Dividend Time Year End 2020

[Timothy Ross]

PEAK Disclosure - Click to Learn

DIVIDEND TIME YEAR END 2020 

It's that time of year to check out estimated Dividends. I started looking at over the last couple months at the trends to get some perspective of the tax burden we will be facing, it's going to be more than 2019, It's Dividend Time ! 

Common  theme I am seeing in communications from our portfolio managers and fund companies,  Q: Why are the estimated distributions relatively high ?

Well, volatility, and many companies have been profitable during the plandemic. So trading creates capital gains dividends, profits create income type dividends. We will see higher dividends this year, depending on your asset class and type of portfolio, 2-4% will not be uncommon in many portfolio's. If you have done a lot of trading or your manager has, expect taxable capital gains, if these are significant, some planning may be in order, or at a bare minimum a resolve to be a happy tax payer, I know a couple who are.  This is brief update, everyone will be different. Just a "Heads Up",  thankfully it's been a good year for peoples investments for the most part. Around the world, it's been a little rough lok at Spain and Russia, US pretty good , Canada not even on the list.  This link I found gives a bit of perspective.

https://luckboxmagazine.com/trends/best-and-worst-global-stock-markets-in-2020/

Remember, celebrate dividends, means business was good for the most part, only downside, you will need to share some of them with the government and they need the money, also remember dividends have already had taxes paid on them by the companies owned, so there is some tax advamatges of receiveing income that has been pretaxed, not going into the details, that will be a whole new topic, I will probably find a few articles that explain it so much better than I can. The important thing here is to be aware. 

So, Perhaps will dive a little deeper on this topic going forward.  Search the site at the top right corner for keyword Dividends for other posts in the past and in the future.

Also check the comment section for articles regarding the topic 

As a member , if you come across a relevant article , please post in the comment section, so we can all benefit

Thank you

TLR 

 

 

 

[Timothy Ross]

Sample Dividend Portfolio, explore the stats, get down to the by company leverl, it's ratehr interesting and interactive

 

https://www.neiinvestments.com/pages/prices-and-performance/profile...

[Timothy Ross]

https://www.rbcgam.com/en/ca/learn-plan/investment-basics/understan...

[Timothy Ross]

https://taxpage.com/articles-and-tips/types-of-dividend/

[Timothy Ross]

https://www.canada.ca/en/revenue-agency/services/tax/individuals/to...

[Timothy Ross]

https://www.investopedia.com/terms/d/dividendtaxcredit.asp

[Timothy Ross]

On the other end of the spectrum, stock markets in China, Denmark, South Korea and Taiwan have produced positive gains, alongside the United States, as one can see in the 2020 global stock market index performance data below (as of Oct. 27, 2020):

• Nasdaq (USA): +25.73%
• OMX 20 (Denmark): +20.90%
• KOSPI (South Korea): +7.16%
• TAIEX (Taiwan): +6.45%
• Shanghai Composite (China): +5.48%
• S&P 500 (USA): +4.08%
• NIKKEI 225 (Japan): +0.78%
• OMX 30 (Sweden): -1.72%
• SENSEX (India): -2.56%
• KSE 100 (Pakistan): -2.59%
• TSX (Canada): -5.97%
• AEX (Netherlands): -9.75%
• DAX (Germany): -9.88%
• ASX 200 (Australia): -10.70%
• Hang Seng (Hong Kong): -13.16%
• IPC (Mexico): -13.93%
• BOVESPA (Brazil): -16.98%
• CAC 40 (France): -20.14%
• FTSE 100 (Great Britain): -23.83%
• IGPA (Chili): -24.78%
• RTS (Russia): -27.67%
• BUX (Hungary): -28.63%
• IBEX 35 (Spain): -29.87%

[Timothy Ross]

https://luckboxmagazine.com/trends/best-and-worst-global-stock-mark...