This next stock sale comes in no surprise to many of you. As I have mentioned in my previous sale post, Baxalta Inc. (BXLT) was the company that split its pharmaceutical business from Baxter International Inc. (BAX) in the middle of last year. I chose to sell Baxalta Inc. (BXLT) stake a few months ago to a number of reasons, but also just recently I have decided to go ahead and sell Baxter International Inc. (BAX) stake as well. For me, the company fundamentals no longer fit my investment criteria anymore. While I do believe the intentions were to bring more value to the shareholders, unfortunately it did not do so as intended. The split only lowered the dividend payout from $.52 per share to $.12 per share for Baxter International Inc. (BAX) alone. The over all dividend yield has shrunk to a measly 1.15% and I do believe that the money can be working harder elsewhere. Overall, here are my top reasons for the sale.
- Reduced quarterly dividend
- Unknown future for the dividend growth
- Too low of a dividend yield
I sold all 23 shares of Baxter International Inc. (BAX) for the price of $39.10 lowering my annual dividend income by $10.58.
The 12-month dividend income decreased to $2,605.