I have a question, I'm not a dividend investor as I live outside of USA so I have 30% Withholding Tax Rate (From Source no way to avoid it) Why you don't focus more on Total Return, instead of "Dividend" Investing, ETFs Like $QQQ & $MGK or even $VOO out performed most of dividend stocks and looking how things going and earnings estimation I can see Technology is still in growing phase. What I'm trying to say is dividends once made sense but not anymore. Stocks used to pay great yields but no fast growing is paying this much any more, what companies pays 3-4% and still growing fast? almost none. That not to discourage from dividend investing, but might give you a perspective. Much love
That is a very good question! I have additional investment accounts outside of this stock portfolio that are based on long-term growth. The reason I am focusing on dividends with this account is based on personal preference and I enjoy getting my hands into it. The thing I really enjoy most about dividend income is a lot are considered "qualified" which means I don't have to pay taxes on them. Last year that was more than 60% of my total dividend income. So the idea is instead of selling stocks to withdraw money from the account and having to pay capital gains tax (here in the US) I can simply take the dividends earnings out and pay a smaller amount on taxes. (That is until one day in the far, far future I close my portfolio down or die.)
Great update
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First time watching. Love the spreadsheet with the goals!
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I have a question, I'm not a dividend investor as I live outside of USA so I have 30% Withholding Tax Rate (From Source no way to avoid it)
Why you don't focus more on Total Return, instead of "Dividend" Investing, ETFs Like $QQQ & $MGK or even $VOO out performed most of dividend stocks and looking how things going and earnings estimation I can see Technology is still in growing phase.
What I'm trying to say is dividends once made sense but not anymore. Stocks used to pay great yields but no fast growing is paying this much any more, what companies pays 3-4% and still growing fast? almost none.
That not to discourage from dividend investing, but might give you a perspective.
Much love
That is a very good question!
I have additional investment accounts outside of this stock portfolio that are based on long-term growth. The reason I am focusing on dividends with this account is based on personal preference and I enjoy getting my hands into it.
The thing I really enjoy most about dividend income is a lot are considered "qualified" which means I don't have to pay taxes on them. Last year that was more than 60% of my total dividend income.
So the idea is instead of selling stocks to withdraw money from the account and having to pay capital gains tax (here in the US) I can simply take the dividends earnings out and pay a smaller amount on taxes. (That is until one day in the far, far future I close my portfolio down or die.)