Since 2003 investors have paid a maximum 15 percent on dividend income. But that historically low rate will expire in January unless Congress and President Barack Obama reach a compromise on taxes and government spending. As it stands, dividends will be taxed as ordinary income in 2013, the same as wages, so rates will go up depending on which income bracket a taxpayer is in. For the highest earners, the dividend rate would jump to 43.4 percent.
Russian. Does buffet have the power to decide when dividends are paid? I'm not up on their operating agreement? If he doesn't this is a non-story. If he does, does he have a fiduciary duty to the shareholders? If he does this is a non story. But, if there isn't a fiduciary duty and he does control dividends...it seems like he has the perfect opportunity to put his money where his mouth is and wait till january to pay dividends. Then he can pay more taxes like he professes to want.
Well then its a non story...unless of course buffett is on the board and voted for the dividend. Unless he has a fiduciary duty.
quote:Yes and no. Companies are paying special dividends. Larger than historic. One company is a $2.95/s stock, paying out a $1/s dividend! It's a cash out. And companies won't have as much available capital going forward because of it.
Correct me if i am wrong, but isn't all it is saying is to take advantage of low dividen rates this year, they are going to pay out now instead of later.