Hi guys and gals.
Well, I'm feeling pretty good. On July 12 I indicated that PGN should be trading at $42.70.
I also said look for $44 + by late fall. I'm keeping my fingers crossed.
CR3 repairs are coming along nicely. Lots of concrete poured. Looks like the root cause fell out that when the openning was cut for the SG replacement, the containment delamination resulted from a change in design stress on the concrete. Not sure if I communicated properly as I've boiled down a lot of what I gathered into one sentence. At any rate, the fix is about done, birds are singing, and the sky is clear.
I care. Retired and live from cap. gains and divvys.
Utilities and some closely watched MLP's and MREITS are the bulk of investments.
Yes, cap. gains and div. tax rates will increase to help pay for the budget and debt. Do you want to invest in low paying treasuries as an alternative?
Didn't think so!
What is going to happen to high dividend stocks like PGN when the tax cuts expire at the end of the year? When the return is cut by a tax increase going from as low as 0% (but for most 15%) to as high as 39% that has to be reflected in the stock price, doesn't it? Or since this is obviously widely known is this already reflected in the stock price?
"What is going to happen to high dividend stocks like PGN ...." Probably not too much. Because over half the shares are held by Institutions and the taxes you and I pay don't concern them. But when interest rates rise how attractive will the 6% dividend be compared to Treasury rates?
As for me, I was considering this for my IRA. Maybe I'll buy PPL.
"" Re: PGN 22-Jul-10 10:47 am
What is going to happen to high dividend stocks like PGN when the tax cuts expire at the end of the year? When the return is cut by a tax increase going from as low as 0% (but for most 15%) to as high as 39% that has to be reflected in the stock price, doesn't it? Or since this is obviously widely known is this already reflected in the stock price? ""
Ron, I hope this answers your question and I believe protects those making less than 250K in income.......
Bernanke Says Extending Bush's Tax Cuts Would Maintain Economic Stimulus
Federal Reserve Chairman Ben S. Bernanke said extending at least some of the tax cuts set to expire this year would help strengthen a U.S. economy still in need of stimulus and urged offsetting the move with increased revenue or lower spending.
“In the short term I would believe that we ought to maintain a reasonable degree of fiscal support, stimulus for the economy,” Bernanke said yesterday under questioning from the House Financial Services Committee’s senior Republican. “There are many ways to do that. This is one way.”
While Democrats want to keep the 2001 and 2003 tax reductions passed during former President George W. Bush’s administration for families earning as much as $250,000, Republicans aim to continue the cuts for high-income people as well. Bernanke didn’t endorse either party’s position or recommend a time period for an extension.
“In the longer term, I think we need to be taking steps to reassure the American people and the markets that our fiscal situation is going to be well controlled,” Bernanke said under questioning from Representative Spencer Bachus of Alabama, the committee’s senior Republican. “That means that if you extend the tax cuts, you need to find other ways to offset them.”
Bernanke aims to bolster the faltering economic recovery while urging lawmakers to reduce federal budget deficits in the medium term, which he defined as the period from 2013 to 2020. His predecessor, Alan Greenspan, last week said lawmakers should allow the tax cuts to expire at the end of 2010, citing a need for the revenue to reduce the budget gap.
I believe that Congress will have to protect Cap Gains from increased taxes or they will totally decimate the market. I don't believe that much of any tax increase is priced in at this point because few believe that any tax increase on gains will happen will happen.
#2 here, PGN is the only stock in my portfolio that is green - a lone star in the sky is better than none. I live in FL and near Crystal River. Not wild about it but it is what it is. Would like to have capital gains rather than dividends because I have will have to live till I'm 185 to write off the 3k max per year. But I won't sell my one green star.
good luck and good trading
bty - my bill was $243 last month. not happy with that but extra cold winters and extra hot summers - and I'm a native Floridian from back when ther were only gators and mosquitoes. BAC - Before Air Conditioning. .....;-)