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Questions tagged [dividends]

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

4
votes
1answer
138 views

How is a dividend amount that is a fraction of a penny handled?

If I own 15 shares of a stock that makes a cash dividend payment of 0.635/share for a total dividend payment of $9.525, who determines how the half-penny is handled? I couldn't find any documentation ...
2
votes
1answer
69 views

Where do Master Limited Partnerships (MLP) lie on the risk/yield spectrum?

MLPs are required to pay profits to their limited partners. Dividend stocks can choose to stop paying dividends. Corporate bonds payments are fixed interest (a set number) but MLP payments are usually ...
1
vote
2answers
84 views

Dividends reinvestment in my Fidelity 401K

Why do my stock dividends have to be reinvested in my Fidelity 401k account? I would like to invest them where I think the best opportunities are.
0
votes
2answers
28 views

Do the dividends in NJ's 1040 include both the ordinary dividends and qualified dividends from the federal 1040?

I'm just wondering if I can calculate the dividends for New Jersey's 1040 by summing the ordinary dividends and qualified dividends boxes from the federal 1040. How about a part-year resident? Do I ...
1
vote
0answers
22 views

Dividend tax for Non Resident Alien owning US domiciled international stocks ETF

What is the US dividend tax rate for a non-resident alien owning a US domiciled ETF holding non-US companies? Assume no tax treaty so the tax rate for the SPY ETF would be 30%. An example would be a ...
0
votes
2answers
245 views

why does a 5% dividend-paying etf gets only 1-star on Morningstar?

An ETF that distributes dividend at 5% is rated only 1-star by Morningstar and considered low return on a historical level (by a different matrix). However, when looking at the chart in 2017, the NAV ...
1
vote
2answers
82 views

Does it make sense to take dividends for a director paying higher rate tax to invest in ISA?

Assuming: I am an LTD director I reach the higher tax band (32.5%) for dividends to cover my living expenses Does it make financial sense to declare higher dividends (taxed in my hands at 32.5%) to ...
2
votes
2answers
106 views

What happens to ETF distributions during a market crash'?

Every month I invest a percentage of my income in three ETF's. Two provide distributions and income to me every three months. My thoughts are: The distributions come from dividends from the ...
1
vote
2answers
74 views

How to chart what a mutual fund or ETF will return if dividends are reinvested?

When looking at financial charts like bigcharts.com, the chart shows closing price (or OHLC) for each day. This shows growth (or decline) of the equity if dividends are not reinvested. But what if ...
0
votes
2answers
139 views

Do SPY prices include dividends?

I'd like to calculate the return of SPY over a range of time. For example: 5/1/18: 264.98 9/14/18: 290.88 264.98 - 290.88 = 25.9 25.9/264.98= 0.0977 = 9.77% Does the 9.77% return include SPY ...
3
votes
2answers
50 views

On the ASX, why does a stock going ex-divided trigger cancellation of market orders?

I currently hold a stock trading on the ASX, and I noticed this morning that my sell order was automatically cancelled. Looking at the queues, I noticed that there were almost no orders in either buy ...
1
vote
3answers
136 views

Keeping track of “out of pocket” cost basis

Dilemma I have some criticism about the cost basis reported on brokerage websites. It isn't your out-of-pocket cost basis. It accounts for reinvested dividends. As a result, the gain/loss number ...
1
vote
6answers
242 views

Why do stock prices rise when dividends increase?

It seems like stock prices rise when dividends increase unexpectedly [possible citation needed]. This doesn't seem intuitive to me, because if you think of stock as a claim of ownership on a company, ...
0
votes
1answer
67 views

Where can I find dividend payout frequencies? [closed]

Most equities pay out dividends each quarter, but some equities like DIV pay out every month. Is there an API or hard coded list available with the payout frequency per equity? Or is it safe to ...
1
vote
1answer
117 views

Bi-weekly payments with dividends or other investments

I am aware that dividends pay out 4 times a year. I would like to start earning passive income using dividends. My question is Is there any way to buy different stocks that payout at different times ...
2
votes
1answer
96 views

DRIP Vs. Cash Dividend in a taxable account - Which one is beneficial from the tax perspective?

I believe dividends are considered as an income and if you reinvest using DRIP it won't be income but capital gain later when you sell the stock? What are some advantages and disadvantages of doing ...
1
vote
2answers
69 views

How to factor dividends into SPX returns?

