Dividend investing has been method used by skilled investors, however, the strategy today seems to be forgotten. Matt Badiali helped to bring some interest back to dividend investing when he told the investment world about Freedom Checks. Many people are ignorant as to why this investment strategy can be a major money maker. It all comes down to understanding a US tax law that was passed in the 1980s. The United States has been relying on the Middle East for most of its oil needs for several decades. Policy makers in the United States felt the nation was too vulnerable because of this. They passed regulation to allow specific natural resource companies do not have to pay taxes if they produced natural resources domestically rather than abroad.
In order to receive Freedom Checks, the companies that one must commit funds to are “Master Limited Partnerships”. These companies out due other companies as far as profits because of their ability to avoid federal income taxes. Probably the most valuable investment benefit they pass to their shareholders is that when they pay dividends, the shareholder can also avoid paying taxes.Another benefit that shareholders get for investing in Freedom Checks is that they receive some of the best dividend yields in the financial markets. The reason for this is because these companies must ensure most of the revenue is given to the company shareholders.
Even though the dividend yields are extremely high, the fact that these companies don’t pay taxes enables them to remain extremely profitable.Some investors want more than a dividend yield and want a capital appreciation if they are to invest funds. Matt Badiali has been urging investors to consider Freedom Checks because he feels oil is going to rise in price, which will make many of these MLPs more profitable. Higher profits will translate into a higher dividend yield, and these payments are already not taxed. Higher oil is going to cause share prices of these companies to skyrocket. Investors looking ahead to retirement may wish to research this investment option. There are plenty of companies that an investor can choose from, however, it is still important to perform the appropriate expert financial analysis before making any investment.
SWball December 11, 2018