Monday, September 23, 2013

Sold: Walgreen (NYSE: WAG) and Dundee REIT (TSX: D.UN)

In order to create some liquidity in my TFSA and RRSP (there are some companies I’d like to buy on their next dip), I sold my position in Dundee REIT and half my shares in Walgreens this week.

Walgreens has had a great run, and my shares were up over 50% this year alone. Although the company is an industry leader, and a proven dividend grower, the shares were yielding about 2.3% at the time I sold half my position. I also think Walgreens is a bit expensive at the moment, with a P/E approaching 25X.

Dundee was another company in which I had realized a large gain (over 50%), but had slumped a bit lately as bond interest rates rose. Even though it yielded over 7%, the distributions grew very slowly, and I wanted to move some capital away from office REITs.

Now all I have to do is wait for the two stocks I’d like to purchase to drop a bit. Sounds simple enough, but it’s always tricky to sit on a bunch of cash in my portfolio.  

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