| ♥ 0 |
Hi Dan, I am recently retired. I have a portfolio of mostly blue chip dividend-paying stocks. I plan to live off these dividends. Is now a good time to take advantage of the high dividend yields available, especially if I can sell some non-dividend paying stocks that have fallen less than some high-dividend paying stocks? For example, I am considering selling my holdings in CP that I have held for several years and are currently down 25% since mid-February and paying a dividend of only 1.24% for FTT, which is down 42% since mid-February and paying a 6% dividend. Is this a good strategy, and a good reason to be adjusting my portfolio at this time? Thanks, Dan Simard.
Marked as spam
|
|
Private answer
Hey Dan. Your strategy, especially if you are looking for more income is solid. Especially for someone in retirement and looking to use dividends to supplement income, or even fully supply retirement income. However, the execution of it needs to be well thought out. And in this case, the exchange of CP Rail stocks for Finning would be very risky in my opinion. Finning sells, rents, and leases a lot of products that are widely used in the construction and oil and gas industries. A recession here in Canada or even on a global scale in addition to a tanking price of oil could cause Finning to struggle. This is probably why the company's stock price has been nearly slashed in half over the last month. If you're going to do this, in my opinion the strongest way to go about it would be to stick to blue-chip large cap stocks. To find these, our dividend screener is an excellent option, especially with the filters. https://www.stocktrades.ca/our-top-dividend-stocks/ Simply enter the market cap limit (eg: 5000 would be companies $5 billion or more) and you can even mess around with yields, dividend streaks etc to really narrow down your search. This really depends on each individual as well, but if you do need access to principle in retirement, it may be wise to look into fixed income options like bonds. Even though they don't pay very well right now, it is better than needing principle at a time like this and having to sell stocks at a loss to gain access to it. Marked as spam
|