Investing 102

[Chad-1stGen]

Originally Posted by GregWeld

That sounds GREAT --- tell me which stocks you're going to guarantee me are going to go up. Because that is the MAJOR difference in dividend investing and investing in pure capital growth. Most people can not pick which stocks are going to rise. And with that comes RISK... Dividend investing -- in the kind of names we've been discussing - have a history - AND pay that dividend. What that can do for you is cushions and comforts during the downturns and creates income for reinvestment.

TAXES are a whole different discussion... and unless someone is a "seer" you can't predict what our infamous bozos in Congress will or won't do.... TAXES and their scenarios need to be discussed with a CPA on an individual basis. What my tax situation is, will be far different than someone else's.

Ha ha you are replying too fast for me

Obviously neither of us can guarantee a stock is going to go up (whether it pays dividends or not). You have shared a lot of examples of investments in this thread but to be fair the only way to truly compare different portfolio's is to look at the net IRR based on the specific cash flows of an investor's total portfolio, not just specific investments.

Re: Taxes yes they are complex but that doesn't mean you should ignore them. And I wasn't attempting to forecast what the Gov't would do with taxes. Just pointing out the fact that starting in 2012 dividends will be taxed as ordinary income which is known right now.