Dividend investing for retirement Message Board

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To: Kip S who wrote (11736)	5/12/2012 1:30:37 PM
From: chowder	of 15831

>>> What I am more interested in, though, is the process people use to (try to) avoid higher yielders that become that way because the stock price falls and the dividend eventually follows. <<< It's difficult to provide a useful explanation unless you provide an example. Some companies, or sectors are by design, high yielder's. Therefore I wouldn't consider selling. I did have a full position in FTR and it was a very high yielding company. The CEO was on CNBC saying that FTR wanted to be a high yielding company and they were committed to that high dividend. I bought into her lies, increased my position, and I ended up selling it when they cut the dividend. I ended up taking a loss on that one. Other than that, I suppose one simply needs to compare a company to others in the sector before making a determination. Is the company falling in price because of something fundamentally wrong within the company, or is it dropping in price with the other companies in the sector? If something is fundamentally wrong, then I would think a sell is in order regardless of the yield. If it's sector related, I'm holding on.