I'm new to this board and just bought stock today in (LNCO) to hold long term. But my question is on the montly dividend I read it was paid in cash. How to they get your dividend to you and do you have to pay tax on it like a REIT etc.?
There is some conflicting advice posted in response to your tax question. The tax comments posted by "outthink" and "ronharv" are correct.
Current LNCO dividends are a non destructive return of capital (ROC) reported in Box 3 of the 1099-div ( non dividend distributions) because of the amount of depreciation allocated to the units. If you own LNCO shares you have the real tax advantage of paying long term capital gains on the ROC if you hold the stock for a year or more before selling instead of ordinary income tax rates.
Accordiing to the LinnCo website, under the tax considerations tab, LNCO cash distributions are "Nondividend Distributions in Box 3 of Form 1099-DIV". Nondividend distributions are reductions to your cost basis and are tax deferred until you sell your shares, at which time they are treated as capital gains.
Also, LINE is not an MLP. LINE is a limited liability company with partnership status. See the LINN Energy tab in the LinnCo website, under "Investor FAQ's".
LINE is an LLC. You will get a K-1, but it is an LLC. Go to their website and get educated! This is right off their website "LINN Energy is not a MLP or a corporation, but a publicly traded limited liability company with partnership tax status."