In an earlier article on why U.S. companies should raise their dividend payments now I mentioned that even if higher taxes are levied on dividends next year it is beneficial for investors to earn higher dividends if companies are unable to use their excess cash productively. A study by Allianz Global Investors confirms that dividend stocks outperform non-dividend payers in all tax environments.
Research from Allianz Global Investors shows it may not matter if dividend taxes return to a pre-Bush era marginal rate of up to 39.6 percent, rise to 20 percent as outlined in President Barack Obama’s 2011 budget or somewhere in between.“So, worst case scenario they expire… historically where you have had tax regimes where the highest rate was 50 percent or 70 percent, in those periods, dividend-paying stocks (still) outperformed,” said Kristina Hooper, head of portfolio strategies at Allianz in New York. Allianz reviewed tax rates from 1972 to the present, identified nine distinct time ‘regimes’ and found dividend-paying stocks outperformed nondividend-paying stocks in all but one period.
Source: TopForeignStocks.com
Related Articles:
Dividend Stocks Perform Well in High Tax Environments
Posted by D4L | Sunday, December 05, 2010 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
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...
-
Boring stocks to buy and hold almost always align with deeply established businesses. While they won’t offer the outstanding growth potentia...
-
Did you know that if a company were to increase its dividends by 5% per year, it would take 14 years for its payouts to double? And if its r...
-
The quick rise in interest rates over the past year turned investor sentiment toward REITs negative. Higher interest rates make it harder fo...
-
While there are many paths investors can take to generate long-term wealth, our preferred method is to buy-and-hold quality dividend stocks ...
-
Dividend Kings are stocks that have increased their dividends annually for at least 50 consecutive years. That's five full decades or mo...
-
Indeed, with recession on the horizon, investors are increasingly emphasizing quality, safety and dividends in their portfolio selections. W...
-
While it is prudent to build a more robustly diversified portfolio than just three stocks, the three discussed in this article are sure to g...
-
Verizon (VZ -1.75%) pays one of the biggest dividends in the S&P 500. The telecom giant currently yields 6.5%. That's one of the top...
-
Cash is king when you’re looking to add dividend stocks to your portfolio There’s ample reason for caution. In case you haven’t noticed, a l...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.