Gain insights into the nuances of dividend taxation and how they impact your investment strategy. Understand the difference between qualified and non-qualified dividends, their respective tax implications, and strategies to optimize your portfolio for tax efficiency. Learn why dividends are not free money and how to make informed decisions to maximize your investment growth.
I agree with all that and am not a card carrying member of DOD. My sense is that their position comes from a belief that CEOs are bad at recognizing or admitting when they've reached that point where just giving money back to the shareholders is the best use of cash.
Great post. It's interesting that providing dividends is presumably the reason stock is worth anything at all, else how does one get a return? Selling it, of course, but without the expectation of some future dividends, why would anyone buy it (other than to sell it to some greater fool)?
So, maybe there is a sweet spot in terms of dividend frequency? And the Dividends or Die cult just wants them far more frequently than is tax-optimal?
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I agree with all that and am not a card carrying member of DOD. My sense is that their position comes from a belief that CEOs are bad at recognizing or admitting when they've reached that point where just giving money back to the shareholders is the best use of cash.
Great post. It's interesting that providing dividends is presumably the reason stock is worth anything at all, else how does one get a return? Selling it, of course, but without the expectation of some future dividends, why would anyone buy it (other than to sell it to some greater fool)?
So, maybe there is a sweet spot in terms of dividend frequency? And the Dividends or Die cult just wants them far more frequently than is tax-optimal?