Homer · 2024-09-12T07:14:19.595869Z

"Dividend stocks are the fuel for your yield snowball" Homer Simpson September 12, 2024

9Lun

If Warren Buffet had listened to the dividend haters in 1988, he would not only have missed out on a hefty price gain on his Coca Cola shares, but also a current dividend yield of a good 56% in relation to his invested capital.

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❤️DIST-LOVE@DISTLOVE

9Lun

@TopperHarley Amen

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Pope Donkey XXI@DonkeyInvestor

9Lun

I like Ponzi schemes. I am invested in $BTC

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K@TechNav

9Lun

And any dividend tax will reduce your potential total return at the end of your investment journey. 🧳🛑🤷‍♂️

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Iwas M.@SSIT

9Lun

@TechNav Only if you intend to sell your shares 🤷‍♂️

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Andre2023x@Andre2023x

9Lun

@TechNav Ultimately, every tax counts, whether through the receipt of dividends or the sale of shares.

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Ella Marie Waschbär@DividendenWaschbaer

9Lun

@TechNav is only potential. But I have the dividend for sure. If my company doesn't pay a dividend and the CEO drives the thing to the wall, then I have nothing left.
Then I'd rather pay taxes and not leave with 0 profit.

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K@TechNav

9Lun

@Andre2023x The dividend tax is already due now, so you have to say goodbye to part of your assets immediately. If, on the other hand, you don't sell the shares for another 30 years and pay tax then, every euro that has not been paid as dividend tax will have increased by then. For example, your assets could have increased by 1000%, so €1 would have become €10. I would then be happy to pay 30% of this as capital gains tax, i.e. €3, because I still have €7 left over. This is not the case with dividends, as you have to pay tax earlier. In addition, the company itself has already paid taxes, which is a burden on its profits. This is precisely why a company like Berkshire Hathaway does not pay dividends.

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K@TechNav

9Lun

@DividendenWaschbaer Simply set a stop loss to ensure that you don't lose more than you have invested, or limit your loss to a certain level.

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K@TechNav

9Lun

@SSIT Every time you receive dividends, you pay tax on them. It is not the gross dividend that ends up in your account, but the net dividend, as the state has already taken some of your money before it is transferred. In addition, the share price on the ex-dividend date falls by the amount of the gross dividend...

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Iwas M.@SSIT

9Lun

@TechNav That may be true in itself. If the investment strategy is not to sell the acquired shares at all at some point and simply pocket the dividends later, but without reducing the portfolio, then the taxes incurred now must be accepted. The theoretical total return with regard to a point in time X in the future may fall as a result, but if you try to avoid dividend payers as much as possible, your choice of attractive stocks is very limited.

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❤️DIST-LOVE@DISTLOVE

9Lun

@TechNav Well, since the advance lump sum, it's no longer such a big difference.

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Eddi@financial_ninja_104

9Lun

@TechNav and if... It doesn't matter in the long term. I have a few shares in my portfolio for over 30 years with a price increase of over 500% and a personal dividend yield of >18% per year. In other words, I have received far more dividends than I paid for the shares. In other words, I got back all the money I invested plus a lifelong dividend on top.
Someone else say dividends aren't worth it... 😉

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K@TechNav

9Lun

@financial_ninja_104 If you had invested in non-dividend stocks like the S&P 500, your portfolio would be larger now, with a higher total return than your current price appreciation plus the dividends you've received so far.

You could always switch to dividend stocks if you want monthly payouts. Try it out and see how much MORE money you would have if you had simply invested in the S&P.

This isn't luck or a random stock pick - it's the simplest and safest strategy that anyone can implement at any stage of life.

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Ver todas las 11 respuestas adicionales

FinanceWolf_@FinanceWolf_

9Lun

Correct me if I’m wrong but aren’t dividend kind of pointless? The amount of dividend that is paid out is also decreased from the share price. For example you get 1% dividend then the share price decreases with 1% and you have to pay tax so I don’t get it.

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❤️DIST-LOVE@DISTLOVE

9Lun

@FinanceWolf_ You also pay taxes if you have invested in Acc ETFs, at least in Germany. So there is not much difference anymore.

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FinanceWolf_@FinanceWolf_

9Lun

@DividendFocus I get that but what I mean is why invest in dividend stocks when the dividend paid is deducted from the share price. I’m wondering if dividends even make sense

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Dan@Crocodile_Dan_Dee

9Lun

@FinanceWolf_ doesn’t mean the share price is constantly dropping mate. It’s not one or the other. There are a lot well run and managed companies who are able to pay dividends and increase the companies value, hence increasing the stock price

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