Over the past two years, we've seen the worst side of dividends -- cuts, eliminations, and suspensions. In the S&P 500, 62 companies cut their dividends in 2008, followed by another 90 in 2009, including Bank of America (NYSE: BAC) and Morgan Stanley (NYSE: MS). In 2009 alone, companies eliminated $58 billion in dividend payments to shareholders. Following regulators' warning to U.S. banks in March that dividends and buybacks shouldn't be reinstated until the economy has regained its footing, I wouldn't hold my breath for a recovery of their pre-crash dividend yields anytime soon.
No one wants to get fooled (lower case "f") again, of course, but trading in and out of dividend-paying stocks doesn't make much sense, either. Instead, here are five scenarios where a long-term, income-minded investor should consider selling a dividend stock.
Source: Motley Fool
Related Articles:
________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.