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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.

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Does a master trust have to liquidate to hand off assets to one or more child trusts?

My mother had a trust which Wells Fargo Trust Management mismanaged. Before my mother passed, WF Trust Mgmt closed the master (parent) trust without specifying the siblings correctly. Just so I ...
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0answers
88 views

Why dividends have seasonality?

What are the reasons why dividends have seasonality? I'm trying to understand the details of it, but I cannot find an article about it.
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2answers
179 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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2answers
100 views

How inflation affects returns and dividends

How inflation is linked to returns AND dividends? We know that adj returns are (1+return)/(1+inflation) -1 But how do we account for dividends? Suppose: 10% annual return 3% inflation 4% dividend ...
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2answers
81 views

Why won't my pending dividends show up in Robinhood account?

BP is supposed to pay dividends tomorrow but when in Robinhood whenever I navigate to History -> Filter -> Dividends it says: When you receive your first dividend, it will show up here. Isn't there ...
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1answer
44 views

Does reinvesting dividends after selling for a loss cause a wash sale? [duplicate]

I sold some fund shares with high turnover on my personal investment account with the intent of buying something similar later on my IRA account. However, after I sold (and within 30 days), I ...
1
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1answer
121 views

How do Vanguard LifeStrategy 60 Inc units generate a yield when all the sub-funds are Acc units?

According to Vanguard's portfolio information for Lifestrategy 60 Inc units, the sub-funds of which it's made up are entirely Acc units (with the exception of an inconsequential 0.0% in a distributing ...
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4answers
1k views

Using dividends to reduce short term capital gains?

Let's say I have $100 in short term capital gains this year. I will need to pay taxes on this gains at the my ordinary tax rate (which we shall assume is 37%). Let's also say there is a stock that ...
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1answer
303 views

Why don't I just buy high yield dividend stocks? [duplicate]

https://www.nasdaq.com/dividend-stocks/ I am seeing percentage over 5%, 10% even. I know there are taxes and stuff but the numbers seem more appealing than things like online savings account (~2% ...
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0answers
37 views

How to quantify the cheapness (or overvaluedness) of a stock from dividend yield theory perspective?

Is there a way to quantify the potential cheapness (or overvaluedness) of a stock's price when comparing current and average dividend yield from a dividend yield theory (DYT) perspective? For example ...
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2answers
51 views

How can I distinguish ordinary dividend from qualified dividend for when reporting amounts related to foreign financial assets in Turbotax (US taxes)?

How can I distinguish ordinary dividends from qualified dividends for when reporting amounts related to foreign financial assets (= hold in non-US brokerage accounts) on the Turbotax website when ...
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2answers
740 views

Taxes on Dividends in a Roth IRA

Do I have to pay taxes on dividends that I receive from stocks in my Roth IRA? I'm aware that I won't pay taxes on my money if I take it out after age 59.5 or if I take out less than or equal to the ...
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9answers
2k views

Are ETF trackers fundamentally better than individual stocks?

My situation: I am mostly interested in long-term dividend-paying investments. My philosophy is "only sell if the company becomes fundamentally worse", so I only pick stocks of companies I feel ...
2
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2answers
191 views

Is my sister entitled to a refund for IRS over-withholding? If so, how does she get the refund?

My sister has a taxable brokerage account with Interactive Brokers and invested in GE stocks (which collapsed, resulting in a massive capital loss written off on Line 132 of Schedule 3 on her T1 ...
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2answers
101 views

Do people still contribute to their Employer retirement accounts/ IRAs while doing dividend investing?

I was looking into dividend investing for a passive income for the far future. My question is, do people still contribute to their Employer retirement accounts/ IRAs while doing this? Do they ...
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0answers
53 views

Does a French citizen living in the US owning stocks in a brokerage account in France have to pay taxes on dividends to the French tax authorities?

Does a French citizen living in the United States and owning stocks in a brokerage account located in France have to pay taxes on dividends to the French tax authorities (fisc)? Additional ...
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2answers
81 views

Is this the correct way to calculate how much I'll get paid on Dividend Payable date?

