Comments on: Portfolio Re-Balancing – Doing It Proactively

By: Dividend Tree

Dividend Tree — Thu, 28 Jan 2010 14:29:16 +0000

I hope today’s post will answer some questions.

By: Inq

Inq — Wed, 20 Jan 2010 02:45:49 +0000

Thanks. Dividend cut is an exit point. Do you have exit points based on stock price (how much it goes below or above buy point)?
Thanks

By: Dividend Tree

Dividend Tree — Tue, 12 Jan 2010 19:20:19 +0000

DGI,

I am with you on both stop reinvesting, or stop new money allocation.

For now, I am still in very early building stage, so I am continuing re-investing through brokerage house. The biggest is stop allocation.

Best Wishes,

By: Dividend Tree

Dividend Tree — Tue, 12 Jan 2010 19:17:56 +0000

Hello Inq,

I do not sell dividend stocks just for the sake of balancing. If i continue to believe it is a good stock, then I keep it as is. I do not buy new shares.

In almost all cases, exit point is dividend cut. Until then continue to hold. Slowly keep increasing the stake.

Best Wishes,

By: Dividend Growth Investor

Dividend Growth Investor — Sun, 10 Jan 2010 19:23:57 +0000

I typically stop reinvesting dividends if a stock’s allocation goes out of whack. The next line of defenense is not allocating any new money to the stock. Of course most of the times the stocks which are attractively valued and offer good dividend growth potential are the ones with the highest weighting in my portfolio.