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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?


To: Hoatzin who wrote (31097)4/12/2019 1:46:38 PM
From: Logain Ablar2 Recommendations

Recommended By
E_K_S
Hoatzin

  Read Replies (1) | Respond to of 34328
 
Hi Hoatzin & Jim:

Regarding Buffet and BRK not paying a dividend.

Warren is quite tax savvy - when a corporation receives a dividend 50% of the dividend is excluded from tax (it was 70% under prior law and way back it was 80%).

On the flip side individuals have no exclusion and pay the full tax at whatever their highest bracket is. Under the assumption BRK retains the funds the the book value of the stock increases as well as its market value. Then the individual can sell and vail the long term capital gain rate.

Just on factor in the decision process.