Thank you! Glad it helped!

I agree with you! Although I think that you can build great wealth over time with both strategies! Most people simply aren't investing, and if they choose quality dividend stocks over not investing at all then I'm all for it, ya know?

What about dividend growth ?

Thank you very much! I'm so glad that it was helpful!

Awesome! I'm really glad to hear that, thank you for the positive feedback!

I would hold off on realizing those capital gains until it is most advantageous for you to do so, so that you don't generate any unnecessary taxable income

Your ordinary income might be part of the "foreign earned income exclusion" You should do some research on that. www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion Theoretically, if you were only living off of capital gains as a single person and wanted to pay $0 in federal income tax then yes, for the 2020 tax year you could realize $40,000 of GAINS and stay in the 0% bracket. You could take more income than 40k depending on what your basis is (what you bought the assets for). Example: -Bought Assets For: $20,000 (basis) -Sold Assets For :$60,000 (realizing income) -Capital Gains: $40,000 ($60,000-$20,000) (This is the taxable amount) Please understand that I can't begin to fully explain everything in a KZfaq comment. But I do hope that this helps get you started!

Awesome! I'm really glad it was helpful! May I ask what made this video particularly helpful so that I can continue to do so in future videos?

Yes, breaking down the concept of capital gains and the difference between realized/unrealized gains was super helpful.

@@scaleskl Thank you for your very valuable feedback! I do hope that you can get the same value in some of my other videos as well :)

Thank you very much, I appreciate it!

I'm sorry if that wasn't obvious, I am always talking about the United States.

@@OnCashFlow I just found your video in search and don’t know which country you are talking about. So just a suggestion

@@adityashankert Oh, I see, thank you for the suggestion :)

@@OnCashFlow Of course it wasn't obvious. Can you also add which United States you are talking about? There is one on Earth in Milky Way but there is another one in X36677 galaxy 5000 light years away from Milky Way.

@@sumitomoO0O Interesting

I think it's mainly a psychological thing. People can see that they are getting paid, they receive the dividends, and see it as passive income. I agree and believe you will build wealth better by seeking capital gains over dividends, primarily.

I'm relatively young, and I invest for dividends (mainly), and medium-long term capital appreciation (second), because I'm aggressive with business investment. I'm an entrepreneur. So basically, the investing for dividends part is to maintain my lifestyle with 'passive' income, while business is where I go truly aggressive with investments.

Thanks buddy, I'm so excited!

Thank you for watching!

Are you sure the LT and ST dividends don't add up to the "dividends" amount. There are only two types qualified or non qualified You have no choice when to receive dividends. Usually they will be qualified if you hold the fund for > 1 yr

@@OnCashFlow Correct there are only 2 types when Vanguard send out the tax form. However, i think they just sub-categorized it a little bit when they redistribute my dividend/share back to me. Take the target fund VFORX as example. I'll receive $100 for the Dividend, then $30 Short Term, and $300 for the Long Term. Of course all of these are converted to share since I do DRIP. To answer your question, when I searched Vanguard total dividend for that quarter/year, they will only use the $100 and add that to my other funds that also pay dividend, not the total $430.

Me too! I am a hands on/visual learner!

No, I don't think so. Dividend growth is a part of overall returns.

I’m trying to understand the pros and cons of receiving dividends + dividend growth vs the exact amount of capital gains + buybacks …