Tuesday, December 4, 2007

When to Sell a a High Dividend Stock

Selling stock is tough, especially if you are the holder of high dividend stocks. These stocks provide a high level of income to an investor so unloading them can be a difficult thing to do - you lose that cash flow! However, there may be times when it may be a good idea to sell. Here is an list from About.com with some reasons to sell a stock:

Personal Reasons to Sell High Dividend Stocks:

  • Risk Tolerance Reached
  • You Need some Cash
  • Moral, Ethical Conflicts
  • The Grass is Greener
  • You’ve Reached your Goal

Market Reasons to Sell High Dividend Stocks:
  • The Stock Drops by x%
  • The Company Flounders
  • When a Stock is Over Valued
  • Rebalancing Your Portfolio

These are all things to consider when looking at your high dividend stocks. I typically do not like to sell but these may be some reasons that I would consider while examining my portfolio.

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