Disadvantages Of Dividend Shares

Dividend stocks are investments in companies that issue a payment based on their earnings each year. It was decided by the Board of the Company. Sometimes it is simply given to holders of preferred shares, and even to common shareholders. It is more frequent quotations in U.S. dollars per share. Many people are attracted to this investment because it provides a sum of money, but there are several reasons why the stock dividend may be the best investment for you.

First of all, a bond for the return in the form of dividends. Now granted, many of the large-cap stocks and do not behave like bonds, but if you want to invest in bonds, why not just invest in Bond? It 's a simple enough question.

The fact is that the bond interest payment will not change. Dividend change. So if you want to return, it would be better to look at the titles, rather than the stock dividend.

Next big disadvantage that many financial experts and economists are due to the tax issue. Dividends are taxed as income which is taxed as capital gains. This means more money to pay taxes on stock dividends, as the football goes to the market value of that amount. Tax planning is an essential part of the knowledge of the stock market dividends, and 101 do not seem to make much more sense to tax.