Dividend Income Quotes

I view investing as a method of purchasing assets to gain profit in the form of reasonably predictable income (dividends, interest, or rentals) and /or appreciation over the long term.

Wisdom is really the key to wealth. With great wisdom, comes great wealth and success. Rather than pursuing wealth, pursue wisdom. The aggressive pursuit of wealth can lead to disappointment. Wisdom is defined as the quality of having experience, and being able to discern or judge what is true, right, or lasting. Wisdom is basically the practical application of knowledge. Rich people have small TVs and big libraries, and poor people have small libraries and big TVs. Become completely focused on one subject and study the subject for a long period of time. Don't skip around from one subject to the next. The problem is generally not money. Jesus taught that the problem was attachment to possessions and dependence on money rather than dependence on God. Those who love people, acquire wealth so they can give generously. After all, money feeds, shelters, and clothes people. They key is to work extremely hard for a short period of time (1-5 years), create abundant wealth, and then make money work hard for you through wise investments that yield a passive income for life. Don't let the opinions of the average man sway you. Dream, and he thinks you're crazy. Succeed, and he thinks you're lucky. Acquire wealth, and he thinks you're greedy. Pay no attention. He simply doesn't understand. Failure is success if we learn from it. Continuing failure eventually leads to success. Those who dare to fail miserably can achieve greatly. Whenever you pursue a goal, it should be with complete focus. This means no interruptions. Only when one loves his career and is skilled at it can he truly succeed. Never rush into an investment without prior research and deliberation. With preferred shares, investors are guaranteed a dividend forever, while common stocks have variable dividends. Some regions with very low or no income taxes include the following: Nevada, Texas, Wyoming, Delaware, South Dakota, Cyprus, Liechtenstein, Luxembourg, Panama, San Marino, Seychelles, Isle of Man, Channel Islands, Curaçao, Bahamas, British Virgin Islands, Brunei, Monaco, Qatar, United Arab Emirates, Saudi Arabia, Bahrain, Bermuda, Kuwait, Oman, Andorra, Cayman Islands, Belize, Vanuatu, and Campione d'Italia. There is only one God who is infinite and supreme above all things. Do not replace that infinite one with finite idols. As frustrated as you may feel due to your life circumstances, do not vent it by cursing God or unnecessarily uttering his name. Greed leads to poverty. Greed inclines people to act impulsively in hopes of gaining more. The benefit of giving to the poor is so great that a beggar is actually doing the giver a favor by allowing the person to give. The more I give away, the more that comes back. Earn as much as you can. Save as much as you can. Invest as much as you can. Give as much as you can.

Reliability investing requires finding companies trading below their inherent worth--stocks with strong fundamentals including earnings, dividends, book value, and cash flow selling at bargain prices give their quality.

The rental income served as a dividend, so to speak, but even at an early age, I focused more on the home appreciation. I came to understand the tax advantages of home ownership, implications of depreciation, and the opportunity to use the homes as leverage in borrowing money.

This fundamental inequality, which I will write as r > g (where r stands for the average annual rate of return on capital, including profits, dividends, interest, rents, and other income from capital, expressed as a percentage of its total value, and g stands for the rate of growth of the economy, that is, the annual increase in income or output), will play a crucial role in this book. In a sense, it sums up the overall logic of my conclusions.

It turns out that addressing the most urgent problems of our time is, well, hard. But what is maddening about this debate is not how difficult fair-tax implementation would be but how utterly easy it is to find enough money to defeat poverty by closing nonsensical tax loopholes. If you don’t like the changes I suggested above, I can propose twenty smaller reforms, or fifty tinier ones, or a hundred even more innocuous nudges to get us there. We could raise $25 billion by winding down the mortgage interest deduction, which disproportionately benefits high-income families and does nothing to promote homeownership. We could find $64.7 billion by increasing the maximum taxable amount of earnings for Social Security so that high- and low-income workers are taxed at the same rate. We could scratch out another $37.3 billion if we treated capital gains and dividends for wealthy Americans the same way we treat income for tax purposes.

...a UBI is not a salve for a world of technological unemployment, or a powerful antipoverty measure, or a form of social dividend, or a way to boost the earnings of the working poor. Rather, it is all those things and more: a paradigmatic shift that would free people from having to do more work that they did not want to do at all. A UBI would, in essence, lop off the bottom of the psychologist Abraham Maslow's 'hierarchy of needs', where air, food, water, and shelter reside, with self-transcendence up at the other end. A UBI would give people the economic bandwidth to do what they wanted with their lives... Let the robots do the dirty work. Let the people do what they want.

