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Strategies & Market Trends : Dividend investing for retirement
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To: Steve Felix who wrote (33263)12/14/2020 10:01:14 AM
From: CusterInvestor1 Recommendation

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E_K_S

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Hopefully presented in a non-partisan way, an interesting comment by an author on SA named Investment Pancake:

Up to now, you'd be way better off with the company retaining the cash as long as you could hold the stock until your death. The shares would get a basis step up and all that capital gain would just sort of vanish from the tax web. Poof! Under Biden's tax proposals, that wouldn't be the case any longer. He is proposing (and wisely) that assets should not receive a basis step up at death. If his proposal ever becomes law, there won't be a massive tax advantage for companies to retain cash rather than distribute it out as dividends.This is why dividend investors should be ecstatic about Biden's proposals. My guess is that if his tax proposal becomes law, companies are going to have one less incentive to restrain their dividend payments. I think that as a result, dividend payments would start to rise quite a bit. This is one reason why I suspect that in this yield starved world of ours, Biden just may be able to get backing from Wall Street on his tax proposals.

Food for thought. There may be a silver lining to every cloud.
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