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0 pointscoliveira3y ago0 comments

Removing dividend does make sense because dividends are taxed. You cannot reinvest all dividends, unless you're using a tax advantaged account.

0 comments

MichaelDickens3y ago

This might justify discounting dividends (eg reducing them by 20%), but not removing them entirely.

nwiswell3y ago

Moreover the more modern approach is share repurchases, which are largely not subject to the tax drag and use the same money that was used historically for dividends.

ClumsyPilot3y ago

It is worth noting that until 1982, stock buybacks were illegal—deemed as market manipulation

2 more replies

NovemberWhiskey3y ago

So are bond coupons, and (within the current regime) at a disadvantageous rate relative to dividends!

lexapro3y ago

Price increases are taxed as well (eventually), do you also remove them?

fshbbdssbbgdd3y ago

Stepped-up basis takes care of that. Buy, borrow, die!

xwolfi3y ago

Dividends aren't taxed where I am, and it skews our investment, even towards US stocks. I find it interesting to include.

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