Questions tagged [dividends]

This tag is to be used for any dividends related question. When appropriate it should be accompanied by country tag.

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1answer
10 views

Ascertaining the distribution yield of a dividend ETF

My understanding is that a stock ETF's distribution yield is not the same as its dividend yield, since the former is net taxes and fund fees and might also include "other distributions" than ...
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2answers
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Not going to receive any tax form from robinhood - where to report the dividends earnings

I got the following email from Robinhood: Since my dividends were less than $10 (around $5), I am wondering where exactly I should report it while filing taxes as I won't be getting 1099-DIV this ...
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7answers
4k views

If an investor does not need an income stream, do dividend stocks have advantages over non-dividend stocks?

My limited understanding is that a stock's share price typically goes down on its ex-dividend date by the amount of the dividend. If that's true, why are dividend equities generally considered good ...
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3answers
157 views

Are distributing ETFs always better than accumulating ones?

I am trying to decide between investing in a distributing ETF or an accumulating ETF and to me the distributing ETF seems clearly to be the better option. Since so many people invest also in ...
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3answers
143 views

If I owe £100k as a directors loan, do I have to pay back £100k

If I have a directors loan of £100k taken out in the UK and I am now look to pay this back. Would I be looking to pay the full £100k or is it calculated differently? I am slightly confused here, when ...
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5answers
2k views

Is it correct to think a stock has risen 300% and it is as if it is giving out 20% dividend and never sell it?

Suppose a stock is at $10, and it is giving out $0.50 dividend, which is 5%, and you bought it. Then a couple of years later, it rose to $20, and is giving out 5% dividend, which is $1.00, but to you, ...
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2answers
41 views

How Do I Reflect Dividends and Stock Profit in 2020 USA Federal Taxes

In 2020 I had stocks which gave dividends. I sold those stocks in 2020. How do I reflect this in 2020 USA Federal Taxes?
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0answers
22 views

Dividend impact on accumulating inverse ETFs

This is a pretty straightforward clarification question. For inverse ETFs tracking an index which are tagged as "accumulating", what this actually means is that we are not tracking the ...
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0answers
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What taxes does a US citizen need to pay for dividends from a UK company?

Hypothetically speaking, if a UK company has a profit of £300k, it has to pay a 19% UK corporate tax which leaves it with a corporate profit of £243k. If a US citizen was to be paid a dividend of 70% ...
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1answer
205 views

Robinhood - should I expect to receive a tax document?

I started investing last year with a small amount so my dividend earnings for 2020 is only about $5. Robinhood says that my tax document should be available on or before Feb 16. Should I expect to ...
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1answer
80 views

The dividend yield of AMC is reported differently on different financial info websites. How do I know which is correct?

Google Finance says the dividend yield of AMC is 2.68%, Yahoo Finance says it's "N/A", Marketwatch says it's "0.00%", and Robinhood says it's 17.95%. I'm very surprised to see that ...
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0answers
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Is personal allowance used up by being paid in America?

I have just started a limited company in the uk and I’ve been contracting my services since jan 1st 2021. Previously I was being paid by an American company. All tax etc. was done in America and I was ...
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4answers
1k views

Are dividends an actual gain value?

Dividends from stock or funds are obviously considered to be an earnings benefit or a gain or a plus, but I'm wondering how that is monetarily computed? I know it is added to the gain income, but I ...
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0answers
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Accounting for dividends of stocks held for 3rd party

Assuming I hold a number of stocks in a brokerage account for a 3rd party which pays dividends. The broker automatically deducts taxes and debits the remaining money in the account. How do I ...
2
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1answer
60 views

Setting up a LLC in Wyoming as a non-resident to invest in stocks

I would like to open a LLC in the US in order to have access to some online brokers, like Interactive Brokers and Robinhood. I understand I will need to file an annual report with the state (Wyoming ...
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0answers
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Has Sharesight calculated my dividend's foreign source income correctly?

I recently received my first dividend from the ASX:IVV S&P 500 ETF. In the Components of Distributions announcement it says that the Foreign Sourced Income is 99.9998% of the cash distribution. I ...
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2answers
1k views

Why don't all dividend-yielding companies offer dividend reinvestment plans (DRIPs)?

