Sale of Stock-Pfizer

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Guitarplayer
Posts: 43
Joined: Sun Jul 22, 2012 4:26 pm

Sale of Stock-Pfizer

Post by Guitarplayer » Thu Oct 25, 2018 12:35 pm

I own some Pfizer individual stock and plan to sell soon. It is less than 1% of my total portfolio and I want to simplify my portfolio. I have owned for 10 years or longer. All of the sale will be long term. I am in 15% capital gains tax rate.

The next dividend (which I receive in cash) is in early December.

I want to receive the dividend so I will wait until after the dividend is paid.

How soon after (or before) should I sell my investment? Can someone explain to me about the ex-dividend date and record date, etc. I am confused about how that applies to my decision to sell the stock and the timing of the sale?

Thanks

MotoTrojan
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Joined: Wed Feb 01, 2017 8:39 pm

Re: Sale of Stock-Pfizer

Post by MotoTrojan » Thu Oct 25, 2018 12:44 pm

Guitarplayer wrote:
Thu Oct 25, 2018 12:35 pm
I own some Pfizer individual stock and plan to sell soon. It is less than 1% of my total portfolio and I want to simplify my portfolio. I have owned for 10 years or longer. All of the sale will be long term. I am in 15% capital gains tax rate.

The next dividend (which I receive in cash) is in early December.

I want to receive the dividend so I will wait until after the dividend is paid.

How soon after (or before) should I sell my investment? Can someone explain to me about the ex-dividend date and record date, etc. I am confused about how that applies to my decision to sell the stock and the timing of the sale?

Thanks
It rarely makes sense to hold out for the dividend, why do you plan to do this? The share price will drop proportional to the dividend on the ex-div date.

I'd sell today.

alter
Posts: 250
Joined: Thu Feb 26, 2015 11:27 pm
Location: Chicago

Re: Sale of Stock-Pfizer

Post by alter » Thu Oct 25, 2018 4:07 pm

Keep it for the last dividend if you want but don't sell it immediately following the ex-divy date, I'd wait a few weeks after for the price to recover and maybe sell on an up day.

This stock has been a winner, btw. I bought only a couple years ago and its made a very nice profit. I'm not selling mine its a growth stock and a relatively high dividend yield.

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DanMahowny
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Re: Sale of Stock-Pfizer

Post by DanMahowny » Thu Oct 25, 2018 4:14 pm

MotoTrojan wrote:
Thu Oct 25, 2018 12:44 pm
I'd sell today.
Yes. Do this.
Funding secured

edvest
Posts: 46
Joined: Sat Oct 06, 2018 3:27 pm

Re: Sale of Stock-Pfizer

Post by edvest » Thu Oct 25, 2018 7:01 pm

1. Lyrica "Last year, Pfizer’s blockbuster medication for nerve and muscle pain netted the company $3.46 billion in sales. Patent protection is scheduled to expire in December, but Pfizer is reportedly working on getting an extension for pediatric exclusivity.."
https://www.pharmamanufacturing.com/art ... s-in-2018/

Early retirements are now being offered with layoffs to follow.

I think it's a good time to sell.

Grt2bOutdoors
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Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Sale of Stock-Pfizer

Post by Grt2bOutdoors » Thu Oct 25, 2018 7:10 pm

edvest wrote:
Thu Oct 25, 2018 7:01 pm
1. Lyrica "Last year, Pfizer’s blockbuster medication for nerve and muscle pain netted the company $3.46 billion in sales. Patent protection is scheduled to expire in December, but Pfizer is reportedly working on getting an extension for pediatric exclusivity.."
https://www.pharmamanufacturing.com/art ... s-in-2018/

Early retirements are now being offered with layoffs to follow.

