SPH   

dividend vs capital gains

I do see your point.

However I look at it from a yearly basis rather than on an ex dividend basis.I agree that on ex divi the price will fall but overtime a good share will eventually pick up to the level.

I supposed it depend whether u are an investor or a trader.

 

If your dividend payout has been taxed (at 20% corporate tax rate) this tax payment is automatically off-set by IRA against your income tax payable in the following year. Your income will be calculated as all dividends received and other income (e.g. regular salary). Hence it depends on your highest income tax rate if and how much tax credit/refund you will receive.

Sometime soon (YOA 2008?) all dividends will be paid tax exempt.

Usually stock prices drop on the day dividend is paid by about the same amount. For most 'small' investors is usually a zero-sum game whether a dividend is paid out or the money left in the company and reflected as a higher share price.

 

dividends is subject to tax.True.

But i thought u can claim it back?

Ot some are tax exempt

 

capital gains, get it when you sell.

dividends, have to wait for payment.

 

dividends subject to income tax. capital gains, no tax. both are profits.

 

agree with you. As long as there's MORE money than what it was, that's profit. Regardless of whether its Dividends or Capital gains..

Purely academic argument.

 

Many people thinks that dividend should not be "counted"as profits when u are trading in shares.They reckon only capital gains are profit.

To me if i invest S$1000 at begin of year and at end of year the divi is S$500 plus sell off shares reap capital gains of S$500 ,i think my profit is S$1000 for the year.

Any views?