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DGI For The DIY
#11
I've never taken a close look at either of those companies, so my opinion is not very valuable. That said, if you think that VVC still has legs, maybe keep it and allocate new money to TAL? As you acknowledge, they would play different roles in your portfolio, so really it is not just a question of comparing the two, but also looking at the bigger picture of your portfolio. VVC looks like a conservative, slow-and-steady utility play, while TAL is going to be much more cyclical. Which does your portfolio need?
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#12
(11-09-2013, 12:44 PM)Kerim Wrote: I've never taken a close look at either of those companies, so my opinion is not very valuable. That said, if you think that VVC still has legs, maybe keep it and allocate new money to TAL? As you acknowledge, they would play different roles in your portfolio, so really it is not just a question of comparing the two, but also looking at the bigger picture of your portfolio. VVC looks like a conservative, slow-and-steady utility play, while TAL is going to be much more cyclical. Which does your portfolio need?

I think I've decided to hold VVC until ex-div on Nov. 14th and then sell to start either a POT or TAL position. Hopefully TAL doesn't take off on me before then as it is already up over 6% so far today.

Is anyone familiar with Potash (POT)? I like the company but its a Canadian company. Are there any tax complications for dividends with a Canadian stock?
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#13
Tax treaty with U.S. keeps tax issues at a minimum. If held in an IRA, no problems at all. If held in a regular account, you will likely have to submit a form to your brokerage to get the 15% treaty tax rate, otherwise 25% gets skimmed. The form is no big deal, just one page for my TDA account.
Alex
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#14
(11-11-2013, 12:20 PM)hendi_alex Wrote: Tax treaty with U.S. keeps tax issues at a minimum. If held in an IRA, no problems at all. If held in a regular account, you will likely have to submit a form to your brokerage to get the 15% treaty tax rate, otherwise 25% gets skimmed. The form is no big deal, just one page for my TDA account.

Thanks Alex.
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#15
Thanks to you! I had forgotten about adding POT to my regular account and had not yet submitted the form. I faxed them a copy just now.
Alex
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#16
Well, I made my move this morning.

Sold my MMM and VVC and purchased TAL and POT.

A little disappointed to find out that Schwab doesn't allow auto-reinvestment of dividends on POT because it is a foreign stock.

Also a little torn on selling MMM because I think it is a great company but with only a 2% yield and fairly pedestrian earnings and dividend growth rates I thought I could do better. Came down to selling MMM at a slight overvaluation to buying POT at what looks like an undervaluation and much higher yield.

Forgot to mention I also made a purchase with new money, buying 12 shares of DLR at $47.75.
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#17
(11-15-2013, 12:55 PM)EricL Wrote: Well, I made my move this morning.

Sold my MMM and VVC and purchased TAL and POT.

A little disappointed to find out that Schwab doesn't allow auto-reinvestment of dividends on POT because it is a foreign stock.

Also a little torn on selling MMM because I think it is a great company but with only a 2% yield and fairly pedestrian earnings and dividend growth rates I thought I could do better. Came down to selling MMM at a slight overvaluation to buying POT at what looks like an undervaluation and much higher yield.

Forgot to mention I also made a purchase with new money, buying 12 shares of DLR at $47.75.

Already regretting my MMM sale. They announced a huge stock buyback and boosted the dividend by 35% today. So much for the recent history of pedestrian increases.

Sometimes I think I'd just be better off buying positions and then never selling them and just keep buying stocks I like when I find them rather than trading. Seems like half the time I end up regretting it down the road.
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#18
(12-17-2013, 11:12 PM)EricL Wrote: Sometimes I think I'd just be better off buying positions and then never selling them and just keep buying stocks I like when I find them rather than trading. Seems like half the time I end up regretting it down the road.

It is a tough game -- don't beat yourself up over it. Seems like folks are evenly split between buy and hold (mostly) forever and selling when fully or over-valued. For me, the buy decision is hard enough. I might consider selling if something got obviously wildly overvalued, but for now, I'm sticking with buying, holding, and collecting those dividends.
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#19
(12-18-2013, 03:10 PM)TomK Wrote:
(12-17-2013, 11:12 PM)EricL Wrote: Sometimes I think I'd just be better off buying positions and then never selling them and just keep buying stocks I like when I find them rather than trading. Seems like half the time I end up regretting it down the road.

It is a tough game -- don't beat yourself up over it. Seems like folks are evenly split between buy and hold (mostly) forever and selling when fully or over-valued. For me, the buy decision is hard enough. I might consider selling if something got obviously wildly overvalued, but for now, I'm sticking with buying, holding, and collecting those dividends.
Me too. I have some POT bought before the cartel collapsed. It is my smallest position and I am keeping it and reinvesting dividends.
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#20
Doubled my IBM position on Thursday with new money I had available in the account.

Love the long term prospects of the company and feel the stock is at an attractive price here.
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