Jun 9, 2024

The total cost of these stocks is $1.308m (at the value and assuming the number of shares shown). On an annual basis, these dividends represent a 2% fully taxable return. Let's assume that any DDI reader is at least a 35% tax-payer (federal, state and local). So, the real yield is 1.4%. Even the S&P yields (over the last 60 years) an average of 8% per year and partial sales would generate taxable income at the capital gains rate! So, except as a reliable place to hold cash, where hopefully price appreciation (somewhat?) offsets inflation, I'm at a loss to understand this approach.