This week I finally got the opportunity to sell some of my Fidelity Health Care Services Mutual Fund for a profit. I’ve been holding this for over a year and it’s been a poor performer until recently.
What were the mistakes I made with this stock?
1)Inside my IRA, I bought too much of it and ended up being overweight.
2)I bought another lot of it in my TAXABLE BROKERAGE account. This Mutual Fund shoots out long and short term capital gains, which are bad from a tax perspective. Something I recommend holding only in an IRA or Roth IRA.
I was anxious to reallocate my retirement account, using these funds to buy more dividend and some growth stocks. I was anxious to take the profits from my brokerage account and buy DIVIDEND STOCKS.
What else is going on with my Dividend Stocks?
Six flags started off good a few weeks back and is still bouncing around, Westrock is still building momentum. Standouts include Ryman Hospitality Properties and Hyatt Hotels.
Hyatt Hotels has had A LOT of bearish sentiment lately but I remain Bullish on the company. Earnings growth was over 30% last quarter, even though it was negative on the year. I’ve noticed lots of new openings with Hyatt around the world in different countries the last three weeks.
Eaton Vance had a nice earnings report. Despite missing revenue, earnings per share was up nice. The stock has turned down and is sliding a bit but COULD present a great buying opportunity here.
I did the UNTHINKABLE this week; I bought another share of Netflix. Netflix is the anti-thesis of everything else I buy. It has a negative cash flow, a P/E of almost 100. However, despite all the Disney Hoo-rah lately, I remain very positive on Netflix. I think it will be a few years before it’s cash positive but I see it as expanding internationally and adding more and more content to it’s library. Only time will tell if this small gamble pays off.