Topic: Dividends (Read 506 times)

It really depends on how you are taxed on them, like most things when it comes to generating an income for yourself. It can either be punitive (the government might try to make you extract your profits in other ways) or it could be highly favorable - like in a tax or pension "wrapper". There will be the underlying rate which you'll get as a payout of profits from the company, which might be 2% or it might be 9% or some other worryingly high figure. Optionally a company might decide to keep all the profits in house, if they think they can put it to better use rather than paying out to shareholders - like buying a more efficient factory setup or bulk buying goods which would bring even higher profits next year, which will usually push the shareprice up by the corresponding amount.

Stocks (usually) give dividends because they create revenue, make profits. They sell stuff… Bitcoin doesn’t do any of that. Bitcoin in its current form resembles gold more imo. Both of them are commodities according to the United States at least. Like you said 1 btc is forever 1 btc but 1 share of aapl will have different price to earnings ratio in the future as their revenue change every quarter. A stock is a very dynamic asset in that regard.

So I don’t think bitcoin has anything to do with dividends. Saying bitcoin is paying dividends is like saying gold is paying dividends and obviously it is not true.

How does blockchain tech regulate bitcoin? It is based on that tech does not mean that the tech can force a user and set limits on how much they can send or receive. Please clarify this, I would love to know what I am missing.

Movements dont depend on the tech. Movements in fiat depend on the prices people set for 1BTC against fiat.

In that sense bitcoin is similar to a stock giving hefty dividends every quarter. Just that bitcoin will not be increasing in its inherent amount but the fiat value of bitcoin will. 1BTC will always remain 1BTC, which is again what makes it different from stocks with dividends.

The difference between these two investments (Dividend Stocks and Bitcoin) lies in the underlying assets of the two types of investments. Although Dividend stocks have the potential to provide profits, you need a large capital to enter this type of investment. If your stocks grow and succeed, then the stocks have the potential to rise. In general, the underlying asset of stocks is a company listed on the stock exchange.

While the value of Bitcoin is not regulated by the government or central bank, but is regulated using blockchain technology. Bitcoin investors view that the underlying of Bitcoin is the blockchain technology itself, they can gain investment profits through price increases whose movements depend on supply and demand or based on speculation of a sentiment. As a pros Bitcoin investor, would not sell $20 million worth of Bitcoin to invest in Dividend stocks, the huge potential generated by Bitcoin is far greater than any other type of investment.

An investor who does not tend to be greedy when investing in Bitcoin will be more productive if he can do long-term DCA and is not under pressure to make short term profits. Those who tend to be greedy tend to distance themselves relatively from those who have financial solvency and tend to accumulate a portion of bitcoins from ongoing income. But financial solvency is not the same for all investors so my advice is to practice depositing bitcoin regularly in small amounts so that he can get high profits in bearish times.

20 million usd of bitcoin is my gross amount.  I havent paid taxes on it yet but would like to purchase a home, buy a brand new car, maybe have lasik done, have the fraxel laser done on my facd to remove wrinkles, hire a 10k usd professional genealogist to legally change my entire name so i figure after taxes and all of this im gonna have a net amount of about 15 million usd.  Should i continue working until 62 to receive social security monthly benefit or can i turn my life around and just quit working?  Or should i continue to work until im only at most 50 years old?  What would my annual dividends be if 15 million at 3% annual returns?  Less than 600k usd?  Im getting conflicting reports here... some of you guys have spoken in favor of dividends whereas to others have said otherwise... on the other hand some of you other guys have said to not rely solely on dividends!  Can 15 million usd at 3% annual returns last me foŕ the rest of my life assuming i lived until 100 or beyond...? 

Yes, It great that you invested in Bitcoin.  You are not thinking of greed, that's a very good thought, but you should see that the way Bitcoin is going, it's not going to lose anyone.  I think Bitcoin will not fall for a few years and many people have benefited from it.  But it should be considered more because anything can happen but one should not work on Bitcoin with greed.  As much as you work on it, it's enough for you.  Anyone who works on bitcoin works on it with patience and courage rather than get rich quick.  If you keep working on it and focus on it with good thinking, you will surely succeed.

