A quick update on three sales in my portfolio. Both companies below are still great companies to hold for the long haul, and I may consider re-initiating a position in them during the next cycle. In addition, part of the reason for also selling is to move some of these funds towards passive investing as I want to reduce my number of holdings and focus on a smaller group of companies.
Archer Daniels Midland (ADM)
A dividend champion that I’ve held since 2013. The food/commodity business is a tough sell and there are some very good bullish and bearish cases for holding this company. However, the company has continued to increase payout ratios over the past few years as it wants to grow its dividends, just for the sake of record. This is not the right move imo, and I will look for a better home for my investment dollars.
Total profit (including dividends): 32.8%.
Holding period: 4.5 yrs
Starbucks Corp (SBUX)
This is one of those investments that has traded sideways for me. With the founder Howard Schultz stepping down from CEO position, the spark has gone from this stock. However, the company is still functioning pretty well. I am not as confident in the growth story of this company as I was a couple of years ago. I have decided to exit this position, esp this late in the market cycle and re-evaluate in coming months/years.
Total profit (including dividends): 9.2%.
Holding period: 2 yrs
What do you think of these sales? Let me know with a comment below.