I'm brand new to purchasing stocks and I have a question. If I purchase, say, one share of Exxon at $78.19, do I divide 78.19 by 4.09 (Dividend Yield/Amount) = 19.117 ? Would this mean I would get ...
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1answer
134 views

Income from dividends and rental

My total income for this tax year is £5600 from share dividends and £6000 from rental income, i.e., £11600 should I be filling out a tax return or some such. Or am I one of the people who is ...
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2answers
57 views

Stock dividend payments; how is payment made? [duplicate]

Dividend payments; where do they get paid into?
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1answer
79 views

Did Schwab's Emerging Market ETF really pay no foreign tax related to the final distribution in 2018?

According to the 1099 from my broker, the Schwab Emerging Market ETF (SCHE) did not pay any foreign taxes associated with its final dividend for 2018, declared 12/28/2018. I'm quite skeptical as ...
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1answer
118 views

There was a year recently when McDonald’s paid both a dividend and some type of special bonus (total ~7billion?). What was this?

There was a famous news story from the past few years where, in addition to normal dividends, McDonald’s paid some type of large bonus (I think it was over 7 billion)? To shareholders. Though ...
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1answer
105 views

Why in this example is only 50% of the dividend qualified instead of 100% of the dividend?

Example taken from here: (...) The dividend income from the 2,000 shares held 49 days would not be qualified dividend income. The dividend income from the 8,000 shares held at least 61 days ...
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0answers
29 views

Italian Taxes on U.S. Citizen Resident of Italy with Dividends from Permanently Established U.S. Company

NOTE: the goal of asking this question is not to avoid paying legitimate taxes, but to simply determine which state has precedent for payment of taxes due. Based on the U.S. Italy Tax Treaty income ...
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1answer
86 views

Intelligent Investor Example from Chapter 1

As per Intelligent Investor Chapter 1 example In 1965 the investor could obtain about 4½% on high-grade taxable bonds and 3¼% on good tax-free bonds. The dividend return on leading common stocks (...
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3answers
195 views

Long Term Stock Investment and Compounding

I have a query that's been bugging me. I have been investing in the UK stock market + funds for around a year now. Current Investments - Retirement Fund - FTSE index Fund - Managed Accumulation ...
2
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2answers
203 views

How do ETF dividends work

How do dividends work when being paid via an ETF? A dividend is a share of the profit, paid to the shareholders. Whilst that is understandable when owning a stock of an individual business, how does ...
2
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1answer
49 views

How do ADR vs U.S.-listed foreign corporations handle dividends to U.S. investors?

If a Japanese company pays 500 yen/share dividend for Japanese investors on a Tokyo exchange, how will they pay U.S. investors who bought their shares? If it's a U.S. listed foreign corporation? If ...
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3answers
269 views

Take money out of paycheck into income producing asset(s)

My company has a 401k plan where they would take out money from my paycheck and match whatever I put into it. The concept of taking money out of my paycheck every two weeks and put it into a ...
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2answers
69 views

To what extent can dividends be seen as an informed and careful conclusion about the company's long term ability to at least maintain it?

John Lintner found that management aimed to have a stable payout ratio target but, in fact, it is often the dividend itself that is kept stable and that reverting a dividend hike in the future would ...
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5answers
188 views

Why isn't the retained earnings of a public company always distributed back to the shareholders?

Shareholders own a public company, so why shouldn't all of a company's income be distributed back to them? Why are dividends (if any) just a small fraction of a company's retained earnings?
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3answers
138 views

5% Dividend, 20% Price Drop. Whats the point?

This was asked by someone earlier but I did not get the answers. What's the point of buying dividend stocks for yield when the stock's price itself may decline so much more? Here's just one of the ...
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3answers
213 views

Why are dividends seen as a good thing for investors? [duplicate]

Why are dividends generally seen as a good thing for investors? For example, you can look at this Barrons article where it states Broadcom (ticker: AVGO) plans to boost its quarterly dividend by 51%, ...
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1answer
425 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 ...
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1answer
78 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 ...
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2answers
308 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.
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2answers
360 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 ...
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0answers
82 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 ...
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2answers
270 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 ...
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2answers
87 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 ...
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3answers
158 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 ...
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2answers
79 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 ...
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2answers
186 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 ...
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2answers
84 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 ...
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3answers
167 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 ...
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6answers
362 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, ...
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1answer
155 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 ...
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1answer
156 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 ...
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1answer
225 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 ...
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2answers
75 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-...
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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 ...