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


To: Triffin who wrote (5619)8/30/2010 9:03:27 PM
From: chowder  Respond to of 34328
 
>>> "get ready to sell" signal <<<

It depends on the yield and the company.

If I'm getting a 5% or 6% yield, I'll give them 8 quarters. But, I'll look at their history first to see if they were in that position previously.

Some of the utilities I look at have held their high yields steady so they could expand their grids to insure future growth. ... I'd hold in that case! They have a history of then increasing them again.

If a company has a history of raising dividends, has a 3% yield and doesn't raise on time ... I might be selling there. If not all, at least some.

I own PAYX. It has a 4.9% yield and hasn't raised on schedule. I'll hold.

AFL, which I don't own, yields 2.6% and they didn't raise on schedule. I would have sold. They have started raising again, so one could be justified in holding, but the yield was low enough that it would have been easy to replace.

So, I guess replacement value is what I'm saying I would judge.

Lower the dividend or discontinue it and it is an automatic sell.