On February 26th, I made my first ever stock sale. I sold my full position of 65 shares of Goldcorp (TSE: G) at $19.42 with a trading cost of $6.95, for a total recuperation of $1, 255.35.
I sold my shares after the company announced lousy Q4 2015 earnings release and updated 2016 guidance and cut their dividend by 66.67%. The annual dividend was cut to $0.08 USD… For the price I sold my shares at, the yield was 0.41%, which is nowhere near worth it to hold this risky company stock. My only sadness concerning parting with my shares of G is I now no longer have any exposure to precious metals.
Does anyone have a favourite precious metals-based investment?
I had originally invested $1, 469.00 in 65 shares of Goldcorp in May 2015, but suffered two dividend cuts following my purchase, and so I am completely through with them. This is not the kind of company which belongs in the Dividend Beginner portfolio, and crystallizing my loss was something I’m willing to work with to reinvest the capital in a higher-yielding and more healthy company.
Including fees, my total loss due to Goldcorp was $213.65, 14.54% of my investment.
Considering I will no longer receive dividends from Goldcorp, my annual dividend income decreases by $5.20 USD, which is really not much – as the majority of my dividends from G was already forcefully cut. My annual dividend income has dropped from $1,431.10 to $1,425.90, a decrease of 0.36%. Luckily Goldcorp accounted for a very minitiature percentage of my total annual dividend income, so both the cut and the sale accounted for an incredibly small percentage.
|Before sale of G||Net Increase||After sale of G|
|Annual Dividend Income||$1,431.10||-$5.20||$1,425.90|
|Monthly Dividend Income||$119.26||-$0.43||$118.83|