This won’t be a long post… I finally sold half of my position in ARCP with a huge loss and since I was holding my shares in a retirement account, I won’t be able to claim it in my tax report as a deduction. I’m mad!!!
I don’t know what’s going on at ARCP but it smells funny… So funny that I don’t even remember why I bought that stock in the first place except for the fact that the dividend was high and that it was paid monthly and that the metrics were okay.
Don’t chase for high yield! Lesson #1 of dividend growth investing!
After the recent “accounting error”, the share price dropped like crazy and never recovered. After all, honesty is of most importance when you manage someone’s money! Recently, all the high managers left the sinking ship and now Moody just downgraded ARCP’s credit rating to junk… Oh shit!
What a freaking mess?!
If you want to read an interesting article about it, I suggest Jason’s one from DividendMantra.com. He summed it all up.
I sold 100 shares and as such, I must subtract 100$ from my forward annual dividend income. I’m so mad!
I still own 100 shares worth approximately 800$ for now… I’ll see what happens from there. I might decide to sell them soon or wait for a pull back… From now on it’s speculation and I don’t think that news will be on my side… I don’t know why they got an extension to disclose the revised balance sheet and I don’t know why all the managers have left but this doesn’t sound good to my hears.
With the proceeds of the sale, plus some extra cash I received from my Tim Hortons investment, I bought 13 shares of CVX at 106,90$, which adds 55,64$ to my annual dividend income.
Recently, the Burger King / Tim Hortons deal went through. I had kept 10 shares of Tim Hortons from the 25 I had bought last spring. I now own 8 shares of Restaurant Brand Intl (QSR-C) and used the remaining cash to buy CVX.
I don’t know yet if Restaurant Brand Intl will pay a dividend (I guess they will) and how much it will be. So I’ll need to subtract the dividend I was receiving from Tim Hortons too… ah well! December hasn’t been a great month for my passive income.
My annual dividend as now decreased to 1116.26$ CAN (not taking into account the favorable exchange rate) or a little more than 3$ per day 365 days per year. Since my goal is to earn at least 65$ per day in passive income, I still have a long way to go but, it’s okay. I still have 12 years in front of me to reach my ultimate goal of early retirement.
2015 is on its way and I’ll get a new raise at my job plus a bonus and a tax return. This should help me replenish my brokerage account so I should be able to make some nice purchase before summer and grow that income to at least 2000$ per year by the end of next year.
Do you still own your ARCP shares or am I the last of the Mohicans?
Image courtesy of Stuart Miles / FreeDigitalPhotos.net