antiquary

Barron's: Best Dividend Plays for 2009

Dividends reduce your risk. If they're being paid from sources like questionable leverage, or the sale of income-producing property by the company, then of course they raise your risk at the same time they reduce it. In the latter case they're not even a dividend, properly, even if legally they would be; they're a return of capital.

The government of course does tax dividends, but not nearly as highly as it does ordinary income, so that money comes easier to you than the same sum you worked for.

On Feb 15 05:06 AM guliamo wrote:

> What's the deal with dividends anyway?
> As a friend of mine says - Dividends are just a clever way for the
> government to tax you before you sell the stocks.