No. of Recommendations: 9
Don't you have 25ish shares of BRKA? Do you really want $175,000 in forced dividend income every year? That would be stacked on top of all of your other income and probably cause you to be in the 32% bracket or worse. 20% capital gains sounds better -- unless you think the stock would trade materially higher with a dividend. It might, I would love to hear you quantify it.
In the US, Dividends are taxed at the same rate as long term capital gains.
I would say the real problem with dividends is many of us already are forced to take more in Required Minimum Distributions from IRAs and 401ks and the last thing we need is that pile of BRK we have had outside the IRA/401k sphere to start adding to the problem. Right now I keep my BRK because I can eventually leave it to my heirs who will take a step up in basis. The last thing I need is an extra bunch of forced income. It is what I would call an unforced error.
R:
