Zero Dividend Stock Investment

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2020 ButClassic
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Zero Dividend Stock Investment

Post by 2020 ButClassic »

I need to redirect some investment to zero or near zero dividend equity. I am looking for large conglomerates or index funds, preferably not hyper growth type.

I have Berkshire B in mind. Any others that I should consider?
rossington
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Re: Zero Dividend Stock Investment

Post by rossington »

2020 ButClassic wrote: Fri Aug 14, 2020 1:02 am I need to redirect some investment to zero or near zero dividend equity. I am looking for large conglomerates or index funds, preferably not hyper growth type.

I have Berkshire B in mind. Any others that I should consider?
VTSAX (as an investment).
Or why don't you just do the research for index funds that don't pay dividends or quality growth stocks that don't pay dividends? :oops:
"Success is going from failure to failure without loss of enthusiasm." Winston Churchill.
MathIsMyWayr
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Re: Zero Dividend Stock Investment

Post by MathIsMyWayr »

Tax drag is well known and has been discussed ad nauseam by many novice and seasoned investors. Don't try to invent a perpetual machine.
Valuethinker
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Re: Zero Dividend Stock Investment

Post by Valuethinker »

2020 ButClassic wrote: Fri Aug 14, 2020 1:02 am I need to redirect some investment to zero or near zero dividend equity. I am looking for large conglomerates or index funds, preferably not hyper growth type.

I have Berkshire B in mind. Any others that I should consider?
Tax managed funds.
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grabiner
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Re: Zero Dividend Stock Investment

Post by grabiner »

Valuethinker wrote: Fri Aug 14, 2020 4:24 am
2020 ButClassic wrote: Fri Aug 14, 2020 1:02 am I need to redirect some investment to zero or near zero dividend equity. I am looking for large conglomerates or index funds, preferably not hyper growth type.

I have Berkshire B in mind. Any others that I should consider?
Tax managed funds.
This makes only a small difference. 90% Vanguard Tax-Managed Capital Appreciation and 10% Tax-Managed Small-Cap has a 1.45% yield, and is a good approximation to Total Stock Market with a 1.73% yield. If you are in the top federal tax bracket, the 0.28% yield difference will save you 0.07% per year in taxes at a 23.8% rate; it could be 0.10% if you pay state tax as well. The expense difference is 0.05%.
Wiki David Grabiner
MotoTrojan
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Re: Zero Dividend Stock Investment

Post by MotoTrojan »

If you are trying to do this for some tax-cliff and not just to avoid a little tax-drag than BRK.B sounds good to me, although I am a value investor anyways... Healthy chunk of AAPL too!
aristotelian
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Re: Zero Dividend Stock Investment

Post by aristotelian »

I question the "need" but you could cut your dividend in half using a growth ETF, like IUSG or SCHG. Unfortunately there is no true zero dividend ETF. I have played around with zero dividend stocks using a bucket of about 15 zero dividend stocks at M1 Finance. I've found the bucket tracks pretty well with NASDAQ and growth ETF's. https://m1.finance/WIMxH0FgmlkE
Topic Author
2020 ButClassic
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Re: Zero Dividend Stock Investment

Post by 2020 ButClassic »

MathIsMyWayr wrote: Fri Aug 14, 2020 4:12 am Tax drag is well known and has been discussed ad nauseam by many novice and seasoned investors. Don't try to invent a perpetual machine.
Yes, that is a legitimate point. However, the point is not so much about the taxes.

This is to manage the associated income, i.e., long term planning before retirement. The objective is to have control over the timing of income. A couple percent in yield translates to over $30k annual income which among other concerns may breach the ACA cliff.
Jack FFR1846
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Re: Zero Dividend Stock Investment

Post by Jack FFR1846 »

I'm partially bought in to the "no dividend" focus and hold BRK/b.

There are others. In the S&P 500, there are 78 companies. You can certainly go beyond those.

https://www.barrons.com/articles/78-sto ... 1573233301
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MathIsMyWayr
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Re: Zero Dividend Stock Investment

Post by MathIsMyWayr »

2020 ButClassic wrote: Fri Aug 14, 2020 2:43 pm
MathIsMyWayr wrote: Fri Aug 14, 2020 4:12 am Tax drag is well known and has been discussed ad nauseam by many novice and seasoned investors. Don't try to invent a perpetual machine.
Yes, that is a legitimate point. However, the point is not so much about the taxes.

This is to manage the associated income, i.e., long term planning before retirement. The objective is to have control over the timing of income. A couple percent in yield translates to over $30k annual income which among other concerns may breach the ACA cliff.
I feel your pain: I want money, but not now. Your pain is my pain, but the strategy of dividends-free stocks only worth the risk from concentration?
Last edited by MathIsMyWayr on Fri Aug 14, 2020 5:12 pm, edited 1 time in total.
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anon_investor
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Re: Zero Dividend Stock Investment

Post by anon_investor »

2020 ButClassic wrote: Fri Aug 14, 2020 1:02 am I need to redirect some investment to zero or near zero dividend equity. I am looking for large conglomerates or index funds, preferably not hyper growth type.

I have Berkshire B in mind. Any others that I should consider?
No exactly 0 dividend, but someone in another thread came up with using:
Schwab US Large-Cap Growth ETF (SCHG) (https://www.schwabfunds.com/products/schg). Although it has a growth tilt, it is very diversified with 350 different stocks and it has a dividend yield of of less than 0.70%.

Also: only a 0.04% expense ratio
texasfight
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Re: Zero Dividend Stock Investment

Post by texasfight »

MGK etf - Mega Cap Growth
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