Prior to 2003, the number of companies paying dividends to their shareholders had been on the decline for a quarter of a century, according to the American Shareholders Association. That trend reversed dramatically with the passage of the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) on May 23, 2003. Among a host of other tax law changes designed to jump-start the economy, this piece of legislation temporarily reduced the top individual income tax rate on corporate dividends to 15%. It also reduced the top individual income tax rate on long-term capital gains to 15%. However, the JGTRRA is a sunset provision, and it is currently scheduled to expire on January 1, 2011. Here we look at the implications of this legislation, the history that led up to it, and the effect this change in tax law had on investors and corporations.
The passage of the JGTRRA led to immediate - and ongoing - changes. By year-end 2003, more than 242 companies had increased the amount of their dividend payments. Payments increased again in 2004 and 2005, 2006 and 2007, according to data provided by Standard & Poor's, until the party finally ended in 2008 and 2009 as a result of the mortgage meltdown and credit crisis.
Source: Investopedia
Related Articles:
________________________________________________________________
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...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
BDCs can be excellent investment options for those seeking high returns, particularly when acquired at favorable valuations and supported by...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.