Dividend Dilemma: Will Mega Cap Growth Continue?

Рет қаралды 23,583

3 ай бұрын

When we think of US stocks we think of mega-cap tech stocks with huge profit growth and low dividends. Some of the most colossal tech giants in the US are now opening their cash vaults to pay dividends. This unexpected twist begs the question: Is this the beginning of a new era where growth stocks deliver less growth? In this video I take a look at why things are changing, what this means for investors and whether this really is an end to the era of high growth.
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Пікірлер: 36

@wallace-bv4rl 3 ай бұрын

You’re very kind to the UK market. The good dividend yield is, in my opinion, a product of the lack of any price appreciation in the market. Had the UK market appreciated at the same rate as the US over the last twenty years the yield would be more like that of the US I would guess. I haven’t checked!

@stevelam5898 3 ай бұрын

It's completely pointless to go for 1% dividend yields, if strong growth isn't anticipated. And, at the current P/E ratios, there isn't much further growth to be priced ahead. If you go for the dividends, plenty of better choices out there. Unless, big tech hike their payout rates significantly.

@MelissaHobbs-qm8wi 3 ай бұрын

Absolutely !!!! I love I'll have to be debt- free in every sense before purchasing my first supercar. The best thing to do with your money is to infuse rightly because money left saving will end up with no returns.

@fritz2eierkopf249 3 ай бұрын

Thank you very much for your important and interesting insight!

@kevinu.k.7042 3 ай бұрын

Great video. Just a thought. That Ficus in the background does not need a cane for support now. ;)

@ciaoatutti11111111 3 ай бұрын

I do not think is a ficus..

@kevinu.k.7042 3 ай бұрын

@@ciaoatutti11111111 I am looking at one as I type. It is Ficus Variagata. But the world will not collapse over this. Have a good day my friend.

@stiffeification 3 ай бұрын

European (and other ex-US) companies should do more buybacks like in the US. Buybacks are tax free (for me in Switzeland or tax deffered in other countries, of course only applicable to taxable accounts), compared to dividends that are taxed immediately and then the tax value not compunding anymore.

@DPTrainor1 3 ай бұрын

Thank You.

@harrychufan 3 ай бұрын

Most* dividends from US companies to US investors are paid not at ordinary income rates of up to 37%, but at capital gains rates up to 20%, or 15% or less for most investors. But yeah dividends are still a tax drag.

@thomascrew8268 3 ай бұрын

Unless the dividends are paid into a tax advantaged IRA.

@Muricastuff 3 ай бұрын

I try to keep a mixture of growth and value! Value stocks have really trailed these last two years though…..

@michelhedley1805 3 ай бұрын

Excellent and thank you

@Pensioncraft 3 ай бұрын

Thank you too! @michelhedley1805

@GonzoTehGreat 3 ай бұрын

6:57 The 1% tax as part of the IRA is interesting. As you say, it's probably not enough to cause a significant reduction in share buybacks, but will it actually motivate companies to invest their cash instead? What's your view regarding the argument that these buybacks distort the share price, specifically the P:E ratio? If so, perhaps a tax isn't enough discouragement and they should be made illegal?

@vincepergolizzi3737 3 ай бұрын

RE: favorable tax treatment -> In the US qualified dividends are taxed similarly to “long term” capital gains. Your broader point stands though, dividends create a tax drag on returns for a long term investor. More tax efficient to create your own dividend by selling only when you need the $

@TomsPersonalFinance 3 ай бұрын

Really interesting video. Thanks, Ramin 😊

@TomsPersonalFinance 3 ай бұрын

@@royed31 what does that even mean?

@Pensioncraft 3 ай бұрын

My pleasure! @TomsPersonalFinance

@2LegHumanist 3 ай бұрын

Dividends are a pain in the arse. I want to grow my portfolio and every time I get a dividend I have to pay tax on it.

@ttrjw 3 ай бұрын

Don't know, don't care. Just buy the whole market....

@nonexistent5030 3 ай бұрын

If youre right about these stocks reaching a more mature slowing growth then these stocks are eggregiousoy overvalued as theyre pricing in aome serious growth...