While there are reasons to be sceptical about the predicted technological dystopia that has prompted many high-tech plutocrats to come out in support of basic income, this may nevertheless be a strong factor in mobilizing public pressure and political action. Whether jobs are going to dry up or not, the march of the robots is undoubtedly accentuating insecurity and inequality. A basic income or social dividend system would provide at least a partial antidote to that, as more commentators now recognize.6 For example, Klaus Schwab, founder and executive chairman of the World Economic Forum and author of The Fourth Industrial Revolution, has described basic income as a ‘plausible’ response to labour market disruption.7

The current crisis has led to renewed discussions about a universal basic income, whereby all citizens receive an equal regular payment from the government, regardless of whether they work. The idea behind this policy is a good one, but the narrative would be problematic. Since a universal basic income is seen as a handout, it perpetuates the false notion that the private sector is the sole creator, not a co-creator, of wealth in the economy and that the public sector is merely a toll collector, siphoning off profits and distributing them as charity. A better alternative is a citizen’s dividend. Under this policy, the government takes a percentage of the wealth created with government investments, puts that money in a fund, and then shares the proceeds with the people. The idea is to directly reward citizens with a share of the wealth they have created. Alaska, for example, has distributed oil revenues to residents through an annual dividend from its Permanent Fund since 1982.

Recognizing how most great fortunes had been built up in predatory ways, through usury, war lending and political insider dealings to grab the Commons and carve out burdensome monopoly privileges led to a popular view of financial magnates, landlords and hereditary ruling elite as parasitic by the 19th century, epitomized by the French anarchist Proudhon’s slogan “Property as theft.” Instead of creating a mutually beneficial symbiosis with the economy of production and consumption, today’s financial parasitism siphons off income needed to invest and grow. Bankers and bondholders desiccate the host economy by extracting revenue to pay interest and dividends. Repaying a loan – amortizing or “killing” it – shrinks the host. Like the word amortization, mortgage (“dead hand” of past claims for payment) contains the root mort, “death.” A financialized economy becomes a mortuary when the host economy becomes a meal for the financial free luncher that takes interest, fees and other charges without contributing to production.

Statisticians say that stocks with healthy dividends slightly outperform the market averages, especially on a risk-adjusted basis. On average, high-yielding stocks have lower price/earnings ratios and skew toward relatively stable industries. Stripping out these factors, generous dividends alone don’t seem to help performance. So, if you need or like income, I’d say go for it. Invest in a company that pays high dividends. Just be sure that you are favoring stocks with low P/Es in stable industries. For good measure, look for earnings in excess of dividends, ample free cash flow, and stable proportions of debt and equity. Also look for companies in which the number of shares outstanding isn’t rising rapidly. To put a finer point on income stocks to skip, reverse those criteria. I wouldn’t buy a stock for its dividend if the payout wasn’t well covered by earnings and free cash flow. Real estate investment trusts, master limited partnerships, and royalty trusts often trade on their yield rather than their asset value. In some of those cases, analysts disagree about the economic meaning of depreciation and depletion—in particular, whether those items are akin to earnings or not. Without looking at the specific situation, I couldn’t judge whether the per share asset base was shrinking over time or whether generally accepted accounting principles accounting was too conservative. If I see a high-yielder with swiftly rising share counts and debt levels, I assume the worst.

The importance of ethical governance, exemplified by the Norwegian Pension Fund, is highlighted by a deplorable UK government proposal in 2016 to set up a Shale Wealth Fund.38 The fund would receive up to 10 per cent of the revenue generated by fracking (hydraulic fracturing) for shale gas, which could amount to as much as £1 billion over twenty-five years. This would be paid out to communities hosting fracking sites, which could decide to use the money for local projects or distribute it to households in cash. It is hard to avoid the conclusion that this is a bribe to secure local approval of environmentally threatening fracking operations, to which there has been considerable public opposition. Beyond that, there are many equity questions. Why should only people who happen to live in areas with shale gas be beneficiaries? How would the recipient community be defined? Would the payments go only to those living in the designated community at the time the fracking started? Would they be paid as lump sums or on a regular basis, and how long would they last? What about future generations? Can cash payments compensate for the risk of harm to the air, water, landscape and livelihoods? All these questions cast doubt on the equity and ethics of any selective scheme. They underline the need for the principles of wealth funds and dividends from them to be established before they are implemented, and for a governance structure that is independent from government and business. But

Ultimately, the World Top Incomes Database (WTID), which is based on the joint work of some thirty researchers around the world, is the largest historical database available concerning the evolution of income inequality; it is the primary source of data for this book.24 The book’s second most important source of data, on which I will actually draw first, concerns wealth, including both the distribution of wealth and its relation to income. Wealth also generates income and is therefore important on the income study side of things as well. Indeed, income consists of two components: income from labor (wages, salaries, bonuses, earnings from nonwage labor, and other remuneration statutorily classified as labor related) and income from capital (rent, dividends, interest, profits, capital gains, royalties, and other income derived from the mere fact of owning capital in the form of land, real estate, financial instruments, industrial equipment, etc., again regardless of its precise legal classification). The WTID contains a great deal of information about the evolution of income from capital over the course of the twentieth century. It is nevertheless essential to complete this information by looking at sources directly concerned with wealth. Here I rely on three distinct types of historical data and methodology, each of which is complementary to the others.25 In the first place, just as income tax returns allow us to study changes in income inequality, estate tax returns enable us to study changes in the inequality of wealth.26 This

