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They do not exist, absolutely. 4% is a good number for dividend paying stocks. Also inflation isn't over 15% hahaha.
by roflyear 4y ago
They do not exist, absolutely. 4% is a good number for dividend paying stocks.
Also inflation isn't over 15% hahaha.
- drbeast 4y ago[dead]
- willbes 4y agoDividend paying stocks will be pulling from the value of the stock. The 4% you get will immediately drop the value of the stock by 4%ish. Dividend paying stocks may not be a great option for most US people (and maybe others) unless they are in tax-advantaged accounts. You will be taxed on that as income and not capital gains, which would have occurred if you had a stock that held value and then sold it when you needed to.
- KMag 4y agoIn other words, ignoring taxes, in a long-term holding strategy, one would expect reinvesting dividends from a stock to perform as well as if that stock just didn't pay dividends (all else being equal, which it never is). Though, taking into account taxes, the tax on dividends is effectively compounding annually while capital gains taxes are a simple rate. As long as the dividend tax rate for stocks held long-term is equal to the long-term capital gains tax rate, it's more tax-efficient for investors if a company buys back its own stock instead of paying dividends. This is also the logic behind end-of-year loss harvesting: compounding interest on tax savings in capital gains losses. I'm not an accountant or tax attorney.
- drbeast 4y ago[flagged]
- deleted 4y ago[deleted]
- drbeast 4y ago[flagged]
- roflyear 4y ago[flagged]
- drbeast 4y ago[flagged]
- dang 4y agoPlease don't respond to a bad comment by breaking the site guidelines yourself. That only makes everything worse. You did it repeatedly in the current thread, and we already had to ask you this just recently: https://news.ycombinator.com/item?id=34168712 https://news.ycombinator.com/item?id=34168712. Please stop doing this. https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html
- roflyear 4y agoIf you want to ban me, fine, but if someone suggests that vaccines (proven to help people and save lives) is a hoax, I'm not going to just stand around. I'll try to be less rude, but I'm not cursing the guy out or something. Sometimes, I think, if this was the context of WW2 you'd rather we just ignore the Nazis.