Recent sell (INTC) and buy (BEPC)

On August 20th I made a new portfolio move consisting of a sell and a purchase.

I sold 150 shares of Intel (INTC) for about $182 per share. I bought my first shares more than 10 years ago for $24 per share. I added two times, once in 2021 andthe latest about two years ago in 2022. Intel experienced a significant stock decline after releasing its Q2 earnings. The company’s stock plummeted more than 30% in the periode there-after. Intel reported Q2 revenue of $12.8 billion, a 1% decrease year-over-year. The company’s gross margin fell to 38.7%, and its EPS of $0.02 missed expectations. In response, Intel announced aggressive cost-cutting measures, including a 15% workforce reduction by the end of 2025 and the suspension of its dividend starting in Q4 2024, after it has already been cut earlier in 2023. Additionally, Intel reduced its 2024 gross capital expenditure forecast to $25-27 billion, down from earlier projections. The aggressive cost-cutting measures, while intended to improve financial performance, suggest deeper underlying problems that could affect future growth. The dividend suspension and reduced capital expenditure have further unsettled investors, raising doubts about Intel’s competitiveness and growth prospects.

During my holding period I received about half of my purchase price back in dividend. But despite this dividend cushion I am still on the hole because of the share price depreciation.

As a replacement I bought 80 shares for $28 per share in Brookfield Renewable (BEPC). Brookfield Renewable operates one of the world’s largest publicly traded platforms for renewable power and decarbonization solutions. Their portfolio consists of hydroelectric, wind, solar, distributed energy and sustainable solutions across five continents.

I purchased shares earlier this year but wanted to increase my position in the growing company.

This sell will decrease my dividend income by $75 but my purchase in BEPC will add about $113 to my annual dividend income. I have some cash left which I may use in the coming period to add to an existing position or to enter a new position.