Stack Exchange Network

Stack Exchange network consists of 174 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers.

Visit Stack Exchange
Join us in building a kind, collaborative learning community via our updated Code of Conduct.

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

1
vote
1answer
90 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
70 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
53 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-...
33
votes
8answers
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
90 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
162 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
39 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
78 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
52 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
208 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
331 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
45 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
551 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
112 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 ...
1
vote
0answers
18 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
273 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
216 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
130 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
746 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
40 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
239 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
211 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
78 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
150 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 ...
15
votes
3answers
3k 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
264 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
55 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
60 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
133 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
80 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
130 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
406 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
96 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
688 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 ...
0
votes
2answers
67 views

Are reinvested profits still “profits”?

Let's say I run a restaurant for a quarter and the cost of a served meal includes the ingredients, service labor, and utilities and monthly mortgage payment for the restaurant building, totaling $8.40....
4
votes
1answer
140 views

Best way to pay myself from my company when my marginal tax rate is higher than the company tax rate?

I'm working as an IT contractor in Australia and I'm about to move from a sole trader model to a Ltd company. I'm trying to work out the most tax effective way of paying myself in my own company, for ...
0
votes
2answers
48 views

Is it better to buy U.S ADRs or stock in native stock exchange for a foreigner?

Suppose a foreigner, say someone from Singapore, wants to buy BHP Billiton which is listed on both U.S and Australian exchanges. Where should he buy BHP for maximum financial gain? Should it be buying ...
0
votes
4answers
195 views

How can one protect oneself from a dividend stock with decreasing price?

I'm still learning to invest my money correctly and I found my investing strategy and my goal, but I think there's a flaw in my thinking and I wanted you to give me some advice or point me on one ...
1
vote
1answer
86 views

When are bond ETF dividends taxed?

From what I've read, the dividends of bond ETFs (like HYG or JNK) are taxed at the ordinary income tax rate (up to 39.6%). Is this tax withheld before the dividend is paid out to the investor? Or is ...
1
vote
1answer
226 views

How do I calculate dividend growth rate if one of the years doesn't pay out any dividend?

According to http://www.investopedia.com/terms/d/dividendgrowthrate.asp , this is how I'm going to calculate dividend rate. Year 1 = $1.00 Year 2 = $1.05 Year 3 = $1.07 Year 4 = $1.11 Year 5 = $1.15 ...
3
votes
0answers
75 views

Australian freelancing in UK

I am an Australian citizen and resident for tax purposes, but I have recently moved to the UK and planning on staying here for around 6 months. I have a valid working visa. I have picked up some ...
11
votes
1answer
2k views

Forgot to encash dividend Cheque!

My Mother holds shares in a public limited company [India], which announced it's interim dividend last year. Accordingly, they sent a cheque to her for her share of dividend, but she forgot to encash ...
12
votes
3answers
2k views

Where can publicly traded profits go but to shareholders via dividends?

Some companies don't pay dividends. Some companies accumulate money like the offshore "exiled" or expatriated cash piles of the likes of Apple and friends. So I suppose that corporate profits can be ...
0
votes
0answers
37 views

Would using an S-Corporation be a good long term tax strategy for securities and dividends?

If one had a large sum of securities that pushed him/her into the highest income bracket for dividend income, would an S-Corporation, or other entity help lower the tax burden? It is to my ...
3
votes
1answer
56 views

Bond ETF NAV before dividends

This BlackRock page says that a bond ETF's NAV will fall by an amount equal to the dividend distribution when a dividend is paid out. I assume that means that the bond ETF's NAV rises as interest is ...
3
votes
2answers
141 views

At what price are dividends re-invested?

If a stock trades at $11 and pays a $1 dividend, it will typically end the day trading at around $10. Now suppose all the investors have chosen to automatically re-invest those dividends into the same ...
2
votes
2answers
156 views

How do I avoid double taxation of dividends and capital gains?

I'm a U.S. citizen living abroad claiming the Foreign Earned Income Exclusion (FEIE). According to https://www.americansabroad.org/us-taxes-abroad-for-dummies-update/, The exclusion applies only ...
2
votes
1answer
60 views

Tax whilst starting a business in full time employment

I live in the UK and I'm thinking of starting a business whilst in full time employment. I've looked up the tax rules but I'm still quite unsure on everything. I was hoping someone could just clear ...