At this point, it’s no secret that the Republican tax plan has been a hit with investors.
Investors have flocked to stocks as lower corporate tax rates and repatriation discounts promise plenty of increased cash flows, dividends and buybacks. And so far, this ‘flocking’ has been justified. We’ve already seen plenty of dividend increases and extra cash flowing back to investors.
But as they say, ‘a rising tide lifts all boats.’
The truth is, not every company is going to win due to the Republican tax plan. In fact, according to some analysts, some firms won’t see that big of a tax benefit, or worse, they will see their taxes rise under the new plan. For investors, the key to play the plan going forward is to pick the right sectors and stocks.