2021 Investment Thread

Killroy1999

Well-known member
About Dividends:
My old-old-old- company gave me some shares of the company and this year their 1099 Dividend form was holding up my tax refund. It bugs me that dividends are considered income when automatically reinvested.

Then I saw this about dividends:

youtu.be/f5j9v9dfinQ


I was really happy about my rental property taxes or lack of taxes this year :):).
 

afm199

Well-known member
About Dividends:
My old-old-old- company gave me some shares of the company and this year their 1099 Dividend form was holding up my tax refund. It bugs me that dividends are considered income when automatically reinvested.

Then I saw this about dividends:

youtu.be/f5j9v9dfinQ


I was really happy about my rental property taxes or lack of taxes this year :):).

Half my retirement income is from dividends, :laughing
 

two wheel tramp

exploring!
Half my retirement income is from dividends, :laughing


My friend gave me so much grief about buying dividend stocks. SO MUCH. I was like, "Well, I will reinvest like a beast for 23 more years and by the time retirement rolls around I will have lots of shares". I am a fan! :thumbup
 

rodr

Well-known member
Half my retirement income is from dividends, :laughing

I'm sure you know that if your stocks did not pay dividends but did increase in value accordingly, you can sell some shares for your income and have the same end result.

Might be a tax difference though, not sure how that works.
 

afm199

Well-known member
I'm sure you know that if your stocks did not pay dividends but did increase in value accordingly, you can sell some shares for your income and have the same end result.



Might be a tax difference though, not sure how that works.


Thanks

Actually the tax difference is favorable to selling stock for income, long term cap gains tax is really low.

However, dividends tend to weather storms, while stock price bounce up and down.
 
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Thanks

Actually the tax difference is favorable to selling stock for income, long term cap gains tax is really low.

However, dividends tend to weather storms, while stock price bounce up and down.

And if you accumulate enough stocks there are strategies for borrowing against them whenever you actually need cash, without touching the underlying, letting it grow even more.

I’m still learning all that part so I can have a target in mind. But money management strategies change significantly past a certain HNW amount.
 

Killroy1999

Well-known member

cfives

Well-known member
Does AT+T's (T) purchase and sale of Direct TV, make you feel like you know what you're doing by comparison, and is now a good time to buy their stock?
 
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afm199

Well-known member
Does AT+T's (T) purchase and sale of Direct TV, make you feel like you know what you're doing by comparison, and is now a good time to buy their stock?

AT&T has been so utterly saddled with debt that it has become a small country, servicing debt, while cutting service to its citizens and borrowing against their future earnings. I got out and might get back in at $20. Maybe. For reference, AT&T was at the current price ten years ago, only with inflation, it's worth far less than it was ten years ago.
 

cfives

Well-known member
AT&T has been so utterly saddled with debt that it has become a small country, servicing debt, while cutting service to its citizens and borrowing against their future earnings. I got out and might get back in at $20. Maybe. For reference, AT&T was at the current price ten years ago, only with inflation, it's worth far less than it was ten years ago.

Can't deny a gut feeling, and got one that feels that T will hit mid 30's by late summer/fall.

Edit: : I actually sold T before their last ex-div, and bought it again after it dropped post ex-div, in a sort of reverse dividend capture attempt. Long term I see it fairly stable, kinda like a bond alternative with a good yield, but with potential upside from ~28 bucks now to low/mid 30's within the next 2/3 ex-div dates.

Edit 2: That cheap money allowed them to overpay on 5G spectrum wavelengths, in a bidding war with Verizon and others!
 
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