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No. of Recommendations: 14
Hey studmangeezer !

These are troubled times, but not terrible times. And BAC could go back down to $18 as you suggest. And you lived through that earlier $18 level and didn't sell. That's OK. Lets look at what might be happening. Please use your own actual numbers, but this is what I can put together using the information you supplied.

I bought into BAC because of the dividend yield, and have held on until now for the same reason. OK ... you want the dividend ... that's good.

If I sell now I will realize about a 25% loss If today's share price is $31 and you stand at a 25%loss, that means that you must have purchased BAC around the $40 area.

Today's dividend of $2.56 is paying YOU a yield of aprox. 6.5% on YOUR $40 investment.

Should the share price return to $18, and they don't cut the dividend, you will still be receiving 6.5% on your $40 investment. Should they actually cut the dividend to $2.00, you will still be receiving 5% on your $40 investment. That ain't bad.

However, if you sell now, you will lock in a 25% loss and have no dividend coming.

If the share price goes down to test that $18 low, you could buy some more which would lower your per share cost average and increase your dividend yield. And when the price goes up several year from now (your words) you would be doing real well.

That's just my personal perspective which could be all full of holes.

Rich (haywool)
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