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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?


To: SirWalterRalegh who wrote (126220)2/24/2012 10:04:03 AM
From: Keith Feral  Respond to of 213172
 
Good point, but I expect dividends will increase for the general stock universe to improve from 2% back to 3% or higher by the time the tax changes take effect. Higher payouts should offset the higher tax rates on dividends, if they are even approved.



To: SirWalterRalegh who wrote (126220)2/24/2012 10:05:42 AM
From: Sr K  Respond to of 213172
 
>> I would support a one time dividend like Microsoft did a few years ago to take advantage of the tax situation. <<

First, you say an increase in the dividend (tax rate) is important. Then you "support a one time dividend" without knowing what the tax rate on it would be for U.S. individual taxpayers.

I'm sure the Apple board understands the tax consequences of any dividend they are considering.

Generally, a dividend is not Qualified (for the 15% maximum) unless U.S. taxes were paid on the income from which the dividend is paid.

In addition, even if the dividend would be subject to the 15% maximum, that would not apply if the shares are not held of record because of short-selling or if they were loaned out by your broker. If you have paid attention to the shares you can vote compared to the shares you think you own (and this can change day to day), they are not always the same. Dividends arrive in two forms, an actual dividend and a substitute dividend.

The substitute dividend is not a Qualified dividend.

AFAIK.