Money Clinic with Claer Barrett cover image

How an ISA millionaire chooses stocks

Money Clinic with Claer Barrett

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The Benefits of Compound Interest

The money that's paid in from the dividend doesn't count as part of the £20,000 a year limit. So you don't have to pay dividend tax on anything within your ISA. But if you own those shares out with an ISA, then there would be tax applied and lots of reasons to hold them for long-term value. M&G offers a dividend yield of about 9.5% at the moment - better than any savings account right now.

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