I'd like to calculate the return of the SPX from March 1, 2018 to July 31, 2018 with dividends included. SPX pays out a 1.80% dividend: https://www.investopedia.com/ask/answers/040915/does-sp-500-...
35
votes
9answers
15k views

Is it legal to “mine” dividends?

Dividends are paid to share holders based on ownership of shares before the “ex-dividends” date. Example: Stock A has an ex-date of July 1st Stock B has an ex-date of July 15th ...
7
votes
1answer
110 views

Do I have to disclose overseas income that's below my personal tax allowance

There was a section on BBC Radio 4 Money Box recently about the dire consequences of not disclosing overseas income to HMRC before their "amnesty" runs out in September. The details are on the HMRC ...
2
votes
4answers
167 views

Can I place a stock in an IRA temporarily to capture a dividend, then move it back?

Consider the following scenario: Stock A pays a large annual, non-qualified dividend. Stock B pays a monthly non-qualified dividend. I hold stock A in a taxable account and an equivalent $ amount of ...
1
vote
1answer
48 views

Stock vesting and taxation situations

While working at an Indian branch of a company based in US, I got some Restricted Stock Units vested couple of times. Earlier times (Scenario S1), all the stocks (Say I got 100 stocks vested) would ...
-1
votes
2answers
81 views

When do dividends occur but capital gains not?

Consider a one year period. In what case would a dividend be distributed by a company, but its share price not rise (other than a sudden fluctuation towards the nearing of the calculation period)? ...
2
votes
1answer
141 views

How to read “Change in Dividend Accruals”?

This is from an Interactive Brokers monthly statement. My question is, how much of the AUD 36.06 dividend was actually payed out to the account after tax? And how do I read the lower table with the ...
1
vote
2answers
242 views

Why is there less buzz around IEP (Carl Icahn) than BRK.B (Warren Buffett)?

IEP is 95% owned by Carl Icahn. It most certainly passes the Skin in the Game principle Nassim Taleb likes to talk about. I happen to own a couple of shares in it because of the man's incredible ...
6
votes
2answers
358 views

How does a company have a net loss in their income statement, but their stock market value still rises?

For example in the case of Tesla, they always have a net loss in their operating income, but still their market value keeps increasing. What do the shareholders get as dividend? Do shareholders get ...
2
votes
1answer
104 views

What to do about ETN distributions not included on 1099?

As a US citizen, in a US taxable brokerage account, I received distributions from MORL, a UBS (Swiss)-sponsored exchange-traded note (ETN). The brokerage account statements label the distributions as ...
2
votes
1answer
562 views

Yahoo's finance data for dividends is flat out wrong for CBA.AX. Why is that? [closed]

I looked the the dividend history for CBA.AX https://au.finance.yahoo.com/quote/CBA.AX/history?period1=686152800&period2=1525010400&interval=div%7Csplit&filter=div&frequency=1d and ...
1
vote
2answers
284 views

Understanding “Last Dividend Reported” in Bloomberg's database

In Bloomberg's database, there is statistic called "Last Dividend Reported" (see picture below). For the stocks that I looked at, it's usually a number smaller than 1. What exactly is this figure? Is ...
2
votes
1answer
34 views

How are dividends on US stocks treated by the CRA?

As an American living in Canada I have some stocks in a US account and they paid dividends this year. On the 1099DIV there are values for boxes: 1a. Total Ordinary Dividends 1b. Qualified Dividends ...
6
votes
1answer
288 views

Did the 2007 Domino's Pizza special dividend present an opportunity to make an (almost) riskless profit?

According to Domino's Pizza's 10-K: On April 17, 2007, our board of directors declared a $13.50 per share special cash dividend on its outstanding common stock totaling $846.4 million, which ...
-5
votes
1answer
247 views

It seems dividend growth stocks would take decades to return 100%, so what is the point? [closed]

What is the point of dividend growth stock, it yields low and the value needs to have high yield are mostly unreachable by many people. Here I will brief an example. Let's say Walmart has dividend ...
1
vote
0answers
157 views

How to fill out Canada T5 dividends to US 1040 form?

I have T5 from Canada, box 24 call actual amount of eligible dividends . box 25 call taxable amount of eligible dividends, box 26 call dividends tax credit for eligible dividends, box 18 call capital ...
6
votes
1answer
826 views

How do brokerage firms handle dividend reinvestment when a company does not offer DRIP?

