![]() All Information is provided solely for your internal use, and may not be reproduced or redisseminated in any form without express prior written permission from MSCI. The Information is provided “as is” and the user of the Information assumes the entire risk of any use it may make or permit to be made of the Information. None of the Information can be used to determine which securities to buy or sell or when to buy or sell them. None of the information constitutes an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product or trading strategy, nor should it be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. MSCI ESG materials have not been submitted, to nor received approval from, the US SEC or any other regulatory body. MSCI ESG is a Registered Investment Adviser under the Investment Advisers Act of 1940. MSCI ESG Research LLC’s (“MSCI ESG”) Fund Metrics products (the “Information”) provide environmental, social and governance data with respect to underlying securities within more than 23,000 multi-asset class Mutual Funds and ETFs globally. As a result, investors may want to look to other more diversified funds- such as VONE or VOO- in order to accomplish their goals in the large and giant cap space.Ĭopyright MSCI ESG Research LLC. ![]() Overall, DIA is a decent choice for investors seeking broad mega and large cap exposure, but it is less diversified than most, containing just 30 securities in total. However, these securities are unlikely to grow very much either as they are already pretty large and have probably seen their quickest growing days in years past, but most do pay out solid dividends which should help to ease the pain of this realization. The fund is probably one of the safest in the equity world as the companies on this list are very unlikely to go under unless there is an apocalyptic event in the economy. These securities are usually known as ‘Blue Chips’ and are some of the most famous and profitable companies in the country, including well known names such as ExxonMobil, Caterpillar, IBM, and GE. As a result, investors should think of this as a play on mega and large cap stocks in the American market. To submit a question, e-mail Matt at Click here to see previous Ask Matt columns.This ETF tracks the Dow Jones Industrial Average, one of the most famous benchmarks in the world and one that tracks some of America’s largest companies. He answers a different reader question every weekday in his Ask Matt column at. Matt Krantz is a financial markets reporter at USA TODAY and author of Investing Online for Dummies. The DIA paid $2.93 a share in 2008, all of which is qualified. of the same website contains the tax information for the DIA. I'm guessing that's why some of the SPY's dividends are unqualified. The SPY owns some real-estate investment trusts, which pay some unqualified dividends. You'll see that in 2008, SPY paid $2.72 a share in dividends, $2.33 a share of which was qualified. The dividends for the SPY are shown on page 2 of the pdf. ![]() To get details on the dividends for the SPY, go to the SPDR website and click on "ETF Tax Information - 2008," which brings up a pdf file. You can look this up yourself using the tax data from the ETF provider. But some of the dividends in the SPY are not. dividend paying companies, their dividends are mostly qualified. And since the DIA and SPY own shares in mostly U.S. Remember that ETFs are simply passing along the dividends they receive from the investments they own. ![]() All the dividends paid by the DIA in 2008 are qualified. The dividends paid by the SPY are mostly qualified, but a portion of them are unqualified. Now that you understand why it's so important to find out if a dividend is qualified or not, I'll answer your question more directly. That's generally higher than 15%, sometimes by a considerable amount. If dividends aren't qualified, then they may be taxed at your ordinary income tax rate. The maximum tax rate on qualified dividends is 15%, as you can read here. These dividends are eligible for, or qualify for, a lower tax rate that matches your long-term capital gains tax. corporations are considered so-called qualified dividends. But essentially, dividends paid out of earnings by U.S. And that difference becomes very important at tax time. — - A: There are two main types of dividends.
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