Sentences with phrase «because dividends and interest»

That's because the dividends and interest income are reinvested and even if you consider it as contributions, in the previous row they should be counted as withdrawals on the same day.

Not exact matches

Not only did this encourage companies to increase dividends, it encouraged stock ownership because interest income from Treasuries and money market funds were still taxed as ordinary income.

Their cost of capital is a function partly of low interest rates and part of the implicit share price is a function of the fact that investors have looked at equities for dividends rather than bonds for yield because the bond market is so expensive.

This addition was considered because a) we wanted to increase the defensive tilt to the portfolio beyond the S&P index (lower portfolio beta), b) we liked the interesting growth prospects of some well - run, progressive utility companies so they could deliver both future growth and increasing dividends and c) we needed to deploy the dividends flowing in periodically from the DGI portfolio.

@Bluejeansman I take it you are talking about LS20 and (maybe) LS40, because only funds with more than 60 % fixed interest (or cash) assets have their dividends taxed as interest.

While it has a low payout ratio (dividends are only 61 % of FFO) and a low MCX ($ 16 - 17 million), it does have a need to refinance in the next twelve months because of rising interest costs and principal repayments.

Dividends, the share of profits that some companies distribute to investors, have been increasingly important because bonds still offer relatively low interest payments and stock prices have been flat.

Strange that the IRS allows this because of the risks involved and since said interest, dividends and capital gains are not taxable.

And then there is the securities portfolio of $ 1,149,239 where he / Wallbuilder pays no tax on interest, dividends or capital gains because Wallbuiders is a «non-profit».

The way I process this information is that REIT's valuations, like most other high yield income investments, initially fall because there is a direct competition between rising interest rates and REIT dividend yields.

I am not subject to backup withholding because (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding, AND

RRSPs are a tax - optimized wealth - creating machine: because interest, dividends and capital gains are not taxed while securities are held there your RRSP should grow like topsy, reinvesting the income without the taxman biting into your investment growth.

That's because many investors have a tendency to think that dividend income is almost as safe and predictable as bank interest.

Preferred shares are extremely popular with taxable investors, because have little price volatility except when interest rates move (which makes them similar to corporate bonds), and because their distributions are eligible for the dividend tax credit.

Because interest and foreign dividends are taxed at your full marginal rate, these ETFs use forward contracts to recharacterize all distributions as either return of capital (ROC) or as capital gains.

Because interest and foreign dividends are taxed at your full marginal rate, these ETFs use forward contracts to recharacterize all distributions as -LSB-...]

2) No tax drag because of taxes on dividends, capital gains and interest.

That's because, of the three forms of income (interest, dividends and capital gains), interest is the highest taxed.

This investing technique is interesting because it allows the investor to benefit from both a gain in capital due to good financial performance and dividend payments that make the wait more comfortable.

We have high yield dividend equities — this is unique to Rebalance IRA — that we use a proxy for a bond fund because interest rates are artificially manipulated by the government and kept artificially lower than they normally would have been if the market had set those rates by its own market forces.

Net interest income Because interest income and interest expense are two of the most important factors in determining taxable income, then the difference between the two — which creates net interest income (NII)-- should have a significant impact on Annaly and American Capital Agency's ability to payout their dividend.

Because the interest you get from bonds is taxed at a much higher rate than the capital gains and dividends you get from stocks, and those extra taxes drag down your returns.

But if you hold bonds in a non-registered account and preferreds in your RRSP «that's just dumb,» he quips, because bond interest is fully taxable, while the fixed dividends from Canadian preferred shares are taxed at a much lower rate.

That's because if they are purchased and sold outside of an IRA they could be subject to taxes either each year or when liquidated, depending on whether profits are earned and when and if dividends or interest are credited.

Cash value life insurance coverage usually guarantees a rate of return around 4 % with today's interest rates and this return should be viewed as a baseline because the non-guaranteed portion of the policy includes dividends that are tax free and reinvested.

