Sold Goldcorp Stock

Recent Sell: Goldcorp Inc. (G)

Sales

On February 26th, I made my first ever stock sale. I sold my full position of 65 shares of Goldcorp (TSE: G) at $19.42 with a trading cost of $6.95, for a total recuperation of $1, 255.35.

I sold my shares after the company announced lousy Q4 2015 earnings release and updated 2016 guidance and cut their dividend by 66.67%. The annual dividend was cut to $0.08 USD… For the price I sold my shares at, the yield was 0.41%, which is nowhere near worth it to hold this risky company stock. My only sadness concerning parting with my shares of G is I now no longer have any exposure to precious metals.

Does anyone have a favourite precious metals-based investment?

I had originally invested $1, 469.00 in 65 shares of Goldcorp in May 2015, but suffered two dividend cuts following my purchase, and so I am completely through with them. This is not the kind of company which belongs in the Dividend Beginner portfolio, and crystallizing my loss was something I’m willing to work with to reinvest the capital in a higher-yielding and more healthy company.

Including fees, my total loss due to Goldcorp was $213.65, 14.54% of my investment.

 

Goldcorp logo

 

Considering I will no longer receive dividends from Goldcorp, my annual dividend income decreases by $5.20 USD, which is really not much – as the majority of my dividends from G was already forcefully cut. My annual dividend income has dropped from $1,431.10 to $1,425.90, a decrease of 0.36%. Luckily Goldcorp accounted for a very minitiature percentage of my total annual dividend income, so both the cut and the sale accounted for an incredibly small percentage. 

Before sale of G Net Increase After sale of G
Annual Dividend Income $1,431.10 -$5.20 $1,425.90
Monthly Dividend Income $119.26 -$0.43 $118.83
Percentage Increase -0.36%

Dividend Beginner

A 22 year old Canadian dividend growth investor striving for early financial independence; building as many passive income streams as early as possible.
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  • I agree with you with the sell, anytime you find a company that no longer suit your criteria, a sell should be in place.

    It’s hard to invest in companies that don’t pay dividend. You’ll have to sell at the “right” time to get any sort of reward, that’s why the dividend growth investor community always shun the company that freeze, cut, or eliminate dividends. It’s a great strategy, even though people argue that if you only focus on dividend paying stock, you’d miss out great company such as Berkshire Hathaway.

    • Hi Vivianne,

      Glad we both agree with this methodology. The only company I ever invested in without a dividend (VRX) really burned me, and I don’t think I’d do that again unless I had a large conviction, maybe something like Alphabet. About missing out on BRK, I guess it’s really some people’s risk-reward ratio as they prefer the safety of the dividend if things go sour – and they can, for years, as we’ve seen.

      DB

  • From a DGI point of view, This seems to be a good move.
    In general, I think that precious metal stock have a very volatile dividend. All is based on the price of the metals.

    My experience with precious metals stock is pure speculative in my play portfolio. I bought the index of gold miners last year. After a ride to the bottom, the index is now on its way up. With the current “fear” in the market, I do think gold will keep rising and so the index. At least,that is my view.

    • Hey Amber,

      Thanks for siding with me on this from a DGI perspective. There are a couple positions I’d like to offload but they’ve been running up so I have time to wait. If I were to get back into precious metals I think I would utilize an ETF, to be honest. I think gold will run up as well, though I’m not sure by how much.

  • Hey DB,

    I think you did the right thing. Gold is very speculative play right now. I think it’s riding up because of the technicals. Day traders simply move in the direction of price action. But it’s a better sell here than at $15 level. You were able to manage that loss to a minimum.

    Any thought where are you going to allocate the capital? So more Banks perhaps?

    • Hey GK,

      I see you changed your name, why’s that? Thanks for noticing that I really rode it back up a decent bit. I think at it’s worst I was down anywhere between 30% to 40%, so I’m very happy to have sold at this price… Even though it ralled very high this past week, it was better to play it safe on this one. The miners move a lot like the price of gold, despite the company’s status.

      For the recuperated capital I’m actually thinking some pipelines right now, but even those have flown up in the past week. The names I’m looking at are IPL, ENB and ENF.

      DB

      • My domain name is still the same, I just changed the banner’s logo. I think we will see a pullback in energy sector very soon. Would be nice to see PPL under $30 again.

  • Hey DB,
    I also have Goldcorp in my portfolio. I bought the stock in July of last year and it was merely a play on the gold price – I bought it before I learnt about dividend growth investing.
    I’ve seen the earnings release and it does not look very good. Like you, I am considering selling Goldcorp which would be my first ever stock sale!

    • Hey MGUK,

      I bought it for much the same reason as you in addition to the monthly income. No, the company’s not doing too well – but for now the stock is rallying along with the sentiment on precious metals. You can sell it at a much higher rate than I did now.

      DB

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