BoodaGazelle
Recycles dryer sheets
- Joined
- Mar 1, 2017
- Messages
- 284
I have a large portfolio, and retired one year ago at 61. I would say that I have most of my money (in Fidelity) at about a 60% stocks and 40% bonds and/or cash/money-market accounts.
I was previously doing a dividend champions (Dogs) strategy, and have been very happy with those results. Over the last year or so, however, I have wanted to move more towards a Bogleheads strategy of using more index funds and less individual stocks.
The problem I have is that it is hard to pull the trigger on some stocks that I have held for many years, and which still pay very good dividends. Some examples are T, XOM, CVX, MO, PFE, FBIOX, and ED. These are up ranging from 40% up to 500%. So despite recognizing the psychology at play here, I don't really want to sell these to buy more of a S&P index fund (I already have a substantial amount in these).
I assume that others in this forum may have wrestled with similar challenges. While I am pretty confident that XOM and MO (!) will be around for at least 30 more years, stranger things have happened. Remember all of the large cap stocks that are no longer around. I used to work for a couple of them!
What have people done, or what would you do, in this situation? Go ahead and hang on to these multi-baggers, or just continue to move to index funds with their historical rate of return?
Thanks,
Bood
I was previously doing a dividend champions (Dogs) strategy, and have been very happy with those results. Over the last year or so, however, I have wanted to move more towards a Bogleheads strategy of using more index funds and less individual stocks.
The problem I have is that it is hard to pull the trigger on some stocks that I have held for many years, and which still pay very good dividends. Some examples are T, XOM, CVX, MO, PFE, FBIOX, and ED. These are up ranging from 40% up to 500%. So despite recognizing the psychology at play here, I don't really want to sell these to buy more of a S&P index fund (I already have a substantial amount in these).
I assume that others in this forum may have wrestled with similar challenges. While I am pretty confident that XOM and MO (!) will be around for at least 30 more years, stranger things have happened. Remember all of the large cap stocks that are no longer around. I used to work for a couple of them!
What have people done, or what would you do, in this situation? Go ahead and hang on to these multi-baggers, or just continue to move to index funds with their historical rate of return?
Thanks,
Bood