$T-Mobile USA Inc Pref Shares TMUSL 6.25 Perp 09/01/2069(TMUSL.US)$T-Mobile US(TMUS.US) I never knew there were stocks like this.

Simplified Version of $10,000 Investment Returns & Tax Deduction for TMUS and TMUSL

TMUS is T-Mobile US common stock, while TMUSL is the same company's preferred stock. Both are issued by the same entity but differ greatly in rights, returns, and volatility. The following calculation is based on a $10,000 principal and a 10% withholding tax on US stock dividends for Chinese residents (US-China tax treaty), considering only dividend income, excluding stock price fluctuations.

1. TMUSL Preferred Stock (Fixed Dividend, Low Volatility)

Current stock price is $25.04, so $10,000 can buy approximately 399 shares. Quarterly dividend per share is $0.3906, resulting in a total pre-tax quarterly dividend of $155.85. After deducting 10% tax, the net amount is $140.27. With four dividend payments per year, the annual pre-tax total is $623.4, and the net after-tax amount is $561.06, yielding a post-tax annualized dividend rate of 5.61%.

This type of stock price is stable around $25 in the long term, with almost no price fluctuation elasticity, no voting rights. It has higher priority in liquidation and dividend payments than common stock. All returns come from fixed dividends, with very low risk, similar to high-yield fixed-income products.

2. TMUS Common Stock (Variable Dividend, High Volatility)

Current stock price is about $163, so $10,000 can buy 61 shares. The latest quarterly dividend is $0.65 per share, resulting in a pre-tax quarterly dividend of $39.65. After tax deduction, the net amount is $35.69. The annual pre-tax total is $158.6, and the net after-tax amount is $142.74, yielding a post-tax annualized dividend rate of only 1.43%.

Common stock has full voting rights, and its price fluctuates significantly with the overall market, performance, and sector. The dividend level is low and not fixed. Returns mainly rely on capital gains from stock price increases rather than dividends.

3. Core Return Comparison

With the same $10,000 principal, TMUSL's annual post-tax dividend is $561, while TMUS is only $143. The preferred stock's dividend income is nearly 4 times that of the common stock, earning about $418 more per year.

4. Investment Choice Summary

For those seeking stable capital preservation, fixed high yield, and low-risk passive income, prioritize TMUSL, as its returns are certain with minimal volatility. For those optimistic about the company's growth, willing to tolerate stock price fluctuations, and aiming for capital gains from price increases, choose TMUS, where dividends are merely an additional benefit.