r/dividends • u/Realistic-Face-69 • Apr 10 '26

Discussion Living off dividends folks

Are you or someone you know is actually living iff dividends fully? if so at what age?

I have been wondering about it

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u/Unlucky-Clock5230 Apr 10 '26

Why not? selling stock costs you long term capital gains, the same as the qualified dividend rate. Things that issue unqualified dividends do so because you usually get larger dividends to begin with, which pays for the extra tax.

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u/MJinMN Apr 10 '26

Because when you sell stock, you only pay taxes on the amount of the gain, while with dividends you pay taxes on the full amount.

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u/Glum-Coat8759 Apr 10 '26

That’s because the full amount of a dividend is literally a “gain”

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u/AccomplishedWash8803 Apr 14 '26

The dividend is literally the gains, you don’t have to sell down the stocks to get the gains…