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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (3186)	1/2/2010 3:01:24 AM
From: upanddown	2 Recommendations Read Replies (1) \| Respond to of 34328

Lower the dividend, and I sell the stock. Dabum, one potential problem with this strategy is that a dividend decrease can be preceded by a tsunami of bad news. A lot of these CEOs have giant egos and don't want to be the one to cut the divvie after decades of dividend growth and may only do it as a last resort. By then, the stock can be crushed. You may want to look for more of a early warning signal to indicate a possible dividend cut like a higher payout ratio. The last thing you want to do with this strategy is to lose years of dividends to a sharp drop in the stock caused by rumors of a dividend cut. JMO, John