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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3
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1answer
76 views

What happens to options when a large dividend is declared?

Suppose I hold a call option with strike price of $50. Suppose the company decides to issue an extraordinary dividend of $20 per share. What's going to happen to the option I own? I'm guessing that ...
3
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1answer
70 views

What happens if I short-sell a stock and the company declares a large cash dividend?

Suppose I have shorted a stock. Further suppose that the company now declares a large extraordinary dividend. Will I have to pay the large dividend? If I understand correctly, there will be no loss ...
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1answer
21 views

Finding the dividend per share when we have constant dividend growth

For the following question, what is the dividend per share? My answer was 2.585 by saying that 5.5% return must come from the dividend yield and the other 5.5% coming from the capital gains rate. We ...
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1answer
58 views

Stock value according to dividend yield and PE, from an income investors and a gains investors perspective

I have a question about determining the cheapness of a stock when dividend yield and PE are telling different stories. Also, from a perspective oa an income investor and a capital gains focused ...
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1answer
36 views

Tax on dividends from a limited company when a higher rate taxpayer

I am a higher rate taxpayer and want to do some work on the side. I've already secured the work but I am now wondering if I should use a personal company or not. What I do not understand is the tax on ...
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1answer
26 views

Convert SP500 Market Cap and Dividend Yield to Total

There's SP500 Dividend Yield I want to build graph that would show - how much money - including dividends - I would get if I hold 1 "unit" of SP500 over time. So the dividends for every year would ...
2
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2answers
95 views

Why Might A Company Have a Payout Ratio > 100%?

I'm trying to up my knowledge in dividends and sometimes I will see a company that has a payout ratio greater than 100% and I think that typically speaking somebody would see that and consider it to ...
2
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2answers
246 views

Any ideas why REITS seem to be headed to zero?

Being old I have/had much of my 401 K in REITS for income. I specifically avoided mall and retail. Most imply that they are mostly residential mortgages. All are down substantially more than market ...
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1answer
64 views

How come data from different sources for dividends don't match?

This is regarding dividends for SPX Data from ycharts: | Dec 2019 | 15.21 | | Sep 2019 | 14.80 | | Jun 2019 | 14.24 | | Mar 2019 | 13.98 | This is regarding dividends for SPX Data from ...
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3answers
133 views

High Dividend Yielding Stocks

Does a High Yield Dividend stock such as 45% mean that it is not worth buying? How could a company have such a high dividend yield rate? One of the companies I invested in has a dividend yield that ...
3
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1answer
923 views

Do you still have to report to the IRS if you sold no stock, and your total dividends for the year were less than $0.05?

If you own stock, but did not sell any in the previous year, and your dividends for the year totaled less than $0.05, do you still have to report any of it to the IRS?
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1answer
37 views

UK Dividends template

I'm running a very small limited company in the UK and I just found out that I need to produce dividends vouchers and minute meetings even if I'm the only shareholder. The problem I have is with the ...
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2answers
249 views

How much dividend tax will I pay while also earning a salary?

I live in UK, I have a day time job where I earn around £26,500 per year, I am also running my own limited company, and I just received a dividend of £60,000 My accountant told me that I will need ...
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1answer
36 views

How to declare Cash Liquidation Distribution considering the Cost Basis?

I've been accumulating RSU and Compensation via stock (against my better judgment, but that's another topic) Now the company liquidated. e-trade documentation for 1099-div shows that i received money ...
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0answers
86 views

Why do some monthly bond ETFs have no dividend in January?

For example, the following bond ETFs have monthly dividends except in January: 1) https://www.nasdaq.com/market-activity/funds-and-etfs/vteb/dividend-history: ------------...
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3answers
234 views

Is putting most of one's one money in dividend ETFs a reasonable long-term strategy?

I'm considering putting most of my savings (about 55,000 €) in an ETF with focus on dividend payments as I want some of the returns accessible to me without having to sell. I'm planning to go with ...
6
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2answers
1k views

Roth IRA vs taxable investment account

I'm new to investing, using M1 Finance, and have been doing some overall research. From what I know, Roth IRA is tax-free income and mostly used as a retirement plan so if I invest in a Roth IRA ...
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1answer
51 views

CFD on dividend stock

Below is my theory, that is false (because if it would be true then everybody would do it) but I do not know why: If a stock price is being lowered by an amount that is paid as a dividend, does it ...
2
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3answers
258 views

Do share prices on average drop by the whole dividend?

