Wednesday, December 21, 2016

Why You Should Buy Stocks with a High Tax Rate

If you are looking for a short term speculation or a long term investment, you may want to look for stocks that are currently paying a high tax rate. Why?
According to the Tax Policy Institute, President-Elect Donald Trump has proposed a substantially reduced rate of 15% for corporations. What that means for stocks is that if companies are currently paying taxes at a high rate, they will benefit significantly from tax savings that will flow to the bottom line.
Surprisingly there are some companies that have a tax rate in excess of 60% (e.g. Amazon (AMZN)), according to a report by Wallet Hub. This includes state taxes.
Here are some of the hight overall tax bracket stocks, which may warrant further investigation.
Comcast (CMCSA) 37.1%
Home Depot (HD) 36.4
Norfolk Southern (NSC) 36.3%
Altria (MO) 35.1%
Verizon (VZ) 34.9%
Emerson Electric (EMR) 34.3%
Do your homework and your own due diligence. Hopefully, a corporate tax break with benefit your portfolio.
Disclosure: Author owns AMZN.

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