A number of years ago, back when AMD was under $15/share I bought 30 shares. I woke up to notifications that is now over $200/share. I also realized it does not pay dividends.
I am thinking I should sell those 30 share’s and instead invest in Costco or something else that does pay dividends.
Is there a point to holding onto shares that do not offer a dividend? I realize they can go up more and I can later sell for even more profit, but I seems like reinvesting the dividends is the better plan.
Paying taxes every year on those dividends (ordinary income, not the reduced long term cap gains rate) before you’re able to reinvest them money isn’t the most efficient way to invest long term.
Not sure what country OP is in, but there are tax advantaged brokerage accounts that could avoid this
Which would still be better put to use with higher capital gains earning stocks
