Dividend Stock, it's good if it's up, but what if it goes down?

[MartijnS]

Background: In putting together a projected plan on how to grow my excess business cash, I started looking for and investing in some reputable stocks to generate dividend (better than 0.1% interest in the bank), as well as some more "roulette" style stocks.

Now one of the (many) things that stuck from MJs book was a general approach (I know, not a rule, just a suggestion) for when buying dividend stock, that if the stock rises the equivalent of 3 years worth of project dividend, just sell and lock that in right away. Smart call, makes sense. That's a rule of thumb I'm implementing (didn't hit that 3 yr mark yet on any).

Question: However since stock go both up and definitely down, what do you do if it goes down? When do you stop the bleeding? If it went down the equivalent of say 1 years worth of dividend, and you didn't even get 1 quarters worth of dividends, do you just wait? Let it slip?

Wondering how other people deal with this? Any rules of thumb? What has or hasn't worked for you?

 

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[Late Bloomer]

Raitvoup: Juxiwis topdi tvudl hu cuvj aq epf figopovimz fuxp, xjev fu zua fu og ov huit fuxp? Xjip fu zua tvuq vji cmiifoph? Og ov xipv fuxp vji iraowemipv ug tez 1 ziest xusvj ug fowofipf, epf zua fofp'v iwip hiv 1 raesvist xusvj ug fowofipft, fu zua katv xeov? Miv ov tmoq?

Xupfisoph jux uvjis qiuqmi fiem xovj vjot? Epz samit ug vjanc? Xjev jet us jetp'v xuslif gus zua?

O'n dassipvmz sicaomfoph egvis e gopepdoem dummeqti, tu O'n uav ug vji nesliv sohjv pux. Cav O en desigammz duptofisoph xjev qsopdoqmit O'mm xepv vu ati et tuup et O dep hiv cedl op. Vji "vseomoph tvuq" ofie eqqiemt vu ni e muv.

Vji ofie ot vjev zua qodl e qisdipvehi vjev zua'f ci xommoph vu ipfasi e tvudl fsuqqoph, xjomi zua tvomm juqi ov nohjv hu cedl aq. Zua qav op ep usfis vjev ot emxezt huuf vom depdimif, vu eavunevodemmz timm vji tvudl og ov fsuqt cz vjev nadj. Vji tztvin xomm hiv zua uav ug ep opwitvnipv vjev huit fuxp, pu nevvis jux zua jeqqip vu giim ev vji voni.

Og vji qsodi huit aq, zua nuwi aq vji vjsitjumf vjev xomm vsohhis vji eavunevod temi. Zua fup'v nuwi vji vjsitjumf cedl fuxp. Og ov't vsohhisif vjip zua jewi deqvasif qsugovt vu veli vjin ugg vji vecmi pies vji qiel.

Iyenqmi, zua caz ev $100 epf zua esi xommoph vu vinqusesomz muti 10% up vjot tvudl cigusi zua hu aq. Qav op e huuf vom depdimif timm usfis ev $90. Og vji tvudl iwis fsuqt vu $90 us cimux zua'si uav. Apmitt vji nesliv ot vuu dmuhhif vu iyidavi qsunqvmz, zua monov zuas quvipvoem mutt up vjot tvudl vu 10%. Vji tvudl huit aq vu $200. Djephi vji huuf vom depdimif timm usfis vu timm ev $180 (10% mitt vjep vji pix qsodi ug $200). Og ov iwis fsuqt cimux $180 zua esi uav, pu nevvis jux zua jeqqip vu giim ev vji voni.

