need high dividends

[firehawkocean]

Hi everyone,

got a new question.

since I am in the 30% tax bracket, I want as much qualified dividends from my investments (since they are taxed at 15%). i am not looking for much capital appreciation, since that is taxed to high. are there any vanguard funds that focus on higher dividends?

[DRILLINDK]

Originally Posted by firehawkocean

Hi everyone,

got a new question.

since I am in the 30% tax bracket, I want as much qualified dividends from my investments (since they are taxed at 15%). i am not looking for much capital appreciation, since that is taxed to high. are there any vanguard funds that focus on higher dividends?

mark.

[Joan.of.the.Arch]

If you are in the US, we don't have a 30% tax bracket. There is a 28% bracket and a 33% bracket, but you do not pay that percentage of tax on ALL your earned income.

(DRILLINDK, if you are trying to locate this thread again later, I think there is a way to subscribe so that you get alerts to it.)

[disneysteve]

Originally Posted by Joan.of.the.Arch

you do not pay that percentage of tax on ALL your earned income.

That's true, but irrelevant. If OP is already in the 28 or 33% bracket, they've already crossed that threshold so each additional dollar that comes in from investment income will be taxed at that rate.

(DRILLINDK, if you are trying to locate this thread again later, I think there is a way to subscribe so that you get alerts to it.)

True. On the blue bar across the top of the thread, click on Thread Tools and then select Subscribe to this Thread.

[jpg7n16]

Originally Posted by firehawkocean

since I am in the 30% tax bracket

As pointed out above, there is no such bracket: 2011 Tax Brackets : 2012 Tax Brackets from the IRS

I want as much qualified dividends from my investments (since they are taxed at 15%). i am not looking for much capital appreciation, since that is taxed to high.

Actually, long term capital appreciation (appreciation on a position owned longer than 1 year) is also taxed at the same 15% LTCG max. So you may need to rethink if you should rule that out or not.

Qualified dividend info: Publication 17 (2011), Your Federal Income Tax

Long vs short term cap gains: Capital Gains Tax Rates: Tax Rates for Short-Term & Long-Term Capital Gains

are there any vanguard funds that focus on higher dividends?

Is Vanguard the only company you're considering?

Have you considerd a preferred stock fund/ETF? They usually have higher dividend payouts, and less appreciation potential. Preferred stock is a lot like bonds, but you get the dividend tax break.

[kv968]

If you want to go with Vanguard, you could try their High Dividend Yield Index Fund VHDYX which is currently yielding a little over 3.1%. Or you could check out their comparable ETF-VYM if you want to better control your capital gains exposure.

You could also use one of their tax-managed funds such as the Tax-Managed Capital Appreciation Fund VTCLX. Keep in mind, it has a $10k minimum.

There's also muni-bond funds if you'd like to go that route. Their Intermediate-Term Tax Exempt Fund VWITX is yielding 1.82%. Which would equate a taxable yield of 2.53% if you're in the 28% tax bracket and 2.72% if you're in the 33% bracket.