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Homemade Dividend |
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Homemade dividend Homemade Dividend When one owns a stock, the sale of some of the shares to imitate a dividend. One creates a homemade dividend especially when the company represented in the stock does not declare a dividend for a particular period of time. Importantly, a homemade dividend is subject to, at worst, capital gains tax; if the shares are sold at a loss, there may be not taxation at all. This contrasts with a "normal" dividend, which is usually taxed at a higher rate that capital gains. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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