Michael Levy

Dividend Stocks: When To Sell?

When a stock pays a good dividend and loses value it is a good idea to feel when it is a good oppertunity to buy. Case in point just as an example and not as a recomendation as i never give tips to buy - PFE.
It now pays around 8% and even though its pipeline does not look too healthy, it has no debt, large cash reserves, resonable management and at $17.50 it may be a good entry point to begin dollar cost averaging if it drops futher. The main criteria to ask yourself is; will the company still be in business in 5 years, what will its value be and what is the risk/reward?