05-02-2014, 11:54 AM
(05-02-2014, 10:40 AM)cannew Wrote:(05-02-2014, 12:50 AM)Dividend Watcher Wrote: Sell immediately if: It suspends or eliminates the dividend.
That seems like short term thinking. Look into why they suspended or even cut the dividend. If you bought the shares after doing all the work you've outlined in your plan than don't sell without doing the same amount of work to see if the long-term outlook for the company is still good.
During the 2008 crisis the Cdn banks stopped increasing their dividends, but none cut. Many had being paying and increasing their dividends since the 1800's (pretty good record). If you had owned them for many years with that type of record, would you then sell because they stopped increasing?
I bought more shares and wish I had bought even more, especially when the yield went to 8% and higher (their ave yield was 3.5% to 4.5%).
Every one should have a plan and yours is great but exhaustive. For me I've tried to stick with a simpler plan and for my core holdings doubt I would sell unless the company really got into trouble.
There is nothing to prevent one from re-buying. My answer is yes, sell immediately on a suspension, reduction or elimination of the dividend