When to Sell Your Dividend Stocks

Younger investors or well-heeled traders may not realize that living off your dividends as income is a common way to provide for retirement. But I know from real-life exchanges that this is very much the situation that many investors are in right now. So my first morsel of advice is simple and philosophical: Don’t doubt yourself, and don’t change a strategy that is working just because of the lure of bigger dollar signs. Too many buy-and-hold investors panicked and tried to be short-term traders in 2009.

Too many low-risk investors were captivated by the glitz of the Facebook (NASDAQ:FB) IPO and took it on the chin. And of course, many dividend investors have been sucked in to the trap of chasing yield. If there’s not a compelling need for this capital such as medical bills or a compelling tax reason to close out positions, don’t overthink it. Stick to your strategy if it’s working and don’t get distracted. Study after study shows investors trade too much and hurt themselves. If your investments are working you have no reason to change gears.

Source: Investor Place

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