Mind Games
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
( Read more... )
Comments 1
Rule # 2: Refer to rule number one.
When share price goes down, you lose money on paper. That loss on paper is transformed into an actual loss when you actually sell the shares (assuming you sold for less than you bought it). You should care what happens to the share price and whether it keeps dropping. Also, there is no guarentee that the company will continue to pay a dividend or will lower it substantially.
Reply
Leave a comment