I think it's more an issue with the American (or worldwide?) issue that the average person does not understand how their taxes are calculated, and thus view their investing gains as completely separate from their taxes.it's called Innumeracy.Some in my circle love chasing yields. It does not matter how many times one can explain the yield trap and why individual stocks with high yields are not a good thing.
many people are not financially literate.
We just don't get this education unless we seek it out. Including medical training I completed 15 years of education after high school. I'm embarrassed to say how long it took me to realize, for example, that HYSA interest was taxed or how exactly my 401K worked. The dividend investing subreddit has 608,000 members and I'm going to assume that many of them don't understand capital gains, ordinary dividends, and that the individual high-yield stocks they are touting are, in some cases, actually losing them money.
Basic financial planning should be a class in high school.
The above doesn't necessarily apply to OP by any means, but given the ticker in question, my advice would be to keep the original investment untouched and continue reinvesting dividends elsewhere. I think the key in this particular investment is to wait for a noticeable up-tick in stock price, then sell.
Statistics: Posted by breakfastinbed — Thu Oct 31, 2024 12:24 am — Replies 46 — Views 1806