3 Tax Implications of Dividend Stocks
Two things are guaranteed in life: death and taxes. While you can’t control death, you can control how much you pay in taxes. That’s particularly true for dividend investors. After all, if you don’t manage your tax exposure, the income you get from your dividend-paying stocks could eat away at your investment gains.
While no one can avoid paying taxes altogether, there are some tax implications dividend stock investors have to pay attention to. From housing the investments in the wrong account to not taking advantage of tax-loss harvesting, here’s a look at some of the tax impacts of dividend investing.
Key Takeaways
- Owning dividend stocks can generate income for investors and comes with tax considerations.
- Regular dividends…
