antiquary

The 'Sell After Dividend Cut/Freeze' Rule, With Exceptions

The only reason to sell after a dividend cut is to avoid the value-trap effect by which all those in it only for the immediate cashflow haul their freight out of Dodge. Once that has subsided, the fact that the company is not paying a dividend or not as much of one is not a reason not to own it in these economic times. I would just put the money back in at the new reduced level-- assuming always, of course, that it's still a worthwhile business, without which you shouldn't have been in it in the first place-- and wind up with more shares than you had before for the same money.