Over the last five years, my portfolio delivered strong, steady progress. Dividend growth, disciplined accumulation, and consistent compounding were the foundation of that success. But 2026 has been different. The returns haven’t matched the pace or satisfaction of previous years, and the portfolio started drifting away from the strategy that built my momentum.
So I decided it was time for a clean‑up—a real one.
Not a tweak. Not a minor adjustment. A full reset focused on clarity, conviction, and getting back to what works.
Why This Clean‑Up Was Necessary
Portfolios don’t collapse overnight—they drift. A few speculative trades here, a few high‑yield traps there, and suddenly the portfolio no longer reflects the strategy that built your success.
I noticed:
Too many tiny leftover positions
High‑yield REITs that weren’t delivering real total return
Speculative ideas that didn’t align with long‑term compounding
Capital tied up in low‑impact holdings
A noticeable drop in satisfaction with overall returns
When your portfolio stops reflecting your goals, you don’t wait. You realign.
What I Cleaned Up (Including AT&T and Home Depot Sales)
This reset included several deliberate exits:
Sold NLY and AGNC to reduce exposure to rate‑sensitive, low‑growth REITs
Closed out small leftover positions in OPEN, FLO, and BA
Exited AT&T (T) in two taxable‑account sales
140 shares at $24.73 → $176 profit
113 shares at $23.85 → $35 loss
Sold 41.2 shares of Home Depot (HD) at $297 → loss vs. $318.70 cost basis
Trimmed holdings that weren’t contributing to long‑term compounding
Reallocated capital toward higher‑conviction themes
The HD sale was another important part of the cleanup. Home Depot is a high‑quality company, but the position size was small, the return profile wasn’t matching expectations, and the capital was better deployed elsewhere. Taking the loss was part of the broader theme: remove clutter, remove hesitation, remove anything that doesn’t fit the next phase of the portfolio.
This wasn’t about timing the market. It was about removing noise.
📉 The Hidden Cost: Dividends Lost From These Sales
Selling income‑producing positions always comes with an invisible price: the dividends you give up going forward.
Here’s what I walked away from as part of this cleanup:
AT&T (T)
253 shares sold
Annual dividend: $1.11/share
Dividend income lost: ~$281 per year
AGNC
Monthly dividend: $12.46
Annualized: ~$150 per year
NLY
Quarterly dividend: $17
Annualized: $68 per year
Home Depot (HD)
41.2 shares sold
Annual dividend: $9.32/share
Dividend income lost: ~$384 per year
Total Estimated Annual Dividend Income Lost
👉 ~$883 per year
This is real money. This is real compounding. But dividends only matter if the underlying investment is worth holding. If the total return isn’t there, the dividend becomes a distraction—not a benefit.
📉 5‑Year Underperformance vs the S&P 500
Every stock I sold has significantly lagged the S&P 500 over the last five years.
| Ticker | 5‑Year Return | S&P 500 Return | Relative Performance |
|---|---|---|---|
| NLY | –42% | +77% | Massive underperformance |
| AGNC | –45% | +77% | Massive underperformance |
| AT&T (T) | +9% | +77% | Lagging badly |
| Home Depot (HD) | Underperformed SP500 since 2021 | +77% | Trailing |
These numbers tell the story clearly:
High‑yield REITs decayed
AT&T flatlined
Home Depot lagged the index
The S&P 500 crushed all of them
This cleanup wasn’t emotional. It was mathematically correct.
🟩 New Income Moves After the Cleanup
After clearing out underperformers and tightening the portfolio, I immediately shifted toward high‑conviction, income‑generating strategies that align with my long‑term goals. One of the first moves was opening a cash‑secured put (CSP) on Home Depot (HD).
HD $275 Cash‑Secured Put (June 18) — $3.80 Premium Collected
To stay engaged with HD—but at a price that actually makes sense—I sold a CSP with the following details:
Strike: $275
Expiration: June 18
Premium Collected: $3.80 per share
Total Premium:
$380 collected upfront
This move fits perfectly into the new, cleaner strategy:
If HD drops and I get assigned, my effective cost basis becomes:
$271.20 per share, which is far better than my old cost basis of $318.70.
If HD stays above $275, I simply keep the $380 premium as pure income.
Either outcome is a win because it aligns with the new focus: high‑quality names, better entry points, and income generation without overexposure.
This is the type of disciplined, intentional move that supports the next phase of the portfolio—fewer positions, stronger conviction, and smarter income strategies.
Looking Ahead
This reset marks the beginning of a new phase:
Rebuilding with purpose
Doubling down on conviction
Tracking performance with discipline
Focusing on quality over quantity
Letting compounding do the heavy lifting again
The last five years taught me what works. 2026 reminded me what happens when I drift. This clean‑up is the bridge between the two.
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