stink726

Dividend Progress Report: October 2009

I read today that the House health care bill passed this past Saturday was written to apply the 5.4% surcharge tax to modified adjusted gross income, which includes capital gains and dividends. So dividend income after 2010 will be taxed at ones regular income tax rate plus 5.4%. I wonder if this will be bad for dividend paying stocks?

Healthy Results for Whole Foods

Maybe good results, but the market is sending WFMI down quite sharply on a big up market day.

Amazon: What's Your PayPhrase? Feisty Mango?

This is an interesting article; thanks.

The Wal-Mart Economic Stimulus Plan

Although I personally do not like WMT, I trust them to help the economy more than Congress. Congress has become so bad that I'd rather have WMT instead of Congress running the healthcare system.

Diedrich Coffee: A Web of Misrepresentations

Interesting article; thanks

Echelon: Powering Smart Grid Opportunities

Interesting article and comments; thanks.

The Saudis' Odd Plan

Somebody should explain the concept of diversification to the Saudi's.

RailAmerica IPO's Sluggish Debut

Thanks for the article

Regional Bank ETFs Showing Signs of Life

Interesting article; thanks.

15 High Dividend Stocks: Are These Yields Sustainable?

otctrader - Thanks for the info and explanation.

Emotionless Dividend Investing

mbkelly75 - Thanks for the info.

15 High Dividend Stocks: Are These Yields Sustainable?

mbkelly75 - I'm confused over the concept of having zero cost basis; maybe you can help me understand it. As an example, if I'd bought 1000 shares of GE at $6.00 and sold 500 at $12.00, I would have reported a sale of $6000 on my tax form with a basis [500 shs times $6.00] of $3000. The remaining shares still have a basis of $6.00 per share, don't they?


On Oct 07 10:32 AM mbkelly75 wrote:

> You might keep in mind that when a solid company (GE is a good example)
> cuts it's dividend - it can be a wonderful time to buy it right after
> it takes the almost guaranteed price drop in it's share price. GE
> dropped hugely - and their only reason for the drop was to maintain
> the company's good health. I bought it around $6 (with even it's
> lowered dividend around 9%) and sold enough of the shares to pay
> all my costs and expenses around $12 and ended up with the shares
> left over being zero cost-basis (free) shares. They will not be in
> my core portfolio again until they have had 5+ years of raising that
> dividend again - but I still have a great stock paying an outstanding
> dividend in my exploration portfolio no matter what happens from
> here.

Emotionless Dividend Investing

mbkelly75 - Why can't dividend reinvesting ever raise your cost basis? As an example, if I buy 100 shares of a $25 stock which then rises to $30 before the first dividend is reinvested, those new shares will have a $30 basis bringing the entire group slightly higher, won't they? Or am I missing something?


On Oct 07 11:47 AM mbkelly75 wrote:

> Dividend re-investing (especially when done
> commission-free as my broker does for me) always lowers the cost-basis
> - it NEVER raises it.
>

34 Safe Dividend Stocks; 9 Criteria to Select Them

Interesting article; thanks.

First-Time Homebuyer Tax Credit Program: Morally Hazardous?

Good article; thanks. I can't believe the guvment, in trying to help, has set up possibly more future foreclosures. Using the $8000 to get into a house for basically no money down means some of these buyers will have 'no skin in the game' and be more likely to walk away if they choose.