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I Sold 10.9% Of My MO Position And Used The Proceeds To Buy EEQ Yesterday On 1/27/2017

|Includes: EEQ, Altria Group, Inc. (MO)

In my last article

My Retirement Portfolio's 30-Month Performance Update: Simple And Effective

I stated:

"I am considering selling about 15% of my MO position and buying AGNC or EEQ at some point in the future to increase the dividend income. More deliberation is needed."

I also stated:

"If the price of MO increases 21% as the prices of EEQ or AGNC decrease 10%, I might sell 15% of MO and use the proceeds to buy EEQ or AGNC depending on the yields. This would, of course, increase the projected dividend income. I will continue to monitor and analyze what is the best strategy to meet our goals and needs."

I first wrote the above price points in my 10/30/2016 article

My Retirement Portfolio's 27-Month Performance Update: My Strategy For The Next 2 Years

Since 10/30/2016 MO has gone up about 10% (this includes the 2 dividend payments). I think EEQ has dropped about 14% (this includes the 1 distribution payment in shares made in relation to EEP's distribution). See my prior articles for an explanation, or go to EEQ's website


Enbridge Energy Management, L.L.C. (NYSE: EEQ) ("Enbridge Management") declared a distribution of $0.583 per share payable on February 14, 2017 to shareholders of record on February 7, 2017. The distribution will be paid in the form of additional shares of Enbridge Management valued at the average closing price of the shares for the 10 trading days prior to the ex-dividend date on February 3, 2017. Enbridge Management's sole asset is its approximate 17 percent limited partner interest in EEP. Enbridge Management's results of operations, financial condition and cash flows depend on the results of operations, financial condition and cash flows of EEP.


Yesterday EEQ dropped 21.56% at the closing price of $20.38. I SOLD 10.9% of my MO position and used the proceeds to buy EEQ at an average cost of $20.92.

My projected distribution (dividend) income increased 24.5%!

So, by selling 10.9% of MO and buying EEQ (after a huge sell off) my projected income has increased by 24.5%! All that being said, I did not sleep as well last night thinking about the very possible distribution cut for EEQ in the near future (1-2 quarters). I also thought about the lost total return of EEQ vs. MO over the next decade. So, how long I hold EEQ is up for debate in my mind. I will continue to monitor. It's funny, but nothing gives me the peace of mind that MO does! I made the trade (selling 10.9% of my MO and buying EEQ with the proceeds, only to increase my dividends/distributions from my Roth IRA).

Current Retirement Portfolio As Of 1/28/2017 (scaled down):

MO = 17,933 shares x $71.03 = $1,273,781 (89.35%)

EEQ = 7,452 shares x $20.37 = $151,797 (10.65%)

Total Value = $1,425,578

Projected Dividends/Distributions:

MO = 17,933 shares x $2.44 dividend = $43,757

EEQ = 7,452 shares x $2.332 distribution = $17,378

Total dividend/distribution = $61,135 (Compare this to my income before I made the trade yesterday, see chart below from my last article update)! This shows the 24.5% increased projected income. The current yield is 4.3% which is up from the 3.6% yield previously.

My Portfolio as of 1/11/2017, with a yield of 3.6%


I wrote this quickly so I hope I did not make any errors, no edits as this is not an article. I think I got all the numbers correct. I will make any needed changes for my next article update next quarter. I will include some more color on my decision and strategy going forward!!!

Disclosure: I am/we are long MO, EEQ.