facebookFor those that invest in US markets, do you generally go for growth stocks over dividend yield? - Seedly

For those that invest in US markets, do you generally go for growth stocks over dividend yield?

I'm generally a more low and slow/ dividend focus investor.
My current portfolio has only SG exposure and I'm exploring dipping my feet in the US market.
But the 30% dividend with holding tax really puts me off especially when I can get comparable dividend yields in Singapore companies.
Is the allure of the US market its potential for explosive growth? (without any capital appreciation tax)

Discussion (4)

What are your thoughts?

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Mainly for growth stocks! As you have rightfully pointed out, the attractive part in the US market lies in the capital appreciation of the US stocks which we do not have to pay taxes for.

Actually you have already answered it yourself - the high tax for US stocks vs tax exempt SG stocks! :)

Personally I hold positions in the 3 local banks and REITS to earn some steady dividends and a number of US stocks for growth purposes.

Yes! Usually in the US market, growth stock will be better as they have a 30% tax for their dividend.
If you are looking to get dividend stock, you may consider sg market as they are generally quite stable and not that volatile.

Chris

31 Jan 2021

Owner and Writer at Tortoisemoney.com

Yes, I would say the US is attractive mostly for its growth. Being the largest market in the world, ...

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