Thursday, January 30, 2014

Sell - Nextera Energy (NEE)


It's very rare for me to sell one of my holdings.  My plan is to hold all of my dividend companies as long as they are producing a steady stream of growing dividends.  I mentioned previously in another article, Why I'm Considering Selling NextEra Energy.  In the end I decided I can do better with the proceeds than letting them ride in a company I consider to be overvalued currently.  

After the article was written I decided to set a limit order at $90 which was executed today.  

I sold all 41 shares @ $90/share.  My Basis was $55.42/share so I profited $1,417.78 or 62%.  

I've been holding these shares since 2011 so the profit will be treated as a long-term capital gain, minimizing my taxes due.

I haven't decided where I'm putting the proceeds yet but I'll be sure and post what happens.  

11 comments:

  1. NEE has a target of $100 - $110. Maybe you sold it too soon but then again you already had profit in it. If it was a losing trade for you bet you would not sell it.

    I dont know why people keep buying PM or MO. I would never buy those stocks for reasons we all know already.

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    1. Hi Irwin,

      NEE may very well go to $100 or $110. I'm more interested in a growing dividend than just growing price though. They have done both but I still feel that they are overvalued and I think I can do better with the proceeds. I could be wrong though, only time will tell.

      What are your reasons for not buying PM? It's one of the best investments of any stock over the last 20 years. I'm curious.

      Thanks for stopping by

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    2. Hi AAI,

      I have been following your's and some other blogs frequently. I believe you are quite smart and am sure are fully aware of MO and what product it manufactures and sells specially if you are investing in it, I am sure you know the company so find your question rather surprising. You are not that naive.

      I would never invest in a company that I find to be socially unethical. I dont want my money to be invested in products that sickens others (and not to forget causes cancer and may ruin other lives) so my reasoning are quite simple. No sin stocks even if the return on that stock could potentially be 100%.

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    3. Hi Irwin,

      That's what I thought you meant but I wanted to be sure. I thought you might have some fundamental reason or additional insight that I might not. I respect your decision.

      Take care

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    4. Thanks man..

      btw, I purchased some CVX today at $110.85. hope wont be a bad decision. Also wanted to add to BP and XOM but reluctant as they would go down further.

      All analysts are crying issues on CVX. !!!. all of a sudden all these stocks which are already at a good value turning out to be bad value, atleast according to analysts.. whats going on not sure !! ?

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    5. Hi Irwin,

      Congrats on picking up some CVX. I think you'll be happy in 5-10 years at the prices you paid. I have been waiting for a market correction, which is completely normal. It's finally providing additional value. CVX had a lower than expected earnings report and the overall market in general is dragging it down. I welcome these sorts of short-term moves as it allows me to purchase solid companies with solid fundamentals at a cheaper price. I tend to not follow analysts at all as they are wrong half the time and they have their own agendas.

      Cheers!

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    6. What do you think about BP and XOM at these levels or maybe slightly lower. I want to add BP for potential growth after their issues are resolved and higher yield and XOM for even longer term div growth. XOM is getting to 2.8% yield, although i would prefer atleast 3% yield. These big oil companies are spending huge amounts and their existing reserves are returning less and less and CVX growth for 2014 is merely at 0.5%.

      Dont know about BP and XOM but not really exciting. I am thinking perhaps some smaller oil companies would be better ?

      I wish I had funds like you do and can contribute larger sums. By the time I have funds the good deals are gone as the prices dont wait weeks or months :(.

      What price do you like GIS at ? < 45 ? Let me know your thoughts

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    7. Irwin,

      BP has one of the lowest P/E's in the industry. I have a full allocation at this time but consider them to be a buy. XOM is a lower starting yield but a solid company. I like all of the big energy companies in general and think they offer a lot of value. However, prices may be depressed for a little while. I think the best value in energy right now is ESV, not sure if you missed my article. They are now yielding 6% if you are interested in drillers.

      You should always keep a little cash on the sidelines just in case of a major correction. However, averaging along the way is a great way to buy these companies. I have a feeling this correction will last at least another month.

      I like GIS at 45 or lower, I'm with you on that one. I need to add to my holding as it's a smaller weight currently.

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    8. yes absolutely. Besides big oil companies I want to diversify into drillers. I was looking at NOV, SLB but their current yield is very low however div growth is stellar.

      ESV I just read about. Looks very good. I may initiate a position. just wondering why all the drillers are being discounted so much ? Something we dont know and the market does ?

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  2. Anonymous2/03/2014

    Sir;
    Nee is a long term play. Dividends are an important reason to own a stock in a portfolio. I believe the long term prospects of Nee are understated,they are the largest utility in the State of Florida with a presence in nearly all 50 states, they are actively involved in Nuclear, coal ,natural gas ,solar and wind projects. This allows for them to grow and prosper and raise the dividend .

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    1. Anonymous,

      You are right that they are growing the company and dividend well. I just feel at this time that their stock price has gone up too quickly for my liking and I think I can do better with the proceeds. I respect your opinion and I guess I'll find out if I was right or not. I bought CVX with most of the proceeds. It's hard for me to sell any of my positions, especially a company that keeps raising their dividend, but this one was relatively small compared with most of my others. At the right price, I'd be interested in picking up NEE again. Good luck with your trades.

      Thanks for stopping by to comment!

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