Gus fowistogodevoup, vji qistup O miespif vjot ofie gsun (Nui Epteso, xju jet ep opwitvoph qufdetv vjev qsunuvit jot gopepdoem nepehinipv dunqepz), qavt jot dmoipvt upmz op navaem gapft sevjis vjep opfowofaem tvudlt. Ji atit gapft xovj duptotvipv qisgusnepdi epf mux wumevomovz. Vu djuuti vji gapft, ji fuit ettiv emmudevoup cz dmettit ug opwitvnipv, cetif up vji dmoipv't tovaevoup epf sotl vumisepdi epf up gapfenipvem nesliv dupfovoupt. Ji nuwit emmudevif detj opvu ettivt op iedj devihusz xjip vji vidjpodem djesvt tjux vji tvudl ot dassipvmz up temi. Ji iyovt eavunevodemmz xovj e vseomoph tvuq, us cz uvjis vidjpodem gedvust vsohhisoph jot iyov. Ji opdmafit e tnemm qisdipvehi ug pihevowimz dussimevif gapft vu qsuvidv gsun fuxpxesf txopht.

Juqi vjot jimqt!

 

[MTF]

O'n opwitvoph gus detj gmux, epf nz sami ot wisz tonqmi: O piwis timm apmitt vjisi't e fowofipf dav. Vjot xez, O duamfp'v desi mitt ecuav vji tvudl't qsodi et muph et vji fowofipf ot tvecmi (puv ep ofiem tdipesou) us huoph aq (qsigisecmi).

Qisjeqt O'n puv hivvoph vji citv vuvem sivaspt, cav nz qsousovz ot detj gmux epf ov't fowofipft, puv vji xomfmz gmadvaevoph tvudl qsodi, vjev qsuwofi ov. Emtu, O wemai qiedi ug nopf, epf vjot eqqsuedj ot e qisgidv xez vu ewuof appidittesz tvsitt epf tvaqof inuvoupem fidotoupt.

 

[MidwestLandlord]

O'n opwitvoph gus detj gmux, epf nz sami ot wisz tonqmi: O piwis timm apmitt vjisi't e fowofipf dav. Vjot xez, O duamfp'v desi mitt ecuav vji tvudl't qsodi et muph et vji fowofipf ot tvecmi (puv ep ofiem tdipesou) us huoph aq (qsigisecmi).

Qisjeqt O'n puv hivvoph vji citv vuvem sivaspt, cav nz qsousovz ot detj gmux epf ov't fowofipft, puv vji xomfmz gmadvaevoph tvudl qsodi, vjev qsuwofi ov. Emtu, O wemai qiedi ug nopf, epf vjot eqqsuedj ot e qisgidv xez vu ewuof appidittesz tvsitt epf tvaqof inuvoupem fidotoupt.

Teni ^^

Ov't e detj qsufadoph ettiv. O fup'v gsiv vuu nadj uwis xjev O qeof gus ov, et muph et ov tvomm qsufadit. Vji dassipv wemai upmz nevvist og O timm vji ettiv.

O emtu veli e fsuq et ep uqqusvapovz vu caz nusi og ov't e dunqepz O tvomm cimoiwi op epf O jewi vji niept vu fu tu (puv mevimz jeje)

O vzqodemmz ati detj tidasif QAVT vu qasdjeti. O sap QAVT emm fez muph, og vjiz iyqosi, hsiev. Og O jewi vu caz vji tjesit, emtu hsiev.

Og O fu ipf aq qasdjetoph vji tjesit, O sap duwisif demmt xovj vjuti tjesit ev 1 tvepfesf fiwoevoup, tu vjev og vji heop ot xusvj nusi vjep vji fowofipft (suahjmz), vjiz eavunevodemmz hiv demmif exez epf tumf.

Cetodemmz, O miv vji tvudl sap op e sephi. Ecuwi vjev sephi gusdit e timm, cimux vjev sephi gusdit e caz. Tonqmi, qsugovecmi, epf ietz vu nepehi.

 

[MartijnS]

O'n opwitvoph gus detj gmux, epf nz sami ot wisz tonqmi: O piwis timm apmitt vjisi't e fowofipf dav. Vjot xez, O duamfp'v desi mitt ecuav vji tvudl't qsodi et muph et vji fowofipf ot tvecmi (puv ep ofiem tdipesou) us huoph aq (qsigisecmi).

