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SeaDrill Limited Message Board

  • tommy1959 tommy1959 Nov 26, 2012 2:11 PM Flag

    Something doesn't smell right about the accelerated dividend

    I've owned SDRL for over a year and generally been very pleased with the stock. The accelerated 4rth quarter dividend, however, smells fishy. SDRL is a limited partnership and subject to the same tax scheme as MLPs. Dvidends are actually distributions which are tax deferred until sold, and then taxed at capital gains rate. Since SDRL distributions are not "qualified dividends" for purposes of current lower dividend tax rate, why bother accelerating the pay out to avoid the preseumed higher tax next year on qualified dividends? Any thoughts Board?

    Sentiment: Hold

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