15 Comments
User's avatar
Scott E.'s avatar

Key point is "qualified" dividends... vs "non-qualified".

Kreygaron's avatar

What makes a dividend qualified or non-qualified?

Diary of a Dividend Investor's avatar

Agreed, the majority of my dividend income is non-qualified. Critical point you make.

Freedom Trades's avatar

This is why the rich play a different game.

The tax code clearly rewards investors over employees.

Ruby's avatar

So even if you make a salary of say $150k you can still not pay taxes on dividends up to the threshold in the chart?

Rahul Bharti's avatar

Any way to reduce withholding tax on dividends for non-US residents?

Dividendology's avatar

I’ll try to discuss in the future!

Mikel's Lawn Sevice's avatar

But the issue is the amount needed to generate that income: $4.2M assuming a healthy and sustainable 3% dividend yield. In fact you need $2M just to make $60K per year. Sure you'd need less going more aggressive with high yield paying stocks, but is it sustainable?

Frontier Signals's avatar

Was going to say the same. Nice to know, but that is not something an average Joe can do.

Cannonball Kicker's avatar

Would love to know more about withholding taxes for dividends from US companies from non US residents, depending on the agreements with certain countries e.g switzerland you could claim some of it back but not all would love to know more!

Investing Lawyer's avatar

Easy answer is buying growth stocks only.

Dividendology's avatar

Depends. Still capital gains tax for growth stocks.

Investing Lawyer's avatar

But no dividend tax like you referred in the beginning 😉😁

Nicholas Bratto's avatar

Working with a client on this now! Love this breakdown.

Dividendology's avatar

Awesome! And thank you!