Number of Companies Paying Special Dividend Rising Rapidly in 2012 as Dividend Tax Increase Looms
December 03 2012 - 8:20AM
Marketwired
A dividend tax increase has been a major concern for investors as
the upcoming fiscal cliff approaches. Major companies such as Las
Vegas Sands and Wal-Mart have declared special dividends or have
moved up quarterly dividend payments in attempts to avoid the
looming tax increase. According to Bloomberg, from the end of
September to mid-November 59 companies in the Russell 3000 stock
index have paid special dividends, compared to just 15 one
year-ago. Five Star Equities examines the outlook for dividend
yielding companies and provides equity research on Lockheed Martin
Corporation (NYSE: LMT) and Pitney Bowes Inc. (NYSE: PBI).
Access to the full company reports can be found at:
www.FiveStarEquities.com/LMT
www.FiveStarEquities.com/PBI
U.S. investors are set to face a dividend tax increase in the
New Year. The current top tax rate on dividends of 15%, which was
set in the Bush-era, will expire in January. If lawmakers fail to
take action dividends will be taxed at the same level as wages and
salaries in 2013. President Obama's plan would see the top tax rate
on dividends rise to 39.6 percent for high-income earners, which
doesn't include the new 3.8 percent tax on investment income added
by Obama's health-care law.
"The prevailing fear is that if taxes for dividends increase,
dividend yielding companies could grow less attractive and could
see a multiple de-rating," said Savita Subramanian, a strategist at
Bank of America Merrill Lynch.
Five Star Equities releases regular market updates on dividend
yielding companies so investors can stay ahead of the crowd and
make the best investment decisions to maximize their returns. Take
a few minutes to register with us free at www.FiveStarEquities.com
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Lockheed Martin is a global security and aerospace company. The
Corporation's net sales for 2011 were $46.5 billion. Lockheed
Martin currently offers investors an annual dividend of $4.60 per
share for a yield of approximately 4.95 percent. Shares of the
company have gained over 15 percent year-to date.
Pitney Bowes is a $5.3 billion company with 29,000 employees
worldwide. The company currently offers investors an annual
dividend of $1.50 per share for a yield of approximately 13.4
percent, which is the highest in the S&P 500 Index. Shares of
Pitney Bowes have fallen over 22 percent in the past month after
reporting a 55.3 percent year-over-year decrease in third quarter
earnings.
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