{
  "id": 5809241,
  "title": "High-Yield Dividend Investors Could Be Making This Expensive Tax Mistake",
  "url": "https://urgent.news/2026/09/05/high-yield-dividend-investors-could-be-making-this-expensive-tax",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-05T17:52:33.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/stocks/articles/high-yield-dividend-investors-could-175233783.html"
  },
  "original_language": "en",
  "account": "High-yield dividend investors may be making a costly tax mistake by holding certain securities in taxable accounts. REITs, mortgage REITs, and BDCs often distribute ordinary income, which can cost investors around $10,200 annually per $500,000 invested, depending on the tax bracket. This figure represents the recurring cost of holding high-yield securities in a taxable brokerage instead of a Roth IRA. The difference between investing in a Roth and a taxable account becomes increasingly significant as the tax bracket increases, with the Roth advantage growing to more than $15,000 annually at the 37% bracket. This long-term tax impact can be substantial, with a $10,200 annual difference compounding into a significant sum over 10 years. Investors should consider the tax consequences of holding these securities in taxable accounts and evaluate the potential benefits of converting taxable positions to Roth IRAs before the end of their working years.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}