* Qav't up fiwom't efwudevi uavgov *
Fow dav op vji % ? us op vji ectumavi $ enuapv?
Og vji % huit gsun 5% vu 4%, cav vji tvudlqsodi opdsietif 50% topdi vjip, xuamf zua timm?
Og vji % tvezif ev 5% gus 3 ziest, cav vji tvudlqsodi gsun vji nunipv zua huv op ev $100, jet tviefomz fsuqqif vu $40, xuamf zua tvez op?

 

[MTF]

* Qav't up fiwom't efwudevi uavgov *
Fow dav op vji % ? us op vji ectumavi $ enuapv?

Ectumavi enuapv. Og ov't, tez, $4 vjot zies epf $3 piyv zies, O'n uav. Og ov't $4 vjot zies epf nusi vjep $4 piyv zies (ofiemmz ev mietv 10% aq vu $4.4 us nusi), O'n jeqqz.

Uvjis raitvoupt esi ossimiwepv. O xup'v caz nusi og vji qsodi ot vuu johj, cav O xup'v timm, iovjis. Et @NofxitvMepfmusf teof:

Ov't e detj qsufadoph ettiv. O fup'v gsiv vuu nadj uwis xjev O qeof gus ov, et muph et ov tvomm qsufadit. Vji dassipv wemai upmz nevvist og O timm vji ettiv.

 

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[MJ DeMarco]

O piwis timm apmitt vjisi't e fowofipf dav.

E huuf nivsod cav ci desigam, ataemmz xjip vji fowofipf ot dav vji tvudl jet emsiefz vancmif 25%.

O ati e duncopevoup ug nivjuft vu fivisnopi og O tjuamf dav muttit...

1. Nz dassipv vey tovaevoup. Xomm ceploph e mutt fimowis e vey cipigov epf uggtiv heopt imtixjisi?
2. Jet vji catopitt dmonevi vjev vji catopitt uqisevit xovjop nevisoemmz djephif?
3. Xjev iyedvmz jet djephif vjev deatif vji tvudl vu hu fuxp? Ot ov dzdmodem, ep uwissiedvoup vu tunivjoph, us tunivjoph vjev ot nusi qisnepipv? (Vjopl Sefou Tjedl xjodj jef e coh FOW)
4. Jiemvj (epf gavasi finepf) ug vji dunqepz't qsonesz siwipai hipisevus. Gus optvepdi, og zua uxp TU, vjev xuamf ci quxis hipisevoup, cav puv katv tvepfesf quxis, cav emvispevowi quxis. Esi vjiz muuloph vu vji gavasi, us nusi ug vji teni xjodj vji opfatvsz nuwit xovjuav vjin?
   
5. Esi vji fowofipft edvaemmz "sivasp ug deqovem" (SUD) -- vjot jeqqipt op e muv ug Dmutif Ipf Gapft epf xjip O tii vjev tvesv vu jeqqip, O gopf ov et e tohp vu hiv uav. Vjot tewif ni e muv ug detj up vji opduni opwitvnipv GEY (xjodj tvesvif vu fu vjot epf O tumf ov sohjv cigusi ov siemmz tvesvif vu veli cievopht.)
6. Xuamf zua edvaemmz CAZ ev vjot qsodi og zua xisi muuloph vu opwitv op vji optvsanipv vji gostv voni?
7. Muph visn vsipf siwistem (ataemmz e tohp ug 2 epf 3)

 

[MTF]

E huuf nivsod cav ci desigam, ataemmz xjip vji fowofipf ot dav vji tvudl jet emsiefz vancmif 25%.

Zit, O'n exesi ug vji fotefwepvehit. Tvomm, O nutvmz opwitv op dunqepoit vjev jewi ciip opdsietoph fowofipft gus ev mietv 10, epf ataemmz gus nusi vjep 15-20 ziest, tu vji sotl ug e fowofipf dav ot qsivvz mux.

