► Subscribe for new videos every day!: http://bit.ly/dai_youtube ► Dave Van Knapp's Top 30 Dividend Growth Stocks for 2021: https://DaveVanKnapp.com/ ► Dave Van Knapp's Dividend Growth Portfolio: https://dailytradealert.com/dave-van-knapps-dividend-growth-portfolio/ ► Jason Fieber’s Early Retirement Blueprint: http://dividendsandincome.com/early-retirement-blueprint/ I have run my public real-money Dividend Growth Portfolio (DGP) since 2008. While the DGP is generally a buy-and-hold enterprise with little turnover, it is not a passive buy-and-ignore portfolio. Indeed, one of the things I try to accomplish and demonstrate through the DGP is thoughtful portfolio management. The DGP’s business plan designates specific circumstances that call for possibly selling or trimming a position. One such guideline kicks in if a position exceeds the maximum size that I allow. If a position exceeds 8% of the portfolio, I consider trimming it. Another guideline calls for a serious look when a position becomes way overvalued. On occasion, a position triggers both guidelines. That’s not surprising, because a stock whose price rises beyond reasonable valuation might also grow large enough to become an oversize position. Microsoft (MSFT), of course, is one of the hot tech stocks that have led the market’s resurgence from the pandemic crash back in 2020, as shown in the following chart. Not only has its price gone relentlessly uphill since the pandemic crash, but it’s been out in front of the S&P 500 Index as a whole, helping pull the entire index up. Microsoft’s meteoric price rise has overwhelmed the pace of its dividend increases, even though those have been generous at 9% per year over the past five years. That’s why its yield has dropped below 1%. To sell or trim such a hot stock flies in the face of a lot of conventional wisdom. Many investors say, “Let your winners run.” I understand why they say that, but that is mostly a price-centric concept. This portfolio is income-centric. My goal in allocating my investment capital is to increase my income flow, within the strategic framework that guides everything that I do, as laid out in the business plan. To get Microsoft back under 8%, I decided to sell about $2000 worth. I did that on August 4, letting go of 7 shares. The sale brought $1999 cash into my account. My “shopping list” consists of (1) stocks already in the portfolio, (2) stocks I have written favorably about over the past 12 months, and (3) stocks in my Top 30 Dividend Growth Stocks for 2021 eBook. I decided to use aisle #1 and add to my two newest and smallest positions: I split the money equally between these two choices. When I was done, I had made these additions to the portfolio. Check out the video to see what I bought to replace Microsoft. FOLLOW US: ► Website: http://www.dividendsandincome.com/ ► YouTube: http://bit.ly/dai_youtube #DGI #DividendGrowthStocks #DividendGrowthInvesting $MSFT $SCHD $MRK LEGAL DISCLAIMER: Please consult with a licensed investment professional before investing any of your money. Never invest in a security or idea featured on this channel unless you can afford to lose your entire investment. If your money is not FDIC insured, it may decline in value. Dave is not a licensed financial advisor, tax professional, or stockbroker and he does not purport to be. Links above may include affiliate commissions paid to the owners of Dividends and Income and help support this channel.