03-08-2022, 08:32 AM
Plan for the day. I've finished up my IRA buying. Anyone wanting to see the final product, it's here: Filling my IRA
In reviewing stocks for my IRA one surprise was WHR. I own it in my Roth, first bought in January, 2021. Now at the time I bought it my plan was to manage that account similar to my taxable account; for dividend income. That changed later in the spring when I ran some tax scenarios. The Roth then became more of a TR/growth account.
I went into the IRA buying thinking of WHR along the same lines as BBY and WSM. Nice TR companies with some solid growth numbers, growth prospects, and a good record of dividend increases. Looking at numbers, this is wrong. WHR certainly has the dividend hike thing going on, include its most recent, but it doesn't have a lot of revenue growth in its history and I don't see those prospects changing.
So I have two moves planned for today, both involving it:
In my Roth: Sell WHR, replace it with KLAC. Of growth/TR prospects, KLAC is the company trading at the greatest discount to my target price.
In my Taxable Account: Sell some PFE - about 30%, replace with WHR. Neither are high growth companies but WHR actually has a higher yield right now and absolutely stomps PFE when it comes to dividend growth. I debated completely swapping them out but a) I still like PFE and b) I have pretty hefty gains. I can manage the taxable event with the T shares I still hold at a loss but it's easier with a partial sale - selling the T spinco (no divs, that decision is easy) will take care of some of it and I can look at doing something else if gains remain.
Or not. It's not like paying some LT cap gains will break me.
In reviewing stocks for my IRA one surprise was WHR. I own it in my Roth, first bought in January, 2021. Now at the time I bought it my plan was to manage that account similar to my taxable account; for dividend income. That changed later in the spring when I ran some tax scenarios. The Roth then became more of a TR/growth account.
I went into the IRA buying thinking of WHR along the same lines as BBY and WSM. Nice TR companies with some solid growth numbers, growth prospects, and a good record of dividend increases. Looking at numbers, this is wrong. WHR certainly has the dividend hike thing going on, include its most recent, but it doesn't have a lot of revenue growth in its history and I don't see those prospects changing.
So I have two moves planned for today, both involving it:
In my Roth: Sell WHR, replace it with KLAC. Of growth/TR prospects, KLAC is the company trading at the greatest discount to my target price.
In my Taxable Account: Sell some PFE - about 30%, replace with WHR. Neither are high growth companies but WHR actually has a higher yield right now and absolutely stomps PFE when it comes to dividend growth. I debated completely swapping them out but a) I still like PFE and b) I have pretty hefty gains. I can manage the taxable event with the T shares I still hold at a loss but it's easier with a partial sale - selling the T spinco (no divs, that decision is easy) will take care of some of it and I can look at doing something else if gains remain.
Or not. It's not like paying some LT cap gains will break me.