Every trade causes costs. I'm
talking about taxes and transaction costs. You can adjust your portfolio risk
with your trades but if you are right or wrong, it's in my view often hard to
say. I have sold stocks many times and often they doubled or tenfold after I have
decided to sell them; a bad choice from me. Recently, I wanted to sell 25
percent of my Mondelez stake because they got so big after the spin-off from
Kraft Foods. The order was not executed because my limit was too high on the
trading day, at USD 34. But because of my 70 percent gain, I needed to pay high
taxes on my trade, a number that causes a potential 10 percent loss for the
whole stake.
I believe that it
makes more sense to buy high-quality stocks at fair prices and keep them for 20
years or more. Over this period of time, the stock should have paid your
investment amount nearly completely back. No dream, just reality. Some stocks
can pay you in 10 years, others need 50 years. The point is to find the good stocks
that pay you.
Below are six stocks with over 10 years of consecutive dividend growth and solid debt and growth predictions.