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Bruce, Russ, and all.

Forgive me for jumping in here, but I've been following this thread with interest. Thanks for all the insightful ideas.

I thought I would throw in my real-world problem, and maybe keep the discussion going.

Some background. I'm fairly new to income/dividend investing, but have followed the FF and BSP strategies for sometime. I don't need income from my investments as I won't be drawing for retirement for some time.

My IRA and 401K are both in mutual funds, but hold several stocks in a taxable brokerage accnt (E*Trade). I really enjoy managing my investments on my own in this accnt and have been very fortunate.

My 1st high dividend paying stock was PSD, my local utility, that pays a nice 4.6% dividend. It is the only stock I own that is set up for a drip.

My 2nd high dividend paying stock was GM, which I bought in May 2003 for 35.00 a share. When I bought it, everyone hated GM and F, and the news was universally bad. I thought it would be a good contrarian play, and it payed a hefty 5.7% dividend.

My 3rd high-dividend stock is BMY, which I just purchased last week.

Well, since then, GM is up 50% and I'm contemplating what to do.

Thought 1: Sell GM and lock in the profit, pay the Cap gains and re-invest in another high-yield stock. My gut was right and I should reap the reward of my good fortune.

Thought 2. My original investment is still paying a 5.7% dividend. AND, since it's appreciated so much, I have a nice cushion to sell should they cut the dividend or bad news befalls it.

My "gut" says to hang on to it at least until I've held it a year. I think it's got upside to 65, but put a threshold stop in to lock in profits should it drop precipitously. But I really haven't decided.

I would appreciate your insights very much on this and I hope I've added to the discussion a bit.

I'll be making two more buys on Friday. I've chosen VZ and WM. I would appreciate any thoughts on those two also.

Thanks again so much, and Merry Christmas!
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