I personally have never been a big fan of buying things based on dividend, and I am trying to understand the argument for them. This is how I see it in my mind, is there something I am missing?
Say I have 2 options, company A and company B are identical companies.
Company A pays a 2% dividend per quarter. Every time I get that dividend I have to pay income tax on it.
Or I buy company B and every quarter I sell 2% of my position, after the first year my 2% sales are only taxed at the long term investment level.
I would think in the long term the value of my position would be basically identical in the 2 companies, but I would have paid less taxes on the 2% per quarter in the company B option. Am I wrong?
Submitted July 06, 2018 at 10:47AM by Notfuzz45 https://ift.tt/2KTSAdY
