Do you have a better opportunity for the capital? How will you replace the income?
If you ignore capital values and focus on the income to support you through retirement, then this suggest you should hold. Maybe starting to increase your position in bonds will reduce risk. But in the end, your dividends yield better than bonds anyways.
How to Replace Sold Dividend Stocks [View article]
I just did my own calculation on this yesterday. AFL has run up, but my yield on ACB is over 6%. If I sold and took profits, I'd have to replace it all with stocks yielding at least 4.5% to maintain income.
From a portfolio re-balancing perspective, it is a rough (but effective) tool to force you to buy low and sell high. Buying high yields (healthy companies) suggests you are buying low price. Selling low yields suggests you are selling high. But beware, calculate your yield on ACB and you'll think twice before selling.
Well selected/constructed portfolios inherently involve less trading.
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Do you have a better opportunity for the capital? How will you replace the income?
If you ignore capital values and focus on the income to support you through retirement, then this suggest you should hold. Maybe starting to increase your position in bonds will reduce risk. But in the end, your dividends yield better than bonds anyways.
How to Replace Sold Dividend Stocks [View article]
From a portfolio re-balancing perspective, it is a rough (but effective) tool to force you to buy low and sell high. Buying high yields (healthy companies) suggests you are buying low price. Selling low yields suggests you are selling high. But beware, calculate your yield on ACB and you'll think twice before selling.
Well selected/constructed portfolios inherently involve less trading.
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