
Since 2008 (financial crisis) companies have stuggled to give a nice dividend yield to their investors. On the other hand, Bitoin prices have surged.
Of course, there are multiple reasons for this sharp price increase. The lack of a dividend yield is one of them, because investors would need to invest in something other than stocks to get a decent ROI. However, this is about to change.
According to some analysts, an increase in dividend payments is right around the corner:
- President Donald Trump has made lowering the corporate income tax rate a key part of his tax policy initiatives.
- US Republicans have proposed a major overhaul of corporate income tax, which would cut the rate to 15%.
- A second tax reform proposed by Republicans would allow global companies to repatriate – or bring home – foreign earnings at a tax rate of 10%, far lower than the current rate.
Eric Ervin, CEO of Reality Shares, a firm focussed on dividend growth investing:
"If S&P 500 companies that pay dividends took all their overseas earnings and paid them out in dividends, their dividends could triple."
If such an increase were to happen, then Bitcoin prices could fall since investors would take their money out of Bitcoin and put it back into stocks.
What do you think? Will Bitcoin prices continue to rise? Or are we at peak Bitcoin? I'd like to hear your opinion.
Read more on Coindesk.
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