murbard2
Joined 14 years ago
Joined 14 years ago
In theory you can claim it back, but it's a major pain in the ass. Some ETF issued outside the US and holding US stocks will do it.
Other strategies to avoid this annoyance include:
1. selling on the ex-dividend date and buying the next day.
2. buying a long-date call and selling a put instead of holding the stock
3. simpler version of 2: buy a deep in the money long-dated call, you won't be paying all that much for the convexity, and you don't have to think about dividends.
Dividends are silly in a world where you can achieve the same result and save everyone 20% tax by doing stock buybacks instead. It's also silly to strongly differentiate between dividend paying stocks and non dividend paying stocks as opposed to focusing on the business' cash flow, unless you're purposely avoiding dividend paying stocks because they suck from a tax perspective.
Yet, dividends are entrenched in many investor's psyche. Even official regulatory training in the US teaches registered representative that it's a good idea to recommend dividend bearing stocks to people who want "income" from their investments, which is a fallacy. Large mutual funds also have special categories for stocks providing high dividend yields.
Sad that this is the strategy as opposed to leveraging the incredible opportunity they have from their fabs.
Whoever is backing him is taking on the risk of SBF jumping bail (and I'd assume the house is under surveillance and he's wearing ankle monitors), in exchange for either silence or valuable goodwill on the tiny off-chance he gets out of this.
[ my public key: https://keybase.io/arthurb; my proof: https://keybase.io/arthurb/sigs/lv_oVm4fjBVGXS0PI8RjJyv5BkLz48dkkvAr_en-Xno ]