The biggest piece of news for investors isn’t the state of the economy or even recent trade deals. It’s taxes. And more specifically, the passage of the landmark Republican tax plan.
The wide-sweeping bill covers a range of tax issues – from individual deductions to small business taxes. It’s complex and will take plenty of time to fully realize its benefits or potential problems. But the plan does have some immediate benefits for our portfolios.
New tax rates and discounts could make the Republican tax plan your dividend stocks best friend.
Already, we’ve seen a surge in dividend buyback activity because of the plan and its lowered rates. For investors, the plan justifies the heightened appeal of owning dividend stocks going forward.
Be sure to check out our tax centre to better plan your taxes while investing.