I bought last year $BAT last year and am making a profit of around 50%. The quarterly dividend is around €61.
What would you recommend?
Sell the position and collect the profit?
Or stubbornly leave it in the portfolio, enjoy the dividend and reinvest it?
I admit that I would miss the dividend, as it makes up a large part of my income and the dividend income motivates me immensely, as I want to build up an income of around €1000/month in the long term.
But of course, the profit is high, so I can collect many quarterly payments almost immediately, minus tax.
Why not let it run? It hasn't risen by 50% for nothing. Apparently the market is assuming that the company will generate more profit and growth than it did a year ago. Personally, I am also invested and am happy about both. I would only sell if I thought the share price would fall soon.
