When do you sell a dividend stock?
Some investors love dividend stocks so much they will never sell.
But if your goal is to generate a consistent growing income, knowing when to sell can be tricky.
After all dividend stock prices can fall and dividends can get cut… so what then?
Here are three warning signs to look out for to know when to sell.
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The Steinhoff debacle hurt a lot of investors.
If you held Steinhoff shares before the crash - you'd be down around 97% on your money today.
And the chances of ever recovering all the losses are close to zero…
But what you should know is that situations like this can be avoided.
There are at least four clues to follow that are warnings signs of an impending disaster like that of ... ››› more
It came as a shock to most investors when the Steinhoff scandal was exposed in December 2017.
The share dropping 96% didn't just hurt unaware investors though.
Some of the biggest investment funds in Africa got hit, including the Public Investment Corporation.
This article isn't about to tell you that you could've predicted the Steinhoff debacle…
But what I want to tell you is h... ››› more
There are many widely available tools, tricks and techniques that will help you spot good businesses that are likely to increase in value.
But do you know how to spot companies that are going bust?
Well if there's one person who does, it's Scott Fearon.
An extremely successful money manager, Scott Fearon has shorted more than 200 companies that eventually ended up at zero. And spotting th... ››› more
Over the past 10 years, the South African listed property sector has easily outperformed its peers.
Investors who've jumped on this rally early, would have made a fortune investing in JSE property companies.
But the smooth-sailing returns delivered by the commercial property market are coming to an end.
You see, listed property returns have halved for the last three years - 25.1% in 2... ››› more
Have you ever seen something like this before?
“Company X has decided to issue 119,047,599 new linked units to qualifying linked unit holders. The units will be issued at 800c per linked unit in the ratio of 50.62569 rights for every 100 linked units held on the record date.”
This is an example of a rights offer.
Sometimes a company needs more cash to expand or simply to keep going... ››› more
Mention the word “bubble” and many investors head for the hills.
But who can blame them?
After all, economic bubbles like the dot.com and the mortgage bubble caused many investors to lose a fortune.
In case you forgot, a bubble happens when investors drive shares prices way beyond the actual value.
Eventually prices start to get out of control climbing to unsustainable levels an... ››› more
I've experienced a few occasions where I believed I was investing in the right company at the right time... Only to see its share price plummet.
But as an investor sometimes you'll lose out - that's a big part of the experience. But the most important part is how you learn from these mistakes. That's why I look for these three indicators that tell me when a share is about to plummet.
Read on... ››› more
Earlier today, Anglo American Platinum (Amplats) released a trading update for the full-year to the end of December.
The platinum producer warned of a sharp tumble in earnings over the period. This follows a five-month strike that hit its operations last year.
Let's take a closer look at what Amplats revealed…
Amplats says earnings are to fall between 40% and 55%
Amplats [JSE:AMS]... ››› more
Earlier today, Anglo American Platinum (Amplats) released a trading statement covering its full-year to the end of December this year.
In the statement, Amplats revealed the company expects earnings for the full-year to drop significantly. This is mostly in part to a five-month strike that hit the platinum producer this year.
Let's take a closer look at what Amplats said…
Amplats say... ››› more
Earlier today, Eskom said it believes its power supply will suffice today, but it's a different story tomorrow and over the weekend.
The power utility says it has concerns over an electricity shortfall.
Let's take a closer look at what may lie in store…
Brace yourself for more load shedding
Spokesman for Eskom, Andrew Etzinger, says they have concerns about its power supply tomorr... ››› more
Group Five saw its shares dive yesterday following the release of a trading statement.
The company warned that earnings would be significantly lower in its interim results, due for release in the New Year.
Let's take a closer look at why Group Five's earnings are under so much pressure…
Group Five shares fell the most in 14-years
Yesterday saw shares in construction firm Group Fiv... ››› more
If you're an income investor, the last thing you want is to invest in a company for its dividend and for the company to cut it.
Even if you're not investing solely for a company's dividend it can be worthwhile finding out more. When a company regularly pays a dividend then cuts it or withholds it, chances are the share price will fall as a result.
So what can you look at when it comes to che... ››› more
Bitcoin fever hit the mainstream hard in 2013 and the virtual currency made headlines the world over. Like Gold, another currency favoured by liberals, Bitcoin has its bulls and bears. And no matter which you are, no-one can argue that Bitcoin has changed the way we think about currency. Let's take a look at Bitcoin's year in 2013.
Since January 2013, disgruntled economists and grumpy Luddit... ››› more
Earlier today, African Bank Investments (ABIL) released a trading update about its results for the year to the end of September. In the update, the bank warned that it expects earnings to fall up to 90%. This follows a trading update last month warning of a drop of 63%. Let's take a closer look at what's going on…
This morning, ABIL said that its earnings for the full year are likely to tumble... ››› more
Earlier today, African Bank Investments, or the bank better known as Abil, released a profit warning. It said that profits were likely to be down as much as 63%. The market didn't take well to the news, punishing the share down 4.51%. Let's take a closer look at the trading statement…
Abil revealed earlier that its profit for the year to the end of August is “likely to fall by as much as 63%... ››› more
Ferrochrome producer, Merafe, announced earlier today that its profits will be significantly lower for the six months to June. The share price closed 3% down. Let's have a closer look at what the results showed…
In a trading statement earlier today, Merafe said “its financial results for the six months to end-June will differ by at least 20%,” reports Fin24, when compared with the same per... ››› more
It's a sad fact that investment scams are rapidly on the increase. They dupe investors into parting with their hard earned cash with the promise of amazing returns, only never to see their money again. Look out for these six warning signs to ensure you stay ‘safe' in the investment world…
In the US and Europe, gullible investors pump millions of dollars every year into dubious financial sche... ››› more
It's important that you stay on top of the contents of your investment portfolio and maintain it to ensure that any laggards in your portfolio are whittled out. Here's how to spot the ‘red flags' that indicate some shares in your portfolio need to be turfed out…
To prevent yourself from holding onto dud shares, you need to cull the laggards and only hold winners.
That’s easier said than... ››› more
Investment scams are rapidly on the increase and you need to guard yourself against these all the time. In fact “gullible investors pump a lot of money every year into dubious financial schemes, often based offshore, only to discover later they've been had,” says The South African Investor. Read on to discover six warning signs you should look out for to avoid falling into the trap of investme... ››› more
Disclaimer Note that FSP Invest, a division of Fleet Street Publications (Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The advice in this website is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal situation, you should seek professional advice from a stockbroker or independent financial adviser authorised by the Financial Services Board.
We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions found in this publication.
Remember: Never invest more than you can afford to spare and that the value of any investment, and the income derived from it, can go down as well as up. The past is not necessarily a guide to future performance.
Editors or contributors may have an interest in investments commented on in this newsletter. However they have signed restraints to prevent the abuse of their position as contributors to this publication.