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>> When you look at the old staples like Coca-Cola they haven’t appreciated during this time. Pretty tough to eat appreciation; meanwhile Coca-Cola (and all th
by skeeter2020 6y ago
>> When you look at the old staples like Coca-Cola they haven’t appreciated during this time.
Pretty tough to eat appreciation; meanwhile Coca-Cola (and all those other old, boring companies) pays ~ 3.5% dividends annually. I'm sick of companies using my money for free to only fund their own growth.
- skybrian 6y agoYes, dividends count as a valid source of income and that’s a reason to own Coca-Cola. However, appreciation of a publicly traded stock is fine too, better even. When a publicly traded stock goes up, you can sell some stock and the money is just as good. Furthermore you’re paying less income tax since it’s capital gains, and you get to decide when to pay taxes on the gains. This is why stock buybacks are better in some ways than dividends for returning money to shareholders.
- skinnymuch 6y agoLong term capital gain taxes are lower than dividend taxes which are taxed as income, no?
- OiNG 6y agodividends can also be taxed at long term gain rates if the stock was held for some period of time before hand (see qualified dividends)