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Miscellaneous

Optimize Portfolio for Year End 2016

    As the year is coming to a close it’s time to review and optimize my portfolio. I currently have a few stocks that are not performing how I want them to. So I am going to sell them off and reinvest the capital into another company.

 

    Fitbit (FIT) does not pay dividends at all. It was my first stock purchase before getting into the dividend game. While Kinder Morgan (KMI) cut their dividend a while back.

 

    By optimizing my portfolio I am able to sell both of my positions in these companies and reinvest the capital into another company. I was able to purchase 13 shares of Consolidated Edison (ED). This is good for two reasons. One, it diversifies my portfolio further by entering into the Utilities sector. Two, it will increase my annual dividend amount and percentage without costing me any extra money (minus trade fees). See below for further details of the optimization. Annual dividend total is the potential if all securities were held since the beginning of the year.

 

Allocation Prior

Yield = 3.72%

Annual Dividend Total = $678.25

 

After Optimization

Yield = 3.87%

Annual Dividend Total = $704.09

 

That is a $25.84 annual dividend increase after the optimization changes.

 

 

How do you think I did? Join the conversation below.

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