DIV

No-Establishment8457

I used my own Excel spreadsheets to track my monthly dividends. A few months ago, I changed to DIV Tracker and am happily using the program. Like you, multiple accounts: Schwab, Vanguard, ComputerShare, Acorns, International Brokers. DIV Tracker does a good job of letting me know when dividends are coming and how much.

honestnanny

Yes. You will input it into your 1099-DIV under tax-exempt income dividends. When you get your brokerage forms, take any state tax exempt dividends and add them up then enter into 1099-DIV.

Past_One3442

Yeah I'm going to long hold the rest since I'm pretty happy TMC helped me to put a together a larger down payment on a house plus invest in some slow growth ETFs, with DIV payouts.

AsbestosDude

No problem and a huge congrats my dude.  If you want something stable and more safe you could look into something like REITS (real estate in investment trusts) or royalty companies like DIV.TO, or some other funds of that nature (I see a lot of people talk VOO or QQQ but idk much about them).   My point being they all pay dividends and are all pretty stable. I think dividend stocks and funds are way preferable to an interest savings account personally and they serve a similar purpose.

Ok-Albatross-3804

DD by Alphaspread.com review of $IQST INTRINSIC VALUE: $59 DCF Value: $59 Relative Value:$58 Analyst Coverage: Litchfield 02July2025 Buy Rating:1 $18 target Recent news:IQSTEL PLANS $500K SHARE DIV. DEC. 31, 2025, AND ENTERS CYBERSECURITY AND AI-ENHANCED CYBERSECURITY. Company overviewiQSTEL, Inc. is a holding company, which engages in the provision of technology and telecommunications services. The company is headquartered in Coral Gables, Florida and currently employs 49 full-time employees. The company went IPO on 2013-01-29. The firm offers a range of services to global telecommunications and technology industries with presence in 13 countries. The firm operates in two geographic segments: USA and Switzerland. The firm has portfolio of products and services for its clients such as: SMS, VoIP, 4G & 5G international infrastructure connectivity, Cloud-PBX, OmniChannel Marketing, IoT services, blockchain and payment solutions. These services are grouped within three business divisions: Telecom, Technology and Fintech. The firm has expanded from its original VoIP services into new business areas, such as Short Message Service (SMS) for Applications to Person (A2P) and Person to Person (P2P); and Internet of Things (IoT) solutions and Blockchain-based platforms. The firm operates through its subsidiary Etelix.com USA, LLC (Etelix).

Alabugin

Damn the DIV on DEO is pretty attractive too. We're already at 2012 levels of valuation.

Doom2021

I use CNBC app. Look for ex-DIV date. Typically Robinhood will warn you if you’re holding a spread on ex-DIV and try to get you to close it. I ignored it one time and got stuck paying back a dividend on 2500 Ford shares.

Doom2021

You have to be careful doing this on ex DIV date. Basically the value of the dividend is built into the options premium. If you get assigned on ex DIV day, you will get a dividend reversal fee and have to pay back the dividend on 100 shares

bobdevnul

I never said that SGOV dividends are qualified. They are non-qualified. I said that they are dividends, not interest. They are reported on 1099-DIV, not 1099-INT. They are treated as ordinary dividends and taxed as ordinary income.

bobdevnul

\>If you hold on the ex-dividend date then you get it in the form of interest. Holding on the day before the ex-div date is what qualifies you to receive the dividend for the preceding month. The ex-div date is when you don't receive the dividend for the preceding month. The distributions are dividends, not interest. The fund receives interest from the bonds it holds. It is paid to us as dividends. The income is reported on 1099-DIV. It doesn't matter for taxes. It is all non-qualified dividends that is taxed the same as ordinary income.

bobdevnul

I am absolutely sure they are dividends. They are reported on 1099-DIV.

BanzYT

>U dont pay taxes on dividends. Yes you do, even if re-invested. You get a 1099-DIV at the end of the year.

DudeRick

$UNH Stephen Hemsley the CEO of $UNH watching the stock drop right now ... People forget that he was once a CFO and knows the value of strategic repurchases. Step 1. Kitchen sink the quarter with super conservative Guidance... Step 2. BUY BACK ALOT OF SHARES after market drops... -> Currently Authorized to buy back 20M (7-8M were bought in Q2) They're sitting in 32B in CASH... and still cash flowing at 16B per year right now, with cashflow increasing next year on margin recovery. With M&A window closed because of anti-trust... what do you think they'll do with the excess cash and shares trading at Covid lows? 20M shares @ 250/share = 5B... They were running 3B per Quarter before this earnings. Its likely they might use up the program and do another 5B next quarter... @ $8.80 / in div -> reducing the float by 20M -> saves 176M per year in DIV payments. With margin recovery next year and float thats projected to drop to 850M by year end of 2026... Even at 4% net income Margin (historically low) on $475B -> 19B in Net income. At 850M shares -> ~$22/share in EPS for 2026. at 4.5% net income Margin (historically low) on $500B -> 22.5B @ 815M shares (12B in repurchases) -> ~27/share in EPS for 2027. EPS jump from 2025 ($16/share) to 2027($27/share) Every share repurchased now saves on future cash to dividend and disproportionately boosts EPS. With an investment grade credit rating and very few near term maturities... they could increase the leverage if need be.

