When to Buy And Sell Dividend Stocks

Building and managing a dividend portfolio starts with setting objectives for yield and growth, finding securities that meet your objectives, tracking your progress, and pruning and improving your portfolio as conditions warrant. Peters: “More dividend yield typically means less dividend growth, but I do not settle for anything less than inflation.”

When should a dividend investor buy or sell stocks? One should sell when the dividend looks shaky and the risk is not yet fully discounted in the price of the stock, when the dividend growth repeatedly trails ones expectations, or when the stock price goes so high that the dividend can not be expected to drive a good total return from that point forward. An opportunity to buy is when a new stock offers more yield than an existing holding with the same dividend growth, more dividend growth with the same yield, or better fundamental quality with similar total-return prospects.

Source: Morningstar

Related Articles:
- Are REITs and Utilities Good Dividend Investments?
- Market Timing vs. Buy And Hold
- Should You Still Buy-And-Hold Stocks?
- Bonds: The Next Bubble to Burst?
- Never Confuse Desires With Goals