Countries competing against one another in the same array of products and services is not covered by Ricardian trade theory.   Offshoring doesn’t fit the Ricardian or the competitive idea of free trade. In fact, offshoring is not trade.   Offshoring is the practice of a firm relocating its production of goods or services for its home market to a foreign country. When an American firm moves production offshore, US GDP declines by the amount of the offshored production, and foreign GDP increases by that amount. Employment and consumer income decline in the US and rise abroad. The US tax base shrinks, resulting in reductions in public services or in higher taxes or a switch from tax finance to bond finance and higher debt service cost.   When the offshored production comes back to the US to be marketed, the US trade deficit increases dollar for dollar. The trade deficit is financed by turning over to foreigners US assets and their future income streams. Profits, dividends, interest, capital gains, rents, and tolls from leased toll roads now flow from American pockets to foreign pockets, thus worsening the current account deficit as well.   Who benefits from these income losses suffered by Americans? Clearly, the beneficiary is the foreign country to which the production is moved. The other prominent beneficiaries are the shareholders and the executives of the companies that offshore production. The lower labor costs raise profits, the share price, and the “performance bonuses” of corporate management.   Offshoring’s proponents claim that the lost incomes from job losses are offset by benefits to consumers from lower prices. Allegedly, the harm done to those who lose their jobs is more than offset by the benefit consumers in general get from the alleged lower prices. Yet, proponents are unable to cite studies that support this claim. The claim is based on the unexamined assumption that offshoring is free trade and, thereby, mutually beneficial.   Proponents of jobs offshoring also claim that the Americans who are left unemployed soon find equal or better jobs. This claim is based on the assumption that the demand for labor ensures full employment, and that people whose jobs have been moved abroad can be retrained for new jobs that are equal to or better than the jobs that were lost.   This claim is false.

The fundamentals of the economy remain strong.' That cliche is repeated by authorities as they try to restore public confidence after every major stock market decline. They have the opportunity to say this because just about every major stock market decline appears inexplicable if one looks only at the factors that logically ought to influence stock markets. It is practically always the stock market that has changed; indeed the fundamentals haven't. How do we know that these changes could not be generated by fundamentals? If prices reflect fundamentals, they do so because those fundamentals are useful in forecasting future stock payoffs. In theory the stock prices are the predictors of the discounted value of those future income streams, in the form of future dividends or future earnings. But stock prices are much too variable. They are even much more variable than those discounted streams of dividends (or earnings) that they are trying to predict.

Security Analysis” by Benjamin Graham, “The Single Best Investment” by Lowell Miller, “The Snowball Effect” by Timothy J McIntosh, “Berkshire Hathaway Letters to Shareholders” by Warren Buffett and Max Olson, “The Ultimate Dividend Playbook: Income, Insight and Independence for Today’s Investor” by Morningstar and Josh Peters.

This is the last chapter of the book, but it is the beginning of your journey in becoming a super hero. Super heroes possess extraordinary abilities and skills that leave the average human jealous, speechless, and in awe. They also have the uncanny ability to stay calm, cool, and collected in the face of danger, while everybody else is panicking. While doing their normal day activities they might also blend in with the crowd and not stand out at all. But when duty calls, they can switch into super hero mode as fast as lightning.

As the head of International Match, Ivar debited that amount from the company’s cash and replaced it with a credit to Continental Investment Corporation in the same amount. Suddenly, International Match’s primary asset was an IOU from Continental instead of cash. Then, without the Americans seeming to care or even notice, Ivar wired $12,244,792 – all of the remaining proceeds from the International Match gold debenture issue, one of the largest American securities issues in years – to Continental’s account in Vaduz. Ivar was no Charles Ponzi. He wasn’t going to abscond with the money. He just wanted the flexibility to use the funds as he pleased, and to buy time if things didn’t go as planned. In a bad year, he could fudge the numbers and pay dividends out of Continental’s assets. In a good year, he could understate earnings and save for a rainy day by hiding the extra income at Continental.

Specialist mortgage brokers for the self employed and company directors, contractors and CIS workers. We understand how the self employed are paid so we are able to place you with the right lender for your company set up. We can use retained profits and net profits so you don't need to use taxed dividends as income. Use your gross day rate for contract workers or CIS (construction industry scheme) workers.

By this time, Ivar and Berning had developed a much cozier relationship. Ivar had given up on getting Berning’s first name right, but at least he addressed letters with an honorific now, as in “My dear Mr Berning.”27 Berning had gotten over the scrubbed trip to Japan, and instead was focused on an upcoming trip to Europe with his wife, at Ivar’s expense. He wrote that “Mrs Berning and I are looking forward with a great deal of anticipation to our visit to Sweden.”28 A.D. Berning’s responses to detailed inquiries from Durant ranged from murky to non-responsive. What, Durant wanted to know, did International Match’s income statement entry of $4,318,827.84 for “income from other sources” represent? Berning cryptically answered that the “other sources” entry “represents all the income of the corporation other than from sales. It includes dividends and interest received on investments, interest received on advances, accounts receivable, etc., profit on exchange and other miscellaneous items.”29 Whatever that meant, it could not have inspired much confidence.

This is why total return matters—not just income. The total return to investors over three years was –13.7 percent even though each year the company started out showing a yield in excess of 15 percent. Also, the amount of dividend payments dropped over 30 percent. There are investors who will see 15 percent yields and think it's a can't-miss investment opportunity with little-to-no-risk involved because there's a dividend payment attached. Yield makes investors feel safe because it's tangible. As usual, higher returns come from higher risks, and a higher yield means higher risk. Either you own high-quality investments with a lower yield, but more safety in the short term, or you own riskier investments with a higher yield and less short-term safety of principal.

