facebookFor US stocks, should I go for dividend or growth stocks since there are 30% taxes for dividends? I intend to go for at least 3 months to 2 years. Any advice? - Seedly

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Anonymous

23 Jul 2020

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General Investing

For US stocks, should I go for dividend or growth stocks since there are 30% taxes for dividends? I intend to go for at least 3 months to 2 years. Any advice?

Discussion (10)

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Chris Susanto

21 Jul 2020

Founder at Re-ThinkWealth.com

For US stocks, you should go for growth via capital appreciation. That is exactly what I am doing.

The majority of my portfolio is in US stocks.

Sg stocks are generally great for dividend-paying stocks or REITs - given one bought it at the right price. Due to no tax for dividends paid.

Most of the monthly stock case studies I did for my members are also US stocks. It's a pretty exciting market, to be honest as there are more global companies in the US stock exchanges.

In terms of your time horizon, 3 months to 2 years, I think that could be dangerously short. Read about the basics of investments here in my intelligent investor summary.

Hope this helps!

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Billy

21 Jul 2020

Development & Acquisitions Manager at Real Estate Private Equity

You need to consider (aside from the 30% dividend tax), how much handling fees do brokerage firms charge.

Take for e.g. a company that offers 5% dividend yield. Post tax = 3.5%. FSM charges a $2 handling fee.

So if you were to work backwards, your dividends would minimally have to be $2 / 3.5%. Therefore it really depends on how much capital you put in for dividend yielding stocks.

But personally, US growth stocks has not disappointed me.

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Marcus

21 Jul 2020

Founder at manualmode

Generally, I go for growth stocks for the US market and dividend stocks for Singapore market (and if...

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