Nanalyze

SCHD investors have a lot of questions about dividend taxes, and it doesn't need to be so complicated. We explain in simple terms how qualified vs non qualified dividends are taxed with examples provided by someone else who did the heavy lifting. Does $SCHD offer qualified or non qualified dividends? To answer that question we need to look at the underlying index for SCHD which in fact makes it a point to exclude REITs which are the most common asset dividend growth investors will come across that falls into the nonqualified dividend bucket. Why are qualified dividends preferred? It's because they receive more favorable tax treatment. Want to understand what that looks like? Just watch the video as we walk you through - using simple examples - the two types of taxation methods used for qualified and non qualified dividends (ordinary income taxation and capital gains taxation). This is a must watch video for anyone confused about dividend taxation, for SCHD and other dividend stocks and ETFs, and looking for a simple guide.

PayPal stock $pypl is trading down 20% since the last time we checked in - 18 months ago - at which time we said pypl stock wouldn't be interesting at any price. That's only because we invest in two areas - disruptive growth and dividend growth - and PayPal's days of disruption appear over. The problem PayPal has is trying to resurrect growth as management talks about focusing on current accounts. That land-and-expand strategy comes with lowering take rates, so even through transaction volumes are increasing, revenue growth isn't keeping up at the same pace. PayPal investors who look back at the lofty share prices of old need to remember those were justified by management's claim of hitting $50 billion in revenues by next year. That doesn't appear to be happening as 2023 expects to see around $29 billion. PayPal's problem is that the market is now seeing them as more of a value stock than a growth stock.

EV stocks have destroyed retail investors with only two names out there worth looking at - BYD and Tesla. Unfortunately, there are some reasons not to invest in both which we discuss. Instead, why not consider investing in the components of electric vehicles - in particular, EV chips. While autonomous driving sensors (like those from Mobileye MBLY) may be a way to invest in autonomy across all vehicle types, we're mainly interested in semiconductor companies making chips that exclusively used by electric vehicles. Based on this thesis, we've come up with 5 EV chip stocks that may merit a closer look - names like Wolfspeed WOLF and Indie Semiconductor INDI which both happen to be very popular among retail investors. If you're thinking about investing in electric vehicle stocks, you'll want to give this video a watch first.

The best dividend growth ETF comes down to SCHD vs DGRO - Charles Schwab vs iShares. That's after we vetted four other dividend ETFs with the lowest expense ratios. SCHD not only charges less than DGRO, they also have twice the assets which means more leeway for future fee reductions. It all comes down to the index each ETF tracks and their underlying methodologies. Performance, especially in the short term, means very little. The winner is very clear. It's the dividend ETF with the highest yield and dividend growth. Without a doubt, we believe the best dividend growth ETF out there is... [Drum roll.] Go watch the video, please.

IBM stock has performed poorly over the years as the company's two key metrics - revenue and free cash flow - stagnate. That's all water under the bridge as IBM has reinvented themselves now with (checks notes) yet another pivot into AI. IBM's AI creation Watson is now watsonx, and that subtle name change is supposed to make us forget about the Watson Health disaster. Based on comments in the latest earnings call, generative AI and Watson brought in $400 million in revenues last quarter, but that will be recognized over 12-24 months. In the meantime, the "Data and AI" revenue segment grew just 5% last year. IBM is no AI stock, but they are forecasting $12 billion in free cash flow next year which saw their share price hit 10-year highs. Now maybe they can start growing that dividend a bit more than just the paltry 1.3% we've seen over the past 5 years. Here's to hoping we're wrong about IBM's AI success story being all dough and little show.