Is This the Time for Investing for Dividends?

[MakeMe$$$$]

With the corporate tax cuts there doesn't seem to be a huge support for the theory that corporations will hire more people and/or increase wages for the rank and file employees. From the commentary I am reading it would appear that a large number of corporations will return more profits to share holders. I would also assume more money to executives. So, that being said...

A recent Bloomberg Article https://www.bloomberg.com/news/articles ... ax-measure

Is this the time to look closer at holdings that pay corporate dividends? Conversely, could stock prices improve as buybacks occur?

This could be interesting.

[bamafamily]

I agree with your assessment...but I find my knowledge in dividend investing sorely lacking.
for all the technical analysis I do, I find myself very weak in 2 large areas...Options and Dividend Investing.
Given the current environment on bonds....coupled with the current tax reform....I read that a lot of people are moving into dividend stocks....
Being only 4yrs from retirement I need to rectify not having dividend stocks in any of my portfolios (on purpose).....Any websites you might recommend?? (besides the obvious generic dividend investing sites?)
thx

[crondanet5]

I don't like dividends. Currently they are taxed as ordinary income. And when enacted, 4 P.M. of ex-dividend date the share price drops accordingly.

Another approach you might research is buying the stock a week before ex-dividend date and selling it the morning before ex-dividend. There are stocks yielding more money than the dividend doing this. And your money is freed up to do it again with another dividend paying stock.

[ArrieS]

I don't like dividends. Currently they are taxed as ordinary income. And when enacted, 4 P.M. of ex-dividend date the share price drops accordingly.

Nooooo. Qualified dividends are taxed at long-term capital tax rates. Distributions from REITs are taxed at ordinary income rates.

https://www.investopedia.com/terms/q/qu ... vidend.asp

[mindofmush]

crondanet5 pays ordinary income tax on his dividends because he doesn't keep his stock long for the dividend to become qualified (at least 60 days).

[crondanet5]

Correct. Follow a dividend paying stock and see if you get your money out of it by holding it for 60 days. MY goal has been, and remains, paying off the national debt with my short term capital gains. I love sleeping in cash at night, looking for a trade in the morning.

[evilanne]

LOL, I wish you well in your investments with that goal!

[mmmmmbeer]

Because of limited space on my phone this title thread reads: "This is the Time for Investing for D".

I's all like whaaaaatt? . I suppose that's a good investment but how does one go about buying in to that?

[mindofmush]

I agree with your assessment...but I find my knowledge in dividend investing sorely lacking.
for all the technical analysis I do, I find myself very weak in 2 large areas...Options and Dividend Investing.
Given the current environment on bonds....coupled with the current tax reform....I read that a lot of people are moving into dividend stocks....
Being only 4yrs from retirement I need to rectify not having dividend stocks in any of my portfolios (on purpose).....Any websites you might recommend?? (besides the obvious generic dividend investing sites?)
thx

https://www.fullyinformed.com/

Teddi Knight's approach to dividend stocks is focused more on the stability of dividend paying stocks, especially Dividend Aristocrats and the conservative use of options upon those stable stocks. There is lots of interesting reading on this free site; there is even a buy-write strategy that crondanet5 would like because it gets you back to cash by 4:00 pm.

For another take on dividend investing try:

http://www.optionsamurai.com/

[crondanet5]

Buy a phone with a bigger screen.