Are higher dividend yields always better than low ones? Are dividend stocks always safe? And are all dividends taxed the same? Dividend investing can be one of the most certain paths toward long-term wealth, but it's important to separate fact from fiction. There are several myths or misconceptions many investors have regarding dividend stocks, and we'd like to clear these up for our readers. So we asked three of our analysts to pick one of these popular myths about dividend stocks and explain why it may not be entirely accurate.
Brian Stoffel: One of the easiest dividend myths for beginning investors to fall for is the idea that higher yields are intrinsically better. Dan Caplinger: One false idea that many people have about dividend stocks is that they're safer than non-dividend-paying stocks. Matt Frankel: One myth or misconception about dividend stocks is that they're all taxed the same. In reality, dividends fall into two categories for tax purposes: qualified and ordinary
Source: Motley Fool
Related Articles:
- 6 Dividend Stocks With A Low P/B Ratio
- Are Storm Clouds Gathering For These 5 High-Yielding Securities?
- Why Dividends Matter
- 6 Stocks Currently Trading Below their Fair Value
- The Perfect Dividend Stock
_____________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
For income investors who want to use the “buy-and-hold” strategy, few things are better than monthly dividends. The problem is that among th...
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
Yields can rise in one of two ways: An increase to the dividend, or a cut to the share price. Thus, you often get high-single-digit and even...
-
They may not be the most popular dividend stocks, but they have a lot to offer your portfolio. Not every investment opportunity has to be ac...
-
Today’s chart highlights my favorite place to find safe seven percent, nine percent, and even 12% yields: mortgage real estate investment tr...
-
When sitting down today and looking for investments worth owning over the next 20 years, my first question was where to begin looking. Lucki...
-
The internet revolution connected billions of people to the web, and the Internet of Things (IoT) could have a similarly revolutionary effec...
0 comments
Post a Comment
Post a Comment