Quote from dwpeters:
Hi,
Here is a strategy: http://www.osam.com/pdf/Commentary_Sep10.pdf
Essentially the article says that if you have a portfolio of high dividend paying stocks, your principal at times may go down but at those times yields go up. In the long run the portfolio appreciates so it not only provides a generally consistent income but a generally increasing income. The assumption is that you rebalance each year into high dividend paying stocks.
yeah..dividends..you have split this one with Barry O..
http://turbotax.intuit.com/tax-tools/tax-tips/irs-tax-return/5519.html
In 2011, dividend income (other than capital gain distributions from mutual funds) is taxed as ordinary income at your highest marginal tax rate.
PS : oh..i'm sorry.....share,not split..