He isn't making thousands off dividends this week

If you have money that you want to throw into something and just sit and collect a decent check every quarter then you can do it. Most people don't have a lot of money to throw into something and not look at for awhile.

>it's illegal
Bullshit, if it were illegal fractional reserve banking wouldn't be a thing. Nor would investment banks. Taking a loan to buy a car is an investment, so is taking a mortgage. Are you confusing investment with speculation?

forgive my ignorance . . . like i said i'm only beginning:

say i throw 5k into a dividend stock.
what's a generic range i could expect to yield quarterly?

Like he said, 2-3% I assume, so like $150 per period (half-yearly I think?)

are you held to a specific time in which you must hold on to the stock?

if you own the stock on the date the dividend for that stock is paid, then you're entitled to it. Pretty sure this means if you buy it the day before they're paid you'll still get divvies

>if it were illegal fractional reserve banking wouldn't be a thing.
The only reason it is a thing is because people are ignorant and hold no one to accountability.

Banks paid the government off to look in the other direction and force their populace to pay for their shenanigans.

People NEEED to wake up to their bullshit or else we are doomed.

Why do you think there is restriction on space? It's the final frontier, last time people made it to a new world the banking elite almost lost it's grip on them.

They'll be damned if they let us go again that easily.

This is a thread about dividend stocks. If you walk into a bank and say
>Hi, I'm an ace trader, please loan me $100,000
they'll tell you to fuck off

Mostly ETFs with good dividends:
VNQ
VBR
ERUS (just got a very nice deposit from this one today)
VEGI
plus a couple other sector ETFs and vanguard large-cap things. And a couple random mutual funds, those dividends suck though. Among my individual stocks, WMT and BCS are probably the only two where the dividends aren't ass.

Got 130k in the bank invested in shitty stocks that give no income, 60k in btc which is amazing, 15k in ICONOMI.
100k cash, what do I do now?
Only asking people who actually know something

nasdaq.com/dividend-stocks/dividend-calendar.aspx

I'm in the process of trading to accumulate the capital to buy the shit out of things like LMLP WMC(which actually goes Ex-div tomorrow, so you can buy today, sell tomorrow, break even in equity and get the divy. The risk is the equity loss outweighing the dividend)
This is why I pick low volume etracs and stocks only.

P.S. LMLP pays out monthly

bump

bank1) Hello, I'd like a loan for a 50k car
car salesman1) hello, I'd like to sell you this brand new car super cheap
bank2) hello, I have this cash, I'd like to make a down payment on a 200k home
realtor) hello, I'd like to sell you this brand new home for super cheap

Extremely ignorant question here: how long do you have to hold a stock to receive the dividend? Is it possible to buy a stock the day before dividends are paid, get the dividend, then sell it immediately?

think about what would happen to the stock price if the company gives out x% cash per share

Answering my own question after some Googling around: apparently it's on a per company basis. They basically state "anyone who owned the stock on date X gets a payout on date Y" where "owned" means the stock is settled and in your account. You can sell the day after date X and you'll still get the dividend a few weeks later or whatever.

Correct but the stock price will fall day x because of the dividend so its a +-0 situation

>OUTSIDE a tax-advantaged account, a dividend stock will lose out to a growth stock over time because the dividends are taxable as long-term capital gains. This eats into your investment capital, and saps your compounding.

>Consider two equivalent stocks -- a growth stock (Stock G) and a high-dividend stock (Stock D) -- both of which yield 10% per year. Stock G earns its 10% by price accumulation alone, and Stock D earns its 10% by paying a 10% cash dividend. You own 1 share of each, and they are both worth $100/share. At the start, therefore, both Stock G and Stock D are worth $100.

>At the end of 1 year, Stock G is now worth $110 (10% growth), and Stock D is still worth $100 but has paid you a $10 dividend which you re-invest. Your return on both stocks is the same -- before taxes. After taxes, however, Stock G is still worth $110 (no tax consequences) but Stock D has only returned you $108 because you paid 20% in capital gains taxes on the dividends. (I'm using 20% to keep the math simple in this example, but the principle is the same for any tax rate.) So after one year, Stock G is ahead by $2.

>After year two, Stock G is now worth $121 ($110 x 10%), and stock D is worth $108 ($100 original + $8 reinvested) but has paid you a $10.80 dividend, reduced by taxes to $8.64, for a total gain of $116.64. Stock G is now ahead by $4.36

>Hopefully you can now see where this is going. Every year the spread between Stock G and Stock D is going to get wider and wider because taxes aren't depleting any of your Stock G capital.

