I have sold two positions in my holdings - The Southern Company (SO) and Vanguard Total International Stock ETF (VXUS). Regular readers of this blog are probably familiar with our recent purchase of a house. In order to cover the down payment, the plan has always been to sell some of my stock/fund investments. Last month, I sold my positions in mutual funds, but that does not cover all of our needs, so I have sold and closed my positions in SO and VXUS.
Why these positions?
I want to hold onto my dividend growers and sell my positions in funds and high income non-dividend growing stocks.
Although a dividend grower, I decided to sell my position in The Southern Company (SO) as I see a lot of headwinds in the utilities sector. I will be posting details on that in a separate blog post later this week. Moreover, my average cost basis on the stock is just below the current price even after the gains this year -so, my YOC is pretty close to current yield; SO also doesnt have the best dividend growth rate record in my portfolio, which currently stands at 3.82% for the 5-yr dividend growth rate.
The ETF VXUS has seen quiet a bit of run up and has hit all-time highs as the ECB decided to take its rates negative (a big part of the fund composition is in European stocks). I sold the position while it was at an all-time high. We might re-instantiate a position in VXUS in the future when we move my wife's portfolio from mutual funds to ETFs. See the Goals page for details.
I have updated my Holdings page. See my current list of holdings here.