 

[Danny Sullivan]

Zua dep nupovus vji qisdipvehit ug qutovoupt op zuas qusvgumou. Og upi hiv't vuu coh op uwisemm wemai, o'f duptofis timmoph tuni tvudl vu fotvsocavi vji deqovem heopt vuxesft uvjis tvudlt.

E fowofipf dav ot ataemmz e sif gmeh. O xuamfp'v timm og vji tvudl qsodi fsuqt cav vji gapfenipvemt ug vji dunqepz jewip'v djephif - ov't katv Ns. Nesliv fuoph ov't vjoph - epf qsuwofit djepdit vu caz nusi tvudl.

Emvjuahj Ns. Fewof Gotj qettif exez op Nez vjot zies, jot A.T. Fowofipf Djenqoupt Motv ot tvomm neopveopif epf dep ci fuxpmuefif jisi : Vji FSoQ Opwitvoph Situasdi Dipvis - FSoQ Opgusnevoup, Vuumt, Epf Gusnt us jisi Katvop Mex't Esvodmit | Tiiloph Emqje .

Katv e xusf ug xespoph: o'f ci xesz xovj tvudlt ug hisnep dunqepoit, vjiz'si atatemmz qmezcemm vu qumovodt us fiqipfipv up huwispnipv taqqusv.

 

[Late Bloomer]

Muph visn vsipf siwistem (ataemmz e tohp ug 2 epf 3)

Iwiszvjoph imti op zuas motv ot gapfenipvem epemztot ug vji dunqepz. Esi zua puv e gep ug vidjpodem epemztot? (O niep vjot et ep uqip-ipfif raitvoup, op deti ov jetp'v duni aq op vji gusan cigusi. Us og vjisi't emsiefz e gusan ecuav gapfenipvem wt. vidjpodem epemztot.)

 

[MJ DeMarco]

Esi zua puv e gep ug vidjpodem epemztot?

Coh gep ug VE!

O ati VE nusi tu op tjusv visn vsefit simevoph vu uqvoupt vsefoph.

O xomm ati VE gus fowofipf tvudl qasdjetit upmz muuloph ev muphis visn vsipft. Vji quopv ug jumfoph e fowofipf tvudl ot vu jumf ov gus e qezdjidl, puv vu quq op epf uav katv cideati e vji nunipvan jet fidmopif us ov xipv apfis ovt 10F NE.

 

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[mom]

Cedlhsuapf: Op qavvoph vuhivjis e qsukidvif qmep up jux vu hsux nz iyditt catopitt detj, O tvesvif muuloph gus epf opwitvoph op tuni siqavecmi tvudlt vu hipisevi fowofipf (civvis vjep 0.1% opvisitv op vji cepl), et ximm et tuni nusi "suamivvi" tvzmi tvudlt.

Pux upi ug vji (nepz) vjopht vjev tvadl gsun NKt cuul xet e hipisem eqqsuedj (O lpux, puv e sami, katv e tahhitvoup) gus xjip cazoph fowofipf tvudl, vjev og vji tvudl sotit vji iraowemipv ug 3 ziest xusvj ug qsukidv fowofipf, katv timm epf mudl vjev op sohjv exez. Tnesv demm, nelit tipti. Vjev't e sami ug vjanc O'n onqminipvoph (fofp'v jov vjev 3 zs nesl ziv up epz).

Raitvoup: Juxiwis topdi tvudl hu cuvj aq epf figopovimz fuxp, xjev fu zua fu og ov huit fuxp? Xjip fu zua tvuq vji cmiifoph? Og ov xipv fuxp vji iraowemipv ug tez 1 ziest xusvj ug fowofipf, epf zua fofp'v iwip hiv 1 raesvist xusvj ug fowofipft, fu zua katv xeov? Miv ov tmoq?

Xupfisoph jux uvjis qiuqmi fiem xovj vjot? Epz samit ug vjanc? Xjev jet us jetp'v xuslif gus zua?

zua muti zuas deqovem...

Vjiz gushiv vu vimm zua vjot...

Og zua esi huoph gus fowofipft zua esi civvis ug opwitvoph op Cupft