I agree with that but try to keep in mind that as long as a company has a solid and growing business and profits, a downturn in their equity value will be temporary as long as stock value is not inflated. HD is a good example here. Fair value is probably closer to $230.
One of the things I try to do is focus first on great companies with good dividends who are currently underappreciated. ABBV was a good example. Then, when markets are low like this summer, I can do some buying and let the dividends pile up until there's another buying opportunity.
As for selling, I don't think I'll sell more than a small part of my current holdings unless they move up enough in value that they drive the dividend substantially below 3%. Currently the only equity I have that throws off less than 3% is BMY at 2.9%. However BMY's price channel has continued to rise since the March low and now that they've had a year to digest Celgene and have more recently bought MyoKardia, profits should increase nicely over the next few years. I'll hold onto this one as long as profits grow. As with ABBV, I can't expect price to grow incrementally with profits because Ms. Market has a mind of her own.
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