The darlings of cautious investors are sitting on the edge of the "fiscal cliff" and feeling twinges of tax anxiety. Much to the surprise of some investors, dividend-paying stocks — sleepy investments like utilities — along with real estate investment trusts, and master limited partnerships, all have dropped in value since the presidential election. Nervous investors fear that all three could face higher taxes next year, and some have been selling high-yielding investments rather than wait for them to decline in value amid tax concerns later.
Analysts say that after going through initial selling, dividend stocks should still be attractive to investors because many retirees won't be in the upper income bracket, will want income for retirement expenses and will prefer the stability that solid dividend-paying stocks tend to offer over more volatile stocks. Although wealthy people would face the 43.4 percent tax rate, middle-income earners in the 28 percent income-tax bracket would only face dividend taxes at the 28 percent rate. And people who hold dividend-paying stocks in IRAs or 401(k) plans face no tax on those because the accounts are insulated from taxes.
Source: Naples News
Related Articles:
- 12 Dividend Stocks For A Powerful Income Stream
- 7 Dividend Stocks Sporting A Five-Star Rating
- 10 Dividend Stocks Ignoring The 4% Rule
- Dividend Stock Bubble: Is It Even Possible?
- 8 Dividend Stocks To Consider While Waiting on Apple to Pay Its First Dividend
Dividend Stocks Risk A Drop
Posted by D4L | Saturday, December 08, 2012 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
In this article, we discuss 5 best consumer staples dividend stocks to buy now. If you want to read our detailed analysis of the consumer st...
-
If you've been holding back from investing in your future just because you don't have a lot of extra cash to spare, I've got gre...
-
Dividend stocks cater to investors who want less volatility and stable cash flow. Some dividend stocks offer a combination of respectable yi...
-
I stumbled upon some data a few years back that has altered my investment philosophy. According to data by Ned Davis Research and Hartford F...
-
Following a strong year for the S&P 500 and huge gains for the tech-heavy Nasdaq Composite, it's a lot more difficult to find reason...
-
The company's remarkable consistency and low-risk business model make it a "first-choice investment opportunity," according to...
-
One way to achieve financial freedom is to create passive income, or income that does not depend on your active involvement beyond a certain...
-
If you are here to build a portfolio that thrives in all seasons, consider dividend stocks. They can generate steady returns and provide sta...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.