I wouldn't rush to sell everything. There's nothing inherently wrong with holding individual stocks as long as they are quality companies and the allocation amounts aren't large enough to jeopardize the entire portfolio if a given stock tanks/underperforms. Practically speaking, however, you'd be better off getting something like SCHD if you want to still pursue a dividend strategy vs. having to manage all the individual stocks (i.e. SCHD does this for you). The tradeoff is, however, you can make significantly more income return by holding the individual stocks vs. a dividend fund. So there isn't a free lunch here: on one hand you have the potential of higher income on the other hand you have much higher management complexity. Also - assuming a given stock is not allocated an outsized allocation amount, you can benefit even if the stock underperforms and you sell at a loss as you can claim a capital loss (to offset capital gains elsewhere). As I said - this isn't necessarily all bad.
Statistics: Posted by mbouck — Wed Jun 05, 2024 9:11 pm — Replies 7 — Views 496