Every once in a while a REIT will classify a few pennies otherwise, but yeah, as a rule of thumb, ordinary income.
You've got to watch the REITs and their third-party companies and the brokers when these go to the 1099-Bs. I ended up going to the mat with TWO (Two Harbors) a few years back when my 1099 showed all their income as qualified. Bureaucrats blamed each other from the brokerage to TWO's service bureau, and nobody admitted it was an error, which it obviously was. Two put it mildly, TWO was not investor-friendly/responsive to my inquiries. So finally I gave up and just decided to report it as nonqualified ordinary because I was sure I was right, and wanted to get my 1040 filed.
Sure enough, just days before April 15 they caught their error and sent out revised 1099s saying it was nonqualified ordinary income, which caused many people (but not me, thankfully) to have to amend their 1040s with the I.R.S.
I see it as Mark does. Ordinary income. The statement last week makes it clear they're passing it on to us so they can comply with REIT (tax) requirements, in other words so that they don't pay taxes on the amount. If they don't pay taxes on it, we do! It's not return of capital. I already adjusted my 4Q estimated income tax to account for the $2.35 dividend.
They in fact have made the second announcement. Came the day after the first December divvy got paid. Nothing's changed.
Nothing's changed from last few years. Same amount. Ex- and Record dates in December. Payable next month. My reading of the tax code on regulated investment companies is that the dividend is taxable in the old year. Normal practice would be that after the dividend announced today, the next one picks up on monthly schedule in February.
Where, pray tell, did you see that they were "supposed to" announce it yesterday? From this board? If so, Ha Ha!
Look, call up their dividend history on their investor relations page and going back to 2008 you will find 4Q dividends announced between Dec. 12 and 19, inclusive. I think it probably has more to do with the way the dates fall in the week and the dates their board meets than it does the Fed meeting, but certainly not a reason for panic. Remember, they are required by law to distribute 90% of their income as dividends, to avoid excise tax. So you're saying they have nothing to distribute at all. Come on. To say there won't be a 4Q divvy is panic mongering, and also untrue, in my opinion.
Ho hum. Here we go again. People saying somehow PHT has changed and made things worse for December. People do this every year. Unless you know something I don't, pucktoretiresoon, I would expect a "January" dividend to be declared a week from tomorrow (the 20th, the day after the Dec. dividend gets paid) and that "January" dividend to go "ex" and be taxable very late this month, payable in January. Then go back to a regular schedule in February. Been that way for years. Here's the 2011 version: