Just a bump in the road .... I'm adding to my holdings during this great buying opp ... comments welcome!
Hey Faber, come back to reality ... the divy is over 5 % as we speak ... I'd take it even at 4% ... or maybe
you'd like to put your money in a CD ... hmmm, get real.
Sentiment: Strong Buy
"Only way to play?" Let's see, I bought in late 2010, have collected over $6/share in dividends, reducing my cost basis to $23, leaving me with a 50% unrealized gain. I think I can see another way to play. It's called "buy quality stocks, hold them, and collect the dividends." Been at it for 40 years, working pretty well so far. But hey, best of luck to you.
I would get ready to buy more, but it's already too big a % of my IRA's. Or else I would have bought when it hit 32 recently.
I pity the fools who don't have a posistion and aren't buying after this drop. Buy, reinvest the divs, let them snowball, use for retirement, and give the T to the kids!
High dividends are a trap. Taxed as regular income. I'd rather have the additional stock price appreciation instead so that it is taxed at capital gains rate instead. And also not until it is sold so it continues to appreciate in compounding fashion.
trade_opm, are you on opium? You don't even know the tax rates- divs are ALWAYS taxed lower than cap gains, unless your in a very high tax bracket. If you are you're probably a trust fund baby, and don't care about taxes...
No, dividends are taxed at a maximum of 15%, not as regular income. And through a DRIP you can compound dividends. You're a good example of why nobody should rely on a Yahoo board for investment information.
Currently, long term capital gains are only taxed at 20% not the 28% of ordinary income. Dividends are also taxed at 20%. Short term capital gains are taxed as ordinary income. That is a plus for dividends.