monabri wrote:Pearson...yield is 1.74% (figure from dividend data)....what possible reason is there to keep hold of when one could buy income of 3x this amount without too much digging. The only reason I can think of is that the share price is well below the purchase price and that is a factor?
Or, for every £1k of currently invested money in PSON, one could sell and effectively buy £3k "worth" of dividend elsewhere....
edit..or one could buy 3 off £1k top ups ..thus spreading the 'out of the frying pan' risk...
The main reason to hold PSON is that the investor already owns it and is an eternity HYPer. This removes all decision making and most monitoring requirements, other than dealing with the effects of occasional mandatory corporate action.
Tinkerers should have sold PSON a long time ago if they are playing it logically with some sort of math dumpology based on, eg., yield relative to the market, and as you say, reinvested in a much higher yielder. What I'm commenting upon here is the sort of dither-tinkering resulting from having no clear sell signals. I don't really get that at all.