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Tag: dividend tax rate

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In a report recently released by Standard & Poor's, they note more companies increased their dividend payments in the third quarter versus the same quarter last year. The number of positive actions (439) equals the number in Q3 2007. The report notes: "...dividend net increases (increases less decreases) were $8.8 billion in the third quarter of 2012, setting what is believed to be a new record dividend quarterly payout in aggregate dollars for U.S. domestic listed common stock issues..."

With the looming fiscal cliff facing investors at the start of 2013, the marginal tax rate on dividends would increase to as high as 43.4% versus the current 15% rate. Investors are asking if this substantial increase will negatively impact the performance of dividend paying stocks. Copeland Capital Management recently published a white paper analyzing the impact of changing tax rates and the performance of dividend paying stocks vis-à-vis the overall market. The firm's research concluded:...

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