A.I.M. Users Bulletin Board

[Alton]

Hey Clive,

Yes, the taxing aspect is a consideration for total portfolio results and should be an aspect of investment planning. I happen to use tax deferred accounts for equity investments so didn't give consideration to taxes in my comments.

There's a psychological aspect I think that contributes to favor of dividend growth stock investors. When stock prices fall during a broad market decline, investors feel the dividend payout reduces the total loss when monthly and quarterly statements are reviewed, and the dividend can be utilized for reinvestment at the lower prices.

Best, Alton