Property is the worst, since you’re taxed every year whether your house goes up or down in value. Employment income and interest are slightly better, because they’re taxed only when you make money. Qualified dividends and capital gains are the best.

if you were to stop working, your employment income would drop to $0. And if you were to structure your portfolio such that it earned money as dividends and capital gains, you could end up never paying taxes again.

Gather six to 12 months of checking, savings, and credit card statements, and break your income and expenses down into categories and then line items. I have suggested some here, but add your own as needed. Check to see if your bank or credit card company provides reporting that categorizes charges or lets you assign categories—your work may already be almost done for you: •Income—paychecks, interest, dividends, rents, royalties, business income, pension, social security, child support, spousal support •Housing—mortgage/rent, property taxes, HOA dues, insurance •Utilities—gas, electric, propane, phone, TV/Internet, trash, water/sewer •Food—groceries, dining out •Auto—car payments, gasoline, repairs, insurance •Medical—health insurance, doctor/dentist visits, prescriptions, physical therapy •Entertainment—travel, concerts/shows, sports •Clothing—personal purchases, dry cleaning, uniforms •Personal care—hair/nails, gym/yoga, vitamins/supplements •Miscellaneous—gifts, pets, donations •Children—education, activities, school lunches, childcare You can use a spreadsheet or pen and paper to take note of income and expenses as you go through statements, then calculate a monthly average for each item.

But whether or not economic value gets monetised through the market does matter a good deal to finance, to business and to government. Financiers only make a return—by extracting interest, rent or dividends—on economic value that has a market value. Business can only capture value as revenue and profit when that value has been monetised in sales. And governments find it far easier to levy taxes for public revenue on economic value that is exchanged through the market. All three of these—finance, business and government—are structured to expect and depend upon a growing monetary income: if GDP is no longer set to grow even though total economic value may well continue to do so, then those expectations need to change profoundly.

Another peculiarity in the general position of preferred stocks deserves mention. They have a much better tax status for corporation buyers than for individual investors. Corporations pay income tax on only 15% of the income they receive in dividends, but on the full amount of their ordinary interest income. Since the 1972 corporate rate is 48%, this means that $100 received as preferred-stock dividends is taxed only $7.20, whereas $100 received as bond interest is taxed $48. On the other hand, individual investors pay exactly the same tax on preferred-stock investments as on bond interest, except for a recent minor exemption.

No intelligent investor, no matter how starved for yield, would ever buy a stock for its dividend income alone; the company and its businesses must be solid, and its stock price must be reasonable.

If the company meets all of the qualifications for a REIT, it enjoys special tax status: it doesn’t have to pay any taxes at the company level, which means more cash and higher returns for shareholders. (This is in contrast to the double-taxation issues of corporate stocks, where the corporation has to pay taxes on its income before distributing dividends to shareholders, and then the shareholders have to pay taxes on the dividends they receive, resulting in the same money being taxed twice.)

Dividend investing is a great strategy for individuals from all walks of life who want to build wealth and achieve financial freedom. It can be a very rewarding approach for investors looking to generate income or build wealth by reinvesting dividends received. In addition, dividend investors can expect to see appreciations in the price of their stocks; and this appreciation is known as capital gains or capital appreciation.

I’d long opposed my predecessor’s signature domestic legislation, laws passed in 2001 and 2003 that changed the U.S. tax code in ways that disproportionately benefited high-net-worth individuals while accelerating the trend of wealth and income inequality. Warren Buffett liked to point out that the law enabled him to pay taxes at a significantly lower rate—proportionate to his income, which came almost entirely from capital gains and dividends—than his secretary did on her salary. The laws’ changes to the estate tax alone had reduced the tax burden for the top 2 percent of America’s richest families by more than $ 130 billion.

Dividend yield between 3% and 4% Company at least 10 years old and operating in a stable business 5-year average ROE greater than 20% Net debt/average three-year net income is 4.0 or less Call option premium/current stock price should be at least 1% for every 30 days until expiration

These refugees from a score of lands, including the sweet land of liberty overseas, talked politics and war incessantly, but when you listened you discovered that what they were thinking about was their own comfort, the preservation of the system which made their own lives so easy. What was going to happen to the “market”?—by which they meant the stocks and bonds from which their incomes were derived. If the Nazis won—and nine people out of ten were sure they had already won—what sort of government would they set up in France and how soon would it be before things got back to normal?—by which was meant labor getting back to work and dividends flowing in. Thank God, there would be no more unions and strikes, no more front populaire and Red newspapers!

Yet so many investors do this with stocks because they view them as mere numbers on a screen. By engaging in such short-term behavior, you increase your likelihood of making poor decisions. Market timing is also not as easy as

stocks

Don’t increase your lifestyle until your passive income surpasses your active income. You’ll know you can and should buy that luxury item when the cost of keeping it is totally covered by your passive income. The things you own (such as dividend-paying stocks, oil partnerships, and real estate investment trusts) should pay for the things you enjoy and consume.

