Today I sold my GS position and initiated a position in JNJ.
- GS: 12.05 shares @ $235.04 --- Yield 1.11%
- JNJ: 27 shares @ $110.62 --- Yield 2.89%
Total new capital invested is only $168.84, but will raise my net yearly dividends will increase by $55.07 since the difference in yields is so large between the two companies.
I bought GS a few months back at $141 and a 2% yield and it is now almost $100 a share higher with a 1.1% yield. It has been a while since I have sold a position and really didn't want to. I must admit seeing a 63% in a just a few months combined with a 1% yield made the decision much easier.
Also I have been trying to create a more traditional DGI portfolio and JNJ fits within with that strategy much better than GS. I am closely watching massive gains in M, MET, and GM as well. These companies are some of my biggest gainers in recent months and I may slowly drop them as well and look for other DG companies. I will most likely keep GM because of its high yield and strong earnings growth.
JNJ is not cheap, but is cheaper. It may get even cheaper which is fine with me. 3% and 7-10% yearly dividend growth is awesome!
Forward dividends are $5100.