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Questions tagged [dividends]

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If I sell a put option that expires ITM on the ex-dividend date, do I get the dividend?

Say I sell a put option committing to buy X stock at $50 on Y date. Y date is also the ex-dividend date. The put option expires in the money, so the option buyer will exercise the option and I end up ...
Allure's user avatar
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2 votes
1 answer
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Dividends on OTC market in New York

A stock trades on the Bors exchange in Oslo, which is now closed for the day. Tomorrow is ex-div for that stock. The same company trades OTC in New York, which is still open, and is the same company ...
L'Supreemo's user avatar
0 votes
1 answer
104 views

Concerning dividends and expense ratios

I've been searching through the myriad of questions/answers to this. I'm comparing 2 similar ETFs, one with a yield of 8.4% and expense ratio of 0.35%, and the other has a yield of 10.0% and expense ...
Norm's user avatar
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-2 votes
2 answers
220 views

Why buy an annuity contract instead of invest the money? [duplicate]

Inspired by Why buy an annuity contract when you have money to spend? Take the contract described in that question: you have $100k, and you are buying a contract that pays you $600/month for the rest ...
Allure's user avatar
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6 votes
9 answers
5k views

How are dividends good for stock/share investors?

With every stock going ex-dividend, the stock price seem to drop by the amount of dividend per share. A few observations: The dividend seems to be earned at the cost of capital gain. The amount ...
fahmi's user avatar
  • 197
5 votes
1 answer
112 views

What's the tax treatment if I am charged for a dividend on a stock I am short?

I sold an option, and it was exercised, leading me to be short a stock going into ex-dividend. The brokerage charged me for the value of the dividend that was paid by the company, which happened to ...
sterid's user avatar
  • 181
3 votes
2 answers
1k views

How much taxes do I have to pay when taking a withdrawal from a recurring investment purchase?

I have been looking all over to find an answer and everything I am looking at looks way over complicated. I live in Maryland USA I want to invest $1000 a month into a stock that pays dividends ...
Rita Carmichael's user avatar
3 votes
2 answers
2k views

I have a put option affected by a dividend that has been renamed and no longer traded but is ITM

I have a put option affected by a dividend that has been renamed and no longer traded but is solidly in the money (MBI $8 puts). It appears as worthless in my app. I am considering exercising it. I ...
Telfer D. Preston's user avatar
4 votes
1 answer
707 views

Why does SGOV pay dividends twice in December?

The US ETF SGOV pays dividends once a month from Feb. to Nov, then twice in December. Why? I'm reading it may be for tax reason. If that's correct, what's the tax reason? From https://seekingalpha....
Franck Dernoncourt's user avatar
19 votes
2 answers
7k views

Why is the dividend yield on the S&P 500 so low?

Background: The S&P 500 is an index that has consistently grown across many decades. On the other hand, since the 1940s, the dividend yield has been decreasing. It used to be around 6%, while in ...
Tomek Tarczynski's user avatar
1 vote
2 answers
523 views

Why do companies pay a dividend when they can buy back and retire shares to increase their share price?

I am trying to determine something a bit niche that may not have an answer. I have asked professors, financial advisors, and random people. The best answer I have gotten is "I do not know, maybe ...
Tree-Koala 's user avatar
4 votes
2 answers
1k views

What is the difference between regular dividend and special dividend?

One implies ordinary income tax while the other is taxed according to capital gains tax, but how would you convince the IRS that your dividend payment is a special one and should be taxed at capital ...
Neil Meyer's user avatar
0 votes
1 answer
64 views

Par value less than annual dividend for preferred stocks?

Hey I am just skimming through the chapter 18 of the book intelligent investor by benjamin graham with commentary Jason Zweig. Pg:447 It basically compares Real Estate Investment Trust with Realty ...
CREATIVITY Unleashed's user avatar
0 votes
1 answer
94 views

What is a qualified dividend (NOT REITS!)

According to NerdWallet, qualified dividends are dividends that: It is paid by a U.S. corporation or qualifying foreign entity. For many investors — be they in stocks, mutual funds or ETFs — this one’...
sparaps's user avatar
0 votes
1 answer
154 views

Which REIT dividends are eligible for QBI deduction?

There seems to be a lot of conflicting information about this so I thought I would ask here. I am wondering if all REIT dividends are eligible for QBI deduction. And by ALL, I literally mean ALL. I ...
sparaps's user avatar
0 votes
1 answer
24 views

Do we need to show foreign asset's (US stocks) dividend in ITR filing, That even not withdrawn from the broker (US stock broker)?

I have purchased foreign assets (US stocks) using the INDMoney app for about 5000 rupees from india. And I have received dividends for that stocks in US broker website. Dividends are very low and I ...
Prasaathviki's user avatar
1 vote
1 answer
103 views

How to determine which dividends are qualified vs non-qualified when calculating quarterly estimated taxes?

