Hey everyone in the last week I was a little busy with doing some changes in my dividend portfolio. Originally I have never planned to sell any stocks, but in the past I made some mistakes in my investments which I wanted to get rid off. The reasons for selling the stocks were out of tax reasons, a wrong company analysis and a disappointing development in the business. All in all I sold the following four companies BASF, Anheuser Busch, Wells Fargo and General Electric.
BASF was one of the first stocks I owned and I kept it for more than 3 years. In total I collected dividends worth of 65.21 EUR. But the reason to sell this company came out of tax reason, to get the german withholding tax back is quite an administrative work, which is just not worth it when it is not such a huge amount.
Gain/Loss including dividends: 41.28 EUR
The reason of the sale of Anheuser Busch is the same than it was with BASF, getting back the belgium withholding tax is also connected to an administrative workload. I did not own that company for such a long time, in total I collected dividends worth of 31.71 EUR.
Gain/Loss including dividends: -38.33 EUR
Well to be honest last year I was quite happy to have that stock in my portfolio but now a days I am really asking myself do I really want to have such a company in my portfolio? Through all the scandals with the fake accounts and what else might come in the future I decided to sell all of my stocks.
Gain/Loss including dividends: -8.04 EUR
The investment in General Electric was probably one of my biggest mistakes so far. But I learned one lesson out of it was, that I should keep a better eye on the outlooks and on the free cashflow. Although I did want to sell the stocks after dividend cut I finally decided to do so. The reason is quite simple I just wanted to stick to my strategy once the dividend is cut the company does not fit anymore in my portfolio. Of course the loss is quite a huge one through that sell but yeah I learned my lesson :).
Gain/Loss including dividends: -433.57 EUR
Trough this sells I was able to put enough new capital in other investments but more to that a little later.
Although I am strongly convinced about the buy and hold strategy, I think this sells were necessary as I did not feel comfortable with those stocks anymore. Especially General Electric and Wells Fargo were a real disappointment but as I said I learned my lesson. In General Electric I still see a good company but through the dividend cut the company just does not fit my strategy anymore. It is already the second cut in the last 10 years so there is also no pressure anymore to start a new strike of dividend increases. So after all it makes much more sense to invest in dividend aristocrats like HRL or JNJ, which already have long history of dividend increases and their balance sheet looks much healthier. The other 2 sales were just necessary as I am loosing too much dividend income through the withholding tax.
But all in all I have to say that I do not plan to sell a lot of stocks as it is also a little expensive when it comes to the fees and secondly I am now quite happy with the stocks I own.
What do you think about my sells? Do you plan to do any sells in the future?
Disclosure: I do not recommend any decision to the reader or any user, please consult your own research. Thank you for your understanding!