Wednesday, August 5, 2015

Recent Sell : BXLT

I sold my shares of BXLT yesterday and I wasn't sad at all about it. As a dividend investor, I can't focus only on the "what if"s or the potential growth of a company. If I did, then I would be a growth investor and I would have many options to look at. I just don't have the time to be both.

BXLT announced last week that they would start a quarterly dividend of $0.07 per share. That equates to a roughly 0.75% yield at the price of $37. Not real exciting. Even if they continue to grow the dividend, it would take some mighty leaps to get the yield to above 2% which is generally what I look for.

Also, yesterday Shire PLC submitted an unsolicited bid for BXLT which valued BXLT shares around $45. That was great news for shareholders because the stock jumped about 13% yesterday. I did some research on Shire PLC and they are dividend payers, but they also have a very low yield around 0.1%. The bid was rejected today by Baxalta, however it doesnt mean that this story is over.

Based on the unknown factors of BXLT, the low announced dividend, and the prospect of Shire taking over, I am no longer interested in this stock. I will continue to monitor it for the future, but there are many other great values out there where my money could be invested. I sold yesterday after the 13% bump which will give me even more capital to invest! Thanks Shire PLC for the bump!


  1. Adam,
    I can't blame you. I am too pondering in seling. It does not sound promising at all. Anyway, always tough to sell.

    1. Ya it is tough to sell D4s... But when you see so many other quality stocks at great values, it was a no brainier for me. Good luck on your decision!