The financial benefits of selling a rental property to invest in dividend stocks include potential increases in cash flow, lower ongoing expenses associated with property management, and the ability to diversify investments for long-term growth. Dividend stocks provide regular income, which can be more reliable than rental income, and offer capital appreciation potential. By making this transition, the investors can maximize their financial returns and improve savings for retirement. Moreover, engaging with financial professionals and conducting thorough research into quality dividend stocks can further enhance their investment strategy.