My uneducated guess is that dividend reinvestments seem to be a win-win situation between companies and shareholders. As a result, I wonder why some dividend-yielding companies do not offer dividend ...
2
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1answer
95 views

Dividends and Number of shares owned

For stocks in companies that pay dividends, is this just for holding any share, or is the dividend paid per share? For example, a dividend of $10: is that $10 for holding 200 shares of stock or $10 ...
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3answers
52 views

Question about this nasdaq table

I'm a complete amateur when it comes to investing but lately I have been thinking of investing my money so I did a little digging. I've found out about dividends and I want to achieve some long term ...
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2answers
48 views

How to calculate the value of an asset that yields royalties, given its past performance?

Let's say I have an asset that I created, such as a music copyright. Each year it yields some royalties. Maybe year 1 it's $1000, year 2, $1200, year 3, $600. If I wanted to sell it, how much ...
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1answer
51 views

How can I know if a market index includes dividends yield when calculating its value? (with examples)

I'm trying to find out if some indexes are calculated including dividends (specifically, S&P 500, FTSE 100, DAX 30 and IBEX 35). I have read here that S&P 500 does include dividends. That ...
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1answer
81 views

Short selling stocks, Dividends and Tax

If I short sell a stock XYZ to Buyer B and I am short the stock on the ex-dividend date, I pay the lender the dividend. The dividend tax rate is 20%. Does the lender have to pay the dividend tax on ...
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1answer
48 views

Futures and dividends

Let's say I have a portfolio of futures for a long period (let's say 2000-2020). All of my underlyings are equity indices. I am always invested in the next maturity futures (thus I never wait for the ...
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1answer
61 views

Cash flow and dividends

I am learning about dividends and read that the free cash flow of a company is the money it can payout to investors through dividends. Free cash flow is the cash left over after a company pays for its ...
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1answer
69 views

Canadian tax calculation for a sample income

Is the tax calculation below for a hypothetical Canadian resident living in Ontario correct? Gross income - CAD 100K Foreign capital gains - USD 20K Dividends - USD 2K Assume 18% (CAD 18000) is ...
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3answers
187 views

How do shareholders benefit from stock dividends?

Dividends could be paid out to investors through cash dividends or stock dividends. In terms of the stock dividend, besides tax advantage when they don't sell out the shares compared to cash dividends,...
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0answers
55 views

Differences between voting and non-voting shares in Switzerland

I was looking at a few Swiss companies, and I noticed that some of them have two classes of shares: voting and non-voting. For a small investor who does not vote, what are the material differences ...
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2answers
86 views

Index ETF share cost and annual income

I want to figure out how ETF works and index ETF particularly. The aspect I can't find explanation for is the following: Investing into ETF means that I buy ETF stocks which price is based on market ...
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1answer
93 views

How to determine date that an ETF must be owned to be eligible for the dividend payment?

According to Investopedia.com: Similar to an individual company's stock, an ETF sets an ex-dividend date, a record date, and a payment date. These dates determine who receives the dividend and when ...
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1answer
62 views

Why isn't the record date for a dividend at the same time as the ex-dividend date instead of the next business day?

I read on https://finance.zacks.com/long-need-own-stock-dividend-payout-1761.html (mirror): Ex-Dividend Date: The ex-dividend date is the date that stock shares trade without the dividend. ...
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2answers
50 views

When are Open Orders Adjusted by the Amount of the Dividend

I understand that open orders are adjusted by the amount of the dividend (FINRA Rule 5330). But when are the open orders adjusted? For example On Aug 24, 2020 I place buy order for stock XYZ for $100. ...
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1answer
62 views

Yahoo finance: are the open prices adjusted for dividends?

Yahoo finance provides Adj close prices which are prices adjusted for splits and dividends. What about the open price? Thanks
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1answer
23 views

Do dividends from securities held on margin lose their tax advantage?

If a security pays a dividend, depending on the holding period of said security, the dividend might be considered "qualified" and taxed at a lower rate. What if the security is held with ...
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0answers
35 views

Would a UK resident who pays tax to a foreign country on dividends (of less than <£2,000) need to file Self Assessment for this reason?