Share prices (including ETF prices) drop when a dividend is paid out. What's the empirical evidence for the exact amount of the drop? I found some old papers that mention that the stocks they looked ...
0
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1answer
89 views

Sell losing stock to offset dividends

I am new to this so bear with me. In 2019 I received a total of $637.70 in dividends. From Etrade IRA $192.45 and from Robinhood $445.25. I know I will be taxed on this income. I wanted to know if ...
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3answers
177 views

If I purchase and simply hold on to a non-dividend yielding stock for an entire fiscal year, will I need to report it on my tax return?

Next year will be the first time I file for taxes. Though I have a pretty good understanding of how taxes work, I just want to confirm whether I need to include stocks that I have not sold and do not ...
0
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1answer
70 views

How much is a total market dividend yield expected to drop in a bad year?

Let's take a total US market ETF like VTI. Its dividend yield is about 2%. How much will it drop on a bad year, when its composing stocks are mostly down?
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0answers
66 views

Do dividends paid on short positions count when reporting taxes?

If I'm long Company A that paid me $100 in dividends and I'm short Company B that I paid $100 in dividends... do I report $0.00 to the IRS? Do I sum dividends in and out?
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3answers
187 views

Are there some types of investment that can return 5% per year and is anti-inflation?

Some people claimed that if a person has a million dollars (US$1 million), and spend $4000 per month, which is $48,000 or roughly $50,000 a year, then after 20 years, the person is broke (has no money)...
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1answer
97 views

Fractional-Cent Dividends & Official Sources

How do fractional cent dividends work? In ETFs such as SPY, which represents a group of stocks, the dividends come from pooling the underlying dividends and comes to a long decimal (such as $1.383619 ...
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2answers
241 views

Why is there more attention on the S&P 500 than on the S&P 500, inflation adjusted, with dividends?

Dividends, like increased stock price, are just another equivalent way for shareholders to gain value (with some tax differences). Many investors reinvest the dividends and so never "see" them. Of ...
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2answers
582 views

Why do tobacco companies pay huge dividends?

I noticed that tobacco companies pay huge dividends. For example Imperial Brands is expected to pay 12.22%. I can see that a tobacco company would want to pay some dividend because it operates in an ...
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1answer
108 views

Non resident: Do I need to pay any state taxes for 2019?

I lived and worked in US in 2018 and filed both the federal tax and the state tax (CA) in 2019. I left US in 2018 Dec and settled in new country. For 2019, I got married and lived outside US for the ...
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2answers
143 views

How do ETF commissions work?

Let's suppose that I live in the UK, and that I have £10000 invested in Vanguard's VUSA. This ETF has an ongoing charge of 0.07%. This, added to the 0.15% account fee, it's a 0.22% total. That means ...
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3answers
490 views

What is an advantage of getting dividends from stock? [duplicate]

I have seen multiple questions on this site that mention how when a dividend is paid out, the price of stock drops by the same amount, which makes it so that getting the dividend does not actually ...
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3answers
631 views

How much money do I need to generate $1500 per month in dividends for the rest of my life? [duplicate]

I am 29 years old. I do freelance work and I can save around $500/Month from that. In my country, $1500/month is more than enough to cover all living/health/entertainment expenses for me and possibly ...
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0answers
22 views

Ensure tax compliance before moving to US. Investments in Offshore mutual fund that holds US stocks

As a non-resident alien, a person has to fill a W8-BEN form. Non-resident aliens are subject to withholding tax on dividends from US stocks (is that Ok?). Should the fund have had withheld those ...
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0answers
31 views

Foreign moving to US with investment in offshore fund through third country broker

A person from country x has a broker that some years back recommended investments in y fund. Say this one: Amundi Funds II Pioneer U.S. Fundamental Growth https://international.pioneerinvestments.com/...
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4answers
477 views

Why do rich people prefer shares with dividend over bonds?

