Dividend stocks pay out a certain percentage of their earnings to their shareholders. While they might not be as attractive as other types of stocks, they still provide investors with a reliable source of income. However, investors will often take many broad steps to stay ahead of the market. These steps include looking at dividend stocks and deciding which ones are best to sell.

The stock market is always changing and adapting to new trends. The popularity of dividend stocks has recently increased due to their low risk and steady cash flow. Nonetheless, there is no one size fits all strategy in the investing world. As a result, there are many ways to invest. Investors should find what they like and stick with it.

Investors should consider selling dividend stocks when they feel the company is not growing and has no new ideas or products to offer. This is the best solution if you do not want to be in a stagnant portfolio. It will also ensure that you’re on board with your savings strategy and that your portfolio works for you.

With the momentum in the market relative to the following stocks, it is safe to assume these are the dividend stocks to sell:

Western Union (WU)

Western Union (NYSE:WU) is a global money transfer company. It was founded in 1851 and is based in Atlanta, Georgia.

Western Union is the largest money transfer company in the world. It has over 150 million customers worldwide and has been around for a long time. Western Union provides services to consumers, businesses, and government agencies. Its services include wire transfers, person-to-person transfers (P2P), international remittances, currency exchanges, and other financial products.

With a dividend yield of 6.63%, a well-entrenched position in the market, and long history of consistent returns, Western Union is often considered a sure-shot stock for any portfolio. However, the world of finance is changing rapidly. And it will have an impact on Western Union as well.

Mastercard (NYSE:MA) and Visa (NYSE:V) are moving quickly regarding accepting digital payments and transfers. They have also found methods of incorporating cryptocurrency into their offerings.

At the same time, options like the Near Protocol (NEAR-USD) also upended the market. A domestic money transfer with Western Union is usually completed within 24 hours, while an international transfer can take between one and five business days. In comparison, NEAR, a proof-of-stake platform, features near-instant settlement times and low fees for investors to profit from.

Considering the dominance of Western Union, it is hard to see things changing overnight. However, a shift is gradually taking place, and it can do very little to avoid it. Hence, this name will pop up when researching dividend stocks to sell.

Macy’s (M)

Even before the pandemic, Macy’s (NYSE:M) was not doing very well. In the face of the rampant expansion of Amazon (NASDAQ:AMZN) and other e-commerce players, the retailer was finding it tough to compete amid dwindling sales.

There were a couple of reasons why Macy’s was slow to change. One reason was that online sales could not be catered to a person’s specific location. Another reason was that retailers are typically more profitable when physical locations are used instead of digital ones. Macy’s is now adapting and beginning to use online marketing tactics for its stores, providing higher profits for the company in the long run.

Macy’s was initially hesitant about the digital business. However, the pandemic meant there was no alternative but to change. It had to move online more significantly and is still fighting for market share from online competitors.

Digital sales have paid off for Macy’s. It managed to attract millions of new customers. That has helped the company see its stores’ value skyrocket. The physical locations can now be used as fulfillment centers to serve customers who pick up their orders in the stores.

However, due to rampant inflation and decreased consumer spending, Macy’s is facing a tough 2023. In early January, the New York-based department store chain said its Q4 sales would fall towards the lower end of expected guidance because of a drop in spending during the non-peak holiday weeks.

Plus, the move to digital is secular and bigger names like Amazon will keep increasing their market share. A yield of 2.58% is certainly enticing, but investors need to know if it is sustainable. On that end, they will need more evidence.

Camping World Holdings (CWH)

Camping World Holdings (NYSE:CWH) is an American company that sells recreational vehicles, including RVs and trailers. It also has many retail locations in the United States.

Camping World Holdings is a dividend stock with a payout ratio of just under 52%. The company has maintained this high payout ratio throughout the years because it can generate enough revenue through its RV sales and retail locations.

The company has had a steady growth in revenue and earnings for the past five years, with its revenue increasing from $889.0 million in 2017 to $6.9 billion in 2021 and its earnings increasing from a net loss of $44.3 million to net income of $642.1 million over the same period.

Camping World Holdings struggled with a devastating pandemic that crumbled its sales during this time. The pandemic was devastating because it had to contend with decreased travel and lower camping equipment sales. It came roaring back in 2021, but recent data indicates that the comeback story is hitting a few snags.

In reporting results for the third quarter, the recreational company saw revenues of $1.9 billion, a decrease of $60.9 million, or 3.2%. Net profit failed to meet analyst expectations, falling to $102.9 million, a 45.6% drop from the previous year.

If a recession is on its way, Camping World Holdings will be in the mix when discussing dividend stocks to sell.

On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.