I decided to sell off a portion of my shares of Lorillard (LO). There’s a few reasons I decided to do this.
- First, I previously mentioned that I’m buying a third rental property and I’ll need some extra funds for that closing that should happen on 04/04.
- I also took advantage of the recent pop that shares of LO have seen due to the buyout rumors from RAI.
- Finally, since my LO shares are planned to be a half position with MO, they were overweight anyways. Part of my reason for having them as a half position happens to be their dependence on one blockbuster brand, Newport. There’s still uncertainty about a possible menthol ban.
I sold off my initial purchase of 78 LO (26 shares that had a 3:1 split) late last week for $52.58. My cost basis on the original purchase was $2999.69 back on 10/11/12 and my proceeds were $4091.17 for a profit of $1091.48 that will be taxed as long-term capital gains.
I also received dividends this entire time and will still receive the dividend payment today since I held shares on the ex-dividend date of 02/26/14.
These 78 shares will reduce my forward dividend income by $191.88. I still own 52 shares valued at about $2750.