Physician’s Update on Dividend-Paying Stocks

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But Some Doctors Ask – Why All the Hype?

By David K. Luke MIM CMPcandidate [www.CertifiedMedicalPlanner.com]

www.NetWorthAdvice.com

In an effort to help the US economy recover, the Federal Reserve has lowered interest rates to historically low levels. Furthermore, the Fed has announced its intent to keep interest rates low until 2014. Classic income-producing investments such as savings accounts and certificates of deposit pay next to nothing.

Borrowing Good – Saving Bad!

Borrowers are being rewarded, but savers are being punished. Low interest rates may have spurred the economy somewhat, but they have been devastating for retired people who have a low tolerance for risk. Physicians, other investors and their advisors are turning toward alternatives that pay higher returns, but these vehicles necessarily carry more risk. Among these alternatives, some investors are considering the purchase of stocks that pay reliable dividends.

Assessment

But, is this an appropriate strategy for mature doctors and similar retirees? What are the potential benefits and drawbacks?

Conclusion

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10 Responses

  1. Tax Reform and Dividend ETFs

    Despite their recent success, dividend ETFs could be setting up investors for a colossal disappointment if a recent proposal from the Obama administration to significantly hike the tax on dividends becomes reality.

    http://www.fa-mag.com/fa-news/10272-tax-reform-and-dividend-etfs-cause-for-concern.html

    Reggie

    Like

  2. Dividend Stocks Could Tumble if Bush Tax Cuts Aren’t Renewed

    Mr. Luke – As Congress and the White House head toward another battle over extending the Bush-era tax cuts, a trade association representing utility companies is warning that investors could be in for a major hit if the rates for qualified dividends revert to their pre-2003 levels, even if the only rates that move are those for the wealthiest Americans.

    http://www.financial-planning.com/news/dividend-stocks-could-tumble-if-bush-tax-cuts-are-not-renewed-2679821-1.html?ET=financialplanning:e8919:2248552a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=FP_Daily__071312

    Any more thoughts?

    Dr. Beverly

    Like

  3. 5 ultimate dividend stocks

    Reggie and readers … These stocks have juicy payouts that are long-lasting and rising.

    http://money.msn.com/top-stocks/post.aspx?post=dc10da66-bfca-4aab-acb1-28a0828ebe37

    Deborah

    Like

  4. Income investing for a lean world

    http://money.msn.com/investing/income-investing-for-a-lean-world

    With low returns likely for years ahead, dividends become critical.

    Byron

    Like

  5. Why Health Reforms Won’t Kill Health Stocks

    David – Fidelity managers think that the undervalued healthcare sector could hold bargains, and still have potential for growth.

    http://money.usnews.com/money/personal-finance/mutual-funds/articles/2013/02/15/why-health-reforms-wont-kill-health-stocks

    Any thoughts?

    Adam

    Like

  6. Stay in the market

    History says stick with stocks. Why?
    Over the past 87 years, big-company stocks have earned investors an annualized 10%.

    http://money.msn.com/investing/history-says-stick-with-stocks

    Dr. Burton

    Like

  7. Stock Buybacks vs. Dividends
    [Which Has Better Payoff?]

    Rather than chasing company payouts, can doctor-investors get a better tax advantages with a strategy based on stock buybacks?

    http://www.financial-planning.com/fp_issues/43_7/which-has-better-payoff-stock-buybacks-or-dividends-2685424-1.html?ET=financialplanning:e14251:86235a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=fp_alert_071513

    Reggie

    Like

  8. On Dividends

    David-From 1991 to 2012, the average annual returns of dividend-paying stocks and the global stock market were both 9.1 percent.

    During the same period, stocks not paying dividends had an average annual return of 11.1 percent, although the higher returns came with greater volatility.

    Dr. Janey

    Like

  9. 19 stocks for big dividends and buybacks

    Dr. Janey – Are you looking for yield? Think beyond dividends. Goldman Sachs expects cash returns of 14% or more from these companies as they buy back outstanding shares.

    http://money.msn.com/investing/19-stocks-for-big-dividends-and-buybacks

    Paul

    Like

  10. Tax Planning Tips for Dividend Stocks

    Stocks with significant yields can offer upside potential plus tax advantages at all ages and income levels.

    http://www.financial-planning.com/30-days-30-ways/tax-planning-tips-for-dividend-stocks-2690143-1.html?utm_campaign=30%20days%2030%20ways-aug%2013%202014&utm_medium=email&utm_source=newsletter&ET=financialplanning%3Ae2934551%3A86235a%3A&st=email

    Dr. Burton

    Like

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