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...
Every investor wants to earn more. It is how we define "more" and how we go about earning it that defines the type of investor we ...
In every field there are winners and there are champions. The difference is subtle, but very real. A champion is driven for success and will...
In 1993, State Street Global Advisors launched the first exchange-traded fund (ETF). Now there are literally hundreds of ETFs out there cove...
In the U.S. and Canada, most companies pay dividends quarterly . In other parts of the world, it is not uncommon for companies to pay an ann...
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 January, extending t...
Linked here is a detailed quantitative analysis of 3M Company (MMM). Below are some highlights from the above linked analysis: Company De...
Like many that came before me, I am on a journey to construct a portfolio that will provide me... Dividends 4 Life
Linked here is a detailed quantitative analysis of Verizon Communications Inc. (VZ). Below are some highlights from the above linked analys...