Some time ago i have done major divestment in my portfolio getting rid of two investments that has increased its share value to range where sale was triggered – INTC and half of PG.
One investment was on my list for some time now – Target. After share price rally recently finally decided to pull the plug as return (dividend yield post-tax) fall below 1,5% which is the market where it’s better to repay some of our debts (leasing). Also TGT P/E has climbed abowe 20. So I sold my 10 shares of TGT for 126,6 $/share which was bought two years ago for 55,7$. That’s a whopping +127% or 689$ profit excl buy and sale fees. This sale has boosted our cash by 1,1 kEUR for a comparably small income of -16€/y. This divestment declined our annual pasive income to 560€.
Two more investments stand at the border of divestment – JNJ and PG which price has climbed up +19% and +60% making their post-tax dividend yield very close to 1,5% mark (1,9% and 1,7%). Their P/E stands ~25 which is definatly way to high. But for now I’m keeping these companies at my portfolio for difersifican.
Another news is that I decided to cash out my former work benefit – III pension fund. This has boosted our cash reserve by 6,9 kEUR so our cash reserve just reached 8 kEUR mark! So we can mark another tick in Y2019 Goals
Goal #2 –
Accumulate 5 kEUR in cash. Completed