I know dividends4life focuses on YOC (yield on cost). He doesn't care about the value of the stock but the yield on the initial cost. I think that's whats important
Now there has always been debate if the dividend strategy should focus on growth or yield. Your example seems to focus on yield and ultimately you are right. Even the most devoted long term investors are open to selling a position if a better opportunity presents itself. Get out of the dividend and focus on the bond. However I think a good dividend strategy focuses on a balance between yield and growth as part of the evaluation process (this is something I think dividends4life does well). This makes sure that you never have to worry about bonds being worth more and your dividend income keeps up with inflation.
I know it probably wasn't the intention of your example but as a final point your example doesn't take into account that you'll get hit with capital gains on selling the stock and that the bond payout isn't taxed as efficient as dividends, unless of course its in a tax free retirement account then who cares.
Now there has always been debate if the dividend strategy should focus on growth or yield. Your example seems to focus on yield and ultimately you are right. Even the most devoted long term investors are open to selling a position if a better opportunity presents itself. Get out of the dividend and focus on the bond. However I think a good dividend strategy focuses on a balance between yield and growth as part of the evaluation process (this is something I think dividends4life does well). This makes sure that you never have to worry about bonds being worth more and your dividend income keeps up with inflation.
I know it probably wasn't the intention of your example but as a final point your example doesn't take into account that you'll get hit with capital gains on selling the stock and that the bond payout isn't taxed as efficient as dividends, unless of course its in a tax free retirement account then who cares.