Recent Buy, Sell & More

  • Sold: Monarch Financial
  • Bought: Source 1, Arrow Financial, Bank of South Carolina, Codorus Valley Bancorp
  • Cancelled  Chevron DRIP

Today I made the decision to sell Monarch Financial.  This was going to be pulled from my account – probably later this month – anyway, so I chose to accelerate the process for these reasons:

  1. Locked in a 22% total gain over the past year and half
  2. Since I also own the acquirer, I didn’t want the same stock in two accounts
  3. In the event the merger fails (doubtful), could buy in cheaply

  The  primary reason was the fact that no further dividends are likely forthcoming so why not put the proceeds to immediate use?  So I sold all of Monarch (MNRK) at $16.80

Then I used the proceeds to purchase the remaining (to my knowledge) companies that pay (or have previously paid) stock dividends – that I don’t own already.  These are:

  1. 1st Source Corporation (SRCE) $31.83
  2. Arrow Financial (AROW) $26.79
  3. Codorus Valley Bancorp (CVLY) $20.37
  4. Bank of South Carolina (BKSC) $16.39

The urgency was with BKSC having their ex-div date this week.  Some investors have an aversion to dividends paid in stock but I like to delay taxes when possible.

My final decision today was to end dividend reinvestment in Chevron (CVX) and submit the paperwork to move the shares from Computershare to Schwab.  This is to avoid the reinvestment fee (albeit minimal) implemented last year as well as to address the fact that CVX is an overweight position in my portfolio.  Perhaps taking the dividends in cash will assist in normalizing the weightings.  Besides, I’m not sure CVX will raise their dividend this year.  So I’m considering this move as adding some flexibility.

With these moves, I believe my month is over – unless a decent buying opportunity presents itself.

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