This was only my second sell of the year and my first dividend cut sell since General Electric cut its dividend last year.
I rarely make a post about recent sells. The first sell of this year was because of a stock price run-up. The stock went up over 100% in a little over a year. I saw an opportunity to not only increase my dividends but to also buy two other undervalued companies.
This recent Sell post is totally different than my first sell of the year. This recent sell was because this company decided to cut its dividends.
I completely sold out of my position of Owens & Minor Inc. (OMI)
326 shares @ $10.29
Owens & Minor announced a 71.2% dividend cut from $0.26 a share to $0.075 a share.
WOW. This was not expected at all. The sucky part about this is that the company only had a dividend payout ratio of 87%. Yes, it was high, but they could have still held it. Management decided that the dividend cut would be best for the businesses going forward.
I am ok with that. Do what’s best for the business.
However, I plan to live off those dividends. That is why I had to sell and redistribute the capital elsewhere. Make sure to follow me on Facebook and Twitter to see what two companies I bought because of this sell.
Did you get hurt by this dividend cut? Were you planning to buy into OMI before the cut?
Image by Stuart Miles at FreeDigitalPhotos.net