My question is what is the best exit strategy? Im thinking taxes are my biggest concern, but not totally sure I am not missing something else.
No, that's about it. There's nothing much else to be concerned about. Except that you should probably use a limit order when you sell.
Do I wait for the next round of dividend pays?
In theory if a stock is priced at $50/share just before it goes ex-dividend, then declares a $5 dividend, then its price should fall to $45/share immediately afterwards, so the dollar amount you receive is the same either way. It's just a question of whether you get it as 45/5 capital gains and dividends, or 50 as capital gains. If you're in the 15% tax bracket then you pay no tax on long-term capital gains and might as well take the whole thing as capital gain now. Dividends would be taxed either at 0% (if qualified) or 15% (if ordinary), so in the worst case waiting for the dividend will cost you money, and in the worst worst case the share price could decline, too. No way to know!
The other big advantage of taking it all as a capital gain is that you can do it now. Then enjoy the sweet satisfaction of selling at a gain, move the money to your mutual fund portfolio, and rest a little bit easier. At least that's what I'd do.