US firms rush dividends to avoid ‘fiscal cliff’
Shareholders of many American companies will get a big Christmas gift as firms move dividend payments early ahead of January, 1. Next year top tax rate on dividends could almost triple from 15% to nearly 45%.
An array of companies, from Las Vegas Sands Casino to Wal-Mart, will issue special dividends next month or move dividend payouts earlier in order to get ahead of January, 1, when the top tax rate on dividends is set to more than double. More than 100 US giants, Costco and Las Vegas Sands among them, have moved their regular quarterly dividends from early 2013 to December, Markit reports. That’s compared with the average of 31. Markit predicts at least 20 more will be soon announced.
Retailer Costco said it would pay a special dividend totaling roughly $3 billion, $7 a share, on December 18, in the largest payout so far from any company ahead of the likely tax increase.
The maker of Jack Daniels whiskey Brown-Forman Corp., declared a special dividend of $4 a share, to be paid on December, 27. Department store owner Dillard's set a $5 a share bonus dividend.
The tax on dividends and capital gains is expected to increase sharply next year after the Congress negotiations on cutting the deficit over the long term.
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Shareholders of many American companies will get a big Christmas gift as firms move dividend payments early ahead of January, 1. Next year top tax rate on dividends could almost triple from 15% to nearly 45%.
An array of companies, from Las Vegas Sands Casino to Wal-Mart, will issue special dividends next month or move dividend payouts earlier in order to get ahead of January, 1, when the top tax rate on dividends is set to more than double. More than 100 US giants, Costco and Las Vegas Sands among them, have moved their regular quarterly dividends from early 2013 to December, Markit reports. That’s compared with the average of 31. Markit predicts at least 20 more will be soon announced.
Retailer Costco said it would pay a special dividend totaling roughly $3 billion, $7 a share, on December 18, in the largest payout so far from any company ahead of the likely tax increase.
The maker of Jack Daniels whiskey Brown-Forman Corp., declared a special dividend of $4 a share, to be paid on December, 27. Department store owner Dillard's set a $5 a share bonus dividend.
The tax on dividends and capital gains is expected to increase sharply next year after the Congress negotiations on cutting the deficit over the long term.
Read Full Article>>>