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.
Thanks
Matthew
All About The Dividends 
You’ll have to trust your instincts on the buys and sells in this volatile market. As long as you’re not letting fear hold you back, we should take advantage when we can.
LikeLiked by 1 person
Iām hoping I have good instincts lol. Such a tough market at the moment. How are you doing?
LikeLike
I’m buying as much as I can. I have a financial model built that looks at market pricing and then spits out which ETFs I need to buy in order for me to maintain my asset allocation.
So far I’ve dropped in 20k this month, buying the dips
LikeLiked by 1 person
Very nice! Keep up the great work!
LikeLike
Can never go wrong with JNJ š
LikeLiked by 1 person
That is true especially in these times!
LikeLike
Just a few weeks ago David Rosenberg was recommending defence procurement stocks. And who can argue with JNJ!
LikeLiked by 1 person
Thanks Alan for sharing that, I hadn’t heard that about David. I agree can’t argue with JNJ!
LikeLike
nice Matt
Was kinda shocked to hear you selling o but man oh man did you time that right? Its cheap now, reits just keep getting destroyed.
I like the buys though diversification is key. JNJ is one i want to up our position in as well.
cheers matt keep it up
LikeLiked by 1 person
Thanks Rob and you are right I certainly timed the market with O. I sold at $63 and I think it finished the day at $43. IMO REITs are over sold.
LikeLike