I notice that 43% of 2002's dividend is a nontaxable return of capital. Any opinions on whether this development is of any significance from an investment point of view?
<I notice that 43% of 2002's dividend is a nontaxable return of capital>The ROC portion of the dividend is taxable, but when the stock is sold. The ROC is subtracted from your purchase price (basis) when declaring capital.REITS with a substantial ROC component should be purchased in a taxable account. In a tax deferred account (IRA), the ROC portion will be taxed as income when withdrawn.The importance of this distinction depends on your tax bracket.