Good reminder about the dividends JB. Something to think about when forming an exit strategy.

General question to those who have long and short term holdings:

All things considered, including the possibility of dividends....what's your tax lot preference for when you decide to sell, and why?

LIFO = Last in first out.

FIFO = First in first out.

I have it set on LIFO, because I think it's the best way to proceed for possible dividends....but as for income taxes, it would be a tax savings to sell the long-term holdings first.

Would the higher tax for the short-term sales be worth giving up, if the dividends are paid on the long-term holdings?

I think I need to call my accountant.