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
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
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...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
BDCs can be excellent investment options for those seeking high returns, particularly when acquired at favorable valuations and supported by...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.