buying opportunity) you may have to wait a little longer. Politicians are still in Washington, so the decline may still come as they work through the spending side.
Here are some key highlights of the bill:
I. Bush tax cuts preserved for individuals who earn up to $400,000 and couples who earn up to $450,000.
II. Individuals who earn more than $400,000 and couples who make more than $450,000 will see:
* Tax rates increase from 35% to 39.6%
* Capital gains and dividend tax rate rises to 20% from 15%
* Health care reform will levy a new surtax of 3.8% on capital gains and dividends
III. Permanently addresses the alternative minimum tax and indexes it for inflation.
IV. Allows a 2-percentage-point cut in the payroll tax first enacted two years ago to lapse, which restores the payroll tax to 6.2%
V. Delays for two months $109 billion worth of across-the-board spending cuts
What's a bill without pork? According to U.S. News and World Report, the Fiscal Cliff Bill has more than its share, including:
- Rum Producers: $13/per gallon kickback has been extended
- Electric Scooter Riders: 10% of cost of vehicle, up to $2,500 tax credit
- Hollywood: TV and movie makers can gross $15 million in breaks
- Motorsport Race Track Owners: can deduct more than $40 billion a year
- Algae and Asparagus Growers: $59 million to find a way to produce a biofuel
Overall, the bill should instill confidence in companies to raise their dividend. Below is one of the first to do so:
Sovran Self Storage, Inc. operates as a real estate investment trust (REIT) and engages in the acquisition, ownership, and management of self-storage properties. January 2nd the company increased its quarterly dividend 6.7% to $0.48 per share. The dividend is payable January 28, 2013 to Shareholders of record on January 14, 2013. The yield based on the new payout is 3.0%.
Selecting stocks with increasing dividends is critical for an income growth strategy. The above list contains stocks that recently raised their dividends; it is not a list of recommend buys. As always, due diligence should be performed before buying or selling any stock. For a list of stocks with a long string of consecutive cash dividend increases, see this list.
Full Disclosure: No position in the aforementioned stocks. See a list of all my dividend growth holdings here.
- Dividend Stock Bubble: Is It Even Possible?
- 8 Dividend Stocks To Consider While Waiting on Apple to Pay Its First Dividend
- Holding Bonds Could Push Your Portfolio Into The High Risk Category
- Love People, Use Dividend Stocks
- The 2012 Dividend Achievers
Popular Posts - Last 7 days
Presented below are my dividend stock and ETF/CEF holdings. This is not a recommendation to buy these securities. I have classified some of...
A photograph captures a moment in time. Seconds after the flash dims a tree could have fallen on the object of the photo or the sad lookin...
Monday, October 31, 2011 will mark my fourth full year of writing as Dividends4Life . It is hard to believe another year has passed. Like th...
Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in March, extending the...
Linked here is a detailed quantitative analysis of Chevron Corporation (CVX). Below are some highlights from the above linked analysis: C...
Each Sunday I highlight any notable articles that I came across over the past week, along with any Carnivals I participated in. For those re...
Like many that came before me, I am on a journey to construct a portfolio that will provide me... Dividends 4 Life
Each Sunday I highlight the Carnivals I participated in over the past week, along with any notable articles that I came across. For those re...
It is very easy for a CEO to get on a conference call and talk about confidence in the future while communicating glowing projections, but ...
Linked here is a detailed quantitative analysis of Genuine Parts Company (GPC). Below are some highlights from the above linked analysis: ...