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Learning, Sharing, and Teaching => Investor Alley => Topic started by: fullpampers on August 19, 2016, 07:29:47 PM

Title: What to do with company stock (Canada)
Post by: fullpampers on August 19, 2016, 07:29:47 PM
I work for a company owned by Bell (BCE,http://finance.yahoo.com/quote/BCE?p=BCE (http://finance.yahoo.com/quote/BCE?p=BCE) )

We have this company stock program, where I buy 6%'s worth of my annual income in company stock, and they top up with 2% of my annual income.

The way it works is my money (6%) has to be invested for one year for them to put up the 2%. Then that 2% has to stay invested for one year before I can sell without a penalty.

All things considered, the BCE stock is slowly coming to be around 20% of my overall investment portfolio. I'm just wondering if I should be thinking about selling some and reallocating so as to not have all my eggs in the same basket...

My portfolio is a normal Canadian couch potato one, with the company stock sort of like a parallel investment. I'm happy to leave it be because I don't really see Bell going anywhere, and with the 2% top up, I'm basically getting a 33% return if the stock stays the same price and even without counting dividends, which are automatically reinvested.

But like I said, even if right now, I don't have an enormous portfolio, that stock makes up 20% of my stash.

Would you guys leave it as is? Or sell some here and there and reinvest elsewhere? If you would sell, how much, how often, and where would you put it?

Thanks!
J-S
Title: Re: What to do with company stock (Canada)
Post by: lostamonkey on August 19, 2016, 07:40:01 PM
If I was you, I would sell all the Bell stock that you can without penalty/losing the free money. I would use the proceeds to buy index ETFs. If you have room in a tax advantaged account (TFSA/RRSP), buy them there otherwise just buy in a taxable account.
Title: Re: What to do with company stock (Canada)
Post by: Heckler on August 19, 2016, 09:53:31 PM
My sister in law got all her retirement and bonuses in Nortel Stock in the late 90's.   Shes still working. 

(http://www.catherineomega.com/wp-content/uploads/2009/07/infographic-how-nortel-sucks.png)
Title: Re: What to do with company stock (Canada)
Post by: Heckler on August 19, 2016, 09:54:23 PM
just sayin...  Look at the max timeline graph of BCE.


I would sell the vested stocks and just allocate them once a year to your CCP as long as there aren't tax consequences.
Title: Re: What to do with company stock (Canada)
Post by: fullpampers on August 20, 2016, 06:28:57 PM
Thanks, That's what I was thinking. I'll do that.

Thanks for the answers!
Title: Re: What to do with company stock (Canada)
Post by: MoonLiteNite on August 21, 2016, 12:16:20 AM
I personally just sold my 3 years worth of ESPP.
The dividend pay was nice for 3 years. Made quiet a bit, but the gains hit about 115% for share price. More than doubled my money so i finally cashed out. I also personally believe my stock is within 5% of hitting the top, at least for the shorterm.

If there is evidence to support the stock will keep going up, TA, or by the books, maybe you could keep it, but math says it is generally better to do index funds.

Next round of ESPP i get i am going to cash out on the buy day, take my gains and invest elsewhere.