>INSIDE a tax-advantaged account, you don't suffer the tax hit when dividends are declared. You get to reinvest the full amount. Therefore, inside a tax-advantaged account, growth and distributions both add EQUALLY to your growth and your compounding. So what you should be focused on is maximizing your overall return (growth PLUS dividends) instead of focusing on one or the other.

Yes they do. It's called buying on margin.

>Yes they do. It's called buying on margin.
No they don't. Only your brokerage will extend you a margin loan because margin debt is secured lending. In order to perfect a lien on securities (like stock) then lender must have possession, custody or control of the shares. Unless you pay the fee to get your shares in certificate form (which no one does) your bank can't take a lien on them and therefore won't margin them. (Unless your bank is also your brokerage, which is possible, but not what you meant.) Only your broker, who holds your shares for your account, will margin them and extend you credit on them.

Are there studies on this effect across the market over, say, a decade? I mean, this is theoretically sound, but a company shouldn't be paying serious dividends if it's stagnant. I just don't think this choice is what you're presented with when you evaluate the market.

>but a company shouldn't be paying serious dividends if it's stagnant
Companies don't make dividend decisions based on your tax situation. They don't know or care whether you'll be taxed or not taxed on the dividend. They don't know or care whether your a short or long term holder. They do what they it best for the business with their excess cash.

Its up to you -- the investor -- to choose the right investments for your situation. If you're in retirement and need that cash for rent and medicine, then dividends are a godsend. But if you have a 40 year investing horizon, dividends are a cancer on your long-term performance.

Do what's best for you.

>tfw your REIT pays its quarterly dividend

That's only if you never sell. With growth stocks you NEED to sell or else you never get any money. If you never sell a growth stock, you are actually just in the negative forever.

With dividend stocks, you NEVER NEED to sell because it is giving you actual money all along the way. So you can completely avoid capital gains taxes while still making spendable money (still have to pay dividend tax). But the dividends are returning on your non-capital gains taxed money, which is appreciating from the growth of the company.

vpu, vnq, vym

which is why such a big fuss was made over vnq, how it outperformed the market for nearly the whole years AND paid out what, like 3.5%?

Wait isn't there a date you need to have owned the stock since in order to get the dividends? (I swear you can't literally buy it the day before they get paid out)

is it definitely a +-0 situation?

in theory. but since a bid/ask spread exists and intraday volatility, i dont believe it's ABSOLUTELY a net zero.

not sure if any studies have been done on dividend announcements vs news vs market price. of course, you can always interpret dividends as lowering your cost basis

Do you reckon buying on x day and holding until profit or equaliser would work? Since dividends wouldn't change the true market value in theory?

if we're gonna debate that, you should understand that an "equalizer", which ill interpret as having hte market price reach the price you bought it at BEFORE the dividend was issued, that "equializer" is actually a profit.

for instance, you buy 1 share at $10, dividend gives $1, market price drops to $9. now later, the price increases back to $10. that increase is a profit, not a recovery. invest in dividend funds that are either extremely stable or have a history of growth. im still on the fence of whether or not F is a good divdend stock

i probably didnt make it clear in the last bit: invest in dividend funds that have very little volatility. obviously you dont want to put money into a sinking ship, what i meant was avoid volatile dividends.

>If you never sell a growth stock, you are actually just in the negative forever.
You apparently don't know assets or investments work. if you think an appreciating asset somehow puts you in "the negative" you should probably start with a math class before tackling investing.

>So you can completely avoid capital gains taxes while still making spendable money (still have to pay dividend tax). But the dividends are returning on your non-capital gains taxed money, which is appreciating from the growth of the company.
It's nice that you make the unrealistic and untrue assumption that the payment of dividends doesn't have an adverse effect on the growth characteristics of a stock. Indeed, most high-dividend stocks DEPRECIATE because the company is literally dissolving itself into nothing by paying out high levels of taxable cash. For a young investor with many yours to invest, I can't think of a worse choice.

>which is why such a big fuss was made over vnq, how it outperformed the market
VNQ definitely did not outperform the market. It's up 3.64% YTD compared to 10.63% for VTI. Not even its dividend yield makes up that spread.

Look, VNQ is a great fund; I own it myself. But I definitely recommend putting it in a 401k/IRA if possible to mute the tax hit.

>not sure if any studies have been done on dividend announcements vs news vs market price
Many, many studies have been done. It's not +/-0 strictly speaking. It's actually +/-0 MINUS the average expected tax consequences of the dividend. The market is very, very efficient.

