As far as dividend paying stocks you are on the right track. In the period of 2000-2010, the only equity portfolios that gained money were dividend stocks. Everything else lost money. Take McDonald's as an example. It generally crawls up very slowly, and in bursts. You want to own it when it does go up, and you can hold because it pays a solid dividend, way more than you would get in a money market and then some.
It is based on the perception of whether the stock value is going down or going up. The buyers believe the value will increase, the sellers believe the value will decrease.
Also, the primary reason to sell a stock is the belief that there is a better stock out there. I would readily sell a 3.5% dividend company that has high debt, a low return on assets and a low profit margin, for an inexpensive 3.5% dividend stock that has low debt, a high return on assets and a high profit margin.
Dividends are only a small portion of the return on stock. Capital appreciation is also a factor. I would readily give up a 3.5% stock that does not appreciate in value, for a 0% stock with a price that appreciates 10% annually. This would be a growth stock.
Also, sometimes company officers get stock grants, they will sell the stock to diversify their holdings or to generate cash. Some people sell the stock because they want to buy a boat. etc.
Why would one sell these reliable dividend qaurterly paying stocks?
They have another use for the money.
"No one is going to sell good stocks like that" is incorrect. All stocks have a market value - it's always supply and demand.
People make profit my day trading or book the profit so they sell the shares and stocks in the list so it would be easier to buy for some other person
i aint sure
Although they are relatively expensive, and by no means a guaranteed. It does seem to me getting a reliable dividend paying stock such as Black and Decker and so on is the way to go.
It pays better then mutual funds, and you don't pay for a third party to organize these. Getting dividends from 4-5 different companies seems like a reliable way to get money.
If that is the case... why is it possible to buy these stocks? Shouldn't it be nearly impossible? No one going to sell good stocks like that, and surely they'll be bought just as quickly as it goes out in the market.
Am I missing something here? Why would one sell these reliable dividend qaurterly paying stocks?
