This is not a buy and hold investment strategy, rather it’s a buy and ‘monitor’ strategy where you sell a stock when it fails to meet the goal of generating an increasing stream of income by raising the dividend payment each year.

Fortunately, because we only purchase the best dividend growth stocks that have a long history of raising their dividend an average of 25 or more consecutive years, we rarely have to sell any stock. In those rare cases when we do have to sell a stock there are rules we follow.

When to Sell a Stock

Sell and replace a stock if any one of the following occur:

  1. Fails to increase the dividend for two consecutive years
  2. Cuts (reduces dividend) or suspends (no dividend)
  3. Is bought by another company (experiences a management change)

So I know what you’re thinking: “How am I going to know when this happens?” You could certainly follow your own stock, but if you don’t have the time, just subscribe to the Dividend Geek service. If any of the stocks that have ever been listed on the Best Dividend Growth Stock list meets the sell criteria we send out an email alert.

You will also receive our monthly Dividend Geek Status Report with relevant, easy to understand coverage of all of our best dividend growth stocks.

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