I have always defined myself as a dividend seeking investor, with a little spice. The "spice" that has been referred to are mainly those higher yielding stocks that add punch to a portfolio's overall yield. While I absolutely support this approach, along with a solid core portfolio of dividend winner stocks, a prudent investor should never hold on to those high flying dividend "opportunity" stocks for too long. Especially when an investor is retired or ready to retire.
Throughout the last few years of puny interest rates on fixed income investments, investors have flocked to many of the ultra high dividend stocks for income. Holding them too long can absolutely wreck your overall portfolio. Our portfolio also has held 3 particularly well known high-yield dividend opportunity stocks that we were fortunate enough to move in and out of before any serious damage was done to our portfolio. The stocks were American Capital (AGNC), Annaly Capital (NLY) and Linn Co (LNCO), and we no longer own them and do not have to worry what might be around the corner to hurt the value of these stocks.
Source: Seeking Alpha
Related Articles:
- The 2013 Dividend Achievers
- 5 Stocks With A Strong Cash To Dividend Coverage
- Dividend Stocks Are My Conviction
- Are The Dividends Safe For These High-Yielding Stocks?
- My 2012 Top And Bottom Performing Dividend Stocks
Holding High-Yield Dividend Stocks Too Long Could Wreck Your Portfolio
Posted by D4L | Monday, October 07, 2013 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
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...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
When looking for dividend stocks to invest in, it is advisable to choose companies that have strong dividend histories and stable balance sh...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.