Jim Cramer picks 10 dividend stocks that could benefit from Biden’s capital gains tax proposal

For investors rising alive to that President Joe Biden will circulate to raise levies on investment positive aspects, CNBC’s Jim Cramer on Tuesday supplied a technique to cessation faraway from the potentially increased tax geared toward the prosperous.

“Must you’re skittish about Biden’s thought to raise taxes on capital positive aspects but no longer dividend income, effectively that is no longer a motive to promote everything,” the “Mad Cash” host acknowledged. “It’s miles a motive to prefer dividend shares.”

Biden would possibly possibly perhaps pitch the swap, which could cessation the tax-preferred station of capital positive aspects for millionaires, as quickly as this week. As reported, the proposal entails hiking the tax to 39.6% from 20%. The rate would possibly possibly perhaps hit 43.4% for the richest taxpayers.

“If the capital positive aspects rate goes up to 39.6% and the dividend rate stays the identical at 20%, that accurate now makes dividend shares a heck of loads extra shapely,” Cramer acknowledged.

“Biden’s thought would build a world where every buck of dividend income is value $1.32 of capital positive aspects,” he added. “As prolonged as a whole bunch rich investors are skittish about this tax hike, or no longer you’ll want to request of that the investors who like to pay lower taxes will birth swapping into dividend shares.”

Cramer counseled the following 10 excessive-yielding shares with the “very best tales”:

Disclosure: Cramer’s charitable belief owns shares of Crown Fortress.

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