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djmicrobe 
LSU Fan
Planet Earth
Member since Jan 2007
1221 posts
| Will dividend stocks drop soon? (Posted on 11/10/12 at 11:40 pm)
Since the tax rate on dividends will be greater next year, will dividend stocks take a hit?
This assumes the "Bush" tax cuts are not renewed for next year. If they are renewed, then I'd guess dividend stocks would follow the market somewhat.
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matthew25 
Ole Miss Fan
Member since Jun 2012
1671 posts
| re: Will dividend stocks drop soon? (Posted on 11/12/12 at 1:06 am to djmicrobe)
15% is not going to change. Unless of course, you are the top 1% of wage earners in the entire US.
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jso0003 
Auburn Fan
Birmingham/Atlanta
Member since Jun 2009
4469 posts
| re: Will dividend stocks drop soon? (Posted on 11/12/12 at 10:02 am to djmicrobe)
Everybody on the planet knows about this and has for awhile.
What inclines you to believe that this is not already priced in?
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TheHiddenFlask 
Clemson Fan
The Welsh red light district
Member since Jul 2008
16420 posts
 Online
| re: Will dividend stocks drop soon? (Posted on 11/12/12 at 12:25 pm to jso0003)
I would think that interest rate sensitivity would be the scariest part from these stocks.
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tirebiter
LSU Fan
ATL
Member since Oct 2006
4497 posts
| re: Will dividend stocks drop soon? (Posted on 11/12/12 at 1:18 pm to djmicrobe)
quote:
Will dividend stocks drop soon?
As soon as they go ex-dividend.....the rest is unknown. Remember the death call on muni bonds???
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LSUcam
LSU Fan
Destin FL
Member since Dec 2011
381 posts
| re: Will dividend stocks drop soon? (Posted on 11/13/12 at 8:31 am to djmicrobe)
I think that if people are posting this theory on a college football forum, then most likely the large institutions and general investing public know about this risk. But as stock prices go down when people sell off, individual yields rise, which offset the tax concerns.
What the actual tax concerns will be for next year, I'm not sure.
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dewster 
Maryland Fan
TN
Member since Aug 2006
4734 posts
| re: Will dividend stocks drop soon? (Posted on 11/13/12 at 8:48 am to djmicrobe)
What exactly is changing next year for capital gains taxes? I've read 2.8%, and some as high as 10% more.
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LSUcam
LSU Fan
Destin FL
Member since Dec 2011
381 posts
| re: Will dividend stocks drop soon? (Posted on 11/13/12 at 9:55 am to dewster)
quote:
What exactly is changing next year for capital gains taxes? I've read 2.8%, and some as high as 10% more
Long term capital gains tax rate is already 15% already, no?
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dewster
Maryland Fan
TN
Member since Aug 2006
4734 posts
| re: Will dividend stocks drop soon? (Posted on 11/13/12 at 1:43 pm to LSUcam)
quote:
Long term capital gains tax rate is already 15% already, no?
I meant 'increasing by'...sorry it was not worded well.
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