Recent buy (BIPC) and sell (IBM)

On May 10th I made a new portfolio move consisting of a sell and a purchase.

I sold 7 shares of IBM for about $182 per share. I bought these shares about 10 years ago for $190. So in terms of share price appreciation these shares did nothing in the past 10 years. Including the dividend my purchased returned about 2,6% per year. Nothing really excited. Dividend growth was more or less non-existant in the past years with token, penny increases. Therefore I decided to close out my position and look for better avenues of dividend growth.  

As a replacement I bought 60 shares in Brookfield Infrastructure Partners (BIPC) for about $35 per share. Brookfield Infrastructure is one of the largest owners and operators of critical global infrastructure networks which facilitate the movement and storage of energy, water, freight, passengers and data. BIPC is one of the few pure play, publicly traded, global infrastructure vehicles that invests in infrastructure assets with stable cash flows, high margins and strong growth prospects.

I've owned BIP a few years ago. As a result of U.S. Internal Revenue Regulations taking effect 1 January 2023, new withholding charges are applied to sales proceeds from certain Publicly Traded Partnerships ("PTPs”) held by investors who are not U.S. taxpayers. The amount of withholding is 10% of sale or distribution proceeds.  This means 10% of the amount of funds that would settle resulting from any transaction or distribution, not just 10% on any calculated profit. Therefore I sold my BIP position prior to this new regulation coming into effect. 

BIPC is not a PTP since it is a regular Canadian corporation, listed on the New York Stock Exchange.

This purchase will add about $100 to my annual dividend income.