December was an interesting month for me. I can’t say I added a whole lot of new capital to my account. I did sell some stocks and use those funds to make new purchases though.
The first stock I sold was Krogers. I originally said I was going to hold Krogers for a very long time. However, I am just not pleased with these reports. GAP earnings has declined -17.95% quarter to quarter and the trailing last three quarters it is down over FIFTY PERCENT. Now granted I didn’t sell all of my KR, I only sold half for an 8% profit not counting dividends. I just think there is very little room for the run up here, I see 29 as the max share price for awhile and very potentially going back to 25 in the near future. KR doesn’t have the greatest dividend either, I got in around a 3% yield but now it’s 2.5%; although I must say it’s a great dividend grower. Growing it’s dividend 14% annually this year.
I sold a good bit of my Fidelity Health Care Services mutual fund as well. I held this in both my IRA and Brokerage account. I wanted to reduce my weight in the IRA and want to get out of it completely in my brokerage. It doesn’t pay a great dividend and the capital gain taxes at the end of the year are a bit of a nuisance in my taxable account. I’m also not looking forward to it’s volatility as we enter a presidential race. I’ve seen enough of that the last year to last me a lifetime. I will continue to hold a decent position in my IRA for long-term but will reduce out of my brokerage exposure as I’m eligible for LONG-TERM CAPITAL GAIN TAXES.
I sold 1 share of 3M as well. I then used this money to help buy more Netflix, hahaha. Sorry, but I just do not have the enthusiasm some of my fellow dividend investors have about 3M. It’s not one of my favorite stocks in my portfolio. I bought it simply because I got a great price on it. It was in my IRA so no taxes to pay on it.
What did I buy?
Yes, I bought more Netflix believe it or not. Yes, a value/dividend investor buying Netflix. I won’t go over my NFLX convictions again despite it’s high P/E and negative cash flow; I’ll just say I’m taking a risk here but it’s a risk I do believe in.
Still buying Ryman Hospitality, Westrock and Six Flags. Also bought $100 worth of General Mills before earnings and $100 worth of Darden Restaurants before earnings. Darden’s report was pretty decent but the stock went down 6% that day only to recover 2% of it the next day.