Today unexpectedly became an active day in the market for me. I have the Yahoo Finance app installed on my phone and I typically will open up the app and take a look at my watchlist that I set up within the app in additional to the Google sheets file I have here on my blog. When I opened the app I noticed many consumer staples were taking a hit; more on this in my next post.
Recently, Compass Minerals International announced that they would be freezing the dividend at the current rate. When the announcement was initially made the stock dropped quite a bit. The stock has since recovered a bit and is trading close to my cost basis and I have decided the funds could earn better returns elsewhere. Below are the details on the elimination of the CMP position:
Cost basis: 25 shares @ $68.44 = $1,711
Sold: -25 shares @ $67.50 = ($1,687.50)
Capital gain/(loss): ($23.50)
Annual Dividend: $2.88 for a current yield of 4.26%
Dividend Income: ($72.00)
TTM P/E vs. Forward P/E: 54.25 vs. 16.88
Telefonica was one of the first individual stocks I purchased when I began to venture away from index funds several years ago. Although I was not focused on DGI investing at the time, I admit that TTM dividend yield that at the time was in excess of 10% is what initially attracted me to the stock, but as you can imagine that dividend rate was short lived. TEF was loaded with debt at the time and Europe was still in the midst of economic recovery at the time and TEF was loaded with debt which ultimately forced them to cut the dividend and pay down debt and sell some assets. In the years since, TEF has paid a combination of a cash dividend as well as a script dividend until recently where it is now cash. In addition, TEF still has a less than stellar credit rating of Baa3 by Moody's, which lowest credit rating that is still considered "investment grade" (the equivalent of an S&P credit rating of BBB-). Similar to CMP, I am ready to move on and deploy my capital elsewhere. Until now, I have held shares of TEF in both my retirement account and brokerage account, with the bulk of it in my retirement. This afternoon I sold all the shares held in my retirement account (which wasn't a good place to hold an international dividend paying company to begin with as the taxes withheld are not deductible on my tax return). The 62 shares in my brokerage account will also likely be sold in the near future.
Cost basis: 274 shares @ $12.02 = $3,295.23
Sold: -274 shares @ $10.14 = ($2,778.36)
Capital gain/(loss): ($516.87)
Annual Dividend: $0.4586 for a current yield of 4.52%
Dividend Income: ($125.66)
TTM P/E vs. Forward P/E: 14.73 vs. 9.92
Recently, Compass Minerals International announced that they would be freezing the dividend at the current rate. When the announcement was initially made the stock dropped quite a bit. The stock has since recovered a bit and is trading close to my cost basis and I have decided the funds could earn better returns elsewhere. Below are the details on the elimination of the CMP position:
Cost basis: 25 shares @ $68.44 = $1,711
Sold: -25 shares @ $67.50 = ($1,687.50)
Capital gain/(loss): ($23.50)
Annual Dividend: $2.88 for a current yield of 4.26%
Dividend Income: ($72.00)
TTM P/E vs. Forward P/E: 54.25 vs. 16.88
Telefonica was one of the first individual stocks I purchased when I began to venture away from index funds several years ago. Although I was not focused on DGI investing at the time, I admit that TTM dividend yield that at the time was in excess of 10% is what initially attracted me to the stock, but as you can imagine that dividend rate was short lived. TEF was loaded with debt at the time and Europe was still in the midst of economic recovery at the time and TEF was loaded with debt which ultimately forced them to cut the dividend and pay down debt and sell some assets. In the years since, TEF has paid a combination of a cash dividend as well as a script dividend until recently where it is now cash. In addition, TEF still has a less than stellar credit rating of Baa3 by Moody's, which lowest credit rating that is still considered "investment grade" (the equivalent of an S&P credit rating of BBB-). Similar to CMP, I am ready to move on and deploy my capital elsewhere. Until now, I have held shares of TEF in both my retirement account and brokerage account, with the bulk of it in my retirement. This afternoon I sold all the shares held in my retirement account (which wasn't a good place to hold an international dividend paying company to begin with as the taxes withheld are not deductible on my tax return). The 62 shares in my brokerage account will also likely be sold in the near future.
Cost basis: 274 shares @ $12.02 = $3,295.23
Sold: -274 shares @ $10.14 = ($2,778.36)
Capital gain/(loss): ($516.87)
Annual Dividend: $0.4586 for a current yield of 4.52%
Dividend Income: ($125.66)
TTM P/E vs. Forward P/E: 14.73 vs. 9.92
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