The current federal tax rates on investment income -- dividends and long-term capital gains -- are capped at 15 percent. Those rates are set to expire at midnight on Dec. 31 -- and if they do, the rates on capital gains will go as high as 23 percent and the top tax rate on dividends will rise to 43.4 percent. With uncertainties hanging overhead, investors are becoming increasingly concerned about what to do with their investments. The most direct impact would be on the 25 million Americans who invest directly in dividend-paying stocks. Within this group, many are seniors.
The companies that pay dividends tend to be more reliable and stable. Stability and the quarterly payout make these companies especially attractive to seniors who often need help supplementing their income. This is especially true today when traditional investment vehicles are yielding little to no gains. Seniors rely on this additional income from dividends to help pay the bills -- rent, health care, food and other expenses. The next group to feel an impact on higher dividend taxes would be those who invest in mutual funds and have retirement accounts, pension plans and life-insurance policies.
Source: The Arizona Republic
Related Articles:
- 7 Dividend Stocks Delivering The Secret To Successful Investing
- Asset Allocation For Income Investors
- 8 Stocks With Strong Dividend Growth Metrics
- 10 Dividend Stocks Balancing Yield And Growth
- Defense Stocks May Not Be Defensive Stocks
A Dividend Tax Increase Will Hurt Investors
Posted by D4L | Friday, November 23, 2012 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
When a company pays a dividend, it's a good thing for shareholders. When a company consistently pays a dividend every quarter, it's ...
-
If you've been holding back from investing in your future just because you don't have a lot of extra cash to spare, I've got gre...
-
If you are looking for high-yield dividend stocks that can beat the market, you might want to check out these three companies. They all have...
-
If you are here to build a portfolio that thrives in all seasons, consider dividend stocks. They can generate steady returns and provide sta...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
-
One way to achieve financial freedom is to create passive income, or income that does not depend on your active involvement beyond a certain...
-
The company's remarkable consistency and low-risk business model make it a "first-choice investment opportunity," according to...
-
Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contribut...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.