Should I keep the stocks bought during COVID for dividend or sell it now for capital gain (to reinvest)?

Not to confuse you further.
Why not consider option 3?
Whereby u sell enough stocks just to cash in the profit. And keep the remaining stocks to get dividend and await for future capital gains.
With the cash from selling you can redeploy to other investments or just sit in your bank.
E.g. just selling 100 shares instead of liquidating all ur holdings?
Just my humble opinion.

Sometimes I do think about this as well (capital gains vs dividends), but I guess it will boil down to what's your investing strategy e.g allocation of portfolio between SG markets and global markets.

There are also great companies in SG that are a combination of growth and dividends, so it's not as if you can't have the cake and eat it too. The cake might not be that big, but I know I'll be able to eat the cake at the end of the day. Also, I see dividend stocks as defensive in nature, so that provides some form of "hedge" against volatility of growth stocks.

If you're reinvesting in dividend stocks instead, then are you looking at companies that are undervalued, and hoping for prices to correct and then cashing out gains again?​​​