Pure Industrial REIT Stumbles Out of my Portfolio
The Dividend Beginner portfolio continues to off specific positions as they hit their stop loss limits. I’m very happy with the way I’ve decided to liquidate a portion of my portfolio as I decide beforehand what kind of return I’d be happy with – and then let the market decide whether it will continue to rise or drop off.
While Pure Industrial REIT would be a fine buy-and-hold, especially with a roughly 6% dividend yield, I wanted to consolidate my real estate exposure as I have quite a few names in the space, albeit small positions. I would prefer, if I were investing in real estate again, to go with one which consistently raises their dividend; such as Plaza Retail REIT (already own a small position) or Canadian REIT (which unfortunately yields a little low right now).
Due to selling AAR.UN, the Dividend Beginner portfolio now contains a total of 21 stocks. I’m happy with that for now, as I held 25 positions at the beginning of October. I’m not quite sure if there is anything for me to sell now, but I’m debating whether to hold or drop Wal-Mart (WMT). I’m excited to invest further into the same companies I hold in the coming year and to increase the concentration of those positions.
A Nifty 10% Return on One of my First Investments
Pure Industrial REIT was one of my first investments where I started investing without performing the correct amount of research. Nevertheless, it held up well and I managed to turn a profit on the small position I held.
On November 14th, I sold all 150 of my shares of AAR.UN at $5.17 (an increase of 3.19% over my purchase price), with another trading cost of $6.95.
I recouped $768.55 on this trade, when my initial investment was $758.45. This is a profit of $10.10, or 1.33% due to transaction costs. In addition to the capital gains achieved from holding AAR.UN, the stock has returned $66.30 in dividends over my holding period.
Therefore, my initial investment of $758.45 has ultimately become $834.85; a total return of $76.40, or 10.07%. This entire return was clearly in the dividend, which I doubt is uncommon for REITs.
Dividend Income Falls 2%
By selling AAR.UN, I have reduced my annual dividend income by $46.80. AAR.UN accounted for 2% of my annual dividend income. My new 12-month forward dividend income has been reduced from $2,336.98 to $2,290.18. Monthly income has been reduced from $194.75 to $190.85.
|Annual Dividend Income||$2,336.98||-$46.80||$2,290.18|
|Monthly Dividend Income||$194.75||-$3.90||$190.85|