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It isn’t as easy as it sounds. If you are not familiar how it works, you buy a stock right before the ex-dividend date to capture the dividend, then sell it right after. Sounds like a quick win, right? But here’s the kicker: stock prices tend to drop by the dividend amount on the ex-dividend…

Did the headline catch you? Good. When it comes to dividend income stocks, earnings are like the Emperor—don’t mistake them for just any old penguin. In the financial world, “income” or “revenue” is akin to all the penguins waddling around—the money that flows into the company from various sources like sales or services. However, just…

Understanding the tax implications of dividends from Regulated Investment Companies (RICs), such as Real Estate Investment Trusts (REITs) and Business Development Companies (BDCs), is crucial for investors, particularly because these dividends are typically classified as non-qualified. Unlike qualified dividends, which benefit from lower long-term capital gains tax rates, non-qualified dividends are taxed as ordinary income,…

Understanding dividend payout ratios is especially important when investing in Regulated Investment Companies (RICs), such as REITs and BDCs. RICs are required by law to distribute the majority of their taxable income to shareholders as dividends, which makes their payout ratios a critical factor in assessing their financial health and long-term sustainability.   The typical…

As some companies struggle amidst recent market downturns, many are reporting stock buybacks in a bid to boost stock price. When comparing dividends to stock buybacks, dividends often come out ahead for long-term investors focused on compounding. Dividends provide immediate cash flow, which can be reinvested to purchase more shares, leading to compound growth over…

Seems like almost no financial boat is floating today, the current challenging market conditions where various economic factors are causing turbulence across different sectors, making it difficult for investments to perform well especially when there is a prevailing fear cycle.   One major reason is the ongoing uncertainty in the global economic landscape, particularly due…