Dividend income - Topics

Qualified dividends get capital gains rates and ordinary dividends get income tax rates Dividend reinvestment plans buy fractional shares without going through a broker The ex-dividend date is when the share price drops by roughly the payout Reinvesting dividends versus taking the cash changes which year you pay tax Preferred stock dividends are fixed and rank ahead of common dividends in a liquidation Dividend payments land quarterly at most companies and monthly at a few Foreign dividends arrive with withholding tax already removed at the border A 4 percent yielder and a 2 percent grower suit different horizons Yield on cost says more about a ten year old position than today's yield REIT payouts come through as ordinary income rather than qualified dividends Dividend income does not count as earned income for IRA contribution limits Record date and payment date decide who actually receives the dividend Dividend aristocrats raised payouts for 25 straight years and still lagged growth stocks How many dividend stocks you need before the income is diversified Dividend income falls the quarter after a company cuts its payout Monthly dividend payers smooth the income but usually pay less across a year A special dividend arrives once and breaks the income you planned around A 500000 dollar portfolio at a 3 percent yield pays roughly 1250 dollars a month Matching dividend income to a specific monthly bill takes more than a yield target