These types of funds get double - whammied when interest rates spike; once because as interest rates go up their investments decrease in price and again because their cost to borrow goes up reducing their cash flows for dividends.

This addition was considered because a) we wanted to increase the defensive tilt to the portfolio beyond the S&P index (lower portfolio beta), b) we liked the interesting growth prospects of some well - run, progressive utility companies so they could deliver both future growth and increasing dividends and c) we needed to deploy the dividends flowing in periodically from the DGI portfolio.

Interest rates are still low enough to provide VZ an opportunity to finance a good portion of the deal via newly issued debt and VOD had long had issue with not being able to control the dividend payout from the joint venture because it lacked majority control.

Those that sold stocks and bought bonds because of that probably regretted that, and they would never have gotten back in (if they waited until dividend yields got back above interest rates.

Loans and borrowings are cheap source of finance primarily because the interest cost is usually tax deductible in most jurisdictions unlike dividend payments.

As one gets older, the switch to dividend producing stocks and bonds usually happens because the «interest rate» is more stable.

I know that stocks with lots of interest (and dividends when you're in a high enough income bracket) should be in RRSPs because they're taxed heavily.

Also because reinvested dividends / interest / realized capital gains add to basis, and is not taxed when withdrawn, also helps make regular old investing not such a bad deal, as everyone says, when compared to tax - qualified investing.

Also when you pay taxes on dividends / interest / capital gains along the way on («unwanted») distributions in a non-qualified account, these amounts are nowhere as large nor significant as people postulate, because you're paying them in the early years, when the account balance and distributions, are relatively small.

Because these institutions operate on a not - for - profit basis, the savings are passed on to the members in the form of low interest rate loans and high - interest rate savings accounts keeping more money in the local community, rather than paying high salaries for bank executives or dividends for shareholders.

It is a question with no right or wrong answer because a number of variables (interest rates applicable till the mortgage is paid down, annual returns from a diversified portfolio during the same period, future tax rates on income, interest, dividends and capital gains, the annual churn in a portfolio etc.) are unknown at this point.

This interest is actually a dividend from the life insurance company's yearly profits, and the growth rate is generally low compared to other investments because life insurance companies have additional expenses (like policy administration expenses and underwriting costs) that a pure asset manager does not.

A better name would be TFIA — a Tax - Free Investment Account — because it's designed to shelter interest, dividends, and other investment earnings from tax.

I don't like thinking about any withdraw rate because my intention, although this certainly hasn't happened yet and I'm 20 years away to see if it works, is to live off the interest and dividends paid to me by my capital.

Projecting future wealth and known future income streams can be a good starting point for estimating a future marginal tax rate (e.g., what will tax rates be for the retiree who already has Social Security benefits, portfolio interest and dividends, real estate or other passive income sources, and / or Required Minimum Distributions [RMDs]-RRB-, but clearly some uncertainty remains, not the least because Congress could just outright change the tax laws between now and then (although even higher tax rates in the future is not a guarantee that Roth conversions are a good idea today!).

Again, because premiums are paid using after tax dollars, the cash growth, including interest and dividends, grows tax deferred just like a 401 (k) or IRA.

You no longer need to make premium payments, but you get to keep the coverage your lifetime, and the policy still grows because of interest and potential dividends.

Many feel that mutual insurance companies are better because the policyholders» interests align well with what's best for the company, specifically lowering insurance rates and paying out dividends to attract more customers.

Cash value life insurance coverage usually guarantees a rate of return around 4 % with today's interest rates and this return should be viewed as a baseline because the non-guaranteed portion of the policy includes dividends that are tax free and reinvested.

The longer the policy has been in force, the higher the cash value, because more money has been paid in and the cash value has earned interest, dividends or both.

«That's because interest rates normally increase in response to strength in macro fundamentals, which drives increased net operating income, higher property values, and dividend growth.»