Retirement Strategy: Selling This Good Dividend Stock Could Significantly Grow Your Income

Seeking AlphaDividend Quick PicksRetirement Strategy: Selling This Good Dividend Stock Could Significantly Grow Your IncomeAug. 26, 2020 1:28 PM ET|| Includes: CHCT, MOby: Regarded SolutionsRegarded Solutions Portfolio strategySummaryIt has been three years since I suggested Community Healthcare Trust in an article here on Seeking Alpha.
There are times that it makes sense to sell a good dividend stock for another one.
Income growth is what it's all about, and if an opportunity presents itself to grow an income stream, it should be considered.
It has been about three years since I wrote this very strong article on Community Healthcare Trust Inc. (CHCT) that was flying under the radar. Truth be told, I was fortunate to read about it in a Seeking Alpha PRO article. At the time I felt it was a strong enough selection to write about it for my followers.
As it has turned out, I was correct with this suggestion. And those folks who purchased it, as I actually did myself, have profited quite nicely, both from an income standpoint as well as with a solid capital gain.
At the time I wrote about it, the stock was priced at $25/share with a sweet yield of 6.4%. It was only two years old at that point and I felt I had stumbled upon a strong dividend growth stock. As I said, I was not wrong, but a funny thing has happened if you have been holding this stock for the last three years. The dividend growth has been anemic at best, but the share price has doubled! Well, what do you know? It has been a growth stock rather than a dividend growth stock! That does not mean it is a "bad" stock, but today's yield is just 3.6% and the chart shows this:

Basically no income growth. However, the share price has nearly doubled since I last wrote about it!
Data by YCharts
The issue with the stock is that it has been stagnant as far as dividend growth is concerned, and with the increased share price, it can be sold for a strong capital gain for another very strong... Read more