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Portfolio Update: New Subtraction (ABBV and CVX; January 18, 2013)

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I continued selling some more shares this past Friday. The market was up again, and I used the uptrend to exit out of two more positions. I sold off 51 shares of AbbVie (ABBV) and 39 shares of Chevron (CVX).

Details

Here are the details of the two transactions:

51 shares of ABBV for $36.87/share
39 shares of CVX for $115.00/share

Total Gains: $6355.30.

I now have $17,198.88 in cash in my brokerage account.

Update

Thanks to the good suggestions from other fellow dividend growth investors, I have a better idea of some additional moves I will need to make next week.

I also visited my loan officer yesterday (Saturday), and walked out quite confident that I will be able to secure a loan for the new rental property. There were some new details that emerged in our discussion, ones that will force me to alter my approach to coming up with the $70,000 downpayment. I will update the details soon, in a future post. So far, so good.

{ 6 comments… add one }
  • JC @ Passive-Income-PursuitNo Gravatar January 20, 2013, 4:49 pm

    Do you feel that ABBV doesn’t have as good of DG prospects going forward as ABT or just needed to unload something? I’ve been thinking about selling my CVX as well because I think the DG might be lower than I’d like for the next few years. Only time will tell though.

    Hopefully you got good news about the loan so you don’t have to sell as much of your DG stocks off for the downpayment.

  • FI FighterNo Gravatar January 20, 2013, 7:46 pm

    JC,

    I sold out of ABBV on Friday, but I’m going to exit out of ABT as well. Not b/c of its DG prospects, but b/c I need the funds for the downpayment. I still really like CVX, but oil is usually cyclical, so I hope I’ll have the chance to add back in if CVX approaches the low $100’s again.

    Unfortunately, I received some rather bad news. Nothing that will kill the deal, but I will be forced to sell a lot more stocks than I would like. My Plan A was rejected. So was Plan B. 🙁

    Cheers!

  • Brick By Brick Investing | MarvinNo Gravatar January 21, 2013, 12:23 pm

    I feel that ABBV wasn’t as strong of a company as ABT. Going forward I plan to only invest in ABT.

    Its great following your process buying this second rental property. I can’t wait to see you upload some pics!

    • FI FighterNo Gravatar January 22, 2013, 8:07 pm

      Marvin,

      Yeah, it seems a lot of dividend investors are on the fence about the new ABBV. Humira is the cash cow (generating over $9 billion a year in revenue), and its patent expires at the end of 2016, so it’ll face generic competition. Seems a ways away from today, but a lot of investors are worried that the pipeline doesn’t have another especially strong prospect to increase earnings. In October, the study for bardoxolone methyl was discontinued in phase 3.

      I’ll try and upload some pics soon after I close the deal and get the keys! 🙂

      Cheers!

  • Dividend Growth Stock InvestingNo Gravatar January 22, 2013, 2:41 pm

    I’m enjoying reading your process of selling some of your stocks to get a rental property. I think this is great for diversification purposes and something I would like to do in the future. However, I know I will have quite a battle with myself to allow myself to sell stocks to raise the cash to put down on a property. But you are simply moving money from one investment to another, not selling investments to buy a boat or some other wasteful purpose. Good job and stick with it even if the plans change!

    • FI FighterNo Gravatar January 22, 2013, 8:12 pm

      DGSI,

      Thanks, I hear you on the battle with selling stocks. In fact, I hate the idea of it, which is why I’m forcing myself to do it just so I can “get it over with.”

      But in many ways, the investment property will further fuel my long-term dividend investment plan. As you might have guessed, the cash flow from each property will help me live “rent free”, so what’s left of my disposable income will be deployed to buy more stocks.

      Yeah, good thing I’m not buying a boat. If I did, I don’t think I could find a way to justify the purchase on this blog 😉

      Cheers!

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