Think-Cobbler-8797

UNH PE12, DIV3.02, PT380, EBITDA recovered I think it’s a buy tbh

Misaiato

You'll get a 1099-DIV statement

careyectr

The decision hinges on two variables you control: how soon you’ll need the down-payment and how much risk you’re willing to take in the meantime. If the house purchase is within the next one-to-three years, capital preservation normally matters more than chasing a few extra percentage points of return. A single 15 % drop in equities can wipe out several years of high-yield savings interest; by contrast, today’s top high-yield savings accounts are paying roughly 4 %–4.7 % annual yield, and that yield is virtually risk-free because deposits are FDIC-insured up to the usual limits.  You don’t actually have to leave Vanguard to get a comparable rate. Selling your stock positions and letting the proceeds sit in the settlement fund (Vanguard Federal Money Market, ticker VMFXX) would currently earn about a 4.2 % 7-day SEC yield, only a hair below the best online HYSAs.  Moving the cash to an external HYSA is therefore optional rather than mandatory—choose whichever platform is more convenient. Tax side-effects – When you sell the stocks you realize only the gain, not the whole $17 k. Long-term gains on assets held more than a year are taxed at 0 %, 15 % or 20 % federally, depending on total taxable income; in 2025 the 15 % bracket starts at about $48 k of taxable income for single filers and $96 k for married filing jointly.  – California treats long-term gains as ordinary income, so add your state bracket (potentially up to 13.3 %). – Any money-market or HYSA interest you earn afterward is also taxable as ordinary income each year. You won’t write a check immediately. Capital-gains tax on 2025 sales is due in April 2026, though you may owe estimated payments if the gain is large relative to your withholding. Vanguard will send you a 1099-B for the sale and a 1099-DIV for any money-market interest. Putting it together If the purchase date is close and you would lose sleep over another equity sell-off, locking in today’s gains and moving to cash-like instruments is the financially conservative move. The cost is whatever tax you owe on the gain plus the lost possibility—not the guarantee—of further market upside. If the house timeframe is still four or five years out and you are comfortable with volatility, keeping at least part of the portfolio in equities or a balanced fund could be reasonable. A practical compromise is to de-risk gradually: harvest enough gains to cover the down-payment you’ll need in the next 12–24 months and leave the rest invested until the date becomes clearer. You can also use short-term Treasury-bill ETFs or Vanguard’s Treasury money-market fund inside the brokerage account if you want zero default risk with a yield similar to HYSAs.

Celcius_87

I want to understand more about how taxes work on dividends. Let's say I buy some VOO or VTI and I get dividends but I choose to have it reinvested. I realize that I still have to pay taxes as if I kept the dividend money. At the end of the year my broker sends me a 1099-DIV right? Can I just pay the dividend taxes at the end of the year or do I need to make estimated quarterly payments?

wannabetmore

You can close it when you want. They are required to give you all the tax papers. I worked at a bank, had bank accounts and investment accounts - closed/transferred everything, and they sent everything for my taxes (W2, 1099s, DIV, INT, etc...). It's required they do that when there is something to report (unless it's under $10).

Doom2021

If you were short the call and it was exercised early, and your shares were loaned out you get charged a dividend reversal. Basically when you sell a call that expires on ex dividend day, the value of the dividend is priced the premium. The person who bought the call can exercise it early to capture the dividend. They now own the shares before the ex-dividend date not you. You, as the option seller owe them the dividend. Let’s say you do a SPY calendar spread and sold a 597c dated 6/18 and bought a 597c dated 6/25. Someone could exercise the 6/18 597c right before close. Because 6/18 is ex DIV day and you don’t own the shares anymore, when the market reopens you will owe 1.70/share $170.

Doom2021

Be very careful not to get called on ex DIV day

NetZeroSun

Too much time finding a watchlist site that has what am looking for instead of 60%. When I can do google sheets and have custom columns to show for example, YTD, 1YR, 5YR, Industry/Sector, etc. Where as other sites have some info nested in a detailed page but not in an actual table spreadsheet that you can sort ascend/descend on. For example, which ones in one industry had the highest 5 YR gain and compare to the current YTD performance, while looking at if there is a DIV and what the amount is per year, along with PE/EPS in one master table to allow me to sort and filter. I went to Yahoo for example and didnt see a 1 yr or 5 YR columns.

redpandaeater

I don't even know if your broker is required to give you a 1099-DIV if you've made that little.

YGbJm6gbFz7hNc

I use freetaxUSA. I recall last year I only received a 1099 DIV and 1099 INT from fidelity. Will the calls be on a separate form? Appreciate your reply

NativeTxn7

Correct. SPAXX does produce a 1099-DIV, but it lists the total ordinary dividends and $0.00 qualified dividends, so you're getting taxed at your regular marginal rate and not at the lower dividend rates. Just like you would if you received a 1099-INT from a HYSA.

forbearance

Do keep in mind that money market funds such as SPAXX (or FZFXX) are more tax efficient than savings account. 1099-DIV vs. 1099-INT.

