Mind Games

Apr 16, 2009 13:52

I have a thought exercise/question. If you buy a stock that pays regular dividends, and the price drops (at least temporarily), should you get too worried about "losing" money on that stock? If your primary reason for buying it was to get the dividend income, then it's pretty much irrelevant how low the share price goes from that point, if your yield in the first place was good (unless of course the dividend gets slashed right along with the share price), right? Theoretically, the price could go to zero, and if you're holding onto it for the next twenty years, you shouldn't really care.
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