I am especially (but not only referring to Warren Buffen, Bill Gates and so on). The first thing that came to my mind is because they can use their voting power, but then Warren started with shares (...
4
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0answers
68 views

Who reports the dividend for ACTS transfer, Outgoing or Incoming brokerage?

When a taxable brokerage account is transferred from one broker to another and as the old broker receives( and in turn forward to new broker) the dividend after the transfer as Dividend pay date is ...
19
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5answers
4k views

Why do companies pay fixed dividends instead of fluid ones?

For example, as of time of writing, Microsoft pays a dividend of $2.04 per share per year. Why would Microsoft (and every company I've looked at) pay a fixed dividend instead of one indexed to their ...
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0answers
10 views

How to track dividend in HDFCsec?

I have saving, demat and trading accounts in HDFC. I received dividend for few shares, how can I get that amount in my saving account?
4
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3answers
387 views

Why do companies use debt to finance business deals instead of cut the dividend?

Some time ago Altria bought a 35% stake in Juul, using $12.8 billion in cash. However if one looks at Altria's financial reports, it's clear that this is money Altria didn't have. The company didn't ...
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1answer
140 views

Why does dividend.com say that the VWO ETF has a dividend yield of 5.22%?

I see on https://www.dividend.com/dividend-stocks/uncategorized/other/vwo-vanguard-emerging-markets-etf/ (mirror): Why does dividend.com say that the VWO ETF have a dividend yield of 5.22%? When I ...
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2answers
323 views

Why some ETFs delay payment of dividends after Ex Date?

I was looking at ETFs and noticed that etf like QQQ, DIA( Ex date is 09/20/2019 but pay date is 10/15/2019) pay dividends about 5 to 6 weeks after the Ex-Dividend date . But other etfs (e.g IVV, VOO) ...
3
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1answer
130 views

Does the stock dividend tax depend on the exchange it is listed on?

Total is a french oil company listed on both Euronext Paris and NYSE. How does the location of the exchange affect de dividend tax? If I buy my shares on the NYSE, does the dividend tax depend on the ...
0
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1answer
84 views

Is there a dividend effect on stock prices? [duplicate]

If a stock costs $100 and the quarterly dividend is $3, can I expect the stock to drop $3 in value when: the dividend is announced? the dividend is granted? the dividend is paid?
2
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1answer
160 views

How Much Am I Losing On Dividend Tax?

I bought a Vanguard S&P 500 ETF that is issued in Ireland, yet my country of residence is the Netherlands (I'm doing this since from what I see there is no current Dutch ETF that follows the S&...
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0answers
36 views

US securities/brokerage account, owned by non-resident; tax liability

Assume the following scenario: natural person (not US citizen or Green Card holder) is tax-resident in some European (EU) country owns a US-based securities/brokerage account that holds shares of a ...
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2answers
67 views

Closing a short position on the ex-dividend date

I understand that if I close a short position on the ex-dividend date then I owe the lender the dividend. It is taken from my account. Where does the money the company pays for the dividend on those ...
10
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4answers
285 views

How do U.S. stock exchanges specifically account for dividends and ex-dividend dates?

At another question about ex-dividend dates and withholding taxes, an answer from Bob Baerker says: Stock exchanges reduce share price by the exact amount of the dividend on the ex-dividend date [...
2
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3answers
280 views

Best way to cash-out for passive income

First, my investing knowledge is very limited (still new to this, still learning). Second, my question is somewhat unfocused, sorry about that but I hope that there is a somewhat concrete answer, ...
2
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2answers
198 views

Avoiding withholding tax by selling shares before ex-dividend date?

Recently I sold 3006 DLS shares the day before the ex-dividend date. On the ex-dividend date, for the same amount of the sale, I bought 3052 DLS shares. I have therefore gained 48 DLS shares. So ...
0
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1answer
133 views

Why should an investor care about a company that never pays a dividend? [duplicate]

If a company never pays a dividend, as a shareholder, why should I care if it's doing great and has positive media coverage and hype? What's in it for me? Is the fact it's reported, and analysed ...
5
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2answers
242 views

Stock markets and dividends: When exactly does one need to own shares to be entitled to the dividend? [duplicate]

I have a more or less formal question regarding dividends. If a company pays an (annual) dividend of - say - 5%, this is voted for/against on the annual general meeting. Now, the dividend is paid ...

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