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Participant ○○

Seeking a replacement for APPLE for generating capitall gains

I have been selling off slices of my Apple as it has appreciated so fast.  Any recommendations as eo what to buy with the proceeds?  I still have. along way to go to get it back down to 5% of my portfolio.

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Re: Seeking a replacement for APPLE for generating capitall gains


@KathieL wrote:

I have been selling off slices of my Apple as it has appreciated so fast.  Any recommendations as eo what to buy with the proceeds?  I still have. along way to go to get it back down to 5% of my portfolio.


                  You know AAPL is going to split 4 ways soon making it more affordable to all the market timers soon and maybe driving it even higher? So letting it ride is out?
                 
                   But if that 5% allocation is more important how about AMZN, MSFT, FB, GOOG (GOOGL), MA, V, UNH, CRM or any other top 15 holding in a good growth fund. Check VUG and TRBCX maybe. But you’ll just be starting with another high priced investment. Maybe you just want to spread your gains out? 

                   Remember these are not your favored dividend types. The PE will be high and they are major holdings of even the S&P index even now. There’s a lot of upward pressure because the smart money believes the virus is under control especially with a vaccine on the way and I side with them.

                    If you mean another dividend darling I no longer swim at that beach. I do own all of the above but TRBCX. 

                    Scary making all that easy money isn’t it. We reinvested some in other areas, spent some and saved some (VUG), We’re not getting any younger and have a target on us now. Ha. Ha.
    

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Re: Seeking a replacement for APPLE for generating capitall gains

Unclear the reasons to hold/fold AAPL. But a general advice is to go from a stock to related sector ETF, and that may be QQQ, XLK, even LC-gr VUG.

YBB
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Participant ○○

Re: Seeking a replacement for APPLE for generating capitall gains

Yes, I am well aware of the upcoming split.  Given Apple's price history when it splits, the day after the split should be the big day.  I'll hold on to a bunch of the shares to sell that day or the next.  

I figured you'd suggest Amazon, Steelpony and I will look at it again.  I won't buy Facebook.  

While most of my stocks are dividend payers, I do like to have a stock or two that throw off nice capital gains. 

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Explorer ○○

Re: Seeking a replacement for APPLE for generating capitall gains

I have been selling APPL too.  Our cost basis is only $70 a share and have sold about 30% of our position.  I went around may times and finally decided on SBUX (Starbucks).  It is a 4* stocks yielding 2.1%, so the exchange is getting me to a less over bought stock with more income.  Have held SBUX for for several years and have a nice capital gain as well.

In some ways I feel like a coward, since before retiring I would have switched to CVX (Chevron) without batting an eye.  But no longer think I have the time to wait out the time until Chevron and oil sector rebound.

Stats

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Re: Seeking a replacement for APPLE for generating capitall gains


@KathieL wrote:

Yes, I am well aware of the upcoming split.  Given Apple's price history when it splits, the day after the split should be the big day.  I'll hold on to a bunch of the shares to sell that day or the next.  

I figured you'd suggest Amazon, Steelpony and I will look at it again.  I won't buy Facebook.  

While most of my stocks are dividend payers, I do like to have a stock or two that throw off nice capital gains. 


            I guess I sound like a broken record. Lol. I didn’t know where you wanted to go with your gains. To bad a nice trip is out of the question. We’re going to ride those types out to the end of our time. The current capital gain darlings are easily found in the top 10-15 choices of indexes and well managed growth funds.

             With our parents that’s where I found their utility stocks and our early dividend stocks, utility and value funds. I had no internet and little time to think so I went to the library and copied what the pros and their research came up with. Just added on corrections and recessions. I’d like to know what you do though. Glad to see you tippy toed on the dark side and had a positive outcome.


             

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Re: Seeking a replacement for APPLE for generating capitall gains


@yogibearbull wrote:

Unclear the reasons to hold/fold AAPL. But a general advice is to go from a stock to related sector ETF, and that may be QQQ, XLK, even LC-gr VUG.


Yogi knows that I was VTI guy. But, Intruder mentioned QQQ and another blogger mentioned VGT. So, I started moving about 20% of my portfolio to QQQ and VGT in June/July as Yogi mentioned above. So, with this move, I have recovered most of the cash I lost in PCI. Interestingly, PCI is also improving recently. I moved one month gain from QQQ and VGT and bought 1000+ shares of KIO early August because it was scary to watch the 7% growth in a month. I like VGT better than VUG. This is just my two cents.

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Re: Seeking a replacement for APPLE for generating capitall gains

I have a "great" idea.  AT&T 

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Re: Seeking a replacement for APPLE for generating capitall gains


@FD1001 wrote:

I have a "great" idea.  AT&T 


Are you long or short on T?

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Re: Seeking a replacement for APPLE for generating capitall gains


@FD1001 wrote:

I have a "great" idea.  AT&T 


If I have to go with any utility, I will go with T-mobile. By the way, I am a subscriber to AT&T service through Red Pocekt Mobile.

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Contributor ○○○

Re: Seeking a replacement for APPLE for generating capitall gains

Listening to Fox Business on the radio, there was an outside contributor that thinks Apple could double again. Might want to stay with it. I realize breaking the 5% rule can be costly. My mom owns a high 6 figure amount of Target that was built from a $6400 cost. I have been telling her for years to cut back some. But selling shares would kill the dividend amount.


