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Own a Concentrated Stock Position?

Our 5 Strategies to Help Manage Risk and Taxes

Stock compensation can be a wonderful complement to a traditional compensation package, oftentimes contributing significantly to an investor’s net worth. However, there is an overlying risk to investors who have too much of their net worth concentrated in the stock of one company. This is more complicated if this stock has appreciated to an extent that selling would result in a substantial capital gains tax liability.

How can an investor mitigate the risk of having too much of their net worth concentrated in a single appreciated stock, and avoid significant tax liabilities?

Multiyear-Sales Strategy

Put Option or Protective Equity Collar

Pool Shares into an Exchange Fund

Variable Prepaid Forward Contract

Charitable Gifting