A Look Ahead for Income Investors

There is already a lot of consternation about reading the future of dividend tax rates. Whether this is something that investors need to address now to make an adroit move on already or whether it's going to be a phantom, an investing head fake and feint which can take investors out of position, is up in the air.

Even if the market's reaction if the dividend tax hike goes through would be to make some of the dividend stocks less attractive, there's no evidence that there would be a wholesale abandonment of dividend stocks, nor should there be. Perhaps prudent trimming and pruning of dividend portfolios would be in order, but that should always be the case. It will once again make stock picking paramount, even for income investors, as they will want to position themselves for the best yields from quality stocks. Also, coordinating a dividend portfolio within an overall tax plan is something that's suggested even now, as we are in tax season.

Source: Investopedia

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