Backhandslap88

UNH has like a 10 P/E with $100B quarterly revenue, and 2% DIV. About time for Big Buffett to swoop in and save the company. 

Deep90

If it's "just a 1099" it might be a consolidated 1099. In which case, open it up and you will find a section that says 1099-B. You'll probably see others like 1099-DIV (dividends) and 1099-MISC.

DaemonTargaryen2024

1099-B and 1099-DIV show you what you must report. I’m sure she’s a nice person but I would go with someone who hasn’t been taking an RMD for 10 years

cosmos_jm

Is it possible to rotate capital around between monthly dividend stocks to maximize dividends work? Is there a reason something like the following profit or would wash sale rule or taxes or something mess it up?: DIV JEPQ (3rd-6th) 》SELL JEPQ (6th-10th) 》BUY GGN (10th-12th) 》DIV GGN (21st-24th) 》SELL GGN (24th-26th) 》 BUY JEPQ (26th-27th) 》》 RESTART SEQUENCE 》》DIV JEPQ (3rd-6th)

Sabretooth78

Exactly. How running that geriatric dementia patient (and then hanging him out to dry mid-course!) was ever supposed to work is beyond me. It was clearly intended to not work. (And yet fox files this under trump 'defying all odds' - give me a break. It would be nice if they'd stop blowing him for a second and swallow so they could utter an intelligible sentence.) I have a theory that Americans by- and large can't handle anything more than a binary option. The two-party illusion is one of them. Others being target vs. walmart, stoplight vs. roundabout, fox vs. cnn, love it vs. leave it, etc. If given an option, they will always opt for the command that requires the least thinking. Throw a third option into that and it messes everything up and they just walk around with #DIV/0! errors flashing through their brains. Well, moreso than usual, anyway.

Outrageous-Start7869

- TD.TSX : 20% of Portfolio and a great dividend play - MFC : 11% of Portfolio, have done well here thus far - BMO : 9% of Portfolio, again, a good steady dividend driver - ENB 8% of Port: Have for the long hold and DIV - BN : 8 % of Port : have seen some great returns here - a bunch of others (OKLO, VPT, etc. that I'm getting slashed on). ....now this is where I need the help. I currently own 6% XEQT, 4% VFV (Bought more yesterday). and 7% VDY......does it make sense to hold all these funds for the long term, or should I just consolidate into one and keep it cleaner? Thinking VFV if anything?

MosaicLifestyle

According to my technical analysis #DIV/0!

Heavy_Discussion3518

Hah!  Taking out the rest of that last sentence is a bit unfair. Shifting 5-10% of my portfolio to low PE / high DIV stocks is something I should have done a long time ago anyway.  Considering the whole market plummeted, shifting some unsafe bets (read: not selling AAPL) towards safer assets that took a similar decline isn't what I'd call fickle - more like a wake up call to my strategy for the next 25 years.

realharleychu

What’s so important about not shorting calls near/in the money day before EX DIV?

dancness

How much interest did you earn 1099-INT + 1099-DIV in 2004? I mean yeah you paid $5k tax but if you’re still working it’s likely you are not withholding enough from your paycheck. Check your W-4 at work. You might need to make some adjustments to withhold more federal tax from your paychecks. For example I’m married filing jointly with 1 dependent, but if I put that in my W-4 then I will grossly under withhold for the year. The change you likely need to make is there, and not in your investments if you are comfortable with them.

BlueJeans25

Yeah I have been in the same boat many times nothing happens on the exercise side of RH until close to market open the next day - I’ve also messaged support and they were responsive and kind about - no worries. The only lesson here - MAKE SURE YOU DONT HAVE SHORT CALLS NEAR/ IN MONEY DAY BEFORE EX DIV. You’re fine here - you were assigned on puts

Striking-Block5985

Short options can be assigned at any time, though generally it won't happen if they are OTM, but the more likely it will happen if they go ITM. Additionally if there is a DIV it also increases the chance it could happen due to arbitrage. The closer it get to exp the more likely it might happen . The main risk is on Exp Friday, esp if the spread is pinned between the strikes. In that case its better to buy the thing back and get rid of the risk entirely. I usually do that on the Thursday just to have peace of mind.

Yourlocalguy30

Coming to reddit for a non-bias opinion on anything is kind of a vain endeavor. Something to keep in mind is the almost universal truth of "if it's too good to be true, then it's too good to be true". Many of these super high dividend ETFs have very high expense ratios, which means the fund managers charge you more for the maintenance of those funds. Additionally, something to look at is what kind of companies these funds are investing in to actually attain the yields they are advertising (10-12% dividends). Companies that offer extremely high dividend yields often do so at the sacrifice of stock value. So while your investment may be returning something from dividends, you may lose money on your initial investment by losing stock value. In my opinion (and that is all it is), if they were a great and legitimate income source, then everyone would be buying them up. I once bought into DIV and SDIV because of promises of big dividends, but in the end, those ETFs lost so much value that it almost negated the dividends they were turning out. I dumped both of them in exchange for more stable income sources like bonds (VCLT) and money market funds.

