Today I decided to sell all 200 shares of Intel for $34.57 which nets me $6889.09 after commisions. This will decrease my yearly dividends by $180.00.
After yet another $.225 dividend was declared this morning I felt the need to pull the trigger. Owning a 2.6% yielding stock with no dividend growth does not seem like a prudent decision.
From a performance standpoint, Intel has actually has dominated the other Dow components so far this year. It is up an amazing 32% while the next best performer, Microsoft is up just under 20%. The DJIA has barely moved 3% this year.
I actually believed Intel would raise the dividend this quarter after a great earnings season with good future guidance. Intel may very well continue rising to $40 a share or higher, but I am looking to reach FI as soon as possible. This means I will welcome low yielders with high dividend growth as well as high yielders with slow growth. Low yielding stocks with no growth are classified as speculative investments in my book and are not aligned with my philosopy or long term goals.
I have not decided where to allocate the proceeds, but I still like MSFT, CSCO, and IBM in the tech space and may add to these positions. I really feel good about their commitment to continue raising dividends going forward. I also still need to create positions in JNJ, XOM, and MCD. I will have to think about this for a little while.