Sale COP

As much as I hate selling any portion of my dividend income portfolio assets, this one needed to be severed from the rest of the group. I chose to go ahead and sell out of ConocoPhillips (COP) position entirely as its fundamentals, growth and future dividend has been greatly diminished. The company put a real sour taste in my mouth when the dividend was cut by more than half in early 2016 and therefore it is dead to me now. The stock price has recovered since then, which brought a good point to sell the asset at par of what I originally purchased for, not counting dividends received. Much better opportunities are out there and my money was waisting owning a piece of this business. Here are a few main reasons for the recent sale of the stock.

  • Reduction of dividend by 66.2% OUCH!
  • Destroyed its consecutive annual dividend growth streak
  • Payout Ratio is highly unstable
  • Unknown future for the dividend growth

I sold all 19.163 shares of ConocoPhillips (COP) for the price of $50.05 per share for a total recoupment of $959.11 subtracting of around $20.31 to my annual dividend income.

Conclusion:

The Portfolio “The Dividend Machine” has been updated with link > here.

Thank you for reading & have a great day!

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12 Comments

  1. Mr. Robot on October 14, 2017 at 10:51

    I can imagine it’s not fun to have to sell stocks. But with your fundamental analysis it’s the best call.

    • DividendVet on October 14, 2017 at 14:25

      Absolutely, it is what it is cant’t be right 100%. Plus this was a small position anyways.

      Thanks for the comment.

  2. Doug Arnold on October 14, 2017 at 11:27

    Sometimes you have to sell as fundamentals change what was a good stock when you bought it fundamentals can alter a company to where it no longer makes since to own. Hope you find an excellant stock to put it in

    • DividendVet on October 14, 2017 at 14:29

      Already invested into an amazing BOOMING business that provides growing dividends like clockwork.

      Stay tuned.

      Take care.

  3. Robert on October 15, 2017 at 09:18

    Sometimes it is best to cut your losses and put your resources to better use. I think you made the right call. Thanks for sharing.

    • DividendVet on October 15, 2017 at 15:27

      It is indeed, thankfully the stock recovered over a period of about a year and no losses were incurred, only opportunity cost was lost.

      Good hearing your perspective.

  4. Dividend Diplomats on October 15, 2017 at 09:37

    Hey – not every investment is going to work out and be perfect. Things change, the economic environment changes from time to time. I’ve had companies cut their dividend too and I subsequently sold. The best thing to do is learn from the experience and apply those lessons to your portfolio going forward. It will make you a better investor!

    Take care,

    Bert

    • DividendVet on October 15, 2017 at 15:32

      So true, investments do get sour and sometimes if not carefully watched they do end up committing the ultimate sin, the dividend cut.

      I think watching the payout ratio and debt levels is the biggest factors from my experience.

      Thanks for the comment Bert.

  5. Captain Dividend on October 15, 2017 at 12:28

    Good move, any company that cuts I would sell instantly as well.

    • DividendVet on October 15, 2017 at 15:36

      I agree to selling them, but would kind of disagree of doing it instantly due to news price volatility it creates. I rode this one out and stock came back a bit to my purchasing levels. There is a famous quote, not sure by who but it goes something like this “Time heals most stock prices”.

      Take care.

  6. DividendFamilyGuy on October 30, 2017 at 13:56

    I sold mine some time back when they cut the div. Glad to see you finally got out.
    Later,
    DFG

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