RepublicStandard1446

Just buy MSTY instead and get the DIV bruh

rileychase33

It looks like from my 1099 DIV form it’s coming from mostly dividends …

BrokeAdjunct

You still need to fill out the appropriate tax forms, not just add numbers to your 1040. You should be sending in a filled out schedule D, 8949, etc. Think about any dividends you may have gotten, too. Those are not a loss. You should have gotten a 1099B and 1099DIV from your broker that helps spell this out.

blondenboozy007

Love to hear it. I’m in the US and working on my CPA, hoping to find something lucrative as well. Any favorite DIV stocks? And did you just have automatic buys to avoid getting sucked in to the stock market rollercoaster mind fck?

really_knot_serious

Pretty sure W-2s need to be January 31st. My typical 1099 DIV usually shows up second week of February.

nauticalmile

You’re effectively taxed the same way with a money market fund as you would be with a HYSA. The broker will include the total ordinary dividends paid for the year on a 1099-DIV much like the HYSA bank would report total interest paid on a 1099-INT. Either adds to your taxable income at filing, and if significant enough/depending on the rest of your finances, possibly create a tax bill. The actual transactions of money going in/out of the money market are often are not even listed on the consolidated 1099 from the broker - looking at the 1099 for my CMA, it only lists the monthly dividend payments. Since the “buy” and the “sell” were both for $1/share, there isn’t a taxable event. Some additional reading that may be worthwhile: https://www.investopedia.com/terms/m/money-marketfund.asp https://www.investopedia.com/terms/b/breaking-the-buck.asp

Plenty-Bill7296

That's absolutely false. Reinvest or not, the dividends are still income, will be reported on a 1099DIV, and you'll owe taxes on them.

Euphoric-Magazine300

That's a great story... The past five years... other than 2022 have been crazy. I'm up around 320% since then. Retirement also secured. Been selling for the past month and buying tbills, munis, HYSA, QYLD, SPYI, DIV and anything else that pays a solid divvy. I learned from 2022.

IGuessBruv

Don’t want very much risk ≠ putting everything into one stock instead of an etf like DIV

cellardoormaker

Have you looked at a KO chart lately? That being said, it’s back on my DIV radar anyway..

DeeDee_Z

> i just started investing this year ... what will be different when I file my taxes coming up? You'll get a tax form you've never seen before! One, two, maybe three of them; and major brokerages will package them into one bundle called a **1099-COMP**osite. This form will have several sections: 1099-INT, for any interest you earned (cash, money market funds), 1099-DIV, for any dividends your holdings paid out, and 1099-**B**, which lists all the trades and the gains/losses associated with each. If you use tax prep software -- and if you don't, it might be time to start -- All Ya Gotta Do Is: enter the data from those forms into your software when prompted. ---- Now, it can get more complicated than that, but that's where you start. If you received company stock, or exercised options, there are other things to deal with, but if you can copy data from one form to another, you can do this. AND, letting your software guide you through the process will also expose you to what actually goes into "doing taxes". Pay attention to that, and I guarantee that you'll be a smarter person four months from now than you are today!!

D_Paradise420

Why Dominos over Papa Johns? 15B Market Cap vs 1B 1.3 Div vs 3.6 DIV 6800 US Locations vs 2700 I go to neither place but I do see both advertising and I will say papa johns using this young millenial tik tok pizza maker is better advertising than dominos, especially for the younger generations of new pizza consumers. To me papa johns just has better ingredients and better pizza. I'm buying Papa Johns today.

Denison70

Switch your biggest losers to dividend stocks. Enbridge is good DIV is as well

xXTylonXx

The best advice is just quit options period. The only options you should ever afford yourself EVER is 1 year out on companies/etfs you KNOW are going nowhere and even then you would need to research the fuck out of it first. Your safest bet investment wise is just that: invest. You can't lose it all with stocks like you can with options. Honestly if you ever get yourself back to making 6 figures savings like you did TWICE then here is all you need to do: dump sizeable chunks of it into Dividend funds and REITs, period. I'm talking 60% into SCHD, DIV, or even JPST/BIL if you want something slow and absolutely risk free that you can pull out whenever, and the other 40% into VOO. That's all you had to do, TWICE in order to win and statistically even beat out options traders in longterm profitability and drawdown. In 10 years, tossing in roughly 300k from the sound of it, you would currently almost be at a mil easy due to compounding and growth. You have a gambling addiction. Addictions don't have to be constant, but their patterns still are. That's why so many of us don't see it and just treat it like "I can handle it better next time. It's just my emotions" no it's an issue with your brain chemistry and it's insidious. I would recommend possibly therapy or a support group. You are carrying a lot more on your shoulders than you are definitley letting on and giving yourself credit for, and you basically spilled your guts in this post. Seek help. Learn about bona-fide investing. Forget options exist unless you are looking at way far LEAPs, and then decide if you wouldn't rather own shares. Then buy shares. Buy dividend payers. Buy VOO. Also get a real broker. Fuck RH. It's only good for building up an IRA honestly and getting lucky, which usually doesn't happen and isn't proper trading. I hope you get something out of my response cause I kinda just rambled off what I want to tell myself 3 months ago before I lost all my profits after 3Xing my money after trying EVERY type of options trading strategies I could find. I had lots of oppurtunity where I could've 1000% my account multiple times and fumbled or straight up lost. And I can admit I have a problem. Admit you have a problem and take it from there OP. Good luck.

