Friday, December 7, 2012

Ex-dividends before 2013 tax rate increases

Giving dividends or not should be decided on the benefit of the average investor. However, currently boosting dividends usually boosts the stock prices and hence boosts the stock option values that would benefit the management folks.

I believe giving ex-dividends are good if the company needs a loan at today's low interest rates.

As many have mentioned, dividend yield rates should be ignored in this unusual period (the last quarter of 2012).

I buy stocks on total returns (looking for bargains) and I recently bought a lot of stocks giving good dividends such as Cisco and DECK (my best performers), Apple (up 25% and now to 6%), MSFT and Xerox (at par).

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