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I'm not saying you should never sell. I'm saying that it's the fundamentals, especially earnings, that determine whether the company is and will continue to be able to pay dividends in the future. Sometimes you have to sell, either because the dividend is no longer sustainable or because it no longer has much room to grow.
Remember that dividends historically represent nearly half of the market's total profitability. By focusing on price gains/losses, you are forgetting this important reality.
On the subject of the sale of dividend securities, I invite you to read the following articles:
http://www.dividendes.ch/2011/12/quand-vendre-des-dividendes-croissants/
http://www.dividendes.ch/2012/05/prendre-ses-benefices-avec-des-payeurs-de-dividendes/
I am not a fan of technical analysis, because it is too open to interpretation and too many false signals. But it is possible to reconcile the two approaches if that is what you really want. On this subject, I invite you to consult the series of articles http://www.dividendes.ch/2012/04/dividendes-to-be-or-not-to-be-episode-1/
I have selected a few dividend-paying ETFs in my strategy Ex-US (market = PCX).
Otherwise I know that there are ETFs on dividend aristocrats. You have to look a little and you easily come across them.
However, a few ETFs or investment funds are good to bring a little diversification, especially on types of investments or markets that we do not know well, on the other hand it is always less good than the original, and more expensive.
It is better to start by buying a few solid blue chips, with sufficient starting capital, 2000 euros minimum per share, ideally 4000 euros, then gradually increase your capital.
Hello Krasnaya, it's good to invest little by little, it smooths out the risk of returning at the worst time. However, I do find that the amounts invested are very small and as you say, the fees will eat up a lot of your profitability, even if you invest for the long term.
Danone is a good stock. You should not focus on whether the price is going up or down. The important thing is to see if the company is able to maintain its dividend or even grow it.
Good luck to you.
No, that's nonsense because the value of your original ABT share has been reduced by half, so it's not income! You've just cut your Camembert in half. You're not richer after this spin-off than before... Well, that may be "normal" in France, but it's not very ethical from my point of view...
Um, where are you based??? How can you be taxed on a dividend in this case? It is not an exceptional dividend but a spin-off, namely that the former Abbott company is split in two, at the same time as its capital, distributed between the two new companies ABT and ABBV. There is no reason to tax this separation.
I sold ABBV with a slight capital gain, which I partially ate up in sales and ABT buyback fees. It's not my usual style of trading like that, but if I want to be consistent with my strategy, it's the only way. And let's say it right away, spin-offs are fortunately rare, because I personally don't like them. In the end, by selling ABBV to buy back ABT, it's as if there had been a simple split of my ABTs, accounting-wise. Of course, the "ABT" stock is no longer quite the same as it was last year...
I have to say that this spin-off bothers me quite a bit. ABT and ABBV are certainly good stocks but their split takes them out of the scope of my Global Dividend Growers strategy.
ABBV as a new stock has no dividend history and ABT due to the split sees its dividend cut in half. It is true that this last cut is only "virtual" due to the spin-off but it still bothers me.
In short, my brain is boiling over this case these days and I imagine all the plans, including settling these two lines.
Too bad Abbott didn't stay Abbott...
It's funny to note that Belgium, although the seat of the European institutions, is gradually taking Switzerland's place among the countries described as "tax havens" 😕
And as they often say in the stock market:
– The trend is your ally
– Buy low and sell high
– You never catch a falling knife.
In short, all this contradicts itself, but it is all right and wrong at the same time...
Hi Astyx
I am always wary of technical analysis because the author always sees what he wants to see. We can find trends on several axes and over different time periods. In addition, it very often happens that the price passes through this axis briefly before going up or down. Finally, and perhaps especially in my case, we only talk about the price, which historically represents only 50% of stock market performance. We forget about dividends!
For me, Air Liquide still has a good profitability/risk ratio.
at my place it's +0% on ABT and -44% on Abbvie, banks do pretty much what they want apparently
It must be said that in Switzerland capital gains are not taxed so there are not too many consequences.
I had already noticed in the past some oddities in the methods of calculating capital gains.
Maybe the frequency is only annual instead of quarterly??? That would seem surprising to me, but hey... in that case I see even less advantage!
