Dividend payments made out by the REIT are taxed to the unitholder as ordinary income - unless they are considered to be "qualified dividends", which are taxed as capital gains. Otherwise, the dividend will be taxed at the unitholder's top marginal tax rate.
The proposed dividend tax increase would not have the same effect on REITs as it does to other dividend payers. The actual tax bracket that you fall under might change, however. (Please correct me if I am wrong).
Wonder if everyone is fearful of the 2013 capital gains tax and are cashing out now. Of course any advanced investor that has studied Fama-French will know that momentum, although difficult to quantify, is important to the stock price.
Just wanted to have some thoughts. I am looking to start a long-term position and have been following Lockheed for some time. My main concern is that the current president becomes re-elected and allows significant military budget cuts.
I am aware that Lockheed conducts business outside the US as well. I reviewed the price and am hesitant seeing it range from its near highs today vs. its price a few years ago in the 65-70 range.
What would your recommendation be? Purchasing calls in anticipation of a decline this winter?
My goal with this purchase is to add some stability to my portfolio. Obviously the dividend is appealing as well as the potential growth in emerging countries. Thanks for your time Yahoo board!!!
--Every idiot and his brother is going to line up and buy FB. Any Gen Y'er that's ever wondered about buying stock would want to buy FB. People who don't know crap about valuations. People would be buying it for their kids like they did DIS back in the day, etc. --
Fama French's momentum factor?
I suppose you're right, the management is very strong. Upon doing some more research I found that 6% of their power is generated from nuclear and paid 4.6b in fines which has already affected the stock price.
Thanks for the encouraging words :)
What do you guys think? With the EPA coming down with stricter and more regulations on emissions, and AEP's late entrance into the natural gas, (I know Dresden went up this year) do you foresee the share price taking a hit from new production facilities? How about the steady dividend?
Just trying to bring up some intelligent discussion :)