Posted by: Howard Silverblatt on April 27, 2010
IBM just became the third major issue of the four we were watching to increase this month (JNJ and PG already increased this month), which still leaves XOM open. MTD there has been 17 increases and no decreases; YTD it is 95 increases with just 2 decreases, vs. 70 increases and 59 decreases for the four months ending April 2009. Even more dramatic is the dollar change -> $7.6 billion has been added to dividend investors pocket YTD, compared to $40 billion that was removed last year.
Also - left unchanged by Congress, qualified dividends will be taxed at 38.5% starting in 2011, compared to the current 15% rate. If past tax changes are any indications, companies could change their Q4 payments to qualify for the lower rate - it’s not what you make, but what you keep.