4 Disappointing Dividends

If you depend on dividends to pay your bills, you could be squeezed by rising living expenses.

One way to improve your bottom line is to put some of your low-dividend holdings into a life income gift such as a charitable gift annuity or charitable remainder trust. With a charitable gift annuity, you receive fixed payments for life. Often, you can increase your income when you donate low-yield securities. You may qualify for an income tax charitable deduction for a portion of the value of the gift and save on capital gains taxes when you contribute appreciated stock. It is also a great way to support Shriners Hospitals when the balance becomes available for Shriners Hospitals’s needs.

With a charitable remainder trust, the trust will pay you income for life or a term of years (up to 20). Then, when the trust ends, the balance will support Shriners Hospitals’s vital needs.

To further capitalize on the benefits of a charitable remainder trust, contribute long-term highly appreciated stocks that pay you only meager dividends. You will unlock the appreciation without paying up-front tax on their capital gains – and you’ll receive a partial income tax deduction.