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How To Use Dividend Yield as a Reliable Sell (and Buy)Indicator

When to sell a stock has always been a mystery; till now.

George Schneider, M.A.
DataDrivenInvestor
9 min readOct 9, 2024

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When to sell a stock has always been a mystery; till now.

  • Buying a stock relies on many factors
  • When to sell is always a mystery for investors
  • Sell too soon and miss out on potential profits
  • Sell too late and suffer avoidable losses

Investors have historically found it easier to start accumulating stock than disposing of it. Emotional factors play into FOMO (fear of missing out). Once an idea has been hatched and enthusiasm has a grasp on you, every uptick in a stock’s price confirms you better get in before it’s too late.

But the notion of when to sell has always been a mystery for investors. If you sell too soon, you’re bound to miss out on future potential profits, or so your brain tells you. “ Sell your losers and let your profits run” constantly wafts through your investor brain. The uncertainty is enough to drive you batty.

“Bulls make money, bears make money, pigs get slaughtered”. This one also runs through your busy brain. Should you sell now and take your certain profits, or hold on for further gains? At the same time, intellectually, you know that if you…

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Written by George Schneider, M.A.

I am a retired clinical psychologist who combines behavioral investing principles with dividend growth strategies to enhance stock market returns and income.

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