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Cornerstone Progressive Return Message Board

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  • ebbottc ebbottc Jan 10, 2013 11:45 AM Flag

    CAN SOMEONE PLEASE EXPLAIN

    Well, one of the benefits is that you do not get taxed on the portion of the dividend that is a return of capital (it will, however, lower your cost basis).

    So, in an extreme example, let's say that dividend is currently 25% yeild and it is 100% ROC. After 4 years you would have a free share in the fund, with so far paying zero taxes on it. Now the fifth year would be taxable.

    Sentiment: Buy

 
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