Suppose an American expat taxpayer living in the United Kingdom earns dividends on U.S. stocks that fall below the UK's tax-free dividend allowance of £2,000, and this is the only income they have ...
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2answers
52 views

Hold or sell a stock after special dividend announcement result in similar gains?

If a company announces special dividend e.g. costco for $14 per share, is it better to hold or to sell? I am assuming that the share price will go up by roughly $14 after the announcement? So is ...
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1answer
83 views

How can I view the sum of all dividends received in one given year on Mint?

How can I view the sum of all dividends received in one given year on Mint? This can't be done in the transactions tab according to https://help.mint.com/Accounts-and-Transactions/888963121/Why-can-t-...
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1answer
52 views

At which time exactly starts the ex-dividend-date? [duplicate]

Let's say some US company declares the ex-divided-date as Sep 30, 2020. Now at which time exactly does this ex-date start? When this stock is traded in stock exchanges world wide, is the UTC time ...
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4answers
309 views

Do companies destroy value when they borrow to pay dividends?

When public companies pay dividends, their stock price will be reduced by the amount of the dividend. This makes sense to me, but I'm wondering if this applies when companies borrow to pay dividends (...
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1answer
65 views

Do non-cumulative preferred stocks have to pay dividends?

I am trying to understand preferred stocks. For cumulative preferred stocks, if any preferred dividend payments have been missed, the dividends owed must be paid out to the preferred stockholder first ...
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5answers
1k views

If you never see the dividend for a fund, why does the ex-dividend date matter?

I'm currently invested in an open-ended fund. As I understand it, neither I nor my broker see its dividend. We just wake up on the payment day and see that the unit price of the fund has moved more ...
3
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2answers
268 views

Can non-resident aliens avoid taxes on dividends?

Non-resident aliens do not have to pay capital gains tax for stocks, but they have to pay a 30% tax on cash dividends (source). Can they avoid this tax by selling the stock before the ex-dividend date ...
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1answer
58 views

Calculating Dividends paid out and Div ratio from finance sheets

So I was trying to calculate the dividends a company paid out from the balance / income sheet and the retained earnings (the delta between this and last period). I thought the dividends paid could be ...
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2answers
115 views

How does stock exchange affect the company? [duplicate]

People invest in the company initially using an IPO. Now I don't understand how trading the stocks with others (who didn't participate in the IPO) would benefit the company. Also, why do the people ...
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3answers
167 views

Ex dividend date once or multiple times a year for a given stock?

Could anyone please clarify a confusion for me ? I am fairly new to stock investing and more specifically to dividend investing. I understand dividend dates (declaration, ex-dividend, report, payment) ...
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0answers
52 views

Does dividend capture strategy work? What are the tricks to make it work? [duplicate]

Title says it all. I buy around say, for e.g. $10,000 of a stock paying dividends just before the Ex-div date, and buy puts to hedge the move down after dividends are released and then sell off the ...
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4answers
2k views

Can you trust shares with high dividend yields?

There are shares with dividend yields above 10%. Can you trust such shares? Would you buy them? Some examples: TUI (DE000TUAG000) - 14,83% Helmerich & Payne (US4234521015) - 14,15% AGNC ...
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0answers
46 views

Will orders be adjusted on the ex-dividend date if the stock “will not be quoted ex-dividend”?

Consider a stock that will soon pay a dividend, but the dividend announcement says that the stock "will not be quoted ex". Will the prices in the order book be adjusted on the ex-dividend ...
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1answer
132 views

Tax-free dividends because of double payment?

I have just received a dividend of 0.11 $, from which 15% withholding tax was deducted. On the same day I received a dividend of 3,40$ from the same company, but without paying withholding tax. (for 3 ...
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2answers
197 views

Is using Adjusted Close prices the same as calculating the return when dividends are reinvested?

I know that stock data (OHLC) usually includes two closing prices - Close and Adjusted Close. My understanding is that Adjusted Close is used to calculate returns. It adjusts the raw Close price to ...
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0answers
46 views

What stops the depositary banks of American Depositary Receipts (ADR) from charging the maximum possible fees?

Depositary banks of ADRs periodically charge depositary fees (custodial fees) to the owners of the ADRs by subtracting from ADR dividends. The maximum fees that the depositary bank is allowed to ...

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