Never Sell A Blue-Chip Stock That Drowns You In Dividends

When I receive e-mails from people who have come across this blog and want to discuss portfolio strategy, I’ve found that a good chunk of readers have taken to a dividend growth strategy even if they would not articulate it as such.

The impetus for writing this article came from a reader who said (in my paraphrase), “Yeah, I’ve held Coca-Cola, Johnson & Johnson, and Colgate stock which you talk about a lot. I’ve had it since 1992. I didn’t really see the point in selling it because the dividend kept going up.”

Once you have one of the top businesses in the world on your household balance sheet, it doesn’t really make a whole lot of sense to sell it. A well-picked dividend stock is like your own little money well, your own little cheat that makes life easier, your own little ATM machine that dispenses money four times … Read the rest of this article!