The market is once again in BULL status, as it has surpassed the 18,000 mark. Everyone that is long should be sitting pretty right now. If you are short, I feel sorry for you!
It was hard for me to sit back with the market surging and not lock in some profits…so I made a move.
On April 21, 2016 I sold 5 shares of EMR for $55.31 a share, for a gain of $21.83. Proceeds from the sale, less commission, totaled $271.58.
I originally purchased these shares back on August 11, 2015 for a total purchase price of $249.65. During the holding period, I collected three dividend payments totaling $7.11, which when added to the realized capital gain, the total gain from the holding stands at $28.94. Annualized, the percentage gain was approximately 17%.
Though I did not want to sell these shares, there were several factors that led me to do so.
- Had to close the account – The brokerage that I use charges $50 a year for inactivity. This account was opened in June 2015 and the last transaction occurred in August 2015. I am getting close to a year without any activity. I do not trade in this account, as it was opened for a specific promo, which has since passed.
- Taking profit in an “UP” market – the market is surging, surpassing 18,000 and my portfolio is showing substantial green. Nothing wrong with taking some profit off the table. There were several positions that were a candidate for a sale, EMR won out, mostly for reasons noted in #1.
- Last dividend hike and earnings report – The dividend hike in 2015 was pretty dismal, going from .47/share to .475/share. This dividend hike, combined with a dismal revenue increase, contributed to selling the shares. The last earnings report, released on February 2, 2016, showed a revenue dip of 15.7% compared to last quarter. The divy hike and earnings report did not sit well with me. Though EMR holds an Aristocrat status, it does not mean it will hold it going forward.
I am very satisfied with booking an 11.59% profit on this trade. Truthfully, any profit is good, as long as you don’t lose any capital. I look for the next opportunity to reinvest this cash in the days coming. Be sure to keep checking in on the highs and lows of our New Life Portfolio now shown in real-time with up-to-the-minute ticker prices! You can find it by clicking the link or from our home page under the tab New Life Portfolio.