Are big dividend payouts coming?
Fat corporate cash hoards and a potentially higher tax rate next year may add up to more one-time payments to investors in the fourth quarter.
There are three reasons why we could see a record number of special dividend payouts this year, say the analysts. First, corporate America has a ton of cash. Companies have been hiking prices and cutting expenses to the bone. They either need to spend the cash or return it to investors.
A bigger reason is that tax rates may be going up next year -- regardless of who wins the presidential election. Hundreds of billions of dollars in tax cuts are set to expire at the end of the year unless lawmakers intervene.
Long-term capital-gains rates are 15% for investors in the 25% income tax bracket or higher. That rate is set to revert to 20% at the end of the year, The Wall Street Journal reports.
A final reason we could see more payouts this year is because the fourth quarter traditionally sees more of these announcements, Goldman said, according to CNBC.
If history is any guide, the Goldman analysts could be correct. When the Bush tax cuts were first set to expire at the end of 2010, corporations doubled the special dividend payouts from the year before. The tax cuts ended up getting extended.
AOL (AOL) announced a $500 million one-time dividend in August. Other companies that have announced one-time dividends so far include DSW (DSW), American Eagle (AEO) and Basset Furniture (BSET).
But Goldman isn't going to leave you hanging. Analysts have even come up with their best guesses for who may announce payouts in the near future. Here's the list of potential dividend payees (thanks to MarketWatch for the info):
Federated Investors (FII)
Franklin Resources (BEN)
General Dynamics (GD)
Interval Leisure Group (IILG)
Las Vegas Sands (LVS)
Och-Ziff Capital Management Group (OZM)
Patterson Companies (PDCO)
Pzena Investment Management (PZN)
TransDigm Group (TDG)
Western Refining (WNR)
Wynn Resorts (WYNN)Top Stocks
- Analyst says Apple's iPhone 5 'will fly'
- Market finds solid footing on Fed foundation
- Google boots Facebook from display ad lead
MORE ON MSN MONEY
VIDEO ON MSN MONEY
I recommend - Bring home our troops and our money. We are NOT wanted in Middle-East and I wish no more American blood spilled on MID-East soil.The killing of our Embassador in Syria is the LAST STRAW. Prayers out to him and his staff and grieving family and friends. ENOUGH ALREADY - now they are killing our instructors who train them - with our machine guns - tooooo much for me to endure.
What does it take/how many more grieving families for U.S to realize we ARE NOT WANTED
SRTdriver........ Actually Romney OVERPAID nearly $500,000 in taxes because he didn't claim all the deductions that he was entitled to. Reid, of course, is now whining that he "manipulated" his return so he could show he paid a HIGHER tax rate. Dumocrats are always complaining the "rich" should pay more, then when they do, it's still not enough.
For the sake of our children and their children do not vote Obama another term.
Invest your money in stock market,the banks pay nothing. Trillions of dollars in banks not making money,the money made in stocks could be spent to get the economey back on the road.
Romney overpaid his taxes on one of the 2 years he fully shows. How impressive. George Romney, Mitts father said when running for president that any candidate who only showed 1 or 2 years that he knew were going to be made public could manipulate those returns to make himself look better than he was so he released 12 years. Willard released a summary and guess what? This year he overpaid and donated 30% to charity even though his average over 10 years was only 13%. That means nothing on this years return is even similar to any return he filed previously.
Romney stated during the republican debates he paid around 13% average in taxes but when asked what he'd pay if capital gains rates were lowered to zero as he proposed he stated zero. I wonder if Romney fans will finally feel he's not over taxed if he wins and lowers his taxes to zero?
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.