What Is the Downside to Dividend Stocks?
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Taxes. The final problem with dividend investing is that it comes with hefty tax consequences. Even if you're holding your dividend-paying investments longer than one year (to get better tax treatment), you're still paying taxes every single year. This hurts your investment returns.
Elena Rostova holds a Master's degree in Public Health Journalism. She covers groundbreaking medical research, holistic wellness trends, mental health awareness, and nutritional science.
