I Just Made A BIG BUY On These 5 Dividend Stocks
If you read my previous article, then you’ll know I’ve been planning on selling out of AT&T (T) and Verizon (VZ).
Well, the other day, I finally ripped the band-aid off and sold both of them. Although locking in some losses definitely stung a bit, I think the move is an overall improvement in the portfolio from a long-term perspective.
Plus, it freed up a few thousand dollars for me to reinvest in some of my other stocks, and I wasted no time in doing so—it was quite the shopping spree.
But before we delve into that, let's review how things turned out with T and VZ. Here are the details from the sale:
AT&T (T)
Number of shares: 101.57 shares
Average Cost Per Share: $21.60
Sell Price: $17.20
Market Return: -20.37%
Total Return: -2.89%
Verizon (VZ)
Number of shares: 43.87 shares
Average Cost Per Share: $51.40
Sell Price: $40.49
Market Return: -21.23%
Total Return: -9.63%
All I can say is thank goodness for dividends. They substantially helped mitigate the overall impact of the losses, and although I violated Warren Buffett's #1 rule of investing—never lose money—at least it wasn't a catastrophic amount.
After the sale, I had around $3,500 to reinvest back into the portfolio, which I divvied up across 5 different stocks.
My aim in reinvesting was to avoid taking too many steps backward in my projected annual dividend income, which was challenging considering both T and VZ were two of the higher-yielding stocks in my portfolio.
However, I managed to make it work, and the end result was only a minor decrease in my projected annual income ($17 to be exact). You can see the before/after of the portfolio below.
Overall, I think this was a big improvement for the portfolio, and I think all of the companies I reinvested into are pretty solid choices – unlike the 3 dividend stocks I’m telling you about here.
What was the last stock you sold out of? Write to me here and let me know.
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