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.
BBI Price at posting:
26.0¢ Sentiment: Hold Disclosure: Held