They do exist.

I believe in every countries do have something like financial manager or funds manager in big companies, they're very important, that's why the companies willing to pay expensive for them.

They might open for freelance financial advisor, but don't be surprised if they charge really expensive, in this case their fees might be larger than the whole investment by middle class people lol.

It's not different from crypto market in the sense that if you pick the right assets, you are going to make profit. The question is, which assets are worth to be chosen right now?

You need a strategy based on diversification to split your funds in different parts, which will be used to invest in more stable and riskier assets. You need to learn about the assets available or to hire a financial advisor to guide you. To operate in stocks market is accessible to everyone nowadays, as you can do it even through your digital banking app.

What we lack the most is the opportunity to talk directly to experienced professionals who are used to operate in this market. The informations they could share with us would be of high value. Most of times we are exposed only to the scammers on the internet claiming to be specialists, but who end leading people to financial losses and shady investments.

If I have a lot of money in Bitcoin, I will hold that and not choose stocks although maybe stock can give me profit. I believe Bitcon can gives me a big profit than stock.

If that person have 20 million usd of Bitcoin, he must hold it as I said before. He will see the value of his money will increase but he also need to be aware from the down trend of Bitcoin price because that will always happen. But for a long term investment, holding Bitcoin will benefits him and give him a big profit.

If he still want to invest in other things, he must search for what the best because our suggestion can not always work for someone.

I think stock investment is also one of the strategy. However, value refers to stocks in comparison to the growth of Bitcoin or other highly valuable assets. This is according to your goals and risk tolerance. Shareholders tend to favor more flexibility and stable income. But it may not provide the same rapid growth as riskier assets like Bitcoin.

As long as this person had $20 million worth of Bitcoin and wanted to increase that sum through dividends. It will be an excellent way for diversifying their portfolio. Stocks that pay dividends And especially from established companies. Regular fees are paid, which can be reinvested to build compound wealth over time. This is a type of blue chip stock that would pay a consistent dividend, like Apple, Johnson & Johnson, or Microsoft.

Technically it's important to remember that the goal of investing in stocks is often to create long-term wealth through stable income. You can also balance your portfolio by holding growth stocks or index funds to gain capital appreciation. If the goal is to multiply $20 million many times, other forms of investment such as equities, real estate, etc. Or even reinvesting in high-growth technologies can provide rapid growth. Although there is a higher risk.

In the end Deciding to Stay with Bitcoin, Switch to Stocks or distributed among other assets It depends on the individual's financial goals. Whether seeking stability and stable income Or if they are promoting a high-risk, high-reward opportunity? A financial advisor can help you set up a fund that suits your short-term and long-term goals.


Of course, relying solely on dividends does not guarantee safety as the share value declines over time, so even if you receive dividends, Declining stock prices can eat into your investment portfolio. The same goes for the volatility that occurs in the cryptocurrency market. Therefore, although dividends provide stable income, But it's not risky.

as you said Bonds provide a great deal of stability. But you're right again. If returns do not outpace inflation You will really lose purchasing power. Bonds may be a safer alternative. But it may not be large enough to keep up with changing economic conditions. Especially during times of inflation

It's still a good approach if the primary aim is capital appreciation. Volatility of Bitcoin is also a good source of profit. But the person should be prepared for the risk. Diversification is the key, perhaps a balance of high-growth assets like Bitcoins with some safe investments in the mix can find a balance instead of focusing solely on dividends or bonds.

You are talking about dividend traps but It is not a risk if you pick your stock after doing your research. Let's say if a company is constantly growing its earnings every year, there is no risk of having negative capital growth and the company can afford to increase its dividends.

The biggest issue with dividends is income tax. When you buy a growth stock, you will get taxed only when you sell it but when you buy a dividend stock, you'll get taxed for your income every year.

Since one needs cash income to have a retirement life, I don't see a big problem because you'll get taxed when you sell your stock to generate cash income anyway.

there's one catch with investing for the sake of dividend, it's the risk of negative capital growth, I've seen plenty of stocks going under the weather within just few years, while it's good to get dividend just for holding stock, but if the performance of the company over the long term poses great risk to our capital which supposedly become our passive income, then it's the same as risking it in a volatile market like crypto.

bond seems like a better idea, as long as the return is interesting enough, even then, we might not be able to outperform the inflation, because if the APY is the same amount of percentage as the inflation or even worse, less than inflation rate, this means we're only losing our money.

maybe just sticking with bitcoin is the better idea, don't fix something that's not broken.

How profitable is it to invest in dividend stocks if someone has a lot of money from bitcoin?

First of all, diversification is needed in investment so bitcoin is pretty good against the inflation just like gold but with big returns if you looking for a passive income strategy then invest in dividend stock is a good choice

What kind of online brokers can do this kind of trading…? If someone has like 20 million usd worth of bitcoin, how could they grow this amount many x over?

Bitcoin has Proof of Work mechanism meaning bitcoin can't grow like ethereum using proof of stake means bitcoin can only grow in value just like mutual funds did.

How much our money grows on dividends is dependent on the interest or profit scheme of the system we are enrolled in.  I believe regular ones are only giving a small amount or percentage ranging from 1% to 10% per annum.  So to grow it many times over will require us more than decades of waiting even if we are invested in the highest dividend stocks (non-cryptocurrency) while there are projects in cryptocurrency that give at most 20% per annum but it is dependent on how that coin project is performing in the market.

Maybe if you talk about diversification it will not be a problem rather than selling bitcoin entirely I think for me who has experience investing in bitcoin, talking about dividends will certainly not be the same as capital gains like what is in bitcoin, we are not like funding a company with sheets of ownership of a company, in bitcoin only capital gains are available.

I don't agree with you that we have to keep all the money in bitcoin, I think there is no need to put limits on where we can invest, if we want to diversify of course it is a good choice, but if you look at the profits in stocks it depends on the performance of the company and bitcoin it depends on where to buy bitcoin, so the multiples that will be possible to get can be much greater.

Why trying to sell bitcoin to another asset which the profits can't be compared holding bitcoin for long and as I know bitcoin is still growing, like yet bull run so there is every possibilities that what you gain in the bullrun if go into dividends like stock or whatever it would be pretty much better to stick on bitcoin except there are urgent and pressing need to do other investment, which I still do not value selling off my stashed bitcoin to something less productive to me.

Dividends stock are profitable you know and getting some funds from Bitcoin to invest in dividends stocks it's quite alright and lucrative too but it depends on the targeted markets because your major concern should be that, majorly now the stock markets is booming but yet competitive so investing some huge amounts would be a leverage for future investment and profits  that follows suit but then you can predict how's gonna look like,so it's more profitable than you can imagine but I'll advice if you have such huge amounts from Bitcoin you shouldn't invest all in dividends stocks but you can as well keep some and invest in Bitcoin too for future reference.

Microsoft used to be a dividend stock also Apple though tech for a long time never paid dividends at one point they were good value and fairly good yield also.  Technology at the moment isnt cheap as a stock to buy, especially with AI its become rated as a growth stock though some dividend is paid its not good yield comparable to the alternatives like plain savings.

Whats really important here is understanding with a stock paying a dividend, it is your own money being given back to you.  A company that pays no dividend is just as valid and may even be more profitable for you personally.  The non dividend company would just require you to sell some stock to get the cash, its more awkward for most small investors to do so however its often more tax efficient.

I may confuse with this last idea but its a solid ongoing dynamic an investor has to learn and be aware of.  For example Warren Buffet never pays a dividend on purpose not because his companies are unable.  It is a waste in his eyes, I would advise OP to digest these details and understand fully even if you do resolve to pursue 'high dividends'.

Just as crypto, the stock market is also volatile. The dividends also varies from the company and it's up to them if they'll release the dividends of their share holders on time or likely they won't be. It really depends on them. I'm not sure about the tech stocks if they're giving dividends but most likely that's still on the trend now but to give you an idea, many are leaving silicon valley and moving elsewhere.

If $20million is already on you, I'd pick up real estate and have it rented. The yield could be 7%-10% annually and you have the property but of course, that's not going to come easy but that's the real passive income for you and that's the business that you're able to make with that capital. It's very ideal for those with money to start their apartment rental business.