Q: Is there any negative to holding dividend stocks until they reach a certain capital gains goal and then selling them? My fear is that my stocks may be up 25 per cent but some ugly market correction could wipe that out in a flash. So I’m happy to collect the dividends while I wait to reach the arbitrary number and then I’m itching to sell. Then I move on to my next pick.
A: While I can understand your desire to “lock in” paper profits, I can see problems with this approach. You might sell a great company only to watch its shares move higher. Just because a stock has gained 25 per cent – or whatever number you pick – doesn’t mean it’s overvalued or vulnerable to a major pullback. It may in fact be undervalued or fairly priced. Now, if you have the skill to value a company and you conclude that there are better opportunities elsewhere, that is another matter, but a price change alone won’t tell you that.
Source: Globe and Mail
Related Articles:
- Defined-Benefit Pension Plus Dividend Stocks For A Prosperous Retirement
- 5 Dividend Stocks To Buy And Hold, Not Buy And Forget
- Asset Allocation For Income Investors
- 8 Stocks With Strong Dividend Growth Metrics
- 10 Dividend Stocks Balancing Yield And Growth
Should You Sell Dividend Stocks When They Reach A Certain Point?
Posted by D4L | Monday, January 21, 2013 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
-
Double your money in a short time. Few investors would walk away from such an opportunity. Of course, there's no guarantee that any inve...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.