Wednesday, June 25, 2014

Sold Cemig (CIG)

Just a quick update. I went and sold Cemig (CIG) @ $8.10. The more I looked at it the more I had to realize why I got into the position in the first place. Capital gains. Its a utility company with less then 2% EPS growth and their dividend policy is they will pay out 50%. There is no growing dividend stream here with this one.

They changed their dividend policy to have 1 ex-dividend date for the entire years of dividends and will make one payment in June vs half June and half December so I do not have to hold for the rest of the year.
CIG could well keep on going up but I decided to sell because I know there is a 5% drop whenever it goes ex-div. The U.S. exchanges just haven't realized it yet.
If something happens and I do not get the dividend? Then I am glad I am out because their policy is too odd and confusing for me to be comfortably

I ended up with a +41% gain for a 4 month position so I really can't complain about how much I might have left on the table if only I risked some more. Thats a sure way to blowing up your account.

Disclaimer: The investments and trades discussed are not recommendations for others. I am not a financial planner, financial adviser, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.


  1. Good move on CIG, do you have immediate plans for the new pile of cash on-hand? I just allocated some free funds to increase my position in MAIN yesterday.

    1. No plans as of right now. I'm comfortable being 25% or so cash for the short term. Next week I'll do next month's CCC screen and am sure I will find something cheap.

  2. Nice sell...41% gain is great! We just unloaded most of our shares in CIG as well. Sold some shares at $8.05 and some a $8.30.

    Wishing you continued success in your journey! AFFJ