Section 199A dividends refer to dividends paid out by real estate investment trusts (REITs) or funds holding REITs. Similar to regular dividends, Section 199A dividends take some amount of capital from a company’s equity and redistribute it to shareholders based on the number of shares they possess. 199A dividends, however, are only paid out by REITs and funds holding REITs, and therefore receive special treatment in the world of tax law.
Investors Can Deduct Up to 20% of REIT Income. Meaning: Investors could now deduct up to 20% off any income obtained from dividends paid by real estate investment trusts (REITs). The same deduction applies to dividends obtained from mutual funds, if a meaningful amount of the fund’s income came from dividends distributed by REITs. Any dividends eligible for this deduction are colloquially referred to as Section 199A dividends.
Source: Dividend Investor
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We have noted for months here at 24/7 Wall St. that the market is very overbought and that we have not had a 5% market correction since this time last year. Toss in the fact that inflation is rearing its ugly head, and we could be in for the kind of September swoon that has hit the equity markets in the past. We screened the BofA Securities research universe looking for companies that paid solid and dependable dividends, had Buy-rated stocks and also had the firm’s best volatility risk rating.
Coca-Cola Co. (NYSE: KO) is the world’s largest beverage company, refreshing consumers with more than 500 sparkling and still brands. Many of the Wall Street firms that we cover are still very positive on utilities, and this company is highly rated. Dominion Energy Inc. (NYSE: D) is an American power and energy company. Kellogg Co. (NYSE: K) is the global leader in breakfast cereal, and its other principal products include crackers, crisps, savory snacks, toaster pastries, cereal bars, granola bars and bites, frozen waffles, veggie foods and noodles. Mondelez International Inc. (NASDAQ: MDLZ) manufactures and markets snack food and beverage products worldwide. Verizon Communications Inc. (NYSE: VZ) is one of the largest U.S. telecom companies.
Source: 24/7 Wall Street
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Regular and growing dividends often indicate the financial strength and underlying growth of a company's business. They also indicate its management's expectations of continued future growth. Investing in such dividend-paying companies can not only generate a regular dividend income but also provide attractive capital appreciation potential. Here are three such rock-solid dividend stocks to consider buying right now.
In five years, NextEra Energy Partners (NYSE: NEP) has doubled its per-unit distribution. Canadian company Enbridge (NYSE: ENB) has increased its dividend for 26 consecutive years. Enbridge doubled its 2014 per share dividend of 1.40 Canadian dollars in five years by 2019. Algonquin Power & Utilities (NYSE: AQN) expects to pay a total dividend of $0.67 per share for 2021. Based on that, the company's per share dividend would get doubled in seven years.
Source: NASDAQ
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The stock market is trading near all-time highs and the yield on the S&P 500 Index is a remarkably low 1.3%. As such, it's hard for income investors to find dividend stocks worth buying right now. But that doesn't mean it's impossible. Here are two companies with great histories and reliable businesses that dividend-focused investors could easily buy and hold for a lifetime.
The Kellogg Company (NYSE:K) is a name you probably associate with the cereal aisle in your local grocery store -- it is, after all, one of the largest names in that food sector niche. But its collection of cereal brands only accounts for about a third of its revenues today, because Kellogg has been making an effort to diversify with a focus on more growth-oriented areas. There's no point in sugarcoating it -- Consolidated Edison (NYSE:ED), aka Con Ed, is a very boring utility, providing electricity, natural gas, and steam to New York City and its surrounding areas. On the plus side, at current share prices, its yield is about 4%, which is toward the high end of its range over the past decade.
Source: Motley Fool
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Investors have so many different choices in the market today that it can be difficult to know which is the best route for one’s capital. However, we believe that the best path to compounding wealth — and securing financial freedom — is through prudent, long-term allocation to dividend stocks. Even still, the types of dividend stocks a particular investor favors may differ depending on their individual goals, which can be heavily influenced by their age. Older investors that are closer to retirement, for instance, may favor stocks with stable earnings and higher current payouts. Stocks that fit this description will offer these characteristics at the expense of potential growth.
For younger investors, we see the best way to invest for the future — given younger investors have time to wait for growth — as allocating to higher growth dividend stocks. In this article, we’ll take a look at why that’s the favored strategy, and some examples of stocks we like that fit this description. These stocks include the following: Home Depot (NYSE:HD), Apple (NASDAQ:AAPL) and Mastercard (NYSE:MA).
Source: InvestorPlace
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