Wednesday, May 11, 2022

ALL ABOUT DIVIDENDS






  • https://jobs.seekingalpha.com/?source=content_type%253Areact%257Csource%253Afooter
  • https://seekingalpha.com/account/portfolio/summary?portfolioId=60909366
  •  https://seekingalpha.com/education/dividends
  • ""Dividend investing is a strategy that gives investors two sources of potential profit:
    1. The income from regular dividend payments
    2. Growth in the stock price over time

    When you use the dividend payouts to buy more shares of the dividend-paying stock, you allow your portfolio to benefit from what is known as enhanced compounding.""" "Dividends are appealing because the dividend payment alone is as high as, and often higher than interest payments on Treasury bonds. By putting enough money in the shares of a dividend-issuing company, an investor can earn regular passive income.""

  • ""quarterly. semi-annually and annually."" dividends""

  • ""A dividend growth strategy works through reinvestment of dividends. One does three things:

    1. Buy shares of a stock that pays dividends
    2. Hold those shares – not sell them
    3. Use the dividend payments to buy more shares in that company

    One would also hold those shares in addition to the ones they had originally.

    With this approach, one's holdings grow because the share price does and also because, through dividend reinvestment, you have acquired more shares over time.""

  • "" The share price appreciation (capital growth) and the dividend yield (income) together create the high yield.""

  • ""

Taxes on Dividend Investing

  • Money earned from a dividend is taxed either as a qualified dividend or as ordinary income. A dividend is qualified if the issuer is US based or, if it is a foreign company, trades on a major US stock exchange.

    • Qualified dividends offer the benefit of being taxed at a lower tax rate than ordinary income – between 0% and 20%
    • Normal tax rate: 30% and above
    • Capital gains tax rate: 15%-20%. (Someone earning less than ~55K annually will pay 0%; if less than $445K, it will be 15%; and those earning more will pay 20%.)
    • Unqualified dividends are taxed at the normal income tax rate"""
    • ""Reinvesting a dividend does not trigger a tax event, although selling the stock does. There is a way to avoid paying capital gains taxes on dividends while freeing up cash for other investments. Investors can simply divert incoming dividends into the money market part of their investment account instead of taking them out as income, then use the cash proceeds to buy bargain positions.""
    • https://seekingalpha.com/article/4457942-dividend-aristocrats

Dividend Aristocrats vs. Dividend Kings

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