Why We’re Selling 2 Of Our Biggest Holdings And Replacing Them With 2 Far Better Quality, High-Yield Income Growers

Posted On August 5, 2017 10:50 pm

Even history’s greatest investors are only right about 60% of the time. The reason that they do so well in the long-term is a methodical portfolio management strategy that minimizes emotions, and follows a set rule based strategy around a well thought out core philosophy.

In our case our Deep Value Dividend Growth Index is built around the idea that something is always on sale.

Thus we selected the majority of this 200 stock portfolio from companies hitting 52 weeks, with several screens around dividend safety, sound balance sheets, and other metrics designed to minimize the risks of dividend cuts.

That being said, our system is adaptable and if the investment thesis changes, then we are willing to cut our losses, and replace a lower quality stock with a higher quality one, as we’ve done a few times in the past.

However, this week brought two major sales, including two companies in our top 10 holdings.

Find out which companies no longer qualify as high-quality income growth investments, and more importantly what two replacements are far better choices for a diversified dividend growth portfolio.

About author

Dividend Sensei
Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I currently write for both Seeking Alpha, Simply Safe Dividends, and DividendSensei.com My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams, and enrich their lives. With 22 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams. I'm currently on an epic quest to build a broadly diversified, high-quality, high-yield dividend growth portfolio that: 1. Pays a 5% yield 2. Offers 7% annual dividend growth 3. Pays dividends AT LEAST on a weekly, but preferably, daily basis

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