On Monday March 16th I decided to sell one of the stocks in my RRSP account. Now I know we shouldn’t sell our investments during this current market environment, however I felt like it was time to sell and invest in other current holdings.
The stock I sold was Realty Income Corp (Ticker: O), Realty Income is a Real Estate Investment Trust with a very good business model and is a good stock to own. It raises it’s dividend several times a year. Why did I sell you might be asking? Well I chose to sell because I felt that I owned too many Reit’s in my portfolio, and thought the money from the sale could be put to better use. I sold all 47 shares that I owned @ $63.29 per share, not counting dividends I had a 10% profit since I first purchased the stock. By making this decision I will forgo about $131.16 in dividend income annually.
Here is what I used with the funds from the sale.
Johnson & Johnson (Ticker: JNJ)
I am weak in the healthcare sector of my portfolio and I’m happy to have had the opportunity to add to my small position in the stock. Before the new purchase I owned 16 shares and I was able to buy an additional 8 shares @ $131.41 per share. Johnson & Johnson pays a quarterly dividend of $0.95 and with this buy I will receive $7.60 per quarter and $30.40 annually.
Lockheed Martin (Ticker: LMT)
With the rest of the money I had I decided on a aerospace & defence stock. I can see demand for Lockheed’s product for decades to come. This is my second purchase of Lockheed Martin and my first buy was at $291 and over that time I seen the stock climb to over $400 and I was wondering if I would be able to invest into the company at that share price. Over the last few weeks the stock has fallen back to $300, at this price I decided to buy an additional 6 shares @ $299.46. Lockeed pays a quarterly dividend of $2.40, so with these additional shares I will receive $14.40 per quarter and $57.60 annually.
After making these transactions my dividend income declines by$43.16 since I am a dividend investor it is always tough seeing your income decline. However I do believe JNJ and LMT position my portfolio better for growth and helps in diversifying my portfolio.
So what do you think of my trades? Please feel free to comment below.