In August I purchased 500 shares Washington Prime Group (WPG) as based on my models I considerred this REIT a distressed security with a too low price. I paid $3,51 per share. Based on the yearly dividend of $1 the yield on cost was 28,5%.
Based on the calculations I made I considerred it a possibility that the dividend would be cut partially, but that it would nevertheless still be a a high dividend.
After owning the stock for almost 4 months I notice that I still consider the calculations I made realistic, but nevertheless I’m closing this position. Although this position is around 1.5% of my portfolio, it’s often keeping my mind busy. Every article on SeekingAlpha with a critical approach on this stock is staying to long in my mind.
For this reason I sold the stock today against a price of $3,83. In the 3,5 months I had these stocks I made a profit of 24%. This is 10% as a result of stock price increases and 14% due to 2 dividend payments. This is a profit of €382,62 on an investment of €1.567,68.
As a result of this sale my yearly estimated dividend income will decrease by $500. A big hit on my expected income, but it seems like I put to much focus on a speculative position. With the proceeds I started a position in Delta Airlines.