About two weeks ago, I stated I was going to sell Answorth Mortgage Asset Corporation (ANH) after they handed my the 4th dividend cut in the past 2 years.
So I did. They're FIRED.
My whole investment strategy is to buy companies that have a record of raising their dividend, not cut them. So I did what I had to do.
I knew it was a matter of time. I bought them (and a few other REITs) because of the huge dividend payout (upwards of 10%). but in the long run, it will only dwindle down the tubes.
Plus their price had sunk to where I did not see a recovery. ANH was down 27% this year alone. a price drop did not mean they were a bargain since the dividend was also falling. Better to cut ties and invest in solid companies with a track record I can trust.
My mind and my heart was not in favor of REITs like this anymore. IMO, REITs are a tease. I still have shares in Realty Income (O), but at least they are keeping up with maintaining their dividend (and increasing it by tiny amounts every so often)
So I sold 3 REITs today that only brought frustration. I got rid of ANH, Annaly Capital Management (NLY), and AGNC. All three cut their dividends more than once recently and nothing is showing that that pattern will change. I hate selling , but I feel relieved in a case like this.
Yes, I did have quite a return, and my Year To Year dividends will take a hit, but in the long run, I will gain more.
So here are my trades for September:
As you can see, I am taking a $892 hit for the year in dividends. I had already lost over $150 a year in dividends with the cuts from the REITs. If they had kept up this pattern, I would be down $900 a year in 6 years If I did not sell.
Now, in 6 years, I should be up a few hundred at the least. I am on much more solid footing with purchases from the likes of Raytheon, Delta Air Lines, and Bank of America.
Six years from now, I will be very glad I did this.
Thoughts?
So I did. They're FIRED.
My whole investment strategy is to buy companies that have a record of raising their dividend, not cut them. So I did what I had to do.
I knew it was a matter of time. I bought them (and a few other REITs) because of the huge dividend payout (upwards of 10%). but in the long run, it will only dwindle down the tubes.
Plus their price had sunk to where I did not see a recovery. ANH was down 27% this year alone. a price drop did not mean they were a bargain since the dividend was also falling. Better to cut ties and invest in solid companies with a track record I can trust.
My mind and my heart was not in favor of REITs like this anymore. IMO, REITs are a tease. I still have shares in Realty Income (O), but at least they are keeping up with maintaining their dividend (and increasing it by tiny amounts every so often)
So I sold 3 REITs today that only brought frustration. I got rid of ANH, Annaly Capital Management (NLY), and AGNC. All three cut their dividends more than once recently and nothing is showing that that pattern will change. I hate selling , but I feel relieved in a case like this.
Yes, I did have quite a return, and my Year To Year dividends will take a hit, but in the long run, I will gain more.
So here are my trades for September:
|
Ticker |
Date |
QTY |
Price |
total |
DIV INC / Yr |
|
EAT |
9/3 |
30 |
$30.098 |
$1177.910 |
$45.60 |
|
CSCO |
9/11 |
13 |
$49.999 |
$649.990 |
$18.20 |
|
RTN |
9/20 |
4 |
$196.380 |
$785.520 |
$15.08 |
|
ANH (SOLD) |
9/30 |
1137 |
$3.350 |
-$3808.870 |
-$454.80 |
|
AGNC (SOLD) |
9/30 |
200 |
$15.965 |
-$3192.910 |
-$384.00 |
|
NLY (SOLD) |
9/30 |
400 |
$8.705 |
-$3481.880 |
-$400.00 |
|
SYY |
9/30 |
24 |
$79.039 |
$1901.890 |
$37.44 |
|
CSCO |
9/30 |
37 |
$49.485 |
$1835.900 |
$51.80 |
|
MCD |
9/30 |
9 |
$214.91 |
$1934.19 |
$41.76 |
|
RTN |
9/30 |
4 |
197.815 |
$788.74 |
$15.08 |
|
BAC |
9/30 |
17 |
29.255 |
$497.34 |
$12.24 |
|
DAL |
9/30 |
68 |
58.203 |
$3957.86 |
$109.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$3045.68 |
-$892.12 |
As you can see, I am taking a $892 hit for the year in dividends. I had already lost over $150 a year in dividends with the cuts from the REITs. If they had kept up this pattern, I would be down $900 a year in 6 years If I did not sell.
Now, in 6 years, I should be up a few hundred at the least. I am on much more solid footing with purchases from the likes of Raytheon, Delta Air Lines, and Bank of America.
Six years from now, I will be very glad I did this.
Thoughts?
No comments:
Post a Comment
Please leave a comment. Just be respectful of each other. We're all here for the same reasons.... Thanks!