This week, I sold 14 stocks from my dividend stock portfolio. These stocks comprised 15% of my portfolio's value and 12% of my dividend income. Learn about my big moves, my criteria for selling stocks, and the three most shocking positions sold.
#dividend #stock #investing

Timestamps:
0:00 INTRODUCTION
0:23 I now own 36 dividend stocks, however I'll probably own 37 soon, as I plan to build SCHD in a big way over the coming years.
2:30 SEGMENT 1: THOUGHTS ON SELLING DIVIDEND STOCKS
2:44 Insight: Selling is an opportunity to tighten up a portfolio, improving structure.
3:47 Insight: Reducing portfolio size can help motivate one to hustle and rebuild the portfolio!
4:51 What I'm Doing: Reinvestment is off, dividends are being used for living expenses, rebuilding cash reserves, and rebuilding my 15% (this time in SCHD).
5:58 Insight: Dividends are meant to be used (and even the underlying equity in some rare instances).
6:21 Thought Exercise For Home
6:40 Check out my Patreon (pinned comment below).
7:20 SEGMENT 2: MY 7 CRITERIA FOR SELLING DIVIDEND STOCKS
7:59 Criteria 1: No dividend yield (surprisingly, I had two stocks that paid no dividend)
8:27 When it comes time to pair down a portfolio (and live off dividends), the collection stocks just don’t make sense anymore.
8:51 Criteria 2: Overvalued dividend stocks (combined with low dividend yield)
9:35 Criteria 3: Loweryield dividend stocks (with fast dividend growth)
10:10 I need current yield now, and I can't wait as much for the future dividend growth.
10:33 Criteria 4: Long tail of ancillary positions that add unneeded complexity
11:16 What was fun during the accumulation phase does not really work in the optimization phase. I don't need extra overhead and work.
12:00 I plan to add SCHD regularly over the coming years to build back my 15% that I sold.
12:21 Criteria 5: Loser stocks don't have as much room in a smaller portfolio. When I have to sell something, I cannot rationalize selling a winner over a loser. Hence, the loser goes, even if it seems like a value.
13:30 Criteria 6: Fundamental Changes (poor fundamentals, such as a payout ratio over 100%)
14:22 Criteria 7: Portfolio Overlap (making sure not to have too much concentration in any category)
15:02 I'm now underweight tech and industrials. And, I'm overweight sin stocks.
16:35 SEGMENT 3: THE THREE MOST SURPRISING DIVIDEND STOCKS I SOLD
16:49 Dividend Stock 1: Apple (AAPL) Overvalued with a low dividend yield (and a nice gain in equity)
17:44 Right now, I need immediate cash flow now, as I'm going to use most of it right away.
18:40 Dividend Stock 2: 3M (MMM) I lost a lot of money on this, and just had to cut the loser. It was a complex decision to sell.
21:23 Dividend Stock 3: Colgate (CL) I sold this stock to keep my CPG weighting to a reasonable level.
23:20 DISCLOSURE AND DISCLAIMER

DISCLOSURE: I am long Procter & Gamble (PG) and Unilever (UL). I own these stocks in my personal dividend stock portfolio. I plan to buy SCHD.

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