I have my (Vanguard) brokerage account set to "Reinvest Dividends", an option I selected when I opened it brand new. And ever since then, every stock I own that pays dividends, has resulted in ...
1
vote
1answer
43 views

Do I need to be a shareholder in a single person corporation (in Ontario)?

I am researching various options as I self incorporate my business. As the incorporator, I am also the only director. Do I need to assign shares to myself immediately? I haven't yet decided between ...
0
votes
1answer
345 views

If a stock assures that they will never pay out any dividends in the whole future of the company, is it worth anything? [duplicate]

I've had this discussion a lot with friends. It is simalar to this question: If a stock doesn't pay dividends, then why is the stock worth anything? ...But it is actually not the same. Most ...
3
votes
1answer
417 views

What is a Dividend Right? How do they work?

My understanding is that when a company is not able to issue dividends to the shareholders, the company issues a dividend right certificate and in the future when the company can pay dividends, before ...
4
votes
2answers
318 views

What does a fiscal year end date on a mutual fund mean to an investor?

I'm looking at different funds, however I've noticed the dividend dates are different from the fiscal year end date. My understanding is that mutual funds don't pay taxes and those are passed on as ...
0
votes
0answers
33 views

Capital gains and income paid to a separate account

Is there any form of investment available in the US where the capital gains (when selling it) and the income (e.g. dividends) can be paid into a different account that the one where the money for the ...
3
votes
1answer
164 views

Why use dividend-paying ETFs, given that dividend tax is higher than capital gains tax?

Say a UK tax-payer is in the higher tax brackets for taxes. They will pay 20% on their capital gains, and 38% on their dividend gains. It seems to me that it is strictly worse to use dividend paying ...
16
votes
3answers
5k views

How does dividend work in an index fund?

What does a manager do with the dividends of the companies in the index? Does he reinvest the dividends in the company in which he got the dividends or will just choose whichever company suits him? ...
4
votes
2answers
276 views

What happened in 1926 that made data on stock dividends reliable?

I read in Boglehead's Guide to Investing (second edition): Stock dividends can be a major source of fund returns. Since 1926, when reliable data first became available, dividends have accounted for ...
2
votes
0answers
63 views

What does “No Sweep” Mean in Citibank Context

I am in the process of opening Traditional IRA account with Citibank (currently have checking and saving account at Citibank) Purpose is to purchase ETF for long-term. Form has section to determine ...
0
votes
2answers
65 views

Method to evaluate a stock or ETF for dividend reinvestment

I am looking for help in finding a method to evaluate a specific holding (stock or ETF) and decide whether I should be automatically be reinvesting the dividends and capital gains paid by it. My ...
1
vote
1answer
135 views

Difference between paying back shareholder's original dollar contribution and paying “dividends”?

What is the difference between paying back shareholders a dollar amount each year vs paying them a dividend? Is it the same thing?
3
votes
2answers
88 views

Best ways to defer investment income to qualify for low-income subsidies?

Currently, my only income is from dividends and interest which is about $70k/yr. If I can lower my income, I can pay lower taxes each year and I may qualify for some low-income government subsidies ...
0
votes
1answer
176 views

Are dividends on YahooFinance adjusted for splits?

Here is an example from YahooFinance of dividends paid over time. I assume these numbers are USD - is this correct? My other question is if these dividends are adjusted for splits? In this example ...
6
votes
2answers
522 views

Dividends stock vs. non paying dividend stocks

Each year I end up having to report dividends to the IRS and it costs me money. Is it not better just to look for non paying dividend companies that are good value as well or over the long run it's ...
5
votes
1answer
100 views

401K Rollover for small amount

Earlier in the year (07/03/217) I closed out an "old" employer sponsored 401K by rolling over to an existing personal Rollover IRA ($12,619.90). Now, on 12/07/2017, there was a "contribution" (or ...
9
votes
2answers
753 views

What are the “capital gains” my ETF is distributing to me alongside its dividends?

Today I noticed several ETFs I own, including SLYG, opened at a significantly lower value than they closed at yesterday (SLYG was $7.975 lower to be exact). Apparently yesterday a dividend was ...
24
votes
3answers
5k views

If a company that doesn't pay dividends makes a large profit, where does it go?

Does the company have a responsibility to reinvest all of it? Can a company have a lot of money just sitting around? Is that grounds for shareholders to sue? If a company has a lot of money just ...