There's a fascinating thing here, I've got to address it.
When we sell out of a position, most of us can't stand the thought of freshly repatriated dollars just sitting around collecting dust instead of previously hoped-for profits. I like to get that seed capital working FOR me instead of the brokerage.
Usually holding around fifteen positions (different picks), my first move is to look squarely at each, considering same for further investment. Yesterday I pulled about a third of the JPEP cash out, putting it into my checking account for eventual brokerage use. Then, as I considered my other positions, I started to examine more aggressive changes in them. ALDW stood out like a sore thumb, no question about it. So I started to stalk it. By day's end I'd added a thousand units of ALDW at prices low enough to have me feeling really good while also dropping my cost basis.
Lately I've been finding situations like this and I'm continually surprised, in a nice way of course. Last week I had cash available and as I reduced a position in one pick, I noticed SDLP had dropped precipitously without visible explanation. So I added. This seems to be happening frequently and it's having a great impact on position size, cost basis or both, once in awhile.
On the surface, then, sure.....I let go of JPEP. I came out with a modest profit but most importantly---the whole transaction process occurred within less than a half year. That's nice as it means my seed capital was preserved and profits were earned during a brief period. This is one of the primary drivers for me in the case of ALDW. If I'm a fireman about to enter a burning building, I want to know up front where the exits are so I can maximize my options. I do not intend on holding ALDW into next year.
I don't apologize for a stock's poor performance by acknowledging its distribution history. For me, it's what my money (invested) is gaining---or losing. If seed capital is at risk and I suffer a loss, then dividends might require years to undo my losses. I may not live that long. Again, I've got to see where the exits are. And this is why I always have an exit strategy in place when launching a position.
