Procrastination is a silent and slow killer of savings. Everyone puts things off, of course, waiting until the last minute and then scurrying to finish a longstanding to-do list. Taken to extremes, this course pulverizes your long-term financial plans.
Dividends and interest are the two major types of income investors can receive. The distinction between dividends and interest is determined by what type or classification of investment pays the income. Dividends and interest also have different tax consequences for both the receiving parties and the paying entities.
The dividend tax is one of the most common investment taxes paid investors, whether you own 100 shares of Johnson & Johnson or 1,000,000 shares of McDonald's. The rules on how the dividend tax works and specific dividend tax rates, however, are not very well understood.