- Taxes - 1 Update
- Using stock dividends to buy more shares - 1 Update
| ggggg9271@gmail.com: Mar 10 04:33PM -0700 > Affected by gov't shutdown? Don't make these mistakes: https://www.fool.com/taxes/2019/03/10/make-these-4-tax-mistakes-and-the-irs-could-come-k.aspx |
| trader4@optonline.net: Mar 10 06:02AM -0700 > > stock for income... > Thank you for your quick and informative reply. > Concerning dividends, the higher the dividend, then the more it's worth accumulating shares since the more shares accumulated the amount collected in dividends will increase over time? Just because one stock is paying a higher dividend than another stock or a stock that pays no dividends, doesn't mean it's a better investment. The highest dividends are usually stocks in very mature, slow growing industry's, like utilities. They have no good use for the money that can expand the business, so they give it to stockholders. Meanwhile, companies like Apple, Intel, MSFT, Ebay, etc that performed spectacularly didn't pay dividends, at least during their most explosive decades of growth. Would you be better off with a stock that went from $20 to $26, while paying a 5% dividend or a stock that went from $20 to $200 with no dividend? I remember an old lawyer telling me decades ago to never buy a stock that didn't pay a dividend at least as high as the bank. If you followed that advice, you would have missed almost all of the huge winners. |
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