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.
The Sell
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?
Thanks
Matthew
I look forward to the American buys! I keep waiting for WMT to go below $100… might be an act of futility.
LikeLiked by 1 person
Thanks Alan I hope to make the US buys later today or tomorrow. I will have to take a look at WMT I’m not sure what the price is for them. Thanks for reading the post.
LikeLike
Hi Matthew, seems like a good reason to sell. You’re just adjusting the portfolio and these adjustments simply have to happen now and then. Have a great week!
DI
LikeLiked by 1 person
Thanks DI, have a great week as well!
LikeLike
I personally am keeping all of my IPL shares until Heartland complex is up and running. That said, I cannot blame anyone for selling right now as it hasn’t been at these levels for quite some time.
LikeLiked by 1 person
I still currently own 242 shares of IPL and I will be hanging onto them until Heartland is up and running as well. Thanks for reading the post!
LikeLike
Hey why not. You saw a great opportunity to lock in gains, exit and rebalance. Nothing wrong with that! Deals don’t always work. If shareholders don’t approve then the stock will go back to 20-22 $. This happened to me before with other stocks. Looking forward to your new buys 🙂
LikeLiked by 1 person
Thanks German!!
LikeLike
Some profit taking is always good. Too bad I sold mine before the big pop and takeover rumors. Oh well…
Looking forward to your next purchases
R2R
LikeLiked by 1 person
Those things happen where you sell a stock then all of a sudden the stock shoots up. Unfortunately we can’t control that. I should have a new post up next week about my purchases.
LikeLike
[…] week with you. Last Monday I sold some of my shares of Inter Pipeline and you can read about that here. From that transaction I put the proceeds into the US side of my account leaving me with about […]
LikeLike