08-29-2015, 10:32 PM
(This post was last modified: 08-29-2015, 11:09 PM by Dividend Watcher.)
Dan, as I said, my time frame was the deciding factor for me. If I had 10 or more years to go, I probably would've held on to GE. I think most everything will be resolved in a few years but the uncertainty and the higher yield from the replacements pushed me over the edge despite the headwinds both EMR & ETN are facing.
I said I would continue about a week ago and finally had a few minutes to jot down some things. I'll start with the wife's portfolio.
Once the dust settled down from the Baxter split and the new dividend rates were formalized, I started thinking what to do with them. Wouldn't you know it but when I had reached a decision, Shire plc put Baxalta (BXLT) into play. Obviously someone saw some value in BXLT. I was willing to get past a couple quarters financials as an independent company before I made any further decisions. Despite the yield going to next to nothing, the combined price post-split price of the two brought the total value up to a bigger gain. When the market started to get choppy mid-month I sold BAX but hung on to BXLT for now.
With the proceeds, I added a little COP at a 16% drop from her cost basis. I know full well about the cash flow squeeze in the oil sector but still felt comfortable with COP for the long run. With yield hovering around 6%, I was willing to hang in there.
I also added another batch of Norfolk Southern (NSC). Turns out I was a little premature buying at a couple bucks above her cost basis but yield is now close to 3% -- something we haven't seen from NSC in a while.
The Friday before the "flash crash" last week, I put in a limit order for JNJ at $95 thinking I'd be lucky for it to fill at that. JNJ's price had held up well around the $100 mark all through the turmoil of the week. When I checked the Asian markets on Sunday night, they were opening the week with another large sell off and when I woke up Monday morning, the European market was continuing the drop. So I dropped the limit order to a stink bid of $92 thinking it wouldn't fill. Much to my surprise, the market opened in the dumper and by the time the trade executed, she bought it at $85 and change. Nice surprise and price, IMO.
This is how the portfolio ended up at the end of August 2015:
The big changes in sector allocation was the drop in COP's (and ESV's) price bringing the energy down a little, selling BAX caused healthcare to drop a little although the JNJ add mitigated some of that and adding a little SO a while back and starting a position in LNT brought the utility sector up to a bigger allocation.
We now sit with an open limit order to bring BMO to a full position. Looking ahead, the goal is to add to LNT at a decent valuation, decide what to do with BXLT and, surprisingly, add a little to ESV under $20. I keep going back over ESV's financials and I keep thinking that there's some bright spots in the balance sheet. As I thought over what management has been doing, the dividend cut and stacking older rigs namely, I think it's the same thing I would've done if I were on the board to keep the business viable. A well-run company dealing with a tough oil market and an unforgiving stock market at the same time.
I've also turned on the drips for everything but HAS (high value) and MCD (already over a full position). We'll collect a few extra shares since things are still within sight of fair value for the rest of them before adding any new positions.
I said I would continue about a week ago and finally had a few minutes to jot down some things. I'll start with the wife's portfolio.
Once the dust settled down from the Baxter split and the new dividend rates were formalized, I started thinking what to do with them. Wouldn't you know it but when I had reached a decision, Shire plc put Baxalta (BXLT) into play. Obviously someone saw some value in BXLT. I was willing to get past a couple quarters financials as an independent company before I made any further decisions. Despite the yield going to next to nothing, the combined price post-split price of the two brought the total value up to a bigger gain. When the market started to get choppy mid-month I sold BAX but hung on to BXLT for now.
With the proceeds, I added a little COP at a 16% drop from her cost basis. I know full well about the cash flow squeeze in the oil sector but still felt comfortable with COP for the long run. With yield hovering around 6%, I was willing to hang in there.
I also added another batch of Norfolk Southern (NSC). Turns out I was a little premature buying at a couple bucks above her cost basis but yield is now close to 3% -- something we haven't seen from NSC in a while.
The Friday before the "flash crash" last week, I put in a limit order for JNJ at $95 thinking I'd be lucky for it to fill at that. JNJ's price had held up well around the $100 mark all through the turmoil of the week. When I checked the Asian markets on Sunday night, they were opening the week with another large sell off and when I woke up Monday morning, the European market was continuing the drop. So I dropped the limit order to a stink bid of $92 thinking it wouldn't fill. Much to my surprise, the market opened in the dumper and by the time the trade executed, she bought it at $85 and change. Nice surprise and price, IMO.
This is how the portfolio ended up at the end of August 2015:
The big changes in sector allocation was the drop in COP's (and ESV's) price bringing the energy down a little, selling BAX caused healthcare to drop a little although the JNJ add mitigated some of that and adding a little SO a while back and starting a position in LNT brought the utility sector up to a bigger allocation.
We now sit with an open limit order to bring BMO to a full position. Looking ahead, the goal is to add to LNT at a decent valuation, decide what to do with BXLT and, surprisingly, add a little to ESV under $20. I keep going back over ESV's financials and I keep thinking that there's some bright spots in the balance sheet. As I thought over what management has been doing, the dividend cut and stacking older rigs namely, I think it's the same thing I would've done if I were on the board to keep the business viable. A well-run company dealing with a tough oil market and an unforgiving stock market at the same time.
I've also turned on the drips for everything but HAS (high value) and MCD (already over a full position). We'll collect a few extra shares since things are still within sight of fair value for the rest of them before adding any new positions.