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Started By
Message
Dividend Question/Dilemma
Posted on 5/29/14 at 11:49 am
Posted on 5/29/14 at 11:49 am
I currently own a few shares of Altria (MO) stock in my Roth IRA. I am up approx. 17% on this stock and I am considering selling and taking my $115 profit to reinvest at another time (during a dip). My struggle is that I really hate to give up my shares, since I plan on "holding Altria forever" due to it's dividend, but currently the gain from sell would trump any future dividends with my limited share supply. WWYD?
7
Posted on 5/29/14 at 11:51 am to Hoyt
What if it doesn't dip for a long time?
Leave it alone.
Leave it alone.
Posted on 5/29/14 at 11:53 am to Hoyt
quote:
I am up approx. 17% on this stock and I am considering selling and taking my $115 profit to reinvest at another time (during a dip).
Trying to time the market is a fool's errand. If you like the stock - leave the money in there - especially with the dividend over time.
If you don't like it, move the money elsewhere - don't bid against yourself, or wait for some "timing" event like a dip.
Posted on 5/29/14 at 11:58 am to Hoyt
1. Don't time the market.
2. Consider the transaction fee will eat into your profit also. $115 is a pretty small profit.
2. Consider the transaction fee will eat into your profit also. $115 is a pretty small profit.
Posted on 5/29/14 at 12:01 pm to foshizzle
No transaction fee (free trades from referrals). It is a small profit, but I just started this IRA last year and can only afford to contribute a small amount currently. I do contribute each pay period though. Altria's dividend is 0.48 per share/qrtr and it would take 3 years for dividends to equal $115.
Posted on 5/29/14 at 12:02 pm to Hoyt
quote:
Altria's dividend is 0.48 per share/qrtr and it would take 3 years for dividends to equal $115.
The stock might be worth more than it is today in 3 years, yeah?
Posted on 5/29/14 at 12:03 pm to Hoyt
Not trying to be inflammatory, but why are you worried about $100? Either place the trade or don't. It's costing you half your profit to debate the issue.
Posted on 5/29/14 at 12:05 pm to Hoyt
You buy stocks you think will appreciate in value right? It's doing what you want it to... Buy more.
Posted on 5/29/14 at 12:11 pm to Hoyt
What are you gonna do with that money?? Do you have another investment that equals or is greater than the current dividend yield??
Posted on 5/29/14 at 7:03 pm to Hoyt
hold
Posted on 5/29/14 at 8:52 pm to Hoyt
If you sell to cash out a $115 profit, you are creating a terrible, terrible habit.
Posted on 5/29/14 at 11:10 pm to Hoyt
OP - I see you are an Alabama fan. Is your nickname "Forrest Gump?"
Posted on 5/29/14 at 11:14 pm to Hoyt
quote:
can only afford to contribute a small amount currently
This early in your investing life the main focus should just be on piling in as much money as you can. It almost doesn't matter if you invest in anything other than just cash.
Since you have so little, it might be worth it to play in the market a bit and do all the wrong things. It's still cheap so it doesn't cost you much. But it'll feel like it's a lot, and that will help internalize things.
The main problem with stock picking, day trading and the like isn't that you can't make money. Heck, you could have a banner year or two. But you'll have bigger fluctuations, spend lots more time on it, and in the end probably have a little less than what you would have had with just a regular index fund.
Posted on 5/30/14 at 10:06 am to foshizzle
quote:
The main problem with stock picking, day trading and the like isn't that you can't make money. Heck, you could have a banner year or two. But you'll have bigger fluctuations, spend lots more time on it, and in the end probably have a little less than what you would have had with just a regular index fund.
It's like the first few weeks of fantasy baseball can be fun. Then you suffer a rash of freak injuries and a lot of players get DL's and it becomes too damn much like work if you want to remain competitive. One never knew one could lose a shite ton of third basemen in 6 weeks nor the number of thumb injuries sustained by dumb asses sliding head first into the bags.... Broken thumb out 4-5 weeks, thumb ligament surgery out 4-6 weeks, thumb dislocation, multiple sprained thumbs/wrists, etc. My outlook on serious trading for me personally would fall right inline with this and make me miserable.
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