(4) Dividend Cut Or Eliminated
It is one of the most important & proven tips to know best and right time to sell stocks. Dividend is a sum of money that is typically paid by a company to its shareholders. It is usually paid on quarterly basis or annual basis.
Dividends are often decided by company’s management depending on quarterly earnings of the company. A company usually prefers to pay higher dividends if its earnings are increasing.
However, if its earnings are decreasing then it may either cut or eliminate dividend completely. Dividend cuts are serious events & often an indication of financial difficulties ahead.
If a company in which you are invested is cutting its dividend payouts then perhaps it’s right time to sell it. However, you should be wise enough to differentiate dividend cuts for positive reasons like business expansion, buy back offers, acquisitions & many more.
In such case, you can prefer to hold your shares until positive measures starts reflecting in its share price.
(5) Disruptions Hitting Invested Sector
It is one of the most ridiculous & proven tips to know best and right time to sell stocks. You invested in a given sector only after considering every aspect of stock investment. But, your investment strategy doesn’t work out due to tumbling of entire sector.
Some of the reasons that may cause tumbling of entire sector include unfavorable economic conditions, recession, political uncertainty, business restriction, & many more.
In such an adverse business scenario, there is a high probability of stock price to slide to significantly lower levels.
You should cut your positions irrespective to your profit or loss in a given script. Once the entire sector become business-friendly, you can start investing again for valuable gains.
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