Ask Terry Questions Stocks — When to sell?

Stocks — When to sell?

By Terry Savage on October 13, 2018 | Investments

How long does one hold on to a losing stock? Do you sell it at 20% or 30% even thou it has 14% dividend?

Terry Says

Wow, that’s an interesting question! Think about this: If you were CEO of a company that has fallen by 30 percent in value, wouldn’t you be wondering if something is wrong with your business plan? In fact, aside from a general market meltdown, stocks typically don’t fall that much unless the company has problems. If it has problems, it probably needs cash. And the very first thing it will do to get that cash is CUT THE DIVIDEND!

Be VERY wary of a company that is paying such a high dividend yield. I’m betting that either the dividend or the company won’t be around very long!

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