I’m playing catch-up with regard to posting about my most recent transactions. So, it’s time for an update.
After an active January and February, things haven’t slowed down for me on the transaction front. I’ve got 8 more transactions to detail.
All of these came on the same day last week. I basically sold some REITs (which had held up relatively well in the recent market downturn) and used the proceeds to increase my holdings in various other Portfolio stocks. I ended up averaging down in each purchase case, as one might expect.
I trimmed 3 different REITs, and added to 5 existing positions. Let’s check out the details of this Portfolio reallocation… I’ll start with the trims.
W.P. Carey (WPC)
As you may know, recently I’ve been paring back my REIT holdings, and that trend continued last week.
In this case, I trimmed a little over 12% of my WPC position.
On 3/4/20, I sold 7 shares at $83.50/sh. After the SEC fee, the sale proceeds were $584.49. My WPC position has declined to 50.052 shares. At my sale price, WPC shares yielded 4.97%.
WPC had a nice run up in price in 2019, but it typically traded in the $60-$70 range in the years prior. I wouldn’t be surprised to see WPC fall back into that trading range.
The shares sold were those from recent dividend re-investments, so they were some of my higher cost basis shares. The sale resulted in a long-term capital gain of $82.94, and a short-term capital loss of $1.33.
A reduction of $29.06 in annual forward dividend income also occurred with the sale.
Crown Castle International (CCI)
This was my 3rd trim of CCI in the past month. Previous trims were about 10%, and then 20% of outstanding shares.
This time around I sold roughly 37% of my remaining CCI position.
On 3/4/20, I sold 15 shares at $160.00/sh. After the SEC fee, the sale proceeds were $2,399.95. My CCI position has settled at 25.504 shares. At my sale price, CCI shares yielded 3.00%.
My CCI position is now about the same size from a value perspective as my WPC position.
The sale resulted in a long-term capital gain of $1,211.68.
A reduction of $72.00 in annual forward dividend income also occurred with the sale.
Realty Income (O)
This was also my 3rd trim of the year for O. Previous trims were about 20%, and then 15% of outstanding shares.
In this instance, the trim percentage was roughly 17.6%.
On 3/4/20, I sold 15 shares at $77.00/sh. After the SEC fee, the sale proceeds were $1,154.97. My O position dropped to 70.284 shares. At my sale price, O shares yielded 3.62%.
Despite all my O trims, it still is my largest REIT position. The stock is ranked #34 in my Portfolio in terms of value. It’s possible there’s one more O trim in me, bringing it down to the same size as CCI and WPC within my Portfolio.
The sale resulted in a long-term capital gain of $426.80.
A reduction of $41.85 in annual forward dividend income also occurred with the sale.
Now let’s see how I reallocated the proceeds from the sales just discussed. I’ll keep this brief.
Broadcom (AVGO)
My AVGO position is only about a month and a half old, but I continued to build it up. I increased my AVGO position by 33.3% this time around.
On 3/4/20, I purchased 5 shares of AVGO at $277.996/sh, for a total of $1,389.98. I now own 20 shares of AVGO.
The stock yielded 4.68% at my purchase price (well above my Portfolio average).
This purchase resulted in the addition of $65.00 in annual forward dividend income.
Automatic Data Processing (ADP)
ADP is a new position, but this is already my 4th ADP purchase in the past 2 weeks or so. I continue to add as the price declines.
On 3/4/20, I purchased 5 shares of ADP at $158.00/sh, for a total of $790.00. My ADP share total now stands at 30.
The stock yielded 2.30% at my purchase price (below my Portfolio average).
This purchase resulted in the addition of $18.20 in annual forward dividend income.
Wells Fargo (WFC)
WFC is another new position, but this is just my 2nd purchase.
On 3/4/20, I purchased 10 shares of WFC at $40.40/sh, for a total of $404.00. I now own 60.627 WFC shares.
The stock yielded 5.05% at my purchase price (a good 2%+ better than my Portfolio average).
This purchase resulted in the addition of $20.40 in annual forward dividend income.
3M Co. (MMM)
As I alluded to in my latest Portfolio Thoughts post, I wanted to take advantage of MMM below $150. My last MMM purchase was back in late January, when I paid a bit less than $179/sh.
On 3/4/20, I purchased 5 shares of MMM at $149.8904/sh, for a total of $749.45. My MMM position has grown to 40.866 shares.
The stock yielded 3.84% at my purchase price (above my Portfolio average).
This purchase resulted in the addition of $29.40 in annual forward dividend income.
Cisco Systems (CSCO)
My last purchase was another boost to my Information Technology holdings. This is my 2nd CSCO purchase, and it increased my position by 26.5%.
On 3/4/20, I purchased 20 shares of CSCO at $40.25/sh, for a total of $805.00.
The stock yielded 3.48% at my purchase price (above my Portfolio average).
This purchase resulted in the addition of $28.80 in annual forward dividend income.
Summary
I remained active in the midst of the market volatility. I didn’t add any capital, but instead trimmed a few positions and reallocated the capital.
I trimmed 3 positions, all REITs (WPC, CCI & O), then added to 5 positions (AVGO, ADP, WFC, MMM & CSCO).
The 3 partial sales resulted in total long-term capital gain of $1,721.42, and a short-term capital loss of $1.33.
The result of all the transactions was a net withdrawl from my Portfolio of less than $1 ($0.98 to be exact). However, I was able to boost my annual forward dividend income by $18.89 thanks to the purchases having a higher net yield compared to the trims.
With no positions sold completely, and all the purchases enhancing existing positions, the number of stocks in my Portfolio remained at 49.
How are you holding up emotionally given the market declines? Are you inclined to wait for some reduced market volatility before deploying any of your cash into new or existing holdings? Please share in the comments!