Stock Sell $KO
It is important to never marry any type of stock no matter how much you love their brand or their products. I’ve made that mistake before and payed dearly with experiencing dividend cuts and never ending grind down of the stock value. Therefore, it is essential to monitor current holding fundamentals to make sure the business I am invested keeps and stays not just afloat but thriving. With that in mind, I decided to sell the whole stake in Coca-Cola Co. ($KO) due the following reasons below. Capital preservation and safety first!
- Straight 5 years of declining revenues
- Payout ratio is too high
- Straight 5 years of declining EPS
- Sugary drinks consumption is declining
I sold all 28 shares of Coca-Cola Co. ($KO) for the price of $50.16 per share for a total recoupment of $1,404.48 subtracting of around $43.68 to my annual dividend income.
Conclusion:
The Portfolio “The Dividend Machine” has been updated with link ➡️ here.
Not a name you see being sold among our DGI peers ever but I can understand why you decided to shuttle that stock from your portfolio. KO is one of those stocks you see all the time in various income and growth portfolios and despite declining numbers still pays an attractive and growing dividend. Like MO, MCD and the like I think the company can adapt changing consumer tastes over the long haul. Thanks for sharing.
Even some DGI Jedis fall into a herd mentality, just holding because their Guru Buffett is holding or some other blogger likes it. I should have sold $KO long time ago, not even sure why the stock is up, revenues going down sharply over past 5 years and company is buying back their outstanding shares quite aggressively. Music can stop and it can get ugly. Plus, hold and hope is not a strategy.
Will be interesting to see, but I am out.
All the best.