Another investor I know structured his portfolio of a few million dollars to produce income at the level he wished to spend. Accordingly, his portfolio consists mostly of short- and intermediate-term bonds, on which he pays a significant income tax. Curiously, he thinks he can only spend income, in the form of dividends and interest, and he views capital appreciation as something less real. I tried, and failed, to convince him that higher total return (after tax) means more money to spend and more money to keep, no matter how it divides between realized income and unrealized capital gains or losses. To own a stock like Berkshire Hathaway, which has never paid a dividend, and therefore produces no “income,” would be unthinkable for him. This investor’s costly preference for realized income rather than total return (economic income) is common.

Net wages: “It’s not what you make, but what you net” after paying the FIRE sector, basic utilities and taxes. The usual measure of disposable personal income (DPI) refers to how much employees take home after income-tax withholding (designed in part by Milton Friedman during World War II) and over 15% for FICA (Federal Insurance Contributions Act) to produce a budget surplus for Social Security and health care (half of which are paid by the employer). This forced saving is lent to the U.S. Treasury, enabling it to cut taxes on the higher income brackets. Also deducted from paychecks may be employee withholding for private health insurance and pensions. What is left is by no means freely available for discretionary spending. Wage earners have to pay a monthly financial and real estate “nut” off the top, headed by mortgage debt or rent to the landlord, plus credit card debt, student loans and other bank loans. Electricity, gas and phone bills must be paid, often by automatic bank transfer – and usually cable TV and Internet service as well. If these utility bills are not paid, banks increase the interest rate owed on credit card debt (typically to 29%). Not much is left to spend on goods and services after paying the FIRE sector and basic monopolies, so it is no wonder that markets are shrinking. (See Hudson Bubble Model later in this book.) A similar set of subtrahends occurs with net corporate cash flow (see ebitda). After paying interest and dividends – and using about half their revenue for stock buybacks – not much is left for capital investment in new plant and equipment, research or development to expand production.

If you're planning to invest stocks to generate income, you must look for stocks that offer dividends. Usually, corporations pay dividends to recorded stockholders quarterly.

If, if we get our heads straight about money, I predict that by ad 2000, or sooner, no one will pay taxes, no one will carry cash, utilities will be free, and everyone will carry a general credit card. This card will be valid up to each individual’s share in a guaranteed basic income or national dividend, issued free, beyond which he may still earn anything more that he desires by an art or craft, profession or trade that has not been displaced by automation. (For detailed information on the mechanics of such an economy, the reader should refer to Robert Theobald’s Challenge of Abundance and Free Men and Free Markets, and also to a series of essays that he has edited, The Guaranteed Income. Theobald is an avant–garde economist on the faculty of Columbia University.)

The dividend received is exempt from income tax in India provided the Dividend Distribution Tax (DDT) has been paid by the company distributing dividend. If the DDT has not been paid, the dividend income would be taxable.

In the early years, top incomes were derived from capital, and the richest people were what Piketty and Saez call “coupon clippers,” who received most of their incomes from dividends and interest. The fortunes underlying these receipts were eroded over the century by increasingly progressive income and estate taxes. Those who used to live off their (or their ancestors’) fortunes have been replaced at the top by earners, people like CEOs of large firms, Wall Street bankers, and hedge fund managers, who receive their incomes as salaries, bonuses, and stock options. Entrepreneurial

Eliminate from the P Group income statement, the dividend received from the associate (as this will be replaced by the share of its profits after tax) and reduce the carry value of the investment in the associate in the SoFP (by the dividend amount).

Those cuts had lowered the top income tax rate from 39.6 percent to 35 percent. With bipartisan support, Bush had also slashed taxes on unearned income, most of which went to the rich. Taxes on dividends, for instance, were reduced dramatically from 39.6 percent to 15 percent. Taxes on capital gains, the overwhelming bulk of which were reaped by the wealthy, fell from 20 percent to 15 percent. As a result, many of the richest Americans were taxed at lower rates than middle- and working-class wage earners. A

The only paper investments that can be wise decisions are stocks and to a lesser extent, corporate bonds—not government bonds. With the economic turmoil occurring, many companies will outlast governments so corporate bonds in general can be a more secure investment. Both stocks and corporate bonds can provide cash flow income through interest and dividends. In the case of stocks, they can also appreciate in value over time in the event you want to sell. GIC’s/CD’s, government bonds, mutual funds, and retirement funds are all doomed to lose money over time.

These three reports (income statement, balance sheet, and cash flow statement) have all the company’s financial data you need.

PepsiCo has been able to grow its dividend by 7.3% on average year after year in the last 5 years and 10% on average in the last 10 years. Not as spectacular as Fastenal, but it's growing faster than inflation and that’s all that matters.

You can never predict the future, but I can guess by looking at the past performance of the companies I want to invest in. That is why consistency is extremely important.

So what is better, higher yield low growth or lower yield high growth? I lean toward lower yield faster growth, but honestly, I have both in my investment portfolio.

Net income is the second and my most favorite way of valuing a company. The amount of income a company generates tells me how much I am willing to pay for it. Since we are looking to invest in profitable businesses that should not get liquidated, we will use the net income method of valuing a business.

