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Sale $K

With a nice run up in the market lately, I chose sell my whole position of Kellogg Co. (K) out of my portfolio. Now, it wasn’t a big position by any means, but I must admit it, it has NOT been a great nor good investment. It was a positive investment overall, but when accounting opportunity loss, I believe the money invested in this company worked subpar to say the least. Either way, I believe better investment opportunities exist elsewhere where my capital can appreciate in value and return higher dividend growth rates over time. I am out of this one folks!

  • 5 Straight Years of Decreased Revenues
  • Annual Dividend Growth Rates are Too Low
  • Not Really Sure Where Business is Going

I sold all 17 shares of Kellogg Co. (K) for the price of $72.29 per share for a total recoupment of $1,228.93 subtracting of around $38.08 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!

8 Comments

  1. jukka on September 16, 2018 at 11:25

    yeah, packaged consumer food corps are struggling at the moment but I am still comfortable owning HSY.

    • DividendVet on September 16, 2018 at 12:06

      $HSY fundamentals look great, but price needs to come down for my interest, looks like 05/01/2018 was a great time to buy.

      Take care.

  2. DivHut on September 16, 2018 at 12:28

    Don’t read too many sale posts among our DGI community but I understand why you decided to shuttle K from your portfolio. Many names in the space are performing poorly as of late but it can potentially shift over time. GIS is another poor performer that has rebounded some from its lows as HRL. Many old guard food companies (CPB, HSY, CAG and more) are putting in an effort to become more relevant. Thanks for sharing.

    • DividendVet on September 16, 2018 at 18:33

      I am not sure where K is going and this is my primary reason to ax the position, I’ll let others to ponder on that, past performance has not been good. GIS on the other hand is a keeper with much better brand power than I would say K is, but essentially time will tell.

      Good hearing your thoughts.

  3. Dividend Gremlin on September 17, 2018 at 09:35

    DVet,

    I am holding K. I only have a handful of shares, which I acquired without fees via the old brokerage Loyal3. My position is so small that it probably doesn’t benefit me to sell at the moment. However, the thought on selling them has crossed my mind as I agree the cash could be more useful elsewhere.

    – Gremlin

    • DividendVet on September 18, 2018 at 21:08

      Depending on your broker you could be able to sell the shares for free if the fees would eat away at too much of the total proceeds, you just have to call your broker and put in a request. I am free and clear of it.

      Happy investing!

  4. Dividend Diplomats on September 17, 2018 at 21:42

    Your decision to sell makes sense. If it doesn’t fit your metrics, get it out of there! I try not to sell unless there is a dividend cut, then we are talking a different ballgame! Looking forward to seeing how you deploy that capital!

    Bert

    • DividendVet on September 18, 2018 at 21:15

      I think revenue decline over certain number of years is the first sign to jump ship, just my preference. Oh when the dividend is cut or reduced that is literally what I call “Stock Suicide”. Great lessons from ARCP, KMI, MAT, VIAB which makes me very slow learner regarding this principle, future beholds to be more wiser.

      All the best Bert!

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