A recent article titled, “Optimizing Returns By Selling Overvalued Companies” has posted over at Seeking Alpha.
This article outlines what I did with the proceeds from my AT&T sell last fall. The next article will take a look at what I’m going to do with the proceeds from the loss I took on TEF and SFL. That should be a fun one to write. Nothing like trying to make up a $1700.00 loss. 🙂
Look forward to hearing your comments.
The Stoic Investor 
What you say about replacements is just to true. But about DGI I always wondered if many DGI´s put to much emphasis on the growth rate itself. For example: You can have a 3% yield going up by 4% per year on a position. Is it better or worse if this position made a decent appreciation and you sold it if you replace it with a position that gives you 7% yield but no or less dividend growth?
A question that I think is not too easy to answer. What do you think on this “problem”? I would say that it depends on the foreseeable time you want to hold that position. And exactly here comes “the foggy crystal-ball” to the game, at least in my mind. As it is impossible to predict the appreciation of a stock, it is even more unpredictable how long it might take to meet this fact. And the estimated dividend growth is also something you can never really know.
So sometimes that bothers me a lot and maybe you tell me how you deal with this cascade of uncertainty. As the most important thing for me is the magnitude of the stream of income deriving from my depots those thoughts are particularly important for me in the investment process. One could say that I hold a lot of so called “risky” positions. But I feel that those risks kind of balance each other.
A recent example: My greek bonds today declined significantly (only after tremendous gains since last summer). On the same day my position on Pitney-Bowes shares soar. Maybe that is indeed a good way of balancing risk…