Dividend investors who focus on generating steady income need to focus on tax planning to maximize long-term returns. While dividend income is a reliable source of cash flow, taxes levied can significantly impair an investor’s net earnings. The tax implications vary based on the income of the investor and if the dividends are qualified or non-qualified, with different investors being taxed at different rates. For instance, an investor holding qualified shares of Apple bought during 2019 at $42/share, with less than $44,625 in annual income, would have received $6,275 in dividend income over five years, or $313/quarter, compared to less than... […] The post Earn More, Pay Less – Tax Optimisation Strategies for Dividend Investors appeared first on DataDrivenInvestor.

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