The fear of higher taxes has put a chill on dividend-paying stocks, in what some analysts say could be an overreaction to the “fiscal cliff.” The Bush-era tax cuts on dividends and capital gains, to 15 percent, are in the cross hairs, as congressional leaders and President Barack Obama this week start work on reshaping the tax and spending components of the so-called fiscal cliff. The cliff is the $607 billion expiration of a bundle of tax cuts and other programs, and the onset of automatic spending cuts that take place starting Jan. 1 if Congress does not act.
For dividend investors, a worst-case scenario for the wealthiest Americans would be that the upper income tax rate is returned to 39.6 percent, and dividends could then be taxed at that much higher rate, if the Bush tax cuts are left to expire. For individuals earning $200,000 and couples earning $250,000, there is also the new 3.8 percent tax rate that comes as part of the Affordable Care Act on certain types of income, including dividends, capital gains and rental income.
Source: CNBC
Related Articles:
- The 2012 Dividend Aristocrats
- Best Stocks for 2012
- 4 of my 5 Largest Dividend Stock Positions Have Double-Digit Lifetime Returns
- The Best Dividend Stocks In The World Are Found Here
- A Roadmap To Build Wealth With Dividend Stocks
- The Good, The Bad and The Ugly of Dividend Stocks
Dividend Growth Stocks News
- Top Dividend Stocks To Consider - July 20th - MarketBeat - 7/20/2025
- Best Dividend Stocks Market Insights For Top Investments - Triple-digit returns - PrintWeekIndia - 7/20/2025
- Best Dividend Stocks Insider Stock Recommendations - Free Predictions - PrintWeekIndia - 7/20/2025
- How Technology Stocks Are Reshaping India’s Market Best Performing Dividend Stocks - Triple-digit profit margins - PrintWeekIndia - 7/20/2025
- India’s Best High Dividend Stocks Exclusive Stock Market Predictions - Breakthrough stock performance - PrintWeekIndia - 7/20/2025
- Chevron Corporation (CVX) Dividend Stock Analysis - 7/18/2025
- Emerson Electric Co. (EMR) Dividend Stock Analysis - 7/11/2025
- Amgen, Inc. (AMGN) Dividend Stock Analysis - 6/27/2025
- W.W. Grainger, Inc. (GWW) Dividend Stock Analysis - 6/20/2025
- Abbvie Inc. (ABBV) Dividend Stock Analysis - 6/13/2025
Why Investors Are Dumping Dividend Stocks
Posted by D4L | Tuesday, November 20, 2012 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.