I would never buy a stock purely for it's dividend.
( by the way, that's William Eng's trading rule no. 21 ).
I've learnt that the hard way.
Dividends can be cut anytime, and for a high yielding stock a cut in dividend has disastrous effect on the share price when there is little hope of capital growth.
Unfortunately I didn't have the guts to sell BBI earlier as I should have, so I'm hanging on now as no point selling it at chickenfeed prices. if they go bellyup I'll use the tax loss. they could be a fantastically cheap buy at these prices, but I've also learnt the hard way that it's best not to average down.
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