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Stocks dividends are now in 5-10% range, e.g. Verizon is at 7%. Obviously, markets are volatile and are in "search of direction", but quite a few dividend-payi
by huhtenberg 3y ago
Stocks dividends are now in 5-10% range, e.g. Verizon is at 7%.
Obviously, markets are volatile and are in "search of direction", but quite a few dividend-paying stocks are trading at near 5-10 year low, so picking them up is not that much of a gamble if your investment horizon is long.
- TrapLord_Rhodo 3y agoyeah, I always DCA into a bunch of ETF's but this was the first month i ever 'picked my stocks'. Most mining companys are in distressed range because alot of metals and materials are at all time lows. They also have great P/E ratios because of the slump. For instance, Albemarle has a revenue jump of 119% YOY% with a 33% Profit margin. but it's trading four time book value. That's insane to me. It has tech company growth, but since the price of lith is at all time lows investors are scared. Even with lith at this price, they are making a huge margin and are scaling up production. But if you beleive Lith will be in short supply in the future, it's a great opportunity.
- loeg 3y agoStocks, even blue chip ones, have a very different risk profile from money in the bank.
- bee_rider 3y agoProbably not going to keep up with inflation vs definitely not going to keep up with inflation?
- lotsofpulp 3y agoI would say stocks (index funds) probably will keep up with inflation (due to implicit government bailout guarantees) and “money in the bank” (or even government debt) will not keep up with inflation due to explicit government promise to continuously reduce purchasing power of the currency.
- unmole 3y ago3 Month US T-bills are above 5% and much closer to money in the bank than picking random stocks.
- giantg2 3y agoDon't many EU countries have a similar vehicle to I-bonds too? That might yield more.
- oblio 3y agoEuro bonds are barely 3%.
- PKop 3y agoFor people who conduct their transactions in $'s, sure. But Europeans buying US Treasuries would be subject to currency risk, which could easily wipe out that 5% APR
- radicaldreamer 3y agoEuropeans have their pick of yields for Euro-Area 3 month sovereign bonds https://www.investing.com/rates-bonds/european-government-bonds https://www.investing.com/rates-bonds/european-government-bo...
- 3y ago
- sdfghswe 3y agoCareful, dividends yields are going up because the price is going down.
- tdullien 3y agoOr are prices going down because in a high-interest scenario dividend yields have to go up? ;) Causality in econ is hard.
- pelorat 3y agoUseless to most Europeans though. I have to pay 15%-30% of the value of any US stock I buy in tax when i sell (to the US government), no matter the initial investment. I own about 10K euros of TSLA stock, and when I sell (as a EU citizen) the US government will take %30. Stock dividend of 5-10% is pretty much unheard of here.
- vient 3y agoCan't you fill W-8BEN form to reduce taxes on the US side?
- secondcoming 3y agoI’m pretty sure my UK broker refused to allow me trade US stocks until I filled out the W8-BEN.
- vizzah 3y agoUtter nonsense. US withholding taxes only apply on dividends and other fixed income.
- tlarkworthy 3y agoYou need some actual tax advice. I deduct EU tax from my tax liabilities in US so my US tax exposure is exactly 0. Still have to file US taxes, so my accountant fee exposure is non-zero but it isn't too hard to do yourself once you have a few examples to copy from.
- lxgr 3y agoThis is only relevant in EU countries without a capital gains tax, though (or with one lower than 15%), right?
- throwaway2037 3y agoIf you are a non-resident & non-US citizen, I think long term capital gains taxes will apply. If you hold TSLA for at least one year, your tax rate will be reduced to 15%. This tax can be offset by capital gains taxes paid in your own country.