Jan 14, 2016

Recent Sale - BXLT

On Monday it was officially declared that Shire Plc (SHPG) acquires Baxalta Inc (BXLT). In $32B deal Baxalta shareholders will receive $18 per share in cash plus 0.1482 shares of Shire stock. This would give me an opportunity to become a shareholder in SHPG. The company pays semi-annual dividend and yields 0.14%. Ok, I didn't need to dig deeper. Clearly this is not my kind of stock, so the conclusion was to sell my shares in BXLT.

Sale in USD - Baxalta Inc (BXLT)
Trade Price: 41.00
Shares: -20
Commission: 0.34
Total: 819.66
Sector: Healthcare - Biotechnology
Yield: 0,7%

I received my shares in BXLT last summer, when Baxter International Inc (BAX) split into two companies. From dividend investing point of view the split was unimpressive, since the combined dividend of two companies was way lower than that of original Baxter. Since then I have considered selling BAX and/or BXLT, but eventually I wanted to see how their dividends will develop in 2016. And if there is no increase, then sell. Now that Baxalta's story as an independent company is coming to an end (before it even really started!), I have no reason to remain as a shareholder. I was able to get out of the company with approximately 25% profit.

This year I intend to increase, not decrease, my exposure to healthcare. That means most of the cash I receive from this sale should go to HC stocks. I would like to nibble one more share of Johnson & Johnson (JNJ) again. Hopefully that price stays below $100 a couple more days (doesn't look very promising right now)! I'm looking to add a brand new healthcare name to my portfolio. On my watch list is one Dividend Aristocrat, which is very close to find its way to my actual porfolio.

My Portfolio page has been updated to reflect this trade.

Disclosure: Long JNJ, BAX(for now).

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