn’t have expected that kind of price appreciation from a REIT… but I’ll take it! 🙂
My trim of CCI was a little over 10% of my position, so not as aggressive as the O trim. In addition, the two positions are now roughly the same size, with the CCI position still being a bit larger.
The timing on my trim was not the best though, as REITs in general surged in the days following my trim. In addition, approval of the Sprint and T-Mobile merger occurred the day after my trim, and this appeared to be a catalyst for the stock price running up.
On 2/10/20, I sold 6 shares at $152.75/sh. After the SEC fee, the sale proceeds were $916.48. My CCI position shrank to 50.504 shares.
At my sale price, CCI shares yielded 3.14%. Since then, the yield has dropped even further as a result of additional price gains, all the way to 2.86%… pretty low for a REIT, no?
The sale resulted in a long-term capital gain of $197.02, and a short-term capital gain of $34.74.
A reduction of $28.80 in annual forward dividend income also occurred with the sale.
Broadcom (AVGO)
One of my goals this year is to increase my Portfolio weighting in the Information Technology sector. I started down this path last month when I initiated a position in AVGO.
My AVGO position started very small… the 2nd smallest position in my Portfolio. However, the plan was to grow the position.
Since initiating my position, the price of AVGO has swung up and down, recently settling a little below the price I initiated my position at. I was happy with my previous purchase price, so why not grow my AVGO position at an even better price?
AVGO currently has a yield over 4% and is sporting some insane dividend growth over the last 9 years, too.
On 2/21/20, I purchased 5 shares of AVGO at $304.406/sh, for a total of $1,522.03. The stock yielded 4.27% at my purchase price (well above my Portfolio average of 2.60%).
Thanks to this purchase, my AVGO position doubled to 10 shares. The stock is now the 5th smallest position in my Portfolio. I still plan on growing my AVGO position.
This purchase results in the addition of $65.00 in annual forward dividend income. I will be receiving my first AVGO dividend next month.
Summary
I made two transactions in the middle of February. I trimmed one position (CCI), and added to an existing position (AVGO).
The one sale resulted in total long-term & short-term capital gains of roughly $231.
The result of these 2 transactions was a net investment of $605.55 into my Portfolio. In addition, there was a net increase to my annual forward dividend income of $36.20.
The total number of stocks in my Portfolio stayed at 48.
Will that be all for transactions this month? Probably, but don’t count out the possibility of something else happening this upcoming week.
What sort of transaction activity has there been in your portfolio recently? Please share in the comments!