In return the companies pay the Treasury a 10% dividend on those shares.
That value depends in part on the expected dividend yield on the underlying shares.
The roundtable has been accused of ignoring some valuable components of pay, such as pension benefits and dividend payments on restricted shares held by bosses, and of understating the value of options and other equity grants made to them.
Ultimately, the White House might have to accept, at best, a heavily watered-down version of the original plan to abolish the tax on dividend income from shares: this would be seen as a significant domestic-policy defeat, given the effort Mr Bush and others have invested in trying to win support for the idea.
If you buy 100 shares at that price, future dividend payments will be made based on your number of shares, not a change in stock price.
Looking at the universe of stocks we cover at Dividend Channel, in trading on Wednesday, shares of J.
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And concerns about a potential rise in the dividend-taxation rate could be weighing on the shares.
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They could buy other companies, sit on it, raise the dividend, issue preference shares or buyback stock.
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The company announced a 21% dividend boost in consolation, which brings the yield on the shares now to about 2.6%.
Despite a growth record and a nice dividend, the shares, which trade as depositary receipts on the New York Stock Exchange, languish at 13 times trailing earnings.
In the mean time, MF Global will pay a dividend of 6% per year in cash or common shares on the preferred securities.
Based on a quarterly payout of 46 cents, the shares have a dividend yield of 1.69%.
Based on a quarterly payout of 20 cents, the shares have a dividend yield of 2.71%.
The prospect of stricter regulation of CME member firms and reputational damage from the MF Global episode has weighed on its stock, though shares rallied Thursday as the firm boosted its dividend by 59% and outlined plans for a regular special payout.
Pension funds don't care, but an individual lending shares owes tax at up to 35% on cash in lieu of the dividend.
These are a special type of share that pay a regular flat dividend in perpetuity, and which receive their payment in preference to the dividends paid out on ordinary shares.
Stock prices readjust on the ex-dividend date to reflect the pending payment, and there is no guarantee the shares won't slip below the trader's breakeven point, resulting in losses.
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Comcast shares are trading sharply higher Wednesday on a combination of strong Q4 results, a big dividend hike and an aggressive new stock repurchase plan.
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And a large dividend payment may leave some shareholders with unwanted tax bills, whereas a buyback enables individual shareholders to hold on to their shares and avoid undesired tax consequences.
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