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The Coca-Cola Company Message Board

uhlerf 5 posts  |  Last Activity: Jun 24, 2014 5:42 PM Member since: Jul 23, 2010
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  • 1. How come everyone is surprised at a "dividend" cut, when they're not really being paid a dividend?? Did anyone notice that last year's "payout/yield" (2013 1099) indicated that 64.7% of the "dividend(yield)" was NOT a real dividend, but was comprised of YOUR OWN money being returned to you?? ("return of capital")
    My 1099 called it "non-dividend distribution (irs box 3)".....
    2. What many people thought was a really high dividend was in reality only about 35% real dividend, and 65% return of their own money (ROC) - they will later find that their "cost basis" is lower, by the same dollar amount as that "return of capital", thus resulting in lower loss (or higher gain) than they thought they had when they got rid of (sold) those shares..... (or if still holding, their cost basis is lower than what they actually paid per share, and will take a lot longer to recoup their losses)
    3. Don't misunderstand me, I'm as guilty as anyone of not knowing what's really happening, and learning "the hard way" - in fact everything above could be wrong, but that's my understanding.....
    4. Right or wrong, I'm still trying to figure out the investing advantages of ROC - anyone have an explanation?
    One thing would be (a) "no tax on that money payout," and (b) lower tax rate on capital gain than tax rate on dividends (assuming ROC results in capital gain when we do sell)..... Whatever, I'm still tryin' to determine the advantages.....
    5. Bottom line: it sounds to me like a lot of posters here don't really understand what they've done, and that they have been simply "chasing" a supposedly high dividend/yield.
    6. One disadvantage to investors is that no one knows (including the company) what percent of quarterly payout will be "real" dividend vs. "ROC" til end of year (In fact that's one reason for receiving "amended" 1099, and having to file tax return as late as possible)
    7. Sorry so much rambling, just couldn't help respond to posters here complaining abt shr price drop........

  • Reply to

    Bad Mood on the Right

    by walrathcraig550 May 15, 2014 8:03 PM
    uhlerf uhlerf May 16, 2014 8:24 PM Flag

    not a "noun" -- "ing" makes it a verb ('course Il could be wrong - just a retired metalshop teacher) (on the other hand, any spelling or grammatical error makes the whole concept questionable, no?)

  • Reply to

    Bad Mood on the Right

    by walrathcraig550 May 15, 2014 8:03 PM
    uhlerf uhlerf May 16, 2014 8:26 PM Flag

    Oops: II was "I".....

  • Reply to

    kmi or rig .....or both?

    by mwalk65 Jun 23, 2014 9:56 AM
    uhlerf uhlerf Jun 24, 2014 5:22 PM Flag

    wuz gonna ask a question, but I guess I need to get permission first from the question police - where do I find them???

  • Reply to


    by cborkar Jun 22, 2014 3:06 PM
    uhlerf uhlerf Jun 24, 2014 5:42 PM Flag

    then why is the full name of KMI "Kinder Morgan 'Inc' " ?? (its not a corporation??)
    (disclaimer: not owner if either KMI or KMP, but considering buying one or the other)
    p.s. anyone know if any part of dividend from either of these companies is "return of capital" (ROC), as opposed to "regular" dividends???
    p.p.s