24/7 Wall St Excludes Realty Income From Top 10 Picks as Roth Strategy Saves $1,536
Updated
Updated · Yahoo Finance · Sep 11
24/7 Wall St Excludes Realty Income From Top 10 Picks as Roth Strategy Saves $1,536
1 articles · Updated · Yahoo Finance · Sep 11
Summary
$1,536 a year in federal taxes can be avoided for a 24% bracket investor by holding ordinary-dividend names such as Ares Capital and Main Street Capital in a Roth instead of a taxable account.
24/7 Wall St used that tax gap to argue BDCs and REITs belong in tax-sheltered accounts first, while qualified-dividend payers Verizon, Altria and Pfizer fit better in taxable portfolios.
At the portfolio's 6.4% yield, reinvesting the annual tax savings inside a Roth would add roughly $20,000 in lifetime cash flow over 10 years.
The piece also promoted 24/7 Wall St's newly released top-10 stock list, noting Realty Income did not make the cut despite its 115th straight quarterly dividend increase.