I have enough dividend income that I need to pay quarterly estimated taxes. When I look at my monthly statements, I'm not seeing any indication of which dividends are qualified vs not, but I need to ...
Andrew's user avatar
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-1 votes
1 answer
263 views

Where can I find the form, schedule and line where the interest/dividends/royalties etc from foreign accounts are reported, when those values are 0?

I am a US resident. I have a non-US bank accounts. Therefore, I fill form 8938 on Turbotax. In form 8938, I need to indicate the "schedule and line" and the "form and line" where ...
Franck Dernoncourt's user avatar
3 votes
1 answer
1k views

Does eToro's Dividend Growth smart portfolio really pay dividends?

Four months ago I started an investment in Dividend Growth on eToro. I once read that dividends are not automatically reinvested but actually go straight into one's balance. However, I haven't seen ...
Richard's user avatar
  • 133
3 votes
1 answer
113 views

Does money paid in lieu of dividend count against qualified dividend income?

I am short an ETF and will pay the dividend to whoever owns the ETF, in lieu of dividend. However, most of my dividend income is in the form of qualified dividends. Will the payment in lieu of ...
PentiumPro200's user avatar
-5 votes
1 answer
285 views

Where can I see on Merrill Edge the sum of the dividends and distributions that were from a foreign country or U.S. possession in a given year?

When preparing my US taxes, I need to indicate the sum of my dividends and distributions that were from a foreign country or U.S. possession in a given year. E.g., in TurboTax: Where can I see on ...
Franck Dernoncourt's user avatar
3 votes
3 answers
1k views

Best Way To Pay Taxes on Dividends and Capital Gains?

My dividends and capital gains are now a large enough percentage of my total annual income to be a tax burden and require advance tax planning, so what's the best way to pay the additional tax due: a) ...
j03y_'s user avatar
  • 47
-2 votes
1 answer
98 views

Convert index to percentage

How would you convert the equity premium risk to percentage found here: https://www.spglobal.com/spdji/en/indices/strategy/sp-us-equity-risk-premium-index/#overview
KMN's user avatar
  • 101
1 vote
0 answers
42 views

Why Dividend Yield differs for the same company on different birga?

Why European tickers of American dividends stocks has not dividend yield? Does it mean that for dividend strategy I should buy on US birgas, not on local European ones? Will it affect my taxes? For ...
Eugene Kaurov's user avatar
1 vote
2 answers
219 views

Dividend for "accumulating" ETFs?

I'm looking at BlackRock ETFs and for those that "Use of income" is set to "distributing" I can look into the Factsheet and find the dividend. For example: https://www.blackrock....
Danijel's user avatar
  • 298
5 votes
2 answers
2k views

Are dividends taxed as capital gains tax in the US?

If I'm buying dividend fund ETFs and planning to live off on dividends with no other earned income, are the dividends distributed taxed as capital gains? If so, what is the current tax rate for ...
HelloDarkWorld's user avatar
2 votes
1 answer
268 views

Is there any reason to not put money into a stocks and shares ISA over a regular investing account?

I have a small amount of money in a regular investment account however I am considering putting more in. The UK tax-free dividend allowance is £2,000, although will reduce to £1,000 in the new ...
Jsk's user avatar
  • 1,668
5 votes
1 answer
1k views

How do qualified dividends get a lower tax rate than ordinary dividends?

IRS Form 1040 instructions say that "qualified dividends" have a lower tax rate than ordinary. Yet they are included in the ordinary and added to everything else for the ordinary rates. ...
WGroleau's user avatar
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1 vote
0 answers
100 views

Should I invest in US bond ETF as a US Non-resident Alien? If so, how should I manage the bond portfolio?

I’m currently investing in US market using IBKR with 70% index ETF (QQQ, VOO, etc.) and 30% bond ETF split (only BND at the moment). I’ve done this for two years I’m aware that a 30% withholding tax ...
Royyyyy1's user avatar
1 vote
1 answer
97 views

What is the formula of ESTIMATED dividend yield?

If you're going to say it's based on last 12 months of dividends: let's sum up the distributions of last 12 months and divide that by which stock price? Stock price of the last day of the month? ...
user120495's user avatar
2 votes
1 answer
265 views

ETF paying unusually high dividend

I realised that an ETF, iShares Currency Hedged MSCI Japan ETF (ticker symbol HEWJ) suddenly paid ~33% dividend on 2 Dec 2022. I couldn’t find any news related to it, and its counterpart (unhedged ...
tonychow1997's user avatar
0 votes
1 answer
223 views

Finding or calculating rate of return with reinvestment?

How can I find the rate of return from an investment, including both capital gains when I sell it and dividends it paid while I held it? Ideally, the answer should include the case where some or all ...
ricardoreich's user avatar
2 votes
1 answer
299 views

Historical and future dividends [closed]

Do any of you know where I can find the history of dividends paid by a company in the United States and the next date they will pay?
J.Doe's user avatar
  • 113
9 votes
1 answer
1k views

Why are there contradicting price diagrams for the same ETF?

