Well, I’m a bit slow in posting about my latest Portfolio transactions.  I was holding off on this post thinking I’d be able to complete some additional transactions I had planned, and then I’d include them here.  However, that didn’t happen, so I’m releasing this to get caught up.  I can post again if/when I get around to finishing off those other moves.

In this case, my transactions consisted of 2 sales and 1 buy.  Each sale was a trim, while the buy was an add to an existing position.

I didn’t end up investing all my proceeds from the two trims into my lone purchase, so my cash position grew just a bit.

Here are my transaction details…

 

Skyworks Solutions (SWKS)

This stock has been on a tear since the market bottom last March.  The company earnings report late last month only added fuel to the fire.

SWKS has grown to my 2nd largest position over this time.  With my two largest holdings now being semiconductor stocks, I lightened up ever so slightly by trimming my SWKS position.

Since I want to add to the Information Technology weighting within my Portfolio in 2021, selling SWKS doesn’t help in that regard.  Yet, I’m sure I can find some other Tech names to invest in during the year, in order to compensate.

In addition, SWKS offers some nice dividend growth, so I hated to give up on some of that.  However, the proceeds went to another stock that offers similar, if not better dividend growth, and to a position I’ve been looking to grow (more on this later).

On 2/12/21, I sold 10 shares at $190.05/sh. (about 8.4% of my position).  After the SEC fee, the sale proceeds were $1,900.46.

At that sales price, shares of SWKS yielded 1.05%.  This is less than half of my current average Portfolio yield of 2.37%.

I sold the 10 shares that I bought back on 10/10/2018 at $85.09/share.  The sale resulted in a long-term capital gain of $1,047.56.

The sale also resulted in a $20.00 reduction in annual forward dividend income.

After the trim, I still hold 109.043 shares of SWKS, and it remains the 2nd largest position in my Portfolio, well behind Qualcomm (QCOM), and just ahead of RPM International (RPM).

QCOM is another position that I need to trim in order to make sure its weighting isn’t too large relative to my other holdings.

 

TCF Financial (TCF)

My TCF position essentially began when I bought shares of regional bank Chemical Financial (CHFC) back in 2019.  Soon after my CHFC purchase, the company agreed to merge with TCF Financial (TCF), and the combined entity moved forward with the TCF Financial name.

Now, TCF is merging with Huntington Bancshares (HBAN), and I believe the Huntington name will be kept.  Sounds familiar!

In any case, I think the new company with be spending a lot of time with integration and cost cutting efforts over the coming years, as opposed to focusing on growth opportunities.

Thus, I looked to trim my position a bit for now, with a possible eye towards exiting the position altogether in the coming weeks.  Still, for the time being, it was just a trim to stockpile a few dollars and possibly invest them in smaller Portfolio positions of mine.

On 2/12/21, I sold 15 shares at $42.65/sh. (about 12.35% of my position).  After the SEC fee, the sale proceeds were $639.74.

At that sales price, shares of TCF yielded 3.28%, or about 1% higher than my current average Portfolio yield.

I sold 15 of the 100 shares I acquired on 6/10/2019 at $39.35/sh.  The sale resulted in a long-term capital gain of $49.49.

The sale also resulted in a $21.00 reduction in annual forward dividend income.

After the trim, I still hold 106.457 shares of TCF.  My TCF position is now the 10th smallest in my Portfolio, trailing Realty Income (O), but leading The Walt Disney Co. (DIS).

I’m undecided if I’ll exit my TCF position prior to the merger with HBAN, or if I’ll hold onto my position and see what the combined HBAN can do.

 

UnitedHealth Group (UNH)

As for my lone purchase, it went to building out my UNH position.

Many stocks in the Healthcare sector seem reasonably valued these days, and I feel UNH fits the bill.

This is my 3rd UNH add since initiating my position back in August of 2019.

While the price I paid here was the highest of any lot I’ve purchased, I feel good about the add.

One exciting note… UNH has been growing their dividend at a stellar rate (at least 20%+ over each of the past 10 years), and I hope to see at least 15% raises continuing in the near-term.

On 2/12/21, I purchased 6 shares of UNH at $329.50/sh, for a total of $1,977.00.

The stock yielded 1.52% at my purchase price (approximately 0.85% below my current Portfolio average).

This purchase allowed me to recoup $30.00 of annual forward dividend income.

My UNH position has now grown to 26.38 shares, and my cost basis climbed to $280.18.

UNH shot up my Portfolio standings to the #29 position.  This puts it ahead of CVS Health (CVS), but behind General Dynamics (GD).

I’ll be happy to continue adding UNH shares should the stock price fall over the coming weeks/months.

 

Summary

Last week I made a trio of buy/sell transactions.  I trimmed my SWKS and TCF positions, then used most of the proceeds to continue growing my UNH position.

So, I lightened up on my Info Tech and Financial holdings, and bumped up my Healthcare holdings a bit.

All totaled, the 3 transactions had me realize a net withdrawal from my Portfolio of $563.20.  Also, my forward dividend income dropped by $11.00 – something I hope to make up in short order.

With the two sales, I recorded a total long-term capital gain of $1,097.05 as well.

Since no existing positions were closed out and no new positions were initiated, the number of stocks in my Portfolio remained at 51.

I do have a couple of transactions that I held off on executing this week.  Once I get around to those, I’ll provide another update.  I suspect I can recover the lost forward dividend income from this batch of moves, and then some.

 

What do you think of my latest transactions?  What portfolio moves have you made thus far in February?  Please share in the comments!