@KathieL wrote:

I have been selling off slices of my Apple as it has appreciated so fast.  Any recommendations as eo what to buy with the proceeds?  I still have. along way to go to get it back down to 5% of my portfolio.


 

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Participant ○○

Re: Seeking a replacement for APPLE for generating capitall gains

Interesting range of suggestions here.  I own a bundle of T, and while I may someday get some cap gains from it (my cost basis is under $30), I own it for the dividend, not for the cap gain potential.  I think Apple continues to be an excellent investment, I just want to take some profits off the table.  The cost basis on my Apple Shares is $60.  As I mentioned earlier, I'm not really interested in an ETF.  

I'm open to more suggestions.

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Explorer ○

Re: Seeking a replacement for APPLE for generating capitall gains

Why not just keep holding it?  It is now 15%+ of my portfolio - most of it in an investment account, so subject to capital gains.  Not planning on changing that anytime soon. 

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Re: Seeking a replacement for APPLE for generating capitall gains


@Slooow wrote:

Why not just keep holding it?  It is now 15%+ of my portfolio - most of it in an investment account, so subject to capital gains.  Not planning on changing that anytime soon. 


I have the same issue. AAPL has ballooned to 10% of my portfolio since Jan 2020 because of the spike in the stock price. But I don’t feel inclined to sell just because the price of AAPL has gone up by 220%+ in 5 months simply because all of the other FAANGNMs have also gone up. My dilemma is that I could sell now and watch AAPL continue to go up or ride along and take the risk of AAPL declining in value at some point in the future but even after the sell off having a higher price than it has now. Second issue is if I sell AAPL what would I replace it with which has comparable growth prospects -AMZN, MSFT, GOOG?

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Re: Seeking a replacement for APPLE for generating capitall gains

I bought AAPL across all my accounts in 2012 between $550 - $425. In my taxable account I have sold off enough shares to return my original investment cost to me and it's still about 15% of my portfolio at last check. At the casino it's called "playing with house money". If I am going to hold a 15% position in any single stock this would probably be one of them. Good business model, loyal customers, lot's of cash and they've doubled their dividend since I've owned it.

I've held ORCL since 1995 and it's an 11 bagger. I believe it has split 4 times and their dividend has increased 380% since 2009. It's probably 10% of my taxable portfolio. I hold it for the same reasons as AAPL. I think AAPL could be a 10 bagger in a few years.

I bought XOM and CVX in March and am sitting on a cap gain on those shares but my other shares of XOM, held since 2006, are underwater. Is oil really dead?

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Re: Seeking a replacement for APPLE for generating capitall gains

"my other shares of XOM, held since 2006, are underwater. Is oil really dead?"

Is Sears really dead? Did they remove XOM from DOJ? I would not say that it is dead yet. But, it seems to be going that way of Sears - slow death.

Texas GOP lawmaker calls for 'carbon neutral' but 'energy dominant' future. He was an oil guy in his previous job.

Quote:

“We need to develop a 21st century, what I call moonshot approach to help the United States be the world leader when it comes to energy resources, and to be carbon neutral by let’s say 2040 or 2050,” the former oil executive said at an event hosted by The Hill. “We’ll have to figure out what that consensus is, but this will help restore, renew, and rebuild America from its current COVID-19 challenges."

 

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Re: Seeking a replacement for APPLE for generating capitall gains

See DJIA changes here. XOM is gone but CVX is still there.   https://community.morningstar.com/t5/Market-Insights/DOW-Jones-Index-changes/m-p/717667#M7681

It seems that the changes were forced by AAPL split that reduced lagging DJIA tech exposure significantly. DJIA is price-weighted, so the stocks being removed had low weights. Changes increased tech% but didn't restore it.

YBB
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Explorer ○

Re: Seeking a replacement for APPLE for generating capitall gains

Kathy

Have you looked at Old Republic Insurance , ORI ?  It’s not exciting or a fast mover but it’s about 20% undervalued and yields 5%+. It has raised it dividend every year for 30 + years. 

If capital appreciation is what your after, it might not work but for safe, consistent dividend growth, it might be hard to duplicate.

Good luck with your search!

Chris

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Participant ○○

Re: Seeking a replacement for APPLE for generating capitall gains

I'm surprised no one recommended TSLA.  

I'm looking at all of your suggestions, but haven''t yet made a decision.  I will not but any oil company, United Health, or Facebook.

Intruder, you and I are in the same boat with Apple.  I'm not going to sell all of it, but enough to take me down to 5% of my portfolio.  

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Re: Seeking a replacement for APPLE for generating capitall gains


@Crosstifer wrote:

Kathy

Have you looked at Old Republic Insurance , ORI ?  It’s not exciting or a fast mover but it’s about 20% undervalued and yields 5%+. It has raised it dividend every year for 30 + years. 

If capital appreciation is what your after, it might not work but for safe, consistent dividend growth, it might be hard to duplicate.

Good luck with your search!

Chris


I would not invest in any life insurance co because low interest rates are making it difficult for LI companies to generate enough income to pay LI proceeds.LI companies will have to reduce dividends to Pay death benefits.

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