I'm an absolute beginner to investing. I'm currently looking into the "iShares Core MSCI World UCITS" ETF tracking the MSCI World Index. The iShares Website shows how over the past 5 years ...
Jan Berndt's user avatar
0 votes
2 answers
289 views

Should stock price and P/E ratio increase when dividends increase?

In private conversation, someone told me that an increase in dividends should always increase stock price and P/E ratio, if all other factors remain unchanged. The "proof" involves the ...
Flux's user avatar
  • 17.1k
0 votes
1 answer
163 views

Do I have any tax liability for distributions occuring between date of death and transfer of brokerage assets to me?

Due to death of a relative (death during the summer of 2021) I have inherited a non-retirement brokerage account, consisting of various common stocks and mutual fund shares, and also some settled cash ...
311411's user avatar
  • 245
7 votes
3 answers
3k views

Is it possible to have your stock dividends sent directly to your house or personal bank account instead of your brokerage account?

Is it possible to have your stock dividends sent directly to your house or personal bank account instead of your brokerage account?
Ronald Provenzano's user avatar
2 votes
5 answers
263 views

Do stock prices increase by the anticipated amount of the dividend in the period before the dividend is paid?

It is known that stock prices will fall by the amount of the dividend on the ex-dividend date: Do stock prices drop due to dividends? Does a stock really dip in price on the ex-dividend date? And why ...
Flux's user avatar
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1 vote
1 answer
73 views

Calculate Dividends Return from Total & Price returns

I understand Price returns and Total returns for stock indices. For example, total returns account for Dividends paid by the underlying stocks assuming they are reinvested back into the same. How do ...
Maddy's user avatar
  • 133
0 votes
1 answer
137 views

Are the Depository Trust Company (DTC) fees paid on American depositary receipts (ADR) tax-deductible?

Are the Depository Trust Company (DTC) (mirror) fees paid on an American depositary receipts (ADR) tax-deductible (mirror)? I am a US tax resident owning some ADRs (e.g., AXAHY) via a US brokerage ...
Franck Dernoncourt's user avatar
1 vote
1 answer
152 views

High Yield Funds - How do they remain solvent when the balance sheet seems quite poor?

How do funds like PFL and PFN pay ~12% dividend yield and remain solvent? The balance sheets seem to show huge swings on profitability and I don’t believe these funds have assets they can deprecate ...
Jay Laura's user avatar
  • 113
0 votes
1 answer
49 views

Do foreigners pay taxes on dividends from Canadian listed ETFs?

A non-citizen, non-resident of Canada bought some shares of the Vanguard FTSE Developed All Cap ex U.S. Index ETF, which is listed on the Toronto Stock Exchange (ticker: VDU). When the ETF pays out ...
Flux's user avatar
  • 17.1k
0 votes
1 answer
86 views

What is the value of a dividend stock outside of its distribution

I have a fairly broad question about the value of dividend stocks in a general sense. Principally, as a thought expirment, I'm considering a case where the broad market doesn't exist and the only ...
Spencer Little's user avatar
1 vote
3 answers
152 views

Why is a share repurchase considered a payout to investors?

I have read many financial analysis articles that seem to calculate a company's payouts to its shareholders like this: total payout = cash dividends + share repurchases I can easily see why a cash ...
Flux's user avatar
  • 17.1k
-1 votes
1 answer
133 views

How could someone pester company managers to raise its dividend? [duplicate]

I'm reading The Intelligent Investor, and quote: Graham became a master at researching stocks in microscopic, almost molecular, detail. In 1925, plowing through the obscure reports filed by oil ...
daisy's user avatar
  • 579
0 votes
2 answers
71 views

How does dividend tax between countries work?

I am investing through degiro in stocks from usa, europe etc. I have noticed that there is a 30% deducted from any us dividends and 15% from europe. Why is there a need for the platform to tax the ...
Tsaras's user avatar
  • 133
1 vote
1 answer
45 views

Dividend Coverage Ratio and Preferred Stock

I am looking at investing in a few companies which offer preferred stock. Do their dividend coverage ratios factor in the dividends being paid to preferred shareholders? If not, how can I find or ...
pogallen's user avatar
3 votes
2 answers
3k views

Why does the price of a stock really drop on ex-dividend date? [duplicate]

I know that the price of a stock on the ex dividend is supposed to drop by the amount of the dividend. What i don't understand fully is why it happens. I have seen many answers/articles/books etc that ...
gio13's user avatar
  • 31
0 votes
1 answer
374 views

What is a reasonable ROI on friends & family capital loan for startup venture?

Every investor obviously interested in max ROI but what is a realistic ROI an investor would seek on a capital loan for startup venture? What is a reasonable duration for that receiving back the ...
Derrick's user avatar
  • 279
2 votes
2 answers
194 views

Are companies allowed to pay out more dividends than their retained earnings?

Assume that a corporation was formed three years ago with $500,000 in starting capital. In each of the first three years, it earned $100,000 and did not pay any dividends. It now has $300,000 in ...
Flux's user avatar
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