Findependence Canada

Finding financial independence from scratch

A rare sell – Making 40% returns

So today we have a bit of a rare occurrence over at the Findependence ranch. We’ve actually made a sale on one of our dividend stocks! This isn’t something that happens very often as our favourite holding period is “forever” similar to one Mr. Buffett, but we also like to adhere to our rule of if we wouldn’t pay today’s price for a stock it’s also time to look at selling it.

So which stock is it we decided to sell? The answer to this is actually one of our favourite stocks – Apple! (ticker AAPL).

The Transaction

Initial Purchase: 10 shares for $2,503.87 CAD on May. 24, 2019
Sale Transaction: 10 shares for $3,467.07 CAD on December. 2, 2019
Dividends Received: $20.28
Total Profit: $ 983.48
Gain: 39.2% gained over 6+ months.

So there’s the short of it, basically what happened on this stock is we bought in at a price we felt very comfortable with even though the yield was quite low at the time (under 2% yield) but we just couldn’t resist.

Since that time Apple shares have done nothing but go up, increasing at a rate that brought its valuation up to a point where we were no longer that interested in buying it, which signaled to us we had to look into selling. It may “only” be a $1,000 gain on the purchase of shares, 40% is also a tremendous return that we would take 100 times out of 100 especially given it was only held for 6 months time.

Another nice part to this sale is we’ve now freed up several thousand dollars to invest in other higher paying dividend stocks as at the end of the day that is our end goal for this dividend portfolio – dividend income. At Apple’s current 1.17% yield it just doesn’t make sense to hold it any longer.

Should we have held on to our shares? we’ll see. If you have any comments about what you’re doing with your shares of AAPL or any other holdings please leave them below or over at our Instagram @FindependenceCanada

Thanks for stopping by,