Interesting observations about Dividend Investing.
Investing in “Dividend Yield” funds will also have some other points:
(1) Though an investor will save Dividend Tax and that will help growth in NAV, if you need regular passive income, then you need to have SWP or profit booking and then pay the tax on Capital Gains. But still it will be less than nominal tax rate.
The drawback is that, the NAV may fall by 20%-30% routinely due to market volatility, and your passive income will get impacted.
If you are not investing for regular passive income, then it looks fine.
(2) For those investors looking for regular passive income, paying tax on Dividend Income should be all right. Anyway, you are paying income tax on your other regular incomes from FD, Salaries, and other sources of income which might be dependent on your tax bracket.
I think, it is more to do with the individual requirements of regular passive income and personal choices.
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