Dividends4Life: Dividend Stocks: Five Warnings When To Sell

Dividend Stocks: Five Warnings When To Sell

Posted by D4L | Saturday, April 17, 2010 | | 0 comments »

Some dividend investors have a holding period of forever, thinking that all stocks suffer slides or even dividend cuts, so it all works out in the wash when your priority is on the quarterly payout. If that describes you, then the answer to the question of when to sell is simply, "Never." Other dividend investors find quarterly payouts nice but really secondary to share values. Investors with this mind-set typically set stop losses or set sell targets because it's the stock price that matters most. If that describes you, then obviously you're not asking when to sell a dividend stock--you're wondering when is the best time to buy and sell based on the best share price.

For those that fall in between, pulling the trigger on a dividend stock is a balancing act. They grant some leeway to stocks with a hefty and reliable payout when shares slip, or they'll stick with a stock that has slashed its dividend because it has upside potential for shares in the long term. But where do you draw the line?

Source: Forbes

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