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Special Dividend Payments Increase Fourfold in 2012 as Companies Look to Avoid Upcoming Dividend Tax Increase
Five Star Equities Provides Stock Research on Kinder Morgan and Waste Management
By: Marketwired .
Dec. 6, 2012 08:21 AM
NEW YORK, NY -- (Marketwire) -- 12/06/12 -- 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 Kinder Morgan Inc. (NYSE: KMI) and Waste Management, Inc. (NYSE: WM).
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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 and get exclusive access to our numerous stock reports and industry newsletters.
Kinder Morgan is the largest midstream and the third largest energy company in North America with a combined enterprise value of approximately $100 billion. The company currently offers investors an annual dividend of $1.44 per share for a dividend yield of approximately 4.25 percent. Shares of Kinder Morgan have gained nearly 5 percent year-to-date.
Waste Management is the leading provider of comprehensive waste management services in North America. The company currently offers investors an annual dividend of $1.42 per share for a dividend yield of approximately 4.35 percent. Analysts at Goldman Sachs have recently upgraded the company's rating to a "buy" and raised their price target from $33 to $42.
Five Star Equities provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. Five Star Equities has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: www.FiveStarEquities.com/disclaimer
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