Comments on: When to Sell a Dividend Paying Investment

By: PersonalFinanceSource

PersonalFinanceSource — Wed, 05 Oct 2011 20:29:52 +0000

Do you ever consider selling a dividend stock if you believe it is way overvalued? For example what if you own Altria from your last post and you bought in at a P/E of around 10. Now say they have been growing earnings but the market as a whole has really heated up much like in 2000 and sent the price of Altria soring to where it has a P/E of say 30 and you now believe it is overvalued. Would you consider selling at this point? This is a question I struggle with in my own dividend investing.

By: Frederic

Frederic — Wed, 05 Oct 2005 08:49:59 +0000

Good common sense advice. Sometimes I wonder why some investors don't have that kind of sense. The world of investment may be full of ups and downs, but if you apply some common sense, and don't get bedazzled by the distractions, you'll end up a winner!

By: Anonymous

Anonymous — Wed, 30 Nov -0001 00:00:00 +0000

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By: youngmiser

youngmiser — Wed, 30 Nov -0001 00:00:00 +0000

The above comment is a garbage comment just leeching a link to another web site.

On another note, I like your strategy of investing in dividend paying stocks. How do you obtain these stocks? Do you do a direct invest through the company, or do you go throuh something like dripinvestor.com? I also assume you reinvest your dividends. I know through places like ameritrade, you have to be able to purchase a full share with your dividend for them to reinvest it, plus there are several companies they do not even support for dividend reinvestment.

By: The Dividend Guy

The Dividend Guy — Wed, 30 Nov -0001 00:00:00 +0000

Hey youngmiser. To obtain ideas for stocks I usually start here:

Mergent's Dividend Achievers

or here:

S&P 500 Dividend Aristocrats

All of my purchasing is done through Canadian ShareOwner Investments. They do fractional dividend reinvestments. This does however limit the universe of stocks that I am able to invest it - as they offer a 'select' list of stocks. I really wanted the dividend reinvestment and found that many of the stocks I was interested in were available through their service.

Thanks for the comment.