The Dividend Beginner portfolio continues to off specific positions as they hit their stop loss limits. I’m very happy with the way I’ve decided to liquidate a portion of my portfolio as I decide beforehand what kind of return I’d be happy with – and then let the market decide whether it will continue to rise or drop off.
While Pure Industrial REIT would be a fine buy-and-hold, especially with a roughly 6% dividend yield, I wanted to consolidate my real estate exposure as I have quite a few names in the space, albeit small positions. I would prefer, if I were investing in real estate again, to go with one which consistently raises their dividend; such as Plaza Retail REIT (already own a small position) or Canadian REIT (which unfortunately yields a little low right now).
Due to selling AAR.UN, the Dividend Beginner portfolio now contains a total of 21 stocks. I’m happy with that for now, as I held 25 positions at the beginning of October. I’m not quite sure if there is anything for me to sell now, but I’m debating whether to hold or drop Wal-Mart (WMT). I’m excited to invest further into the same companies I hold in the coming year and to increase the concentration of those positions.
A Nifty 10% Return on One of my First Investments
Pure Industrial REIT was one of my first investments where I started investing without performing the correct amount of research. Nevertheless, it held up well and I managed to turn a profit on the small position I held.
On November 14th, I sold all 150 of my shares of AAR.UN at $5.17 (an increase of 3.19% over my purchase price), with another trading cost of $6.95.
I recouped $768.55 on this trade, when my initial investment was $758.45. This is a profit of $10.10, or 1.33% due to transaction costs. In addition to the capital gains achieved from holding AAR.UN, the stock has returned $66.30 in dividends over my holding period.
Therefore, my initial investment of $758.45 has ultimately become $834.85; a total return of $76.40, or 10.07%. This entire return was clearly in the dividend, which I doubt is uncommon for REITs.
Dividend Income Falls 2%
By selling AAR.UN, I have reduced my annual dividend income by $46.80. AAR.UN accounted for 2% of my annual dividend income. My new 12-month forward dividend income has been reduced from $2,336.98 to $2,290.18. Monthly income has been reduced from $194.75 to $190.85.
|Annual Dividend Income||$2,336.98||-$46.80||$2,290.18|
|Monthly Dividend Income||$194.75||-$3.90||$190.85|