It’s no secret that President-elect Donald Trump is polarizing. You pretty much love him or hate him. But despite your political leanings, dividend investors may want to move into the “Love Trump” camp – at least temporarily. The ‘Donald’ has a series of plans that should bring a smile to every dividend investor’s face.
And that involves bringing a lot of cash back home to the United States.
A proposed repatriation holiday would send billions of dollars held overseas back into the hands of U.S. corporations. And while the original guise of the holiday is for building factories, boosting the workforce and driving the economy, history tells us a different story. Buybacks and dividends are going to surge.
For dividend investors, if Trump is successful, the next few years could be some of the best times to cash in on rising payments.
Find out which stock was recently added to the Best Dividend Stocks list due to Trump’s victory.
So Much Cash Overseas
Everyone likes to talk about tech superstar Apple’s (AAPL ) giant cash hoard – currently approaching $230 billion dollars. There’s just one problem. Apple can’t touch it. Well, it can, but not without a big-time penalty.
Right now, laws in the United States dictate that international corporations or subsidiaries of U.S. ones don’t need to pay federal taxes on profits earned through their overseas operations until they bring the earnings back to the United States.