Social Icons

Monday, January 6, 2014

Is it a good time to sell Keg Royalties Income Fund (KEG.UN)?

I read the latest review that Susan Brunner wrote about my fabulous Keg Royalties Income Fund (KEG.UN) back in December of last year and it make me think. It actually make my brain working quite a lot. 

So here's why. In 2014, I won't have much monetary room $$$ left to invest in new stocks. So I better get a careful look of what I hold into, don't you think so. And a question remain: is Keg Royalties Income Fund (KEG.UN) a good fit for my portfolio? Susan had wrote a post about KEG.UN before and I knew about it. It wasn't a post in favor of KEG.UN because we learn that the restaurant chain fail at making positive gain, to make earnings. But how can they afford to pay that big dividend yield to their investors? 

No matter what, I decided to stick to Keg Royalties Income Fund (KEG.UN). Why? Because of its very GOOD YIELD. A Dividend Girl is attracted that. But that taste for big yield came with a price and consequences. Getting into the dividend game is a fatal attraction because holding to stock that pay a big yield can be a wrong move. And for that reason, I was quite surprise to hit on the 100k net worth by the end of 2013 last year. It seem like my investment mistakes didn't bother much, but I need to remain in control.

What do you think happen when a big dividend yield payer announced a dividend cut? Most of the time, the price value go down down down and after that, its became extremely difficult for that same stock to gain back to its old value. I currently have that problem with Just Energy (JE). Susan also had concerned when it come to Just Energy. However, its too late for me on that one. Angel baby got burn on one bum, but I will get the other one free of burn. Or I will try, at least!!

Making a living out of dividend distribution is a dream that some had achieved, like my bebelove Derek Foster. But you will sincerely excuse me if I am wrong, but there's not too many young investors out there who can say that they are making a living out of dividend distribution. And you'll excuse me again if I am wrong but even Susan Brunner doesn't make a living exclusively out of dividend distribution. She partly sell a portion of a portfolio - maybe not every year, but that's how she does. So capital gain are also very important, as much important as dividend distribution.

For that specific reason, its way much better to stick to high quality stocks, what investors name blue chips. Personally, I need reliable stocks and I need to be able to sell off those stocks if it happen that I am desperately in need of money. That never happen so far in my live, but it could. Don't ever think no one is free of financial money drama.

So knowing that I already hold a bunch of troublemaker stocks (like Colabor, DGI, for example), I need to be extra careful with my moves. I currently have that ultimate chance to sell my Keg Royalties Income Fund (KEG.UN) units at profit. Following the commission fee, I will be bale to cash in a small - but still a profit - of $64. The sale of this investment will generate less than $900 overall, but its money I will have in my pockets to transfer other non-registered stuff into my TFSA like I was planning to do for the month of February.

Knowing I could make a profit, even tiny, out of KEG.UN and free of tax, now could be a good time to sell my Keg Royalties Income Fund (KEG.UN) investment.

No comments:


Thank you

Thank you for visiting!
Blogger Templates