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Apple Dividends question
Posted by: Microman
Date: November 18, 2019 04:54PM
So if you earn Dividends, you get a Tax Thingy in the mail indicating you earned that money for that year. So it would be logical to take that money and do something with it, like pay taxes, right?, not just leave it there.
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Re: Apple Dividends question
Posted by: Paul F.
Date: November 18, 2019 04:58PM
I eat the taxes, and reinvest the dividends. Every Dividend at current levels buys me over 1/8th of a share.
I've collected several shares since they started doing dividends again, and that share brings in more dividends, etc.

Edit: I actually just added them up... my dividends have bought me 11.3 more shares of AAPL since 2012.
So, no, taking the money and running is not always the best plan.



Paul F.
-----
A sword never kills anybody; it is a tool in the killer's hand. - Lucius Annaeus Seneca c. 5 BC - 65 AD
----
Good is the enemy of Excellent. Talent is not necessary for Excellence.
Persistence is necessary for Excellence. And Persistence is a Decision.

--

--

--
Eureka, CA



Edited 2 time(s). Last edit at 11/18/2019 05:09PM by Paul F..
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Re: Apple Dividends question
Posted by: space-time
Date: November 18, 2019 05:16PM
1/8??? So for each share you get what???
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Re: Apple Dividends question
Posted by: pdq
Date: November 18, 2019 05:25PM
Quote
space-time
1/8??? So for each share you get what???

I think he's saying that he regularly (quarterly?) gets dividend checks for around 1/8*250 or around $35.

Apple is currently paying $3.08 annually in dividends, per share. You can do the math.

Not bad.
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Re: Apple Dividends question
Posted by: NewtonMP2100
Date: November 18, 2019 05:29PM
....what about.....'Father's Little Dividend'......????






_____________________________________

I reject your reality and substitute my own!
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Re: Apple Dividends question
Posted by: Paul F.
Date: November 18, 2019 05:33PM
Quote
pdq
Quote
space-time
1/8??? So for each share you get what???

I think he's saying that he regularly (quarterly?) gets dividend checks for around 1/8*250 or around $35.

Apple is currently paying $3.08 annually in dividends, per share. You can do the math.

Not bad.

Correct... 1.16% annual yield. Per share.
It adds up! But not as fast if you don't reinvest.



Paul F.
-----
A sword never kills anybody; it is a tool in the killer's hand. - Lucius Annaeus Seneca c. 5 BC - 65 AD
----
Good is the enemy of Excellent. Talent is not necessary for Excellence.
Persistence is necessary for Excellence. And Persistence is a Decision.

--

--

--
Eureka, CA
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Re: Apple Dividends question
Posted by: The UnDoug
Date: November 18, 2019 07:16PM
I reinvest my dividends with AAPL, too. I used to add however much extra cash was needed in my account after the dividend pay out, so that I could afford full shares, but then realized that TD Ameritrade offers DRIP for AAPL, and now when I get my dividend, they buy whatever amount (including fractional shares) of AAPL my dividend can afford. Now I don't get stuck with any leftover cash sitting in the account. In fact, they just sent me a check for sixty-three cents, which is how much I had in the cash account, so now it's at a zero balance.



[www.zeemaps.com]
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Re: Apple Dividends question
Posted by: ztirffritz
Date: November 18, 2019 07:38PM
I'm reinvesting and getting a little more than 1 share per quarter. If I'd never sold any of my shares I'd be....living on my yacht writing this connected to the interwebs via my private geosynchronous comsat.



**************************************
MacResource User Map: [www.zeemaps.com]#
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Re: Apple Dividends question
Posted by: Speedy
Date: November 18, 2019 09:12PM
I look at dividends as found money so I always reinvest. Our retirement fund automatically reinvests, of course. Why shouldn’t I?



Saint Cloud, Minnesota, where the weather is wonderful even when it isn't.
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Re: Apple Dividends question
Posted by: NewtonMP2100
Date: November 19, 2019 06:34AM
.....keep those statements....whenever you cash in the stock, you will need to have the cost basis to determine capital gains......and with dividend investments, you need to be extra diligent.......



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I reject your reality and substitute my own!
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Re: Apple Dividends question
Posted by: ztirffritz
Date: November 19, 2019 07:34AM
Quote
NewtonMP2100
.....keep those statements....whenever you cash in the stock, you will need to have the cost basis to determine capital gains......and with dividend investments, you need to be extra diligent.......

The brokerage does that automatically.



**************************************
MacResource User Map: [www.zeemaps.com]#
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Re: Apple Dividends question
Posted by: NewtonMP2100
Date: November 19, 2019 07:38AM
......if you get email statements, you need to print out.....I think some only keep online copies for a certain # of years......



_____________________________________

I reject your reality and substitute my own!
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Re: Apple Dividends question
Posted by: Microman
Date: November 19, 2019 04:27PM
So am I paying taxes on the $900+ dollars in my account as dividends?

And if so, does it matter what I do with the dividends? All this talk about what to do with it, but no one answering the question about taxes.

Do you pay taxes if you reinvest the dividends?
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Re: Apple Dividends question
Posted by: Paul F.
Date: November 19, 2019 04:32PM
Quote
Microman
So am I paying taxes on the $900+ dollars in my account as dividends?

And if so, does it matter what I do with the dividends? All this talk about what to do with it, but no one answering the question about taxes.

Do you pay taxes if you reinvest the dividends?

For Federal Income Tax, your dividends are taxed as capital gains, regardless of if they are reinvested.
So, though I did intimate that they are taxed, the short, clear version is "Yes, they are taxed as capital gains".
At least, that's what I remember from when I did my taxes back in February... I use tax software that figures that stuff out. I just enter the transactions (the dividend amounts from my 1099 from my brokerage).



Paul F.
-----
A sword never kills anybody; it is a tool in the killer's hand. - Lucius Annaeus Seneca c. 5 BC - 65 AD
----
Good is the enemy of Excellent. Talent is not necessary for Excellence.
Persistence is necessary for Excellence. And Persistence is a Decision.

--

--

--
Eureka, CA
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Re: Apple Dividends question
Posted by: NewtonMP2100
Date: November 19, 2019 05:18PM
.....you still pay taxes.....the minute they give it to you......that is dividend income.....even if you reinvest.......



_____________________________________

I reject your reality and substitute my own!
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Re: Apple Dividends question
Posted by: Lux Interior
Date: November 20, 2019 06:29PM
Quote
ztirffritz
I'm reinvesting and getting a little more than 1 share per quarter. If I'd never sold any of my shares I'd be....living on my yacht writing this connected to the interwebs via my private geosynchronous comsat.

lol!

The 1000 shares I bought in 1997 for around $13/share would be worth over $7MM and I would be taking in $80 large a year in dividends.

WOULD be. If I hadn't sold it at $60/share not too long after I bought it.
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