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Author: pdavis68 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121096  
Subject: Re: Capital gains on Dividends Date: 12/10/2000 4:53 PM
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The dividends a compay pays out are ordinary income, not capital gains. They are taxable to you, even if you choose to reinvest the dividends in more company stock.

Capital gains and losses come from buying and selling the shares, not from the dividends a stock pays while you hold it.

Hope this clears up a bit of confusion.

--Peter

Okay, that makes sense. That's still a pretty big hit for me, but less than capital gains. I've got some losses that would probably offset it a bit too. We'll see.

Pete
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