I am new to investing, having just gotten divorced and for the first time controlling the investments in my IRA. I have 3000+ shares of MCI (which represents more than 1/3 of my IRA value) and am very happy with the dividend, however, I'm a little concerned about holding such a large % of this stock long term. Since I basically "inherited" this stock,and still learning, please give me your reasons why I should/should not hold on to it. Thanks.
You can put a stop loss at 25 for say 80 percent of the shares. 1/3 of your portfolio is risky so you need to quickly make a move if the stock is in trouble. This high of a dividend indicates problems so be careful.
If you like high dividend, you can diversify some of the shares to MO, JNJ, EMR
Thanks for the advice. MCI has been the best fund in my IRA since I took it over in January. However, I'm thinking of reducing my holdings down to the 25% portfolio range, and diversify a bit more. Thanks for the advice about putting a stop-loss on it, also. This is all new to me and I really appreciate you taking your time to help me. Vicki
The deserve to be a key holding,maybe not 33%, but deserve a spot (could stay at 33% if you really dig in and do your due diligence MCI is that good, but do whatever is necessary for proper diversification given your situation)
The main reason is short (I have mainly more, but have to run today) is their long term track record. I have been a holder for many years.