I sold a Home Depot stock that I will take in cash and deposit into TD amertrade. Is their tax on this? I want to reinvest in mutual funds. We purchased HD over a 15 yr time period in California. I think there will be taxes and that I can't roll it over into a mutual fund without paying taxes on it. I feel like I made a mistake but my adviser said that I should not have stocks that I need to actively manage. Anyway it's gone and so are the dividends. I think I'm having sellers remorse.
If you sold the stock for a profit, you will owe tax on that profit. Whether it is taxed as short-term or long-term capital gains depends on how long you held the stock before selling it.
Presumably you're going to invest this money into mutual funds or something of that sort. Those may pay dividends which can be reinvested, and will grow in value (you hope) just as the individual stock shares would (you hope). Assuming the advice you've been given is at all reasonable, there's no need for buyer's remorse here; you're just changing your investing style to a different point on the risk-versus-return curve.
(If you have to ask this question, I tend to agree that you should do more homework before playing with shares in individual companieS ... unless you're getting thess shares at employee discount, in which case you should still seriously consider selling them fairly quickly and reinvesting the money in a more structured manner. In a very real sense your job is itself an "investment" in your employer; if they ever get into trouble you don't want that to hit both your income and investments.)
There are ETFs and mutual funds that pay dividends. Mutual funds and ETFs are quite similar. Your advisor is correct regarding future funds you invest. But you already had incurred the risk of buying an individual stock. That is a 'sunk cost'. If you were satisfied with the returns you could have retained the HD stock you already owned and just put future moneys into an ETF or mutual fund.
BTW: does your advisor receive a commission from your purchase of a mutual fund? That may have been his motivation to give you the advice to sell your existing holdings.