With U.S. and Chinese officials coming to terms on several key issues, the so-called trade that has gripped the global economy may finally be coming to an end. This is wonderful news for global growth and hopefully it will spur the world’s economy – and its stocks – higher over the next few quarters. But as one battle ends, another may be brewing. And here again, the real winners could be investors.
After key U.S. tax cuts last year, many other nations have taken notice of the extra growth that the cuts provided. With their economies starting to wane, many are looking to slash their corporate tax rates as well. The race to zero is on.
And with that, we could be seeing the beginning of a new battle – a tax war.
For investors – especially dividend seekers – this could be some of the best news around. As we saw before, a big decrease in taxes benefited investors with big buybacks and dividend growth.
The key to making dividends work is tax deferral. Find out why here.