Must mean the next big surplus is coming
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No smart investor buys a stock just to get the dividend in a few weeks.... Sounds like an AOC comment.
Roth 401k and IRA is the only way to go. The majority of the balance is going to be growth and I’d rather it be tax free growth.
1ibj again, for the last time. In addition to the Roth, I own about $20,000 of AT&T in my 401K. There is provisions in the 401K to have the dividends from that company stock paid to me, but from what I can tell, that income is treated as ordinary income, not as qualified dividend income. So, I haven't seen the point in taking the dividends. I can take a distribution whenever if needed.
I would be extremely interested if someone is receiving these dividends out of the 401K, and the income was indeed being treated as qualified dividend income with the lower tax rate.
1ibj again. Being the weekend, there is no one to call until Monday. But IRS itself wouldn't be a bad call since I do my best to conduct my transactions with them honestly.
From what I've discerned, the 30 day rule doesn't apply to any retirement accounts, since it is mostly a "wash sale" rule applicable to claiming capital gains tax losses.
I took a small distribution from my AT&T 401K (I'm over 59½) and it was treated entirely as ordinary income even though much of it was invested in stock funds.
Back in the day, I contributed to the Roth subjected to the criteria that I could "based on income limits" and because my participation in an employer plan precluded from contributing to a traditional IRA.
I would encourage all AT&T employees to research the Roth implications, both within the 401K and as a separate self directed account. I didn't have the 401K Roth available while I was employed (or if it was, I was unaware) but I am so, so, so ... glad that I have a good balance in one now.
As far as I can tell, short term, long term, whatever term, is inapplicable. I get no 1099 from my broker on the Roth.
"@1ibj, you may want to discuss that strategy with your broker"
I'll look into that, but my existing assumption is that this deals with claiming losses and buying the stock back. But this stuff is in a Roth where there are no gains or losses.
But thanks, time to research that issue. I have assumed that Roth means no short term/long term gains or losses or any reporting to anybody. But thanks for the advice, and there is certainly no harm in doing that.
I picked up Verizon at $45 or so because I thought it undervalued, and it paid a dividend. Same criteria goes for T. I think Verizon is fairly valued, whereas I think T is undervalued still.
While I like diversification, one need not be a rocket scientist to see that people love their cellphones. We have the government manipulating interest rates, and if the T-Mobile/Sprint horizontal merger goes through, there will be less competition.
I didn't vote for all of this government manipulation, and the government picking winners and losers, but I don't think that anyone can invest without taking that into consideration.
@1ibj, you may want to discuss that strategy with your broker, and a 30 day “buy back” Rule that might need to be observed, but you may know that.
Curious to know why you carry two competitive stocks in the same industry? Diversify, build your own mini mutual fund, with up to 10 stocks over 10 separate categories. Healthcare, pharmaceutical, real estate, etc....with or without dividends.
I wish I could say I was a good stock picker, but I’m not....so mutual funds were my choice. Good luck
$34? Looks like it may be a while!
I'm thinking of putting a limit sale on my Verizon at about $60. And then I'll buy it back at a lower price if it oscillates downward. I have both VZ and T in a Roth - perfect day trade investment vehicle.
I haven't decided on when to sell T - maybe $34?
The prudent course might be to buy and hold both AT&T and Verizon Communications. One word of caution on AT&T: The idea that it can run HBO better than HBO’s proven creative management probably will result in an eventual multibillion dollar write-off.
Smart investors. They bought because of the April 4th deadline to ensure obtaining the May 1st dividend. My bet is that by May 2nd, all those shares will be sold.
We can thank President Trump for this. Dividend stocks are sensitive to interest rate hikes by the Fed. The Fed has halted interest rate hikes, so assumed interest rate hikes that aren't going to happen is now being taken out of the stock price calculation.
I don't think that Fed interest rates alone is enough to halt rising interest rates, and now Pres Trump thinks likewise, calling of the Fed to engage in quantitative easing.
https://www.marketwatch.com/story/trump-calls-for-fed-to-adopt-quantitative-easing-after-jobs-report-2019-04-05
Quantitative easing is jargon that means the Fed is printing money. They then use this money to purchase debt, thereby removing such debt from the debt markets, which lowers interest rates. So now AT&T benefits because they have a lot of debt, and the stock price reflects that.
And meanwhile, the political party of borrow and spend is morphing into the party of print and spend. And those other countries that want an end to the dollar being the world's reserve currency have found a friend in Pres. Trump.
@xgt - yeah, less than 1% of 1000%
Less than 1% 😂