Consider A Stock Sale If Price Would Nix Purchase

Why do many people ask, “Should I buy such-and-such a stock?” but few investors ask, “Should I sell?”

“Americans are inherently optimistic,” says Donald Cassidy, author of “It’s When You Sell That Counts.” He adds, “Buying is an optimistic decision, but selling represents closure and we resist it. With the proliferation of 401(k) retirement plans and mutual funds, investors must learn when to sell.”

Selling pointers: Act as if you didn’t own the stock. Then ask yourself if you would buy shares at today’s price. If not, seriously consider selling.

Other reasons to sell: If a stock grows to over 20 percent of your total holdings, cut back, pay the capital gains tax and sell.

Other “sell” signals: If the company’s share of the market declines, competition increases, earnings falter or dividends drop.

Right stocks for steady income

Do you want a weekly stream of dividend checks?

The following list, from the Dick Davis Income Letter, provides 52 checks a year, arriving one week apart. On a $100,000 investment, you’ll receive weekly income of about $100, for a yield of 4.9 percent.

Many of these firms raise dividends often, keeping you ahead of inflation. The list is dotted with utilities, and includes two real estate investment trusts, a Baby Bell, two natural gas companies, a water utility and one Big Three auto stock.

The companies are: American Water Works, Bell Atlantic, Duke Energy, Federal Realty, Ford, GPU, Nipsco, Northern States Power, Peoples Energy, Questar, Southern Co., Weingarten Realty and Western Resources.

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