Re:Berkshire Hathaway 2020 Annual report [pdf]
by IgorPartola on Saturday February 27, 2021 @12:11PM
(#26286220)
Do most people reinvest dividends in the same stock? What you say makes sense, but I can also see holding a stock and using the dividends for another use, for example just cash withdrawals or to buy another stock.
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Re:Berkshire Hathaway 2020 Annual report [pdf]
by yCombLinks on Saturday February 27, 2021 @01:45PM
(#26287048)
I don't know if it's "most people", but basically every dividend stock has a DRIP program that will automatically use your dividends to purchase shares of that stock. It's a very common strategy outside of the frenzied trading encouraged by apps like robinhood.
Re:Berkshire Hathaway 2020 Annual report [pdf]
by rsj_hn on Saturday February 27, 2021 @05:23PM
(#26288725)
40% of corporate equity is owned by foreign funds that don't pay US taxes at all (thank you, capital inflows!)
30% of corporate equity is owned by tax advantaged retirement funds
Only 30% of shares are even subject to this tax trade off discussion.