The average REIT dividend is around 4%, moreover, and fully taxable, unlike qualified stock dividends.
Or they can pay it out in the form of stock repurchases or stock dividends.
When you seek income from your stocks, never forget that stock dividends are a discretionary outlay.
The tax on stock dividends could approach ordinary income rates just like current tax rates on bond coupons.
Additionally, income from most REITs and bonds does not qualify for the same favorable tax rate as stock dividends.
Long-term capital gains and stock dividends taken from taxable accounts are now subject to a top federal rate of only 15%.
You are getting paid very little and your bond coupons, unlike stock dividends, will not adjust over time to reflect rising prices.
Stock dividends and capital gains are currently taxed at the same rate.
Mostly because the vast majority of our income comes from investments stock dividends and capital gains which are taxed at a maximum rate of 15%.
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As a result of the financial crisis, many REITs cut common stock dividends as part of a painful but necessary cash flow strategy.
In a taxable account, stock dividends are soon to become painful.
Over the past decade, as fixed-income rates and stock dividends have shrunk, the ranks of cash-strapped trust fund babies have grown ( see story, p. 60).
The personal income of each member of the management team, from board members to middle-level managers, is limited to their salary, incentive bonus and stock dividends provided by the company, with policies to ensure that no one in the company abuses their power for self-serving purposes.
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You have doubled the child tax credit from 500 to a thousand dollars, reduced the marriage penalty, begun to phase out the death tax, reduced taxes on capital gains and stock dividends, cut taxes on small businesses, and you have lowered taxes for every American who pays income taxes.
Health Care Property Investors (nyse: HCP - news - people ) recently declared its 67th consecutive increase in quarterly common stock dividends, while Public Storage (nyse: PSA - news - people ) has seen its stock rise some 30% since this time last year.
The bad news is that not all preferred-stock "dividends" qualify.
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If the stock pays dividends, then they are subject to the maximum 20% favorable tax treatment, which is far better than if they had accumulated inside and IRA and then distributed at ordinary income tax rates.
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So study charts of earnings yield (earnings per share divided by stock price) versus dividend yield (dividends divided by stock price).
Tempted to ditch your bonds in favor of preferred stock paying high dividends?
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Since its conversion its total return, comprising stock appreciation and dividends, has far exceeded close competitors and the market.
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Starbucks investors also got richer, with gains in the stock plus reinvested dividends up 24.9% last year, according to Hay Group.
That's a total return of 140.6 percent, including stock gains and dividends.
So the cash sits offshore, where it can't be used to buy back stock, pay dividends, hire American workers or acquire U.S. startups.
When all stakeholders, especially investors and shareholders, take stock of the dividends from patriotism, CEOs will regain the freedom to reinvest in America and its people.
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When wage taxes are high and capital taxes are low, firms simply shift compensation from salaries to stock options and dividends, cutting revenue without boosting growth.
Big pharma has less cash for deals because the patent cliff and pricing pressures have hit operating cash flows and spending on earlier deals, stock repurchases and dividends.
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The expediency of bulk-leasing negotiations may explain why, despite the theory of a few years ago that the Internet would turn malls into dustbins, mall REITs in general have scored higher total returns (stock appreciation plus dividends) than other kinds of property trusts.
So, when the most recent president Bush signed a tax holiday on foreign cash reserves, telling himself and others it would spur investment and employment, it should have been no surprise that companies instead used the cash for stock buybacks, dividends and takeovers, which typically result in mass layoffs.
ExxonMobil forked over 40% of revenue last year in taxes, dividends and stock repurchases.
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