Read? High Dividend Yield Stocks? (10)
When you received your stock dividends, how do you want it to be done? Raw, medium or well done?
The way you treat it may determine how likely you are going to hold or sell.
Discount
When you received your stock dividend, you mentally discount your holding cost against the dividend received. It lowers your holding cost. So shiok! You may even tell your wife. "Honey, it is cheaper now."
Every year it will become cheaper after receiving more dividends Why sell? Since it is getting cheaper soon.
Pain Killer
Wah, so shiok! My dividend is coming in July. What paper losses? Never mind le. Oh ya! SCB account will be ready in end Jun so no problem to reinvest the dividend for compounding "interests" - Eight Wonder of The World.
After receiving so many doses of pain killers, pain no more ......