I have been a little inactive with this blog recently. Not because I wanted to quit investing or writing, but life happens. Because of this, I was forced to liquidate my dividend stock account between mainly August and September. It was a hard choice to make. Unfortunately, life happens and I needed to make some decisions. So today, I wanted to discuss how to liquidate a dividend stock account. Do not worry, I have already started rebuilding my account and will follow up with another post.
I tried to make my sell as systematic as possible. I did not need the money immediately and so I did not sell everything in one day. There was some hope that I could figure out a way that I would not need to sell everything. So I tried to sell everything in a way that makes sense. While this is not the exact order I sold everything, it was my general order of selling everything.
Companies Splitting Apart
I knew from my investments, some of the companies were planning spin offs or splitting into multiple companies. I decided to sell these ones off 1st. If they did split on me, I would have to sell 2 companies instead of 1. So this would save me some commissions.
High Risk Dividend Companies
Over the time, I owned more than 50 dividend companies. Through that time, I bought safer and higher risk dividend stocks. I went through the list and I choose the companies that had the largest risk. Since I needed the money, selling the risky stocks improved the safety and quality of the stocks I had left.
Low Dividend Yield
Now that the riskiest companies were gone, I sold the lowest yield dividend stocks. Each time I sold a stock, my average dividend yield went up. Because they had the lowest yield, they also provided the smallest income. At this point, I still hoping that I would not need to sell more of my stocks. My wonderful collection of stocks.
Next, I went through what I had left. I sold the companies that I had the smallest dollar value invested. This seemed like a good way to clear up the list of stocks I have. At this point, I was getting down to my last core investments.
The Last of the Last
Now I am down to my core holdings. Well, at this point, my only holdings. At this point, we continued to sell. My reasons have not changed. Well I like my stocks, I needed to do what I needed to do. I can always buy them back. So, these were all sold off. My account has been liquidated of dividend stocks, which is all of my stocks.
Everything is Gone
Now all my stocks in this account I had were gone. What a sad day.
Can I Improve
I sold all my stocks in this dividend account. Looking back at it now, it was the right thing to do. Could I have stopped life from happening? Nope, life is going to continue to happen.
Now, could I have made some decisions to not sell all of my shares. If I did not buy as many stocks, I would not have needed to sell them. Or if I already achieved financial freedom, I would not have needed to sell. Also, having a much larger cash emergency fund would have helped, but I only have so much money.
Considering everything that happened, I would probably do it again, at least related to my dividend stock investing. It does help that I made a profit.
And by going down this journey, I had a lot more money saved than I would have had otherwise. So, if I did not own all of these stock, I would be having a lot more difficulties right now than I do. So I was prepared, and everything is going and is good.
Final Thoughts on Liquidating
I am not done yet. In fact, I will follow up with another post of me Rebuilding our Dividend Stock Portfolio. Thank you for all of your support. Especially to my Wife, son, future son, and my father. I appreciate all of the help they have giving me. And thank you to everyone who continues to follow our journey. We have also posted updates to more of our stock purchases.
Have you ever needed to liquidate a dividend stock account or part of it for events that happen in life? Please feel free to share in the comment section below.