I agree with the other skeptical comments on here. This strategy makes little sense, especially at your age. Taxes on dividends are significantly higher than taxes on capital gains (taxed at your regular income level versus a flat 15% tax for capital gains in stocks you've owned for over 1 year, if memory serves). In the 30-40 years you have left until retirement, your wealth will grow significantly more if you invest with an eye to maximizing returns to capital (capital gains), rather than focusing on maximizing yield (dividends).

It sounds to me as though your portfolio is not nearly as diversified as it should be to avoid unnecessary volatility and risk. You should consider investing in a broad-based index fund that focuses on capital appreciation stocks, rather than dividend stocks, particularly if these investments are not tax-sheltered. Minimizing taxes and beating inflation compromise the majority of the battle in successful long-term investing, and statistically speaking your current strategy will not be effective in accomplishing those two goals. You will also be eaten alive in trading fees. I would suggest checking out one of the following books on long-term "buy and hold" investing:

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