I’ve decided to sell my entire position in Delta Airlines. My sale of 11.47 shares won’t be shaking the market however!
I originally made some small purchases in DAL in my sharebuilder account last year. I was flying frequently at the time, even reaching Platinum Medallion status in their frequent flyer program which gained me lots of free first class upgrades and I liked the idea of owning companies whose products or services I was using regularly. When they first offered a dividend payment last year, I started buying stock and the yield at the time was about 1%.
In the year since then, the stock price has doubled so the current yield has halved to 0.6% or so since the dividend has remained constant. I’ve plotted the data in the chart below.
As much as I still like the company and their services, I’ve decided that I can do better on the current yield on cost that I’m getting and that an airline company probably is not going to offer the dividend yield, dividend growth and stability that I’m looking for. They may grow their dividend but I’m not willing to wait when there are other high quality companies offering higher current yields that I could purchase instead.
Updae:7/9/14 -I corrected the YOC column values which were wrong.
Average yield on cost: 1.25%
Total Cost Basis: $200
Market Value: $417.80
Sale Commission: $6.95
Gross Proceeds: $410
Net gain after tax: $137
This is an 87% return on my investment over a year which is fantastic and I’ll be looking to reinvest as soon as the money clears my account.
Quote of the day
Everyone lives by selling something.