Investing Club: We're trimming one of our big winners with the S&P 500 on a four-day win streak

Published Fri, Mar 18 20222:25 PM EDT

We're selling 100 shares of Abbvie (ABBV) at roughly $158.41 each. Following Friday's trade, we'll own 465 shares of ABBV, decreasing its weighting to 1.97% from 2.38% in the Charitable Trust portfolio. We're making the Abbvie sale Friday afternoon as we see now as a pretty good level in the overall market to start raising some cash, with the S & P 500 advancing more than 6% over the past four sessions. Abbvie has been a winner for the portfolio this year, up nearly 17% compared to an almost 7% decline in the S & P 500. This stock has been such a great performer because of characteristics like a low price-to-earnings multiple, big dividend yield, zero supply chain issues, and little economic sensitivity. The fundamentals have strengthened too because of key drug approvals. This isn't the first time we have taken profits in Abbvie. Yes, we sold some stock at lower levels — but Friday's sale around $158 will mark our highest price to date and about $12 per share, or 8%, above our previous high sale, excluding the donation-related trades we made this week. With ABBV trading at a new all-time high, we want to be sure that we have locked in some gains up here just in case the stock's rally starts to tire out. One last thing to point out is that at around $158 per share, Abbvie's dividend yield of roughly 3.56% isn't quite as attractive as it once was. Don't get us wrong: above 3.5% and knowing that management will probably boost the dividend again this year is still valuable. However, this lower rate, which is due to equity appreciation, does not give us the same type of juice as it did when we bought north of 5%. This sale will lock in a huge gain of about 118% on stock purchased in March 2020. (Jim Cramer's Charitable Trust is long ABBV. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

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