Dividend-paying stocks can insulate an investor from secular bear market cycles by providing income while stock prices stagnate.

whether or not economic value gets monetised through the market does matter a good deal to finance, to business and to government. Financiers only make a return—by extracting interest, rent or dividends—on economic value that has a market value. Business can only capture value as revenue and profit when that value has been monetised in sales. And governments find it far easier to levy taxes for public revenue on economic value that is exchanged through the market. All three of these—finance, business and government—are structured to expect and depend upon a growing monetary income: if GDP is no longer set to grow even though total economic value may well continue to do so, then those expectations need to change profoundly.

I helped him pick out some solid utility and infrastructure stocks and funds that pay him dividends in the 6% to 7% range.

Connecticut’s Solidarity Dividend was almost immediate. In the first legislative cycles after public financing, the more diverse (by measures of race, gender, and class) legislature passed a raft of popular public-interest bills, including a guarantee of paid sick days for workers, a minimum wage increase, a state Earned Income Tax Credit, in-state tuition for undocumented students, and a change to an obscure law championed by beverage distributor lobbyists that resulted in $24 million returning to the state—money that could contribute to funding the public financing law. Despite regular efforts to curtail it, Connecticut’s Citizens’ Election Program has endured for over a decade, highly popular with both Connecticut residents and candidates, 73 percent of whom opted into the system in 2014.

THE DIFFERENCE BETWEEN A TAX SHELTER AND TAX DEFERMENT The first lesson I learned was simple: not every tax break is scuzzy. Leona Helmsley, also known as the “Queen of Mean,” may have been sentenced to sixteen years in prison for tax evasion (ah, sweet justice), but there’s a big difference between legal and illegal tax avoidance. When I first started out, I didn’t have nearly as many tax-avoidance strategies as the rich did, but there are a few available to anyone, and taking advantage of every opportunity is absolutely critical. Tax sheltering means putting your money someplace where taxes no longer apply. Think of taxes as gravity in The Matrix, or logic in the Transformers movies. Even if it technically exists, it doesn’t apply to you. For example, if you invest in an index ETF and it goes up, it’s not reported on your tax return. If you earn interest on that account, ditto. Once your money is inside a tax shelter, you never get taxed on it again. This is because the money that goes into a tax-sheltering account has already been taxed. Tax deferment, on the other hand, is the process of taking a chunk of your income and choosing not to pay income taxes on it that year. Here’s how it works: You contribute a portion of your income to a tax-deferred account. The amount you contribute reduces your taxable income for that year, and accountants would call this contribution “deductible.” So, if you made $50,000 one year, and you chose to defer $10,000, then that year you would only be taxed as if you earned $40,000. That $10,000 you deferred gets put into a special account where it can grow tax-free, but if you withdraw it, it will be added on to your taxable income and you’ll pay taxes on it then. This is because money going into tax deferral hasn’t been taxed yet. To recap . . . Tax Shelter Tax Deferral Contributions are . . . Not deductible Deductible Growth/interest/dividends are . . . Tax-free Tax-free Withdrawals are . . . Tax-free Taxed as income

blame. Consider the 449 companies in the S&P 500 index that were publicly listed from 2003 through 2012. During that period those companies used 54% of their earnings—a total of $2.4 trillion—to buy back their own stock, almost all through purchases on the open market. Dividends absorbed an additional 37% of their earnings. That left very little for investments in productive capabilities or higher incomes for employees.

Leaving aside instrumental reasons for supporting a basic income, the thrill lies in the potential to advance full freedom and social justice, and the values of work and leisure over the dictates of labour and consumption. The times they are a-changin’, sang Bob Dylan. And times do change the chances of success. As Thomas Paine so memorably put it in the introduction to his epochal Common Sense of 1776, ‘Time makes more Converts than Reason.’ For basic income or social dividends, the time is now.

The financing option favoured by this writer would be to fund a basic income from the construction of sovereign wealth funds, along the lines of the Alaska Permanent Fund or the Norwegian Pension Fund. This option, which draws on the work of Nobel Prize winner James Meade in his book Agathatopia, would allow a country to build up the fund over the years and raise the amount paid out as basic income, or social dividend, as the fund developed.32 Viewed as a rightful share of income flowing from our collective wealth, the social dividend approach is politically attractive since it would not require either dismantling existing welfare systems or raising taxes on earned income.

In an innovative proposal linked to basic income that has attracted interest across the European Union, Philippe van Parijs has suggested that every EU resident (presumably, legal resident) would receive a Euro-Dividend averaging €200 per month, paid for by a 20 per cent value added tax.11 This would amount to about 10 per cent of EU GDP.

The five major sources of income which are exempt for NRIs are: Proceeds from Life Insurance Policy - provided the policy complies with the exemption criteria/conditions Dividend from a domestic company or mutual fund scheme - provided the company or mutual fund scheme has paid the Dividend Distribution Tax (DDT), if applicable Interest on an NRE account – provided the NRE account is maintained as per the FEMA rules Interest on FCNR or RFC accounts – provided the account owner is a non-resident or RBNOR under the Income Tax Act Long Term Capital Gain on equity and equity based mutual fund – provided the Security Transaction Tax (STT) has been paid

In India, dividend income is exempt from income tax for investors, provided the dividend distribution tax (DDT) is paid by the company or the mutual fund schemes declaring the dividend. While

Equity mutual funds, require regular income Dividend option

Income from a mutual fund is either dividend or capital gains. The capital gain can be short term or long term based on the period of holding and whether STT is applicable or not.

