Tuesday, November 29, 2016

Closing Two Positions

In my latest DivGro Pulse article, I reiterated my plans to sell three stocks. Today I'm reporting on selling two of these stocks. The third, PennantPark Investment (PNNT), will remain in my DivGro portfolio until the end of December and possibly into January 2017. I first want to collect PNNT's last 28¢ quarterly distribution. The company cut its distribution by 29% last week.

This year, I've repositioned DivGro for options trading. While my focus will remain on generating a reliable and growing dividend stream, I want to leverage my stock ownership and boost dividend income with options income.

Repositioning involved closing several positions and buying more shares of existing positions, rounding out the number of shares to 100 or multiples of 100 shares. As a result, I've reduced the number of positions in DivGro from a high of 66 at the end of June, to 51 at the end of October.

I'm planning to continue this process for a while longer. Several positions in my FolioInvesting account contain 100 or more shares. These positions would be eligible for covered call trading, except that FolioInvesting does not offer options trading. I'm planning on moving these stocks to a new account where I can trade options.

Additionally, I'll continue to round out the number of shares of stocks in DivGro to 100 or multiples thereof. To do so, I may need to close additional positions in the near future. Look for future Pulse articles for more detail.

Recent Sell: BHP Billiton (BBL)


BHP Billiton plcBHP Billiton is a diversified natural resources company and one of the world's largest producers of major commodities, including aluminum, coal, copper, iron ore, manganese, nickel, silver, and uranium.

I bought BBL on two occasions, in June 2013 and in November 2014. The company spun-off South32 Ltd ADR (SOUHY) in 2015 and I sold the shares I received. In February 2016, BBL slashed its dividend by 75%. My decision to hang onto the shares has paid off handsomely. Since the dividend cut, BBL's share price has increased 70%. 

Here is a price history chart of BBL that shows my buy and sell prices:


Trading Summary

2013-03-06Bought: 43 shares of BBL at $58.32 per share:$2,507.76
2013-09-25 Dividend on 43 shares at 118¢ per share: $50.74
2014-03-26 Dividend on 43 shares at 118¢ per share: $50.74
2014-09-23 Dividend on 43 shares at 124¢ per share: $53.32
2014-11-20Bought: 57 shares of BBL at $50.15 per share: $2,858.55
2015-03-31 Dividend on 100 shares at 124¢ per share: $124.00
2015-06-02 Taxable Spinoff: 40 shares at $8.30 per share: $332.00
2015-09-29 Dividend on 100 shares at 124¢ per share: $124.00
2016-03-31 Dividend on 100 shares at   32¢ per share: $32.00
2016-09-20 Dividend on 100 shares at   28¢ per share: $28.00
2016-11-28
  Sold 100 shares of  BBL at $33.78 per share:
$
3,378.35
Capital loss:
$
-1,987.96

Dividends/Spinoff received:
$
794.80

Commissions/fees/taxes:
$
6.00

Net loss:
$
-1,199.16

I made a net loss of -22.32% on the original amount invested, which is -8.24% annualized.

BBL is ranked #47 out of 48 stocks in my DivGro portfolio and is a 1-star stock.

Closing my BBL position removes $56.00 from DivGro's projected annual dividend income (PADI).

Recent Sell: Helmerich & Payne Inc (HP)



Helmerich & Payne is a contract drilling company headquartered in Tulsa, Oklahoma. The company is engaged in the drilling of oil and gas wells for exploration and production companies. HP is a Dividend Champion with a track record of 42 consecutive years of dividend increases.

I bought HP on two occasions, in November 2014 and in February 2015. Here is a price history chart of HP that shows my buy and sell prices:


Trading Summary

2014-11-11Bought: 29 shares of HP at $85.57 per share:$2,481.40
2014-12-01 Dividend on 29 shares at 68.75¢ per share: $19.94
2015-02-02Bought: 41 shares of HP at $62.31 per share: $2,554.71
2015-03-02 Dividend on 70 shares at 68.75¢ per share: $48.13
2015-06-01 Dividend on 70 shares at 68.75¢ per share: $48.13
2015-09-01 Dividend on 70 shares at 68.75¢ per share: $48.13
2015-12-01 Dividend on 70 shares at 68.75¢ per share: $48.13
2016-03-01 Dividend on 70 shares at 68.75¢ per share: $48.13
2016-06-01 Dividend on 70 shares at 68.75¢ per share: $48.13
2016-09-01 Dividend on 70 shares at 70.00¢ per share: $49.00
2016-12-01 Dividend on 70 shares at 70.00¢ per share: $49.00
2016-11-28
  Sold 70 shares of HP at $69.12 per share:
$
4,838.30
Capital gain:
$
197.81

Dividends received:
$
406.72

Commissions/fees/taxes:
$
0.00

Net gain:
$
604.53

I made a net gain of 4.15% on the original amount invested, which is 2.15% annualized.

HP is ranked #39 out of 48 stocks in my DivGro portfolio and is a 4-star stock.

Closing my HP position removes $196.00 from DivGro's projected annual dividend income (PADI), which now totals $11,487.

Thanks for reading! 

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