Monday, July 18, 2016
Recent Sell: American Electric Power (AEP)
As such, this post will detail my recent sell of American Electric Power (AEP). Though I rarely ever sell the stocks I purchase anymore, when I achieve a very nice return and then also believe that that particular stock is overvalued, I will in fact sell and look for better opportunity elsewhere. Again, this is a rare occurrence, but it does happen. Thanks fully I achieved an annualized return of 17.99% from this investment.
In this case, I had purchased AEP back in MARCH 2015 for $55.57 a share. It was a smaller position, about 2.5% of my portfolio, but I thought the company was solid and that the stock was undervalued at the time.
A little over a year later, I decided to sell at $69.29. Therefore, with dividends and after fees my total return was 24.2%. This is an annualized return of 17.99%, which I am very happy about.
SIDE NOTE (and an important one) - It is always easy to share your successes! I've had plenty of failures, trust me, and I intend to share those going forward as well. This was simply my first portfolio action since Passive Income Dude was created.
This was just a small position in my portfolio, but it always feels good to sell something for more than you paid for it! That's the goal, right?
What do you think? Did I make the right decision? And what should I do with the capital?
Thanks for reading!
Passive Income Dude