We want more money in real terms after taking inflation into account. Here, I would like to emphasize that whether you consider yourself a stock, gold, private business, or real estate investor, or if you only invest for income such as dividends or rental income, all investors in all asset classes have to obey the same laws and principles of investing. There is no exception!   Sometimes,

like most wealthy Americans, almost all his income came from dividends and capital gains, investment income that since 2003 has been taxed at only 15 percent.

Internal Revenue Service: “If you determined your tax in the earlier year by using the Schedule D Tax Worksheet, or the Qualified Dividends and Capital Gain Tax Worksheet, and you receive a refund in 2016 of a deduction claimed in that year, you will have to recompute your tax for the earlier year to determine if the recovery must be included in your income.

We lack space here to discuss in detail the pros and cons of market forecasting. A great deal of brain power goes into this field, and undoubtedly some people can make money by being good stock-market analysts. But it is absurd to think that the general public can ever make money out of market forecasts. For who will buy when the general public, at a given signal, rushes to sell out at a profit? If you, the reader, expect to get rich over the years by following some system or leadership in market forecasting, you must be expecting to try to do what countless others are aiming at, and to be able to do it better than your numerous competitors in the market. There is no basis either in logic or in experience for assuming that any typical or average investor can anticipate market movements more successfully than the general public, of which he is himself a part. There is one aspect of the “timing” philosophy which seems to have escaped everyone’s notice. Timing is of great psychological importance to the speculator because he wants to make his profit in a hurry. The idea of waiting a year before his stock moves up is repugnant to him. But a waiting period, as such, is of no consequence to the investor. What advantage is there to him in having his money uninvested until he receives some (presumably) trustworthy signal that the time has come to buy? He enjoys an advantage only if by waiting he succeeds in buying later at a sufficiently lower price to offset his loss of dividend income. What this means is that timing is of no real value to the investor unless it coincides with pricing—that is, unless it enables him to repurchase his shares at substantially under his previous selling price.

If your purpose for investing in stocks is to create income, you need to choose stocks that pay dividends.

Investment Counsel and Trust Services of Banks The truly professional investment advisers—that is, the well-established investment counsel firms, who charge substantial annual fees—are quite modest in their promises and pretentions. For the most part they place their clients’ funds in standard interest- and dividend-paying securities, and they rely mainly on normal investment experience for their overall results. In the typical case it is doubtful whether more than 10% of the total fund is ever invested in securities other than those of leading companies, plus government bonds (including state and municipal issues); nor do they make a serious effort to take advantage of swings in the general market. The leading investment-counsel firms make no claim to being brilliant; they do pride themselves on being careful, conservative, and competent. Their primary aim is to conserve the principal value over the years and produce a conservatively acceptable rate of income. Any accomplishment beyond that—and they do strive to better the goal—they regard in the nature of extra service rendered. Perhaps their chief value to their clients lies in shielding them from costly mistakes. They offer as much as the defensive investor has the right to expect from any counselor serving the general public. What we have said about the well-established investment-counsel firms applies generally to the trust and advisory services of the larger banks.

Money that has to be spent on replacing assets cannot be used on more advantageous purposes that actually benefit shareholders such as buying more equipment, acquiring other companies, paying down debt, paying dividends, and repurchasing shares.

I wait for periods when the market is trending downwards (bear market) or crashes because I can buy these high-quality companies at bargain prices which makes me able to buy more shares for my money, which also ends up giving me more dividends.

The most used classifications are: Large-cap: $10 billion or more market cap Mid-cap: between $2 billion and $10 billion Small-cap: less than $2 billion

When a shareholder invests for dividends, the investor does not have to sell their assets, because they will live off their dividends that the asset pays them. Also, many dividend companies still pay out an increasing dividend even during a market crash.

A great company, in the context of buying it as an investment, is a company that consistently generates a healthy net income. Not only that, it should also be able to increase its net income year after year. The net income of a company is the bottom line, it's what's leftover after all the expenses, interest, and taxes have been deducted from the revenue the company generated. Total revenue generated has an impact on the net income of a company.

As stated earlier, when investing in dividend-paying stocks, investors don't have to worry about selling the assets they own in their investment portfolio, because they will live off the dividend income generated. How much an investor needs to generate in dividend income to live prosperously is up to them. I would recommend building up dividend income to twice the amount you make at your job.

It is extremely important that your business involves something you are interested and believe in. If you don’t believe in your own business, no one else will. Also, if you aren't interested or passionate about your business, it will fail. You will be spending many hours alone working on your business, so it's best to choose a business venture you have some interest in.

For investors just starting out it’s recommended to begin with duplexes, triplexes or quads. Why? Because it costs considerably less money to buy these properties.

I am careful with industrial, basic materials, and energy companies because most of the companies in these sectors are highly price-sensitive and cyclical. Many of these companies compete to be the lowest-cost producer and price, therefore, becomes the biggest factor that drives performance.