I think it's a good time to sell.
Not enough information given to make an actual valuation call. Sure, one patent is expiring but you fail to mention all of the positive news on new products. Pharma traditionally has long development cycles before coming to market. What about the 20 some-odd trials currently in phase 2 and 3? You also fail to mention how much of a lay-off the company is actually going to make compared to actual workforce. It’s one thing of a company is cutting half the staff, it’s another if the company is doing a few percentage points which is typical of all companies. Doesn’t matter if it’s XYZ company or Apple or Microsoft - yes those companies do lay-off people too.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Grt2bOutdoors
Posts: 21459
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Sale of Stock-Pfizer

Post by Grt2bOutdoors » Thu Oct 25, 2018 7:19 pm

Guitarplayer wrote:
Thu Oct 25, 2018 12:35 pm
I own some Pfizer individual stock and plan to sell soon. It is less than 1% of my total portfolio and I want to simplify my portfolio. I have owned for 10 years or longer. All of the sale will be long term. I am in 15% capital gains tax rate.

The next dividend (which I receive in cash) is in early December.

I want to receive the dividend so I will wait until after the dividend is paid.

How soon after (or before) should I sell my investment? Can someone explain to me about the ex-dividend date and record date, etc. I am confused about how that applies to my decision to sell the stock and the timing of the sale?

Thanks
Date of record - you must own the stock on this date. Ex-dividend, after this date ensures the next purchaser is not entitled to the dividend, you the seller is. Usually the market accounts for this by the stock price trading lower by amount of dividend paid. But not always. If you want to lock in your gains, sell today. If you like having your money at risk of loss, hold on to capture that .30 some-odd cent dividend. Seems ridiculous to risk 43+ dollars of value per share to capture a taxable dividend, but people make these irrational choices every day.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

edvest
Posts: 46
Joined: Sat Oct 06, 2018 3:27 pm

Re: Sale of Stock-Pfizer

Post by edvest » Thu Oct 25, 2018 7:23 pm

Grt2bOutdoors wrote:
Thu Oct 25, 2018 7:10 pm
Not enough information given to make an actual valuation call. Sure, one patent is expiring but you fail to mention all of the positive news on new products. Pharma traditionally has long development cycles before coming to market. What about the 20 some-odd trials currently in phase 2 and 3? You also fail to mention how much of a lay-off the company is actually going to make compared to actual workforce. It’s one thing of a company is cutting half the staff, it’s another if the company is doing a few percentage points which is typical of all companies. Doesn’t matter if it’s XYZ company or Apple or Microsoft - yes those companies do lay-off people too.
I speak from newbie inexperience. Almost all my single stock picks that I made over the past few years followed the same logic.
Costco aside, I lost money on all of them. Thanks for the brush back, I'll keep trying and shut my mouth. tu

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Misenplace
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Re: Sale of Stock-Pfizer

Post by Misenplace » Thu Oct 25, 2018 7:36 pm

As for choosing between a dividend and a capital gain, I would always choose the capital gain since I have been diligently harvesting capital losses per livesoft's advice.

Immediately after the x-dividend date, the stock will ordinarily reprice lower to take into account the dividend (this is assuming there are no other market factors changing the stock price, over which we have no control). I would sell beforehand to realize income as capital gains rather than dividends.

Grt2bOutdoors
Posts: 21459
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Sale of Stock-Pfizer

Post by Grt2bOutdoors » Thu Oct 25, 2018 7:37 pm

edvest wrote:
Thu Oct 25, 2018 7:23 pm
Grt2bOutdoors wrote:
Thu Oct 25, 2018 7:10 pm
Not enough information given to make an actual valuation call. Sure, one patent is expiring but you fail to mention all of the positive news on new products. Pharma traditionally has long development cycles before coming to market. What about the 20 some-odd trials currently in phase 2 and 3? You also fail to mention how much of a lay-off the company is actually going to make compared to actual workforce. It’s one thing of a company is cutting half the staff, it’s another if the company is doing a few percentage points which is typical of all companies. Doesn’t matter if it’s XYZ company or Apple or Microsoft - yes those companies do lay-off people too.
I speak from newbie inexperience. Almost all my single stock picks that I made over the past few years followed the same logic.
Costco aside, I lost money on all of them. Thanks for the brush back, I'll keep trying and shut my mouth. tu
Feel free to voice your opinion. This is a forum where everyone’s opinion counts. Although I pointed out some things, that does not mean I know anything about the direction of the stock price or company strategy beyond what had been publicly disclosed. Lots of factors move stock prices, among them are animal spirits, actual earnings or company specific actions, speculation, you and I purchasing an index like the Large Cap Index which includes those companies whose stock prices are moving up, etc.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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