What to Do When Natural Selection Happens to Dividend Portfolios

Investors should purchase stocks with the intention to hold on to them forever. They should spend time analyzing the stocks to purchase, fine tuning their strategies and diversifying their portfolios properly. However they should realize that things and conditions change. Sometimes the best decision investors could do is sell their stocks when changes occur. As a result, even a portfolio of carefully selected wide moat companies could have big turnover over a time period of several decades. Nevertheless, it is important to try and select only the best dividend stocks after a rigorous screening on such lists as the dividend achievers or the dividend champions. Investors do have to remain nimble and on top of things, as any changes could lead to portfolio turnover over time.The changes that could occur include buyouts, dividend cuts, spin offs and changes in the business environment. I highlighted several conditions which would make... Read more