So, unfortunately, this will be my second sale post of the year. It also looks like it will be my last stock sale of the year. The reason why it looks that way is that most of the companies that I invest in has already increased their dividend or they look like they are going to announce an increase soon.
I completely sold out of my position of General Electric Company (GE)
110 shares @ $20.23
General Electric announced a 50% dividend cut from $0.24 a share to $0.12 a share.
Even though GE reported earnings of $0.29 for the third quarter, which still covered their dividend of $0.24, GE management decided to cut the dividend. Like I mentioned above. This is only my second investment sale of the year and it looks to be my last. I only sell a stock once I hear that management reduced its dividend.
Fortunately for me, I was able to redeploy the capital to two great companies that are undervalued and will continue to grow its dividend for the foreseeable future.
As you can see from the FastGraph, GE is approaching fair value territory. However, I do not plan to buy GE anytime soon because of the fact that the company has cut the dividend payout twice in a 10-year timeframe.
Stay tuned for my next posts where I talk about my 3 sperate stock buys.
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