QUOTE(Pink Spider @ Apr 22 2013, 12:00 PM)
Dear Venerable Sir Dividend Warrior
What if the dividend stock that u bought rallied to the point that the yield is no longer attractive? Would u sell to take profit?
For me, there are two ways to count dividend yield.
1. Yield on price
2. Yield on cost
If the yield on price is no longer attractive, i will see the overall business/growth if it is still doing rather well, AND my yield on cost is still good. Why sell?
Otherwise yield on price is no good, business is declining & not doing well, then i will consider to let go EVEN with good yield on cost.
If yield on price is still attractive, and business/growth doing well, i will add more.
If sometimes a company reduce/cut dividend and my yield on cost is no longer attractive, then i will sell
Well that is my 2 sen, others may have different perspective.
This post has been edited by gark: Apr 22 2013, 12:50 PM