The steps to making your business work is to only focus on what you are good at and outsource or automate everything else.

When it comes to selling stocks, I only sell if a company stops paying the dividend, the company fundamentally changes for the worse, or if the dividend has not kept up with inflation.

If a company has not been able to grow its dividend fast enough, you should either sell it or collect the dividend you receive and purchase other companies with it. Whenever I am not buying companies at a P/E of 15 or less, I just sit back and collect dividends. Being patient and waiting for the right opportunities to buy is a skill in itself.

A company can do a couple of things with their earnings: Invest it in new projects Buy or fix equipment, buildings Buyback shares outstanding Pay down debt Pay out dividends to shareholders

One way to determine a company's moat is to ask yourself if the customer would buy a different product or service if the company increased its price.

Remember: Companies that pay dividends will always provide you with a return. Always. You don’t need to examine your stocks’ price movement each day or panic when you hear on the news that the Dow fell by 500 points. Instead, concentrate your attention on the power of compounding dividends over time and their ability to provide income on

Investors managing assets in tax-deferred accounts need not worry about the character of income or its realization. Dividends, interest, and short-term and long-term gains and losses all accrue in the accounts with taxes deferred until withdrawal. Tax-deductible contributions to accounts end up being treated as ordinary income upon withdrawal. Taxable contributions to accounts create a basis that allows tax-free distribution of that basis upon withdrawal. Managing tax-deferred assets poses relatively few tax-related questions.

According to Poterba’s calculations, shown in Table 1.5, taxable investors in stocks might lose as much as 3.5 percentage points per year to taxes. In the context of a pre-tax return of 12.7 percent per year, the tax burden dramatically reduces the rewards for investing in equities. The absolute level of the tax impact on bond and cash returns falls below the impact on equity returns, but taxes consume a greater portion of current-income-intensive assets. According to Poterba’s estimates, 28 percent of gross equity returns go to the tax man, while taxes consume 38 percent of bond returns and 42 percent of cash returns. Table 1.5 Taxes Materially Reduce Investment Returns Pre-Tax and After-Tax Returns (Percent) 1926 to 1996 Source: James M. Poterba, “Taxation, Risk-Taking, and Household Portfolio Behavior,” NBER Working Paper Series, Working Paper 8340 (National Bureau of Economic Research, 2001), 90. Tax laws currently favor long-term gains over dividend and interest income in two ways: capital gains face lower tax rates and incur tax only when realized. The provision in the tax code that causes taxes to be due only upon realization of gains allows investors to delay payment of taxes far into the future. Deferral of capital gains taxes creates enormous economic value to investors.*

Yet it's precisely because we're richer than ever that it is now within our means to take the next step in the history of progress: to give each and every person the security of basic income. It's what capitalism ought to have been striving for all along. See it as a dividend on progress, made possible by the blood, sweat, and tears of past generations. In the end, only a fraction of our prosperity is due to our own exertions. We, the inhabitants of the Land of Plenty, are rich thanks to the institutions, the knowledge, and the social capital amassed for us by our forebears. This wealth belongs to us all. And a basic income allows all of us to share it.

Vanguard’s Dividend Growth (VDIGX) or Equity Income (VEIPX) funds

Clearly, the “peace dividend” that dominated Washington rhetoric after the end of the Cold War—taking the money spent on the military and moving it to projects at home—is long gone. (Thanks to Afghanistan and Iraq, the dividend never paid out.) The money we hoped to spend on improving the climate, or education, or ending income inequality will get sucked into bolstering our forces in Europe, even as we “pivot” to concentrate more firepower in the Pacific.

The only thing worse than a job you don't like is one that pays well enough to drown you in money illusion.

The only thing worse than a job you don't like is one that pays well enough and keep you stuck.

If historical growth and analyst estimates are of little value, what is the solution? Ultimately, for a firm to grow, it has to either manage its existing investments better (efficiency growth) or make new investments (new investment growth). In the special case where a company's margins are stable and there is no efficiency-driven growth, you should look at how much of its earnings a firm is reinvesting back in the business and the return on these investments. While reinvestment and return on investment are generic terms, the way in which we define them will depend on whether we are looking at equity earnings or operating income. With equity earnings, we measure reinvestment as the portion of net income not paid out as dividends (retention ratio) and use the return on equity to measure the quality of investment. With operating income, we measure reinvestment as the reinvestment rate and use the return on capital to measure investment quality.

Well, you know that interest is taxed as regular income, so if you put the bond ETF into the investment account, you’ll get taxed on that as if it were salary. But if you put it in the 401(k) and the Roth IRA instead, you get that interest tax-free. Meanwhile, you know that you can make up to $78,750 per married couple in qualified dividends without paying taxes. So if you put that in the regular investment account, you’ll be able to earn those dividends tax-free.

You would report 2 percent of the $500,000 (or $10,000) equity ETF in dividend income on your tax return, and not report anything in interest since those bond ETFs are in tax-sheltered and tax-deferred accounts where investment gains are tax-free. Your total tax bill comes out to $0.

Employment income and interest income are taxed at the worst rates, while qualified dividends and capital gains are taxed much more favorably.