Decided to Sell Off BAT

As part of the efforts to reduce number of stocks in my portfolio (to rectify over-diversification issue), my wife and I have been discussing for few hours which stock to be disposed. The conclusion is I decided to dispose BAT.

I have 700 units of BAT with average price 45.30.

Few reasons:

  1. I have been not investing BAT since Oct 2009 (to be exact) because its growth has been slowing down and actually quite over-valued.
  2. Dividend paid by BAT is usually in the range from 2.3 to 2.6 per share, but most of the time, it is around 2.3. So my DY% is more or less 5% (2.3/45.3). I have some other shares can provide better DY% than this.
  3. I have too many stocks in sin and highly regulated industry. I should reduce my exposure to this industry.

So, the question is when to let go BAT. I probably will let go BAT few days before BAT announces dividend pay out in the end of this month. I hope some people may chase BAT for its dividend. In fact, I am comfortable to sell BAT even now. But, I am not in rush…..


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