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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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73 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
210 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 ...
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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
48 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 ...
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3answers
251 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 ...
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1answer
84 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
161 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 ...
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1answer
65 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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64 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
178 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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78 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
214 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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559 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
99 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
142 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
476 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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21 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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30 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
463 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 (...
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67 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 ...
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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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9 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?
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3answers
371 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
111 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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274 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) ...
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1answer
105 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 ...
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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?
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1answer
155 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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34 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
57 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 ...
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4answers
265 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 [...
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3answers
274 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, ...
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2answers
152 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 ...
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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 ...
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2answers
237 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
151 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
410 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
186 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 ...
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1answer
180 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
336 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
42 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
57 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
815 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 ...
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2answers
273 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
102 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
68 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
133 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 ...