After a significant run-up in Cummins Inc's (CMI) price, I have decided to sell it. At the risk of losing out on additional upside, I am taking the profit already available and moving on to other opportunities.
Taking commissions into account, I now have about $309 more than my original investment. Next Monday, I will purchase a replacement security with about $500, and will save the rest to pool with other future sales proceeds to purchase an additional security in the future.
The goal when I sell a stake in a company is to replace it with another company that has a higher dividend yield or a faster dividend growth rate or both. The sale of CMI is reducing my average monthly income by $1.79. It will be a challenge to find an appropriate security to replace it.
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