Hi everyone I just wanted to share with you a transaction I made on Monday August 12th. I decided to sell some of my shares in Inter Pipeline. I’ve held the stock for a few years now and like the company.
Why Did I Sell
At the time that I sold my shares I held the stock in two accounts my TFSA and RRSP. I only sold the shares in my RRSP account. Back in December of 2018 I bought 2018 shares and placed them in my RRSP account I did so because at the time I was taking the dividends I received in cash and the shares would help boost my income. A couple of weeks ago I decided to start the DRIP (Dividend Re-Investment Plan) for all of my stocks. By making this decision in my opinion in didn’t make sense to keep the stock in two accounts.
Last week a takeover rumour and later confirmed by Inter Pipeline that they had received an offer to sell the company for $30 per share drove the shares up by about 13% taking my overall capital appreciation to about 25% so I thought it was a good time to sell my shares.
I sold 256 shares @ $24.82 per share. This decision has a major impact to my dividend income by selling these shares I will lose $438 in income annually.
With the proceeds I am going to invest in some US stocks that will better diversify my portfolio as I am weak in some sectors. So in the short run my dividend income becomes weaker but I think in the long run this will be a good decision on my part.
What do you guys think of my decision to sell Inter Pipeline shares?