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Old 07-14-2012, 12:52 AM   #1
Poker Clif
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A Tale of Two Companies

The article uses the analysis of a company's future prospects as an example of how using different metrics can give a very different picture of the value of a company. One of the metrics measured was the dividend yield.

A lot of profit maximizers might soon be radically discounting the importance of dividend yield, and in fact will be moving away from dividends as an important part of a financial plan. The reason is that the Affordable Care Act, aka Obamacare, contains a 44.8% tax on dividends, which goes into effect on January 1, 2013.

http://247wallst.com/2012/02/22/divi...tial-election/

Here is an excerpt:

In an effort to compare the data, we looked to what the WSJ reported recently: “Mr. Obama is proposing to raise the dividend tax rate to the higher personal income tax rate of 39.6% that will kick in next year. Add in the planned phase-out of deductions and exemptions, and the rate hits 41%. Then add the 3.8% investment tax surcharge in ObamaCare, and the new dividend tax rate in 2013 would be 44.8%—nearly three times today’s 15% rate.”
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Old 07-20-2012, 08:32 AM   #2
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Re: A Tale of Two Companies

This is wonderful. I am really amazed to know about that.
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Old 07-20-2012, 01:32 PM   #3
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Re: A Tale of Two Companies

Quote:
Originally Posted by julscot74342 View Post
This is wonderful. I am really amazed to know about that.
It's a pretty big deal. Some people have stock dividends as a major portion of their retirement income.
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Old 08-06-2012, 10:37 PM   #4
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Re: A Tale of Two Companies

wow , it's really great to know that
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Old 08-08-2012, 04:47 PM   #5
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Re: A Tale of Two Companies

Almost all of my stock holdings are dividend payers and I had not heard about this. I'm in shock. wtf?
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Old 08-13-2012, 01:43 AM   #6
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Re: A Tale of Two Companies

US needs to catch up to the likes of Australia with its tax structure around dividends. Our company's pay 30% and we get imputation credits with those dividends.

ie $70 dividend has $30 tax credit ($100 accessible income). If you pay l <30% personal tax rate you get a refund/offset, if you pay more you need to pay the diff.

Then again US stock markets still are in the dark ages with open outcry broker trading (Dow Jones), so what would one expect.

I won't even mention wars, paranoid security, gun laws, wealth disparity and poverty levels, and online poker (oops I just did, can't help myself)
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Old 01-10-2013, 04:55 PM   #7
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Re: A Tale of Two Companies

The rate only goes in to effect on income over 450k for couples. If you have income that high, you are beyond scraping by.
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