On Dividend Stocks and upcoming tax increases

Whittling Down the Worries Over Likely Dividend Tax Increase

"I think dividend stocks are not as expensive as some are making them out to be," says Jeremy Schwartz, the Director of Research at WisdomTree, in the attached video. "What is important to do, is to always come back to what the underlying value is for these companies," particularly within the four key dividend paying sectors, including the Staples, Health Care, Utilities and Telecom.

He admits that a lot people are not only afraid of facing higher taxes on their dividends, but they are also worried that the broader markets could get caught up in any retreat. However, he says there are a lot of mitigating factors that will lessen the impact and keep declines in check. "

Not everyone is going to face the [tax] increase," Schwartz says, citing research that shows only half of dividends went to households making more than $250,000 a year, and then a large portion of these people have their yield plays in tax-insensitive or tax-advantaged accounts, such as an IRA or some other form of pension fund.
Comment: My direction is still dividend stocks. Recently bought more KO

No comments:

Post a Comment

Any anonymous comments with links will be rejected. Please do not comment off-topic