The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: Fiscal cliff and dividend paying stocks Date:  12/22/2012  9:53 AM
Author:  TMFBigFrog Number:  117210 of 123001

Hi Steve,

I'm of the opinion that companies paid dividends before the Bush Tax Cuts were enacted and those same companies will very likely continue to pay dividends after the Bush Tax Cuts expire. Indeed, just this month, I started a real-money portfolio on the site that's focused on companies that pay and have regularly increased their dividend payments. Many of those companies have dividend track records that go back decades -- well before even the first Bush was President.

I learned a long time ago -- through watching something in the neighborhood of a $6,000 gain turn into an approximately $11,000 loss while waiting for a stock to move to "long term" tax treatment -- that letting taxes drive investment decisions is very often a bad idea. I still pay attention to taxes, of course, but it's just one factor in the buy/sell/hold decision rather than the key factor.

From a ta