BeefyMcPissflaps

One thing not being mentioned here is AAPL’s drive to move to a net cash neutral position. It’s been ongoing for nearly 10 years. Buybacks and DIV’s are part of that.

VereorVox

But the share dollar will eventually run out whereas the DIV dollar won’t, right? So while the dollar is the same, there are perpetual dollars in retirement from DIV income but not capital income owing to a finite number of shares to sell. Is that right?

SirGlass

>n retirement then, DIV income > capital gains. Have I got that all wrong? Thanks for your time. Yes a dollar is a dollar , its fungible and it doesn't really matter how you got it, if you get the dollar from selling some stock or get a dollar from collecting a dividend its still a dollar. There is nothing special about the dollar you collected from dividends vs a dollar you got selling a stock. They are the same.

VereorVox

Can I ask you about the math/philosophy there as a layman? I would think selling shares is finite insofar as it’s proportional to number of shares held; whereas, taking DIV income is perpetual because you’re not selling but holding your shares. In retirement then, DIV income > capital gains. Have I got that all wrong? Thanks for your time.

Lyrrad0

Look at the 1099-DIV instructions. Specifically [Box 1a](https://www.irs.gov/instructions/i1099div#en_US_202401_publink1000278765) and [Box 2a](https://www.irs.gov/instructions/i1099div#en_US_202401_publink1000278768). In short, your broker should report it in a way that your tax software can handle it properly since Box 1a will include short-term capital gain distribution and Box 2a will only contain long term capital gains distributions. The website for the ETF specified that the distribution was for both short and long term capital gains in particular amounts.

swampwiz

Do you have any idea how BOXX's capital gains distributions are going to be recorded? Especially the short-term gains (the long-term gains go on the 1099-DIV)?

damian001

>This text is just to make my post longer no need to read. Apparently there is a minimum number of characters to post in this subreddit. I'm not sure how this weeds out any posts but makes it so post are just longer and more wordy? No, its to weed out simple questions that can be found via googling >I'm pretty new and just playing with stocks at this point. How do you keep track of dividends so you can see your actual total gain with a dividend stock vs a normal stock. Do you have to dust off ol excel? Using Robinhood maybe real platforms have a better way? Uh first you choose if you want re-invest dividends or not.. If not, then your dividends are given to you as a cash balance. If yes, then your dividends are re-invested, and you'll be able to see the dates, amount purchased, and cost/amount. Or you can just look at your 1099-DIV form given to you after each year.

xXTylonXx

20-30% with a consistent strategy outperforms the general market. Stop trying to hit it big. You're already winning. Just keep trucking and compound that shit. You only need like 450k to drop it on a high yielding stock like O, DIV, or SCHD to have a basic comfortable lifestyle just living off dividends anyway. Fuck you rushing for?

xXTylonXx

Not FA advice, but sure as hell better advice than whatever you're doing: Just dump it into VOO/VTI, O, and something like DIV instead and turn DRIP on. DCA as much from each paycheck as you can afford evenly between the 3. Stop being regarded and actually invest so you're not broke 10 years from now. I ran the numbers through a DRIP calc for you just to prove my point, investing fully into any one of these with 50k to start and an annual contribution of $12k ($1000 a month saving like how you mention in another comment) for a total of 10 years starting from this past Friday's closing prices. Stock appreciation and dividend growth is approximated at 3% which is typically the average growth that can be expected from a stable market. Highly conservative outlook: VOO/VTI: $50k > ~ $220.5k Annual Div payout: ~$3k O: $50k > ~$272.2k Annual Div payout: ~$14.3k DIV: $50k > ~$300.4k Annual div payout: ~$21.1k Equal weighted portfolio of VOO, O, & DIV: $50k > ~$261.5k Annual div payout: ~$60.4k (this calculation might be a bit vague/over-estimated since it assumes manually DRIP investing instead of each asset reinvesting its divs into itself, you are instead reinvesting divs equal weight into the port as a whole. If you time it right and buy dips, a more active approach, you could potentially outperform this calculation by quite a bit, or underperform if you buy before major downturns.) It's not half a mil, but it's a start and a hell of a lot more optimistic and thoughtful then YOLOing your remaining principal into the worst BTC ETF you could choose...

PlandomeProwler

I am sure WEN will moon now that I just sold the $17 calls Not bad actually got paid .36 cents for Sep 20 calls. 1000 shares so pocket $360 plus I will hold through EX DIV date and get .25 dividend too

Operation-FuturePuss

A DRIP account in a taxable brokerage still receives a 1099-DIV in which you are on the hook for the taxes. Just google it. You may just be getting less back in your tax return, but you are still paying taxes on your dividends IF they are in a taxable brokerage account.

