This means I also have to chop off 29$ worth of dividend annually.
My forward 12 month dividends now stands at 2 934.78$. This is even still farther away from my 4800 $ 2015 goal...
Why did I sell might you ask since I just wrote a post singing the praises of Power Corp?
I reassure you right away dear followers, all is well with this gem of a company. Actually, all is very well and POW will likely raise its dividend next quarter, just like Power Financial (PWF) just did.
The fact and the matter is I had too much of Power Corp ever since I started buying its Power Financial company, which is 66% own by POW.
POW is the conglomerate. And PWF is one of its many companies. For an overview of their organisation chart click here.
Like I mentioned previously, I have recently started adding Power Financial (PWF) to my portfolio.
Therefore, the two companies combined weighted heavily on my portfolio. And with the recent raise of their share prices, they both accounted to more than 10% of my portfolio.
With this small sell of POW they both now stand at 8,75%, which is still high. But I will leave it at that for now -- and for a long time.
For the record, I now own 300 shares of POW and 75 shares of PWF. The dividend total of both companies is over 450$ annually. It represents 16% of all my paid dividends.
Why sell POW instead of PWF?
I like PWF just as much as I like POW. But, to me, PWF is a more of a pure player when it comes down to the insurance and financial sectors. Whereas POW is a little bit more diversified with, for instance, investments in a Communication group and in China via the Sagard investments.
Is it bad to be diversified? Of course not, although I'm not entirely sure the Communication group will be financially very lucrative over the long course. (They actually just sold many regional newspapers here in Québec).
The main factor is that I wanted to have a little bit more direct exposure to the Insurance and Financial sectors of the many companies hold by PWF directly.
All in all regarding the Desmarais Family conglomerate, I'm still 80% invested in POW and 20% invested in PWF.
What do you think of this sell? Does it matter to you when a single company accounts for more than 10% of your portfolio?