Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: w0z who wrote (3157)	6/5/2015 12:26:07 PM
From: Kirk ©	Respond to of 26768

Now Avago will pay a better dividend. Avago Technologies Announces $0.40 Interim Dividend GlobeNewswire(Thu, Jun 4) SAN JOSE, Calif., and SINGAPORE, June 4, 2015 (GLOBE NEWSWIRE) -- Avago Technologies Limited (AVGO), a leading semiconductor device supplier to the wireless, enterprise storage, wired, and industrial end markets, today announced that its Board of Directors has approved a quarterly, interim cash dividend of $0.40 per ordinary share. The dividend is payable on June 30, 2015 to shareholders of record at the close of business (5:00 p.m.) Eastern Time on June 19, 2015. From finance.yahoo.com Leading analog semiconductor manufacturer Avago Technologies Limited AVGO recently announced a 5.3% year-over-year hike in its interim quarterly dividend payout to 40 cents per share or $1.60 on an annualized basis. The third-quarter fiscal 2015 dividend is payable in cash on Jun 30 to shareholders of record as of Jun 19. Avago has continuously increased the quarterly dividend since its inception. Based on the closing price of $141.20 on Jun 4, 2015, the proposed dividend offers a yield of 1.1%. Steady dividend payout is part of the long-term strategy of Avago to provide attractive risk-adjusted returns to its stockholders. In addition, decent dividend increases at periodic intervals have been one of the company’s most attractive features.

To: w0z who wrote (3157)

6/7/2015 1:14:57 PM

From: Kirk ©

Read Replies (1) | Respond to of 26768

Moving your excellent discussion here...

To: w0z who wrote (68788) 6/7/2015 1:02:38 PM
From: Kirk © of 68810

That is an interesting idea. What do you do if margin rates jump?
To: Elroy who wrote (68783) 6/6/2015 7:13:09 AM
From: w0z Read Replies (3) of 68811

I've been retired for >20 years (now age 70). I've had the good fortune of having large capital gains in my taxable account and have used low levels of margin to supplement my income instead of selling stock. This has several tax advantages:

1. Zero income taxable income for me.
2. Margin interest is deductible as an investment expense against other taxable income.
3. Capital gains basis for beneficiaries reset to at market price on the day I die (i.e. new cost basis replaces original low cost basis).

I'm not doing this anywhere near the limit of a margin call, which I've never had. This may not be for everyone but could make sense if you hold large capital gains in a taxable account.
I'd want to make sure you used up the zero bracket on capital gains, perhaps for others by delaying Social Security until age 70 to keep total income low. Once you sell the stock to get the 15% bracket filled, then you can use excess cash to buy back the shares and have a higher basis.

irs.gov
The tax rate on most net capital gain is no higher than 15% for most taxpayers. Some or all net capital gain may be taxed at 0% if you are in the 10% or 15% ordinary income tax brackets. However, a 20% rate on net capital gain applies in tax years 2013 and later to the extent that a taxpayer’s taxable income exceeds the thresholds set for the new 39.6% ordinary tax rate ($406,750 for single; $457,600 for married filing jointly or qualifying widow(er); $432,200 for head of household, and $228,800 for married filing separately). For more information, refer to Publication 505, Tax Withholding and Estimated Tax.