Friday, December 6, 2019

Recent Sell: Intel

In September 2014, I decided to stick with Intel (INTC) notwithstanding the company's decision to freeze its dividend. Not long thereafter, INTC resumed its dividend increase!

INTC was my second purchase for DivGro after Chevron Corporation (CVX). I bought 120 shares on 8 January 2013, paying $21.21 per share with an initial yield on cost of 4.09%.

In time, I increased my INTC to one of the largest positions in my portfolio, topping out at 500 shares trading well above $50 per share.
When the stock traded around $47 per share, I sold two $55 covered calls on INTC. This happened exactly a year ago today! I rolled forward the covered calls a couple of times and landed on the 15 November 2019 expiration date.

On 5 November, with INTC trading above $57 per share, the two INTC covered calls I'd sold got assigned. As a consequence, I was obliged to sell 200 INTC shares at $55 per share.

By exercising the options on 5 November, the holder not only secured unrealized gains of at least $2 but also secured INTC's next dividend payment of 31.5¢ per share.

Despite knowing of the likelihood that my covered calls would be exercised, I decided not to take any defensive actions. As mentioned above, INTC was one of the largest holdings in my portfolio and I decided to let these shares go, primarily because I wanted to buy higher-yielding stocks.

Trade Summary


Here is the trade summary of transactions and dividends related to my INTC investment:

2013-01-08Bought 20 shares of INTC at $21.215 per share:$424.30
2013-03-01 Dividend on 20 shares at 22.50¢ per share: $4.50
2013-06-03Dividend on 20 shares at 22.50¢ per share: $4.50
2013-09-03Dividend on 20 shares at 22.50¢ per share:$4.50
 2013-12-02Dividend on 20 shares at 22.50¢ per share:$4.50
2014-03-03 Dividend on 20 shares at 22.50¢ per share: $4.50
2014-06-02Dividend on 20 shares at 22.50¢ per share: $4.50
2014-09-02Dividend on 20 shares at 22.50¢ per share:$4.50
 2014-12-01Dividend on 20 shares at 22.50¢ per share:$4.50
2015-03-02 Dividend on 20 shares at 24.00¢ per share: $4.80
2015-06-01Dividend on 20 shares at 24.00¢ per share: $4.80
2015-09-01Dividend on 20 shares at 24.00¢ per share:$4.80
 2015-12-01Dividend on 20 shares at 24.00¢ per share:$4.80
2016-03-01 Dividend on 20 shares at 26.00¢ per share: $5.20
2016-06-01Dividend on 20 shares at 26.00¢ per share: $5.20
2016-09-01Dividend on 20 shares at 26.00¢ per share:$5.20
 2016-12-01Dividend on 20 shares at 26.00¢ per share:$5.20
2017-03-01 Dividend on 20 shares at 26.00¢ per share: $5.20
2017-05-19 Bought 180 shares of INTC at $36.000 per share: $6,480.00
2017-06-01Dividend on 20 shares at 27.25¢ per share: $5.45
2017-09-01Dividend on 200 shares at 27.25¢ per share:$54.50
 2017-12-01Dividend on 200 shares at 27.25¢ per share:$54.50
2018-03-01 Dividend on 200 shares at 30.00¢ per share: $60.00
2018-06-01Dividend on 200 shares at 30.00¢ per share: $60.00
2018-09-01Dividend on 200 shares at 30.00¢ per share:$60.00
 2018-12-03Dividend on 200 shares at 30.00¢ per share:$60.00
2019-03-01 Dividend on 200 shares at 31.50¢ per share: $63.00
2019-06-03Dividend on 200 shares at 31.50¢ per share: $63.00
2019-09-03Dividend on 200 shares at 31.50¢ per share:$63.00
2019-11-05Sold 200 shares of INTC at $55.00 per share:$11,000.00

                                                 
              

Capital Gain:
$
4,520.00

Dividends Received:
$
624.66

Commissions/Fees/Taxes:
$
0.25
Net Gain: $5,144.41

I made a net gain of 68% on the original amount invested, which is a gain of 25% annualized.

Selling these shares reduced DivGro's projected annual dividend income by $252.

Remaining Shares


As indicated above in the trade summary, the 200 shares I sold is made up of two partial lots. Below, I'm capturing a summary of the remaining shares for admin purposes.

2013-01-08Bought 100 shares of INTC at $21.215 per share:$2,121.49
2013-03-01 Dividend on 100 shares at 22.50¢ per share: $22.50
2013-06-03 Dividend on 100 shares at 22.50¢ per share: $22.50
 2013-09-03Dividend on 100 shares at 22.50¢ per share:$22.50
 2013-12-02Dividend on 100 shares at 22.50¢ per share:$22.50
2014-03-03 Dividend on 100 shares at 22.50¢ per share: $22.50
2014-06-02 Dividend on 100 shares at 22.50¢ per share: $22.50
 2014-09-02Dividend on 100 shares at 22.50¢ per share:$22.50
 2014-12-01Dividend on 100 shares at 22.50¢ per share:$22.50
2015-03-02 Dividend on 100 shares at 24.00¢ per share: $24.00
2015-06-01 Dividend on 100 shares at 24.00¢ per share: $24.00
 2015-09-01Dividend on 100 shares at 24.00¢ per share:$24.00
 2015-12-01Dividend on 100 shares at 24.00¢ per share:$24.00
2016-03-01 Dividend on 100 shares at 26.00¢ per share: $26.00
2016-04-08Transferred 100 shares of INTC at $25.82 per share:$2,582.00
2016-04-08 Transferred Past Dividends: $115.81
2016-06-01 Dividend on 200 shares at 26.00¢ per share: $52.00
 2016-09-01Dividend on 200 shares at 26.00¢ per share:$52.00
 2016-12-01Dividend on 200 shares at 26.00¢ per share:$52.00
2017-03-01 Dividend on 200 shares at 26.00¢ per share: $52.00
2017-05-01 Transferred 100 shares of INTC at $21.02 per share: $2,102.00
2017-05-01 Transferred Past Dividends: $383.50
2017-06-01 Dividend on 300 shares at 27.25¢ per share: $81.75
 2017-09-01Dividend on 300 shares at 27.25¢ per share:$81.75
 2017-12-01Dividend on 300 shares at 27.25¢ per share:$81.75
2018-03-01 Dividend on 300 shares at 30.00¢ per share: $90.00
2018-06-01 Dividend on 300 shares at 30.00¢ per share: $90.00
 2018-09-01Dividend on 300 shares at 30.00¢ per share:$90.00
 2018-12-03Dividend on 300 shares at 30.00¢ per share:$90.00
2019-03-01 Dividend on 300 shares at 31.50¢ per share: $94.50
2019-06-03 Dividend on 300 shares at 31.50¢ per share: $94.50
 2019-09-03Dividend on 300 shares at 31.50¢ per share:$94.50
2019-12-06300 shares of INTC trading at $56.73 per share:$17,019.00

                                                 
              

Unrealized Capital Gain:
$
10,213.51

Dividends Received:
$
1,898.07

Commissions/Fees/Taxes:
$
0.00
Net Unrealized Gain: $12,111.58


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2 comments :

  1. That's a nice gain in just 5 years. I also sold Intel stocks. Thanks for sharing

    ReplyDelete
    Replies
    1. Thanks for commenting! $INTC has been doing great -- fortunately, I still own some shares, so I'm hoping for more gains in the future!

      Delete

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