First, I’d like to say I sell these stocks not because I don’t believe in their dividend growth potential or they are being bad stocks, I sell them because I have to fund my $60k rental investment property.
This is the image from google map from the front lawn of the house. It was from 2011. Since then, there has been million of dollars into development for the this park and the park adjacent to this park. It will be cool visiting home again.
The property is a good fit for us once we move back in 7 years. You say “why is 7 years?” Well, we’ll be here to be close to Mister’s mom. Both of our parents are in the late 80s, Mister’s Mom health is not as good.
“Still, it doesn’t make any sense to pay $60K for a house you won’t be living in while you’d use the money to invest in dividend growth stocks”. That, my friend, the house in the area can be rented $1200-$1500/month in rental income. $60k only generate $200-300/month at best. By making this financial move, I inadvertently give myself another $10k raise. ***it will require a lot of work and additional investments to fix it up for rent. My brother estimate $10k for part and labor** despite the fact the the city assessor has good rating on the condition of the house.
Finally, what are the stocks on my chopping block?
I ran out of free trades. So I opted to use the capital gain to pay for the trades. My priority would be stocks at that are >5% gain, excluding 3-10% dividend earning the last year. These are very great companies. I’m sad to say goodbye, but I’ll add as soon as I have some more fresh capital.
EMR, TD, RY, BAX, IBM, CMI, CM, GILD, VZ, T, CAT, DOV
I will continue to update this list as I make more sales until I have enough to buy. The selling has been taking place.
What do you thing about my sells?
*P.S.: financing is not an option as the seller wanted cash. Mister doesn’t want to contribute to this buy as he still wants to remain his cash position, awaiting for a real 50-75% market correction :).