I just got my tax statement from Ameritrade yesterday (Form 1042-S), which reminded me of how much money I had earned from dividends and other income in 2006.
I was quite surprised by the total, and how much tax I had to pay. Anyway here are the figures. It’s not bad considering that my total portfolio didn’t much exceed $11,520 on January 1st, 2006. That’s a return of about 7.9%, not including increase in the value of the stocks, AND only about 75% was invested in stocks bearing a dividend. I just worked it out about 10% gross return on dividend stocks! Not too shabby.
Naturally, my interest in dividends has been piqued much after reading this statement and 10 good reasons to buy stocks with dividends.
Disclaimer: I do own dividend stocks, and have done well myself. You may not do as well as this. Do your own due diligence before you buy ANY investment or financial product.