Sold two larger positions in my portfolio in the past two weeks.
Due to uncertainties of its coming year’s dividend with the impact of COVID-19 and limited upside even after things go back to normal, I sold VICOM at $8.11 before XD. Based on my average purchased price of $6.14 and including the dividend received for the past two year, then the realised profit is about 40% over two years which I am happy to take.
First purchased Valuetronics in June 2016 for its strong balance sheet and reformation with a shift in focus towards its ICE segment that commands a higher margin. Have held steadfast to it even though the price has gone to a high of $1.0 in 2018 and dropped to a low of $0.45 recently, as its management has been nimble in a tough sector and dividend has been good.
However, with the outlook that some customers in the auto industry planning to switch over to other suppliers in North America and significant lower financial results in FY2021, I decided to divest my holdings yesterday at $0.62. Based on my average price of $0.595, that’s a trivial capital gain. However, including the dividend collected over the years, the profit is about 35% over the four years. Not fantastic but I will take it.
The two counters will continue to stay in my radar and one day I might own them again. In the mean time, I will be on the look out for new dividend counters for replacement.
Towards Financial Independence 