First of all, it's not even a dividend, it's a "partnership distribution." There are differences, especially when it comes to tax time. And what's really amazing to me is how many reports, financial services, websites, etc, have a misconception about the yield...they all see the 42 cent pay-out for the fourth quarter, and multiply that by four, coming up with an 8-9% yield. Idiots! One report even wondered how they could continue paying out such a high yield, lowering their rating of the stock based on this misconception. It's just one small example of how much bad information is out there. The yield for 2012 was about 4% (.10 plus .10 plus .10 plus .42, adding up to .72 for the year, NOT 1.86)
I own the stock in my Roth IRA and so you can call the "distribution" anything you want. It will not be taxable at all for me. I am a forward looking guy. The "distribution" for 2013 will be .42 + .12 + .12 + .12. With today's close of over 19 that still figures out to be over 4%. You can look at it as a trader's stock; I look it as a dividend stock.
You're exactly right, it's not taxable, even outside of an IRA. But you're wrong about the distribution for 2013. That 42 cents was for the final quarter of 2012. For 2013, there won't be one big payout at year's end. The base payment for each quarter will be 12 cents, but they'll expand that to a larger payout each quarter instead of one big payout at year's end.
Billie, just checked and you are quite right. The Base Distribution has been raised by 20% to .12 but Blackstone has decided to distribute ".excess cash." on a quarterly basis instead of waiting for the fourth quarter. So the distribution each quarter will be a minimum of .12 and probably larger if they continue to do well. Way to go, Steve...