Author: Tim Plaehn, Investors Alley

My advice is to stop trying to guess what will happen with interest rates, and instead take advantage of the yields you can earn on short-term investments.

Last week, I showed you how I make one of the most difficult choices an income investor will ever face: when to sell a stock to lock in a profit. Today, I’ll cover the only decision that’s even harder: when to give up on a stock, let go, and sell it at a loss.

Today I cover when to sell a stock to lock in a profit.

When one of these announcements hits my inbox, I send a sell recommendation to my subscribers.

The 2022 bear market hit high-yield stocks (except for energy stocks) hard, and my subs sent me many questions about the status of their investments. One stock in particular moved relentlessly down, making investors wonder if the company’s big dividend was safe. Last week, the patience paid off, and investors who averaged down are back to even, with a 25% lower share price. Let’s take a look at how this approach really pays off for dividend investors…