Feel free to search "dividend capture strategy" on Google Scholar if you want to read the source material.

do ur own DD, put ur money in a diverse low MER etf fund and sit back

Oh yes. I know how net worth works, my friend. But my land lord doesn't accept shares of stock as payment. I can't buy hookers with stock. I can't buy food with stock. I can't pay for a car with stock. I can't buy gas with stock. If you want to buy gas, or live at all really, I'm PRETTY sure you're gonna need to sell it.

>most high-dividend stocks DEPRECIATE
(Citation needed)
Give me one example of a company that is not APPRECIATING and paying dividends. For every example you give me, I'll show you two dividend aristocrats that have been raising their market cap for years while paying dividends. Truth is, MOST dividend companies are appreciating.

>because the company is literally dissolving itself into nothing paying out cash
>I have no idea how profit works

>But my land lord doesn't accept shares of stock as payment.
Why are you putting your short-term living expenses into the stock market? Are you some kind of retard? Don't answer; rhetorical question. We already know you don't pay rent for living in your parent's basement.

>Give me one example of a company that is not APPRECIATING and paying dividends.
MEMP
PER
SDT
SSW
SDR
CHKR
STON
SSI

Sorry, you only asked for one. I guess my reading comprehension is as bad as your investment knowledge.

I only have like $180k

0.15
3.05
1.32
9.14
1.42
2.22
9.01
4.51

why did you mostly list pennies?

>mostly list pennies
>one is a penny stock
Why do I come here?

ill give you SSW and STON, but cmon man, you listed shit.

>you listed shit
You do realize they all have dividend yields higher than 13%, right? Stop being a stupid person. They guy I was actually responding to was smart enough to leave the thread. Take a hint.

wait, youre suggesting a company giving a dividend of 13% is a decent example of a dividend stock?

>a decent example
Oh fuck, here we go with the moving goal posts. I make a post about high dividend stocks and then back it up with a dozen examples.

Then some clueless fuck comes in and asks, "are these decent examples"? Decent? As in clothed? Are you suggesting these are not high dividend stocks? Are you suggesting that most stupid dividend chasing morons wouldn't salivate over these yields?

So not only did you miss the entire point I was making, but then you tried to change the definitions using weasel words?

Is this fucking real life?

>hehe i made 13% off dividends
>price of stock tanks over 100%
>woops

then can i counter your pennyshit dividends with any other *value stock that plummeted 90%?

What do you guys think of monthly dividend stocks like O, STAG, SJR, and LTC? I lke that its more frequent, but I am really just searching for the highest yield payouts. I'm DRIPing

You missed the point again.

It's not that hard. got it on the first try.

>hehe i made 14% off of non-dividends
>price of stock tanks over 101%
>woops

if your argument against dividends is listing volatile pennies, why cant i argue against your argument with volatile non-dividends?

>volatile
That word doesn't mean what you think it means.
>pennies
Neither does that one.

Start posting frogs. We know you have a large collection.

>Why are you putting your short-term living expenses into the stock market?
Those are my long term expenses, friend.

>>For every example you give me, I'll show you two dividend aristocrats that have been raising their market cap for years while paying dividends

3M Company (MMM)
AFLAC Inc. (AFL)
AbbVie Inc. – (ABBV)
Abbott Laboratories (ABT)
Air Products & Chemicals Inc (APD)
Archer-Daniels-Midland Co (ADM)
AT&T (T)
Automatic Data Processing (ADP)
C. R. Bard (BCR)
Becton Dickinson (BDX)
Bemis Company (BMS)
Brown-Forman (Class B shares BF/B)
Cardinal Health Inc. – (CAH)
Chevron Corp. – (CVX)
Cincinnati Financial Corp (CINF)
Cintas Corp (CTAS)

That was easy.

I just wanted to point out that if your current gross income is under $37,650 then you pay no taxes on long term capital gains.

if you managed to save up 200k over time using pure awesome strategy to invest for dividends and still only have under that income amount, you are some sort of god.

>rent
>long term expense
This board never fails to disappoint. Tell us more about your financial theories, including how much allowance you get from mommy.

>holding dividend paying securities with rising interest rates

>not buying the preferred instead
>not buying under issue/call price
>not buying in at the dip

>be 65 years old
>be paying rent
>be buying cars
>be buying gas
>be buying food
>be buying hookers
What's the point of worrying about taxes if you never plan on spending that money?