Sold A Stock (CU), Reduced A Position (ZDY)

Hello and welcome to my latest post. Today I am going to share with a couple of transactions I made last week.  Last Tuesday December 11th I made 5 transactions in my RRSP (Registered Retirement Savings Plan) account today I will only talk about two of them to keep the post short. I will however post on Thursday about the other three transactions.

So back on the 11th I sold one stock and reduced my position in one of the Exchange Traded Funds I hold. Why did I do this you might be asking? Well on Monday December 10th Rob from Passive Canadian Income tweeted that he was thinking about selling or reducing his position in the same ETF in order to purchase one or two US stocks. Once I seen that my mind started thinking about it, the more I thought about it the more it made sense to do the same thing. It made sense because the money was in the perfect account already, here in Canada we can buy US stocks and receive their dividends in our RRSP accounts and the money will be tax free due to the tax treaty between the two countries.

I seen Rob’s tweet while I was at work so I spent the rest of the night thinking about the merits of selling the ETF and possibly what stocks I would buy with the money. I knew if I made the decision to sell that the money would be put into US stocks. That was an easy decision for me because I made it a priority for 2018 to diversify my portfolio away from Canadian stocks.

The stock that I sold was Canadian Utilities.

Canadian-Utilities-Limited

I am a big fan of Canadian Utilities, I’ve owned the stock since 2014. Throughout 2018 I have been buying shares of the company in my TFSA (Tax Free Savings Account) and I thought last Tuesday was the right time to sell what remaining shares I had in my RRSP.

Income 

I sold 75 shares @$32.23 which gave me $2,417.25 with the decision to sell I will lose $117.75 in 2019 dividend income.

 

The ETF that I reduced my position in is the BMO US Dividend ETF.

bitcoin-etf-meaning-cryptocurrency-696x472

I like the ETF for it’s monthly income, but decided to reduce my position as I thought I could grow my income quicker with stocks then with the ETF.

Income

Before I sold some I owned 455 shares, I decided to sell 290 shares @ $31.05 per share. The proceeds from the 290 shares are $9,004.50, I currently now hold 165 shares of the ETF I’m still undecided if I should sell the remaining shares and buy another stock or two.

The income that I will lose from selling these 290 shares are $247.08.

 

When I combine the income that I will lose from making these two decisions the result is a loss of $364.83 in 2019 dividend income. That is a lot to lose but I think you will be happy with what I purchased and the income I will receive from them.

So what do you think of my decision to sell CU and reduce my position in ZDY? Please feel free to comment below, I look forward to hearing what you have to say.

Also just a reminder on Thursday I will be posting on what I did with the $11,421.75 I received.

Thanks

Matthew

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7 thoughts on “Sold A Stock (CU), Reduced A Position (ZDY)

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