What do you fat cats think of monthly dividend stocks
- Thread starter OlecountryDawg
- Start date
Buy whatever Nancy Pelosi is buying.
I buy Closed End Funds that pay a monthly dividend. Look here...https://www.cefconnect.com
Dividend investing is generally a good thing, but you have to be aware the value of the stock shares drops on the ex-dividend date by the amount of the dividend. Sometimes you don’t notice the drop due to the dividend because of up and down movements in the stock on that day due to market forces. Dividends create no real value. They just transfer value from your stock price to your cash account or to additional shares via reinvestment.
You also need to be aware that you will owe tax on the dividends for the year issued. Most dividends are ordinary (non-qualified) and taxed as ordinary income. Qualified dividends are taxed at the capital gains rate. With a growth stock that pays no dividend, taxes on gains are deferred until you sell the stock and then gains are taxed at your capital gains rate.
Again, dividend investing is a good thing. Studies over time prove it works well. Dividend payers tend to be high quality companies. Be careful about chasing very high dividend payers. They sometimes pay great dividends because they have no avenues to invest and grow the company.
There is a newsletter put out by Kiplinger Finance magazine called Investing for Income that has a section called A Dividend AMonth, or something like that. It’s not very expensive. You can see a sample letter here: https://store.kiplinger.com/?gad_source=1
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Companies can and do cut their dividend, like BP did a few years back, also. So stay on top of it.
Yeah, and the stocks that cut get creamed and tend to be slow to regain the pre-cut stock price. Like you said, stay on top of it.
I have a CMA account dedicated to dividend stocks, and I agree with O wholeheartedly. It is the lifeblood of my portfolio.
REITs are golden, they have fantastic yields because of their tax status. If you're looking to "yield chase" a little bit without getting too reckless, I like the "quadfecta", as it's known: NUSI, JEPI, SCHD and QYLD (or XYLD if you like).
One that I found about 18 months ago that has been elite...Lamar Advertising (LAMR). Excellent financials, business model and they are fvcking EVERYWHERE. I drive all over the country and I see their billboards in every nook and cranny of our great nation.
REITs are golden, they have fantastic yields because of their tax status. If you're looking to "yield chase" a little bit without getting too reckless, I like the "quadfecta", as it's known: NUSI, JEPI, SCHD and QYLD (or XYLD if you like).
One that I found about 18 months ago that has been elite...Lamar Advertising (LAMR). Excellent financials, business model and they are fvcking EVERYWHERE. I drive all over the country and I see their billboards in every nook and cranny of our great nation.