VereorVox

No DIV means value to investor is relayed via buybacks and superior share appreciation from company reinvestment. Look into the reit IIPR for example if you’re bullish on cannabis industry. Buy and hold for securities is a widely preferred strategy, yes. Good stuff.

SkylineDrop

If it's a 1099-R, 1099-B, or 1099-DIV, those don't count. The specific sources need to be salary, wages, commissions, tips, bonuses, etc. Stuff you get from a day job.

fn_gpsguy

You still don’t get it. If you are using TurboTax (you’ll need at least the Premium version), the easiest thing to do is import the data electronically - assuming your institution is supported (all of mine are). If you manually enter the data, you just enter the data from the 1099-DIV form. Nothing to calculate. It’s very similar to the 1099-INT form, which is used to report how much interest you earned. Usually, the financial institutions don’t withhold taxes for dividends and interest, unless you are subject to backup withholding or need to pay a foreign tax. The 1099-DIV includes all the data that TurboTax needs to prepare your taxes. Assuming you have a qualified dividend (the tax form has that information), your dividends will be taxed at either 0%, 15%, or 20%. The rate depends on your taxable income. If you are single with a taxable income between $44,626 - $492,300 in 2024, your dividends would be taxed at 15%. I have no idea what you mean in your last sentence. Erase it from your mind, since it it’s definitely wrong. Have you ever reported interest income on your taxes before? If so, look at an old tax return and see what you did. Reporting dividend income is very similar.

fn_gpsguy

You still don’t get it. Earning a dividend and reinvesting it are two different transactions. Let’s start with a simplistic example. You earned some dividends and just left the proceeds in a sweep account earning 0% interest. On your statements, you will see an entry showing the date you earned the dividends, the dollar amount and number of shares. The latter is just for informational purposes. Early in the following year you would receive a 1099-DIV form showing the dollar amount you received in dividends. It’s similar to a 1099-INT form. Cost basis doesn’t apply to these earnings. If you buy more shares, using either new money or money earned from a dividend, it creates a “tax lot”. When you sell something, it’s broken down by these individual tax lots. You’ll probably receive a consolidated 1099 for these transactions. If you manually enter the data in your tax software, you might have to enter 81 transactions with lots of details including date purchased and sold (to calculate long/short term), cost basis, sales price, etc. If you have the ability to import the data into your tax software (TurboTax supports many institutions), I would do it that way. You could use “Various” for the dates when different tax lots are sold on the same day, but it’s more complicated to explain.

49Flyer

The dividends themselves were taxed in the year they were paid; you should have gotten a 1099-DIV each year (or a substitute statement with the same info) from your brokerage. When you sell, each individual share has a cost basis (basically, the purchase price) and the capital gain (or loss) is the difference between the sales price (which will be the same for all shares in your scenario) and the cost basis (which will be different for each share as they were bought at different times). For the shares bought via DRIP, the cost basis is the reinvestment price on the day the dividend was paid. Translation/summary: When you reinvest a dividend, you are receiving income (which is taxed) and then immediately using that income to buy something (additional shares). When you sell those shares, only the capital gain (their increase in value from when you bought them) is taxed, not the full amount.

Leungal

The real answer is this one combined with u/Husgark's answer about many companies switching to share buybacks instead of distributing dividends. The actual reason why is because share buybacks are more tax efficient for shareholders, in that you can choose when to realize your capital gains compared to dividends forcing you to realize 1099-DIV income the year they are distributed.

UUDDLRLRBA

DIV is 1.72%, so... you're still net positive in a year?

Alec_NonServiam

Depending on your broker, this just gets tallied into total gains and losses, total wash sales, and total dividends. You fill in two boxes on one tax form and one box on another, basically minimal effort if you were already filing a 1099B and 1099-DIV. I've used SGOV/USFR/TFLO this way for several years now with both Vanguard and Fidelity.

DogonSiereht1

I have invested in LMT since 2008. It is more of a tech play for me. I watched a documentary “Moon for Sale” and they can turn moon dust into water. They have a great DIV, and a lot of future tech moving forward. I also invest in RTX and NOC. I used to have BA for drones, but since dumped them. I love my LMT shares. At one point my holdings were over 10% of my AUM, so I sold some to buy LLY.

Here4Snow

Yes. you report it. The transaction is reported to you and the IRS by the brokerage. They send you a 1099, such as -B for broker trades, -DIV for dividends earned even if reinvested, and -INT for interest. You will report on your tax form 1040 all the activities. Taking your own money out of an account, putting it into an account, burying it in the yard, none of that is part of taxes. No one is picking your pocket for taxes. They are watching your trading activities, though. That broker and the IRS have no idea what other investments you have and you are the one that reconciles your entire financial life on the tax form. Having a loss on a trade can contribute to offsetting similar gains, and you will start to hear this towards year end as "Loss Harvesting." It's a strategy for rebalancing portfolios.

