Thursday, July 20, 2017


While I hadn't planned on selling any individual stocks in any of my accounts, in this case it just made sense.  I have been sitting on a small 10%+ gain on CSX thinking I'd keep the stock long term for increasing dividends.  However, when I realized it would take over 12 years to collect as much in dividends as I could get right now by selling and taking the profit I reconsidered.  Then I was left with the problem of replacing the quarterly dividend payments by investing the money elsewhere.  So I decided to put the money in monthly dividend bond fund NCV.  Not only did I replace the three quarterly dividend payments lost by selling CSX, but I also added an additional 8 payments per year, bringing my total annual dividend payments up to 453!  On top of all that, the monthly income from NCV is a little over 392% more than I earned from CSX!

So this has me thinking I should watch for more opportunities to cash in on capital gains in my non-taxable accounts and reinvest the cash to boost monthly dividends.  I already have a few good prospects I could take advantage of.  The only question that comes to mind is, how can I repeat this process over and over?  I'm thinking it would be a good way to add a great deal of money to my final retirement stash.  I'm going to have to look into this a little more and figure out a way to incorporate it regularly in my investment plan.  I'll let you know how it goes.

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