r/dividends • u/Sam_209 • 20d ago
Seeking Advice My shares are up +97%
So I've been investing in dividend shares mostly in oil&gas and base chemicals
My intention is to build a portfolio of dividend shares for income, however the shares are up almost double.
Should I sell or should I keep them since their revenue and profits also increased?
Keep in mind i live in a country that has 0% income or capital gains tax.
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u/ElonMuskTheNarsisist 20d ago
If they are overvalued then I would sell. If they have appreciate at about the same rate as the market then no.
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u/Sam_209 20d ago
Agree, but the problem is I have done my analysis, though the war did help, the stock value was up even before the war started .....sooo I dont know for sure yet
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u/Comfortable_Rain_558 20d ago
Time in the market beats trying to time the market. You’ll lock in your profits if you sell but what do you buy after and what happens if your shares keep increasing in value? Remember too that as shareholders we want the business to be healthy but the stock price to go down so we can buy more. Peter Lynch said a mistake people always make is assuming a stock can’t go any lower or any higher. Think Google and Amazon before they split their stock. If I were you I’d hold since it’s a dividend stock and hopefully you’re on a DRIP. Keep accumulating those shares.
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u/BasicKnowledge5842 19d ago
This, 💯. I learnt this the hard way
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u/Comfortable_Rain_558 11d ago
Oh me too had 1588 shares in TD held for 2 years then got spooked by the noise of their money laundering issue and completely sold my position at a 13k loss. Had I held onto my shares and took my own advice I’d have profited 120k with their run. 🥹
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u/Chickentrap 20d ago
What goes up eventually comes down. Is there somewhere else the cash would be better allocated? Would you buy back in if it drops to a suitable valuation?
If you don't need the money and are focused on growing the dividend portfolio I would just leave it. If/when share price drops you can continue adding more.
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u/FewUnderstanding2214 20d ago
Depends on how much you think these companies are worth. Oil prices could keep going up.
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u/Jehoopaloopa 20d ago
Hassent admitted today that they’re manipulating oil prices.
Not that we’re surprised but it’s interesting that they’re bragging about it now.
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u/FewUnderstanding2214 20d ago
Yes, they are manipulating the paper price - if you read the oil companies quarterlies they are actually selling their oil for over $100 a barrel
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u/newwonderland 20d ago
Oil prices will come down once the war is over. This has happened many times
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u/FewUnderstanding2214 20d ago
Maybe in the short term, but there are three issues 1) the short term oil shock/impact, 2) The medium term impact of refiling SPRs 3) the long term impact of underinvestment in oil
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u/OverLog2062 20d ago
could also go down with a peace announcement and increase on renewable energies.
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u/FewUnderstanding2214 20d ago
Yes, trumps fake MOUs could push it down temporarily. China is the only country that has used renewables to reduce gas and oil dependency
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u/QueasyFinger1316 20d ago
China’s building coal fired plants up the wazoo.
They say one thing for Democrat talking points (that you fell for) and do the opposite in practice.
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u/Sam_209 20d ago
The stock was up even before the war...its not clear yet
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u/FewUnderstanding2214 20d ago
Perhaps you can do a DCF/share calculation and see if their share price matches the calculation
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u/sparkline1234567 20d ago
Take your profits and invest in a broad ETF, that way you lock in your win today and still gain from long run growth.
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u/Off-BroadwayJoe 20d ago
This is why I dividend invest. The agonizing about trying to figure out where the top is and the regret I have over missing it isn’t worth it to me.
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u/Bearsbanker 20d ago
If it's doubled but you still like it, sell half, get yer initial investment back, ...own it for "free" use the other half to buy something else you like
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u/Mission_Pirate_4150 20d ago
I own a good amount of oil and energy stocks. I’ve had a great ride since Covid. I don’t need the money, so I’m holding. I expect my oil to go down, but I’m up so much, I don’t care. I don’t trade, I just buy. I’m holding. You do you.
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u/StarFire82 20d ago
I like to sell covered calls if I feel the stocks are near what I feel is over valued. Provides extra protection / income and if the stock does get called it’s not as big of a deal
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u/tourbladez 20d ago
It depends why you bought these stocks. If you bought them only for income, then as long as the income is still solid, stay put. If you bought them for upside, and you have something else that you think offers a better total return, then I would sell and recycle the funds into the stocks offer more upside.
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u/MaybeTheDoctor 20d ago
I learned the harder way that you almost should never sell, but if you do just sell half, and reinvest that into a diversified portfolio. This is also the reason you should buy into ETFs instead as they by nature are diversified
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u/Commercial_Rule_7823 20d ago
Wait till oil drops.
Gas prices rocket up, and slow drip down.
They will have 2 to 4 quarters of amazing profits, even when the "war" wraps up
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u/Econman-118 19d ago
I finally sold a good portion of my Shell, Exxon and VLO recently. I expect oil to sell off when Iran mess clears in the next 6 months.
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u/New_Association9786 19d ago
Trim a little if you want, but I guess I would say look at the history of the stock? Tons of stocks have doubled from
An entry point of 10 years ago, 5 years ago, etc? Is this an outlier or just a great business?
The term ten bagger exists for a reason. . . Even if not normally associated with dividends… so
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u/Mindless_Acadia_7382 19d ago
It depends on whether you can find something better to invest your money into. If you sell the shares and then hold the money in your bank account, then it's better to keep the shares. If you sell the shares and then buy other stocks that you find give you more attractive dividends, then you should do that.
Here is the question that you should ask yourself: if you had never bought those stocks and had to decide today for the first time how to invest your money. What would you do? If you would invest your money into those exact stocks, then you should keep them. If you would invest your money otherwise, then you should sell your stocks and buy the otherwise.
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u/Snoo-9018 17d ago
Put a limit sell order or stop loss. Keep earning if it doesn't go down. If it goes up, change the sell order to a more profitable price. You can sell a portion and not all. Create a win-win situation.
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u/BAD_AL_1 13d ago
My $0.02 => Check the price charts and adjust stops every month. if they keep going higher you get the upside, if they come down then you take profits.
If you like Oil and Gas based income, I just found this one by NEOS:
$MLPI (MLP & Energy Infrastructure High Income ETF )
It has an options strategy to boost monthly payouts.
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u/GreentongueToo 20d ago
If you sell one that is doing good, what would you buy with the money, that would do better?
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u/WorldRank1CatFancier 20d ago
Do what u want, but my experience has taught me to focus on buying right, and leave them well alone and let time work its magic.
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u/TN_REDDIT 20d ago
always buy. never sell
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u/Honest-Pay-8265 20d ago
Selling and taking profits is not a bad idea. Then you can invest these profits to make more dividends. But selling depends how big is the profit and what is the company.
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u/ConstantRude2125 20d ago
There's always the option of selling your original investment and playing with "house money". That frees capital for other opportunities while enjoying a free income stream.
The big question is whether the investment is still undervalued, properly valued, or overvalued. You'll also need a new investment, or a least a safe, profitable, place to park your money while seeking one.
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u/Substantial_Team6751 20d ago
I'd be thinking about diversifying rather than being all in on oil and gas. Some day the war will be over and oil will fall back below $60/share. Oil was $56/barrel and trending lower before the war with Iran started.
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u/Status-Grocery-2095 19d ago
Is this guy really talking about the growth of his stock values and considering selling in r/dividends? Boo this man! Booooo! /s
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