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Wed. Mar. 11, 2009

Should You Sell A Dividend Stock After A Dividend Freeze?

When I add a stock to my dividend portfolio, it is my intention to hold the stock forever. However, sometimes selling a stock is the right thing to do. In determining when to sell a dividend stock, I have one hard and fast sell rule: When an individual stock held as a dividend investment lowers its dividend, immediately sell it. This rule has served me well. Since I have begun chronicling by investments online, there have been several stocks I sold immediately after a dividend cut. Here is a list of those stocks with my exit price and a recent price:
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Tue. Sep. 2, 2008

Inverted Yield On Cost Curve

A yield curve is the relationship between yield and maturity. In a “normal” yield curve yields rise as maturity lengthens. When yields drop as the term lengthens, it is referred to as an inverted yield curve. A Yield On Cost (current dividend/basis) curve, like a yield curve, should increase as you move forward in time.


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More on this topic (What's this?)
Investing Based on the Yield Curve – REITs Like it Steep
Yield Curve Predictors of Foreign Exchange Returns
Yield curve at an extreme*
Read more on Yield Curve, Yield on Cost (YOC) at Wikinvest