Lost-Comparison5542

DIV

AICHEngineer

You're fine. The tax treatment is identical whether your DRIP or just take the cash, they both get taxed and come tax time your 1099-DIV provided by your brokerage will divvy up which dividends were qualified (capital gains) or unqualified (income), you did nothing wrong. Long term goal means that reinvesting is the correct choice.

ResponsiblySpecial

False. The IRS mandates ALL profits be reported, even if it's 1 penny. Coinbase just doesn't issue a form because they think you're not worth the computing power, but by law, you make any money that has a distinguished paper trail, it has to be reported by you. Much like how brokerages issue a 1099-DIV whenever you make ANY profit from dividends, you'll have a form generated for you, and it has to be reported by you and the brokerage per law. The IRS doesn't care about losses because it will reduce your liability to a certain amount. But if you make any money, you bet your sweet regarded ass the IRS wants a piece of it.

McKnuckle_Brewery

Cashing the dividends since you were born, oy. Too bad they weren’t reinvested all this time as they should’ve been. Why not ask your mom where this account is? If you still own the stock, it is still paying dividends that are taxable and there’s an annual 1099-DIV being mailed to someone.

BlueMoon93

It doesn't support 1099-B or 1099-DIV. So, no. But probably eventually.

YaBoiHBarnes

I suppose the IRS could calculate your income based on your W-2, 1099-B, 1099-DIV, etc., apply a standard deduction, and give you the result. But filing taxes would still be necessary in a lot of cases, because the IRS doesn't know your marital status, deductions for dependent children, deductions for buying EVs, deductions for buying solar panels, deductions for paying mortgage interest, deductions for local property taxes, or deductions for charitable donations.

tauwyt

DJT forward P/E is #DIV/0! and the price continues to rise.

CUTON1C

\*NVIDIA 1Q REV. $26.0B, EST. $24.69B \*NVIDIA 1Q AUTOMOTIVE REV. $329M, EST. $292.4M \*NVIDIA ANNOUNCES TEN-FOR-ONE FORWARD STOCK SPLIT \*NVIDIA QTRLY CASH DIV RAISED 150% TO $0.01/SHR \*NVIDIA SEES 2Q REV. $28B PLUS OR MINUS 2%, EST. $26.8B [$NVDA](https://twitter.com/search?q=%24NVDA&src=cashtag_click)

_hiddenscout

\*NVIDIA 1Q REV. $26.0B, EST. $24.69B \*NVIDIA 1Q AUTOMOTIVE REV. $329M, EST. $292.4M \*NVIDIA ANNOUNCES TEN-FOR-ONE FORWARD STOCK SPLIT \*NVIDIA QTRLY CASH DIV RAISED 150% TO $0.01/SHR \*NVIDIA SEES 2Q REV. $28B PLUS OR MINUS 2%, EST. $26.8B I think there is also a 10:1 stock split coming.

steveplaysguitar

DIV is an ETF so its less risky than a yield trap stock but to form a more complete opinion take a look at its holdings, prospectus, and total returns. Over the past 10 years it has suffered a 37.51% decline in share price with a total return(meaning including dividends) of 22.34% vs the S&P500s 234.82%(data from SeekingAlpha). I wouldn't touch it.

mlt-

You get "Non-dividend distribution" on 1099-DIV. Non-taxable until you lower your cost basis to 0. https://www.hrblock.com/tax-center/income/investments/nondividend-distributions/ I have no idea if brokers do track that...got to wait a few years.

SerialStrategist

Hi, I'm back, SVOL seems to have a solid DIV coupon. Not a bad deal if I were looking for an income ETF.

greytoc

Yes - it can be appropriate to use a brokerage account to generate cash yield instead of a savings account. That's what I do since it's more flexible than a savings account. And it can generate a higher risk-free yield than a HYSA. Also - money market fund generates distributions which are treated as ordinary income interest. But in some cases can be more tax efficient. Like all brokers, you get a 1099-B and 1099-DIV form to do your taxes. A money market fund like Vanguard cash settlement federal money market fund will also hold some percentage in US government obligations which are state tax exempt - it can vary each year. For tax year 2023 - it was 49.37%. Vanguard and other similar investment managers will publish the percentage for their funds each year - the Vanguard version is here - [https://investor.vanguard.com/content/dam/retail/publicsite/en/documents/taxes/usgoin-2024.pdf](https://investor.vanguard.com/content/dam/retail/publicsite/en/documents/taxes/usgoin-2024.pdf) For more information on money market funds - see the FAQ here - [https://www.reddit.com/r/investing/wiki/faq/#wiki\_what\_is\_a\_money\_market\_fund\_and\_how\_safe\_are\_they.3F](https://www.reddit.com/r/investing/wiki/faq/#wiki_what_is_a_money_market_fund_and_how_safe_are_they.3F)

_galaga_

Looks like that fund pays out dividends (not interest, just to be specific) and that'll show up in 1099-DIV at the end of the year and those dividends are taxed as income. To be even more specific, the fund pays out "unqualified" dividends that are taxed as income and not "qualified" dividends that are handled at different (and more favorable) tax rates. Just in case you run into the term qualified dividends in the future you'll know they're taxed a bit differently.

CAT5e_

I don't think that it is free from state tax any longer, though it is close. My 2023 1099-DIV showed that the dividends were about 80% exempt.

Phytosaur01

Taxed on dividends and capital gains each year if the holdings produce them. 1099-DIV. Long term or short term capital gains or losses if you sell anything. 1099-B.

MNBug

It's really up to your investment style. I personally think DEO is a pretty good stock, I mean, they own Guinness and some other very well known brands. JNJ is not bad but has had some legal troubles in the past couple years and KHC is normally not considered a great one but does pay a good DIV.

consumervigilante

There is a DIV EX DATE you must own the shares by in order to receive the dividend. It's different for every stock depending on monthly or quarterly or semi annual payouts.

CitrusShimura

Roth IRA income limit verification My combined income ( joint filing )from W2, INT and DIV is 300k+ for 2023, am i eligible for opening a Roth IRA account? How does Robinhood verify total income since i was not asked any info when opening account?

PresidentialTrader

What's the ticker? not everything has options. Not financial advice but if I were you I'd look into $TLTW It's an ETF that sells covered calls on $TLT already; it generates a monthly dividend (1099-DIV) and it keeps up with the changes in rates such that if you bought at the highs last year, the dividends alone will mean you're still about +3% after bonds dropped hard. The idea is that you can let it ride paying a monthly income while you earn an average 12% - 20% per year in income and the value of bonds will remain stable. I like to sell covered calls on what I own but unless you're willing to actually be sold-out and assigned, which is totally likely, the strategy may sound "better" for you than it really is. I shorted $NVDA at $630 and I shorted $XLE just recently at $97. I actually sold covered calls on $XLE at \~90 but closed the trade at about $86 cost basis. The point is that selling a covered call is like a "secured short". You can't lose more than the strike if price keeps moving. But, imagine earning a nice income on $NVDA at $630 to only find out it moved to $1000 in that time frame. How do you "get back in" and safely? Instruments like $TLTW help you ignore that problem. You may or may not out perform the instrument in question; but you'll be comfortable with the results not having to be sold out. ------------------ $TLTW $O $JEPI These are some strong "income" stocks that are also pretty trustworthy and stable enough to enjoy as monthly income writers.

thedukeofno

The account provider I use provides most basic data, like total return, but nothing annualized or CAGR. The motivation for me to do this was to have, on my computer, instant access to performance information without having to log in, etc., and the dashboards are customized to the data that I want to see. The dividend calculator scans all the transactions and returns those that are marked as "DIV". It sorts them by holding and year, and converts the dividend to EUR using either the ECB average or exchange rate on the dividend date, giving me the better of the two figures (which is allowed here by law). The spreadsheet retrieves the historic exchange rates automatically. I do have to add all the transactions manually, but it's literally just copying them from the account website and pasting them in the spreadsheet. It shouldn't take more than 20 minutes to do it for all my holdings for the year.

Dismal_Storage

Put the correct values on your taxes. The IRS understands that so often brokers can't/won't submit the original cost basis. To further protect yourself, I always take a zerox of the stock price that day from the Wall Street Journal from my library. If you get a letter, they won't argue if you submit proof back. For example, Wells Fargo Advisors in 2021 sold a stock I bought through them before they started keeping up with cost basis. My 1099-DIV showed the entire sell amount as profit. When I did my taxes, I put down the correct basis, and I haven't received a letter about that...at least yet.

TheWhiteMouse

Can you convert all shares of (FUND)(A) to another (FUND)(B) in a 401K and not lose any EX DIV shares? Or Ex Cap?

KAI5ER

I like to bitch and complain but I'm still in the green from my original investment all those years ago. I would prefer to be rich and into DIV stocks by now.. but im not sunk (yet)

IAmTheComedianII

That's the idea. Imma flip this trade and buy 70k+ of $DIV at a deep discount. Then I'll be slippin' like I'm D.R.I.P.ping in paint.

redhill_qik

I have never invested in a treasury bond ETF, so I don't have a 1099-DIV to go look at. But it should have the following: * 1a - Total for all the dividends you received for the year * 1b - Total of all qualified dividends (which would not include TFLO) * 12 - Exempt-interest dividends (TFLO might be reported here), this would only apply to state/local exemption I guess The 1099-B would just reflect any gains/loss from any sales of the ETF. If you had 100 shares and sold it for a $0.10/share price higher than you paid then it would be a $10.00 capital gain. Every dividend will be reported on the 1099-DIV and every sale with cost basis will be reported on the 1099-B.

McKnuckle_Brewery

All short term income, same tax rate for everything. Short term gains taxed regular income, short term losses (excluding wash sales) subtracted from long term cap gains. Basic tax stuff. Dividends are ordinary dividends. Have you received a 1099 from your broker before? They are all combined forms these days, with INT, DIV, and B in sequence.