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Technology Stocks : KMI- a fallen high dividend yielder - for how long?
KMI 26.09-0.4%Nov 3 3:59 PM EST

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E_K_S
To: E_K_S who wrote (213)12/8/2023 7:21:46 PM
From: Johnny Canuck1 Recommendation   of 357
 
I have never been a fan of return of capital, but as your text points out in some cases it can be an effective tax strategy.

I know for many high dividend ETF it is essential an erosion of capital. I would rather hold the stocks myself and control the timing of when I need take some of the capital for income needs. It usually happens for ETF offering double digit dividends in a low interest rate environment for retirees. Some dividends are generated by cover calls. Some are generated from the dividends of the stock of the companies held in the ETF and any short fall is an erosion of the capital base.
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