When considering dividend-paying stocks, some investors tend to select stocks with high dividend yields rather than the long-term total return. However this is not a winning strategy. Instead of falling into the so-called “yield trap”, investors are better off picking stocks based on total return over the long-term, according to a research report by Invesco …
Currently the top U.S. tax rate on qualified dividends is 15%. This rate applies to tax-payers who are in the 25% to 35% tax brackets. This means that hypothetically an ordinary American in the 25% tax bracket having an earned income of $50,000 and getting a $1,000 in qualified dividends pays $150 in dividend taxes …
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The Economist magazine has published a special report on why France could be the biggest danger for the Euro. French politicians have denounced the report with one minister calling the report “absurd and groundless“. However most people, including myself, would agree with the substance of the Economist report. From “The time-bomb at the heart of …
Continue reading ‘Which Country is Better for Investment: France or Sweden ?’ »
Emerging market stocks soared before the global financial crisis leading to sky-high valuations and equity prices. Investors’ attraction towards emerging markets has since changed dramatically. This year many of the leading emerging market indices are still in the negative territory are up only slightly compared to developed markets. The year-to-date returns of some of the …
Continue reading ‘Are Emerging-Markets Stocks Attractive Based on Price-to-Book Ratio?’ »
In September, 2010 I wrote an article discussing the decline average holding periods on the major stocks exchanges of the world. One of the charts included in that post is the following chart for the NYSE: Click to enlarge The average holding period for stocks has declined on most major exchange for many years …
Continue reading ‘Average Stock Holding Periods on Select Global Exchanges’ »