Some are saying that Obama's "Taxmageddon" is going to be a game-over scenario for dividend stocks. However, we don't think so. Here's why. Institutional buyers of dividend stocks are taxed at their own rate so they did not benefit from the 2003 cut in dividend taxes anyway - which means they won't suffer from a new increase. And even among retail investors, many have their investments in 401(k)s or IRAs. These holders will continue to receive dividends that won't be immediately taxed.
The talk is that if we fall off the fiscal cliff, taxes on dividends will revert to the full income tax rate of each individual taxpayer. For the top retail taxpayers that are not investing using a tax-deferred account, that means the top rate on dividends will rise from 15% to 43.4% if dividends become fully taxable again. Enough said, now let's get to the stocks: They are Exelon (EXC), Safeway (SWY), and Energy Transfer Partners (ETP).
Source: The Stock Masters
Related Articles:
- 10 Quality Dividend Stocks Trading Below Their Fair Value
- Warren Buffett's Two Investing Rules For Dividend Investors
- 10 Stocks That Have Paid Uninterrupted Dividends Since 1899
- Mid-Year 2012 Top And Bottom Performing Dividend Stocks
- A Simple Approach To Earn More Than 4% In Dividends
________________________________________________________________
Subscribe to:
Post Comments (Atom)
While it is true that the amount may go up to 43.4% for some...it has to do with their modified Adjusted gross income hitting the threshold limits and that is only the top 5 or 8% of the Country's earners