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URL:  https://boards.fool.com/doug-you-wrote-quoti-really-dont-understand-12539194.aspx

Subject:  Re: GMH Date:  5/9/2000  10:29 AM
Author:  Rseriani Number:  1760 of 7023

Doug,
You wrote, "I really don't understand this. IMO, if you're holding for the long term, dividends are BAD. Dividends are an immediate taxable event, and worse, they're taxable as regular income! If the company in question holds the money (and thus retains the value in the share price), you're not taxed until you sell, and the tax rate is lower.

Why on earth would anybody want the dividends?"


If GM is in Roth IRA, there is no tax liability.

Even in a regular IRA or 401k plan, there is no immediate tax liability. Still not taxed until you sell.

Reinvested dividends purchase additional shares.

Furthermore, if I quit reinvesting dividends after retirement, will reap dividends quarterly, without having to sell shares for living expenses.

Happy Investing,
Richard

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