Mistakes. We’ve all made them. I’ve made my fair share of mistakes over the years, professionally and personally. Sometimes, the best way to learn is to experience the pain yourself. It is funny, my mom and I were talking over the weekend and she told me that my grandpa always used to tell her that “learning is expensive.” This didn’t specifically relate to education, either. This related to different life situations her and my dad encountered over the years. This year, I’ll be turning 29. My 20s will soon be in the rear-view mirror. I’ve made plenty of financial mistakes over the years that have likely cost me a lot of dividend income. With the benefit of hindsight, I wanted to share my top 5 financial mistakes and calculate the true impact they had on my life and my dividend income.
Deciding to sell a stock is a tough decision, especially when you realize your largest loss. While we all perform our due diligence prior to investing to provide assurance we are investing in a strong, dividend growth stock, we assume a certain risk when we decide to purchase shares that conditions may change in the future that could cause the stock value to decline. Myself, and many others investments, shared such an experience over the last couple of months as we decided to divest in one troubled stock. Here is my story about selling my investment in ARCP.
ARCP always seems to find a way to be in the news. Whether the company is acquiring a large amount of properties, selling assets, possibly spinning-off a segment of its business, etc., it always seemed the management team was pushing the flooring the pedal trying to improve the company. Until recently (2nd quarter of 2014), this aggressive strategy kept the share price climbing and allowed ARCP to quickly ascend and compete with the large, established competition (O) in the industry. And quite frankly, the success of the company, management’s aggressive nature, and the dividend were major factors in my decision to invest in the company. However, as all ARCP shareholders know, the company has had a very difficult two-week stretch. In this article, I will summarize what has transpired recently for ARCP and share what I have learned about dividend growth investing from this experience.