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I made a generalization so there will be counter examples and I appreciate that some stocks/sectors will have attractive dividends. I would put REITs in the exp
by Blackstone4 7y ago
I made a generalization so there will be counter examples and I appreciate that some stocks/sectors will have attractive dividends. I would put REITs in the expensive dividend-focused sector...
The main issue I have with a dividend paying stock is that they pay corporation tax and then I pay income tax on the dividend....with a group which re-invest its earnings, I do not pay income tax on that and if I need cash, I can sell stock and pay capital gains tax at a lower rate.
The main issue with dividend stocks is that when the dividend gets cut there's forced seller by the dividend ETFs and stared retail investors so the drop in share price gets exacerbated which is unfortunate.