You will pay dividend tax on all dividends you receive in excess of your annual tax-free dividend allowance.
dividends
You know about tax on dividends, interest and capital gains, but are you paying your dues on excess reportable income?
Have you ever considered living off the income yield thrown off by your portfolio alone?
Many investors think that they don’t have to pay tax on their dividends squirrelled away in accumulation units. They’re wrong!
Accumulation fund investors generally have no idea how much they’ve earned in dividends. But discovering this hidden flow of cash is easy…
A quick confusion-buster on the difference between income units and accumulation units and which you should use.
Don’t be bamboozled by the hype – investment trusts aren’t sitting on mattresses stuffed with cash
Dividends can be cut by firms in trouble, or where management decides to do something else with its cash flow. Here’s what to look out for…
Dividend investing is much more popular than 20 years ago, and that’s brought out some critics. We think they protest too much…
The demo HYP and its benchmarks are all growing their annual income nicely, but our roll-your-own portfolio is the laggard.
Dividends have risen strongly since the financial crisis, but is the gravy train about to hit the buffers?
The Analyst yields to no man, and no investing jargon, either. (See what I did there?)
We welcome a new writer to the Monevator stable, in the form of The Analyst. He’s one of the best financial educators I know, and he absolutely LOVES dividend investing.
Everybody loves to receive dividend income, which is a key component of the rewards of being a part-owner in a business. The demo HYP has already begun to earn it.
Companies can’t get dividends out the door quickly enough, for major private shareholders, who face a 10% tax rise on dividend income in April.
Neil Woodford is selling his oil giants, believing the cost of exploration and extraction will eat up their cash while the economy stumbles.
Long-time Monevator readers might remember my series of posts from September 2007 on selecting a high yield share portfolio (HYP) to secure a growing dividend income. For those who missed it, the series so far comprises: Grow your income with dividends from high yield shares: HYP Part 1 How to choose a good high yield [...]
The Dividend Growth Investor blog has an interesting post about long-term dividend investing. His rule of thumb is that a dollar saved in your twenties will provide a dollar a year in your sixties: I found that the average time it took a $1,000 investment to produce $1,000 in dividend income for a full year [...]
Previous posts in this high yield share investing series have argued the case for dividends, considered what makes a good high yield share, and stressed the need for diversification. Now it’s time to make yourself a cup of tea and settle down to see exactly how you can construct a high yield portfolio for yourself. [...]
We’ve already considered the attractions of dividends and what makes a good individual high yield share. Part 3 now looks at how many different shares you need to get a squad of high yield shares fit for the long-term. (For those who like spoilers: Part 4 will offer an illustrative portfolio assembled using real share [...]
Part One of this series introduced how dividend payments from shares can produce a growing income stream with minimal effort on your part, and certainly no need to frenetically ‘play the markets’ like a demented monkey bashing the bongo drums. (Remember, study after study has proven most share traders fail to beat buy-and-forget tracker funds [...]
“Buy! Buy! Buy!” shout the city folk in blue braces from one side of the trading pit. “Sell! Sell! Sell!” retort those with red neckties. Whatever happened to “Wait! Wait! Wait!” wonders your writer? These days sharetrading is conducted via computer – the trading is often done automatically according to decisions made by the computers [...]
Dividends are typically declared twice a year in the UK, when the company announces its interim and final results. The two dividend payments declared add up to the total dividend for the year. The historical yield is calculated by dividing last year’s declared dividend by the current share price. The forecast yield, in contrast, is [...]
Consider a fictitious company, Loadsamoney Ltd, whose shares cost 100p each, which is paying an annual gross dividend of 10p per year. The dividend yield is calculated by dividing the dividend by the share price, and then expressing it as a percentage. In Loadsamoney’s case then, the dividend yield is: 10p/100p x 100 = 10% [...]
