Dividends4Life: Investing in Dividend Stocks

Investing in Dividend Stocks

Posted by D4L | Saturday, December 25, 2010 | | 0 comments »

With real estate, the cash flow is taxed at ordinary tax rates as income (whatever you don’t offset with expenses). With stocks, the cash flow is taxed at long term capital gains if they are qualified dividends. On the sale of either asset, it’s short term capital gains if you’ve held it for less than a year and long term if you’ve held it for more than a year.

Here’s the big difference between the two and why I think dividend stocks trump real estate. The cost to buy and sell stock is $5 and the market is liquid, which means you can get into and out of a position within minutes. That and the stock market provides far more information than the real estate market because of sheer transaction volume and SEC reporting requirements.

Source: Bargaineering

Related Articles:

Click here to have future posts delivered to you for free!



Post a Comment

Note: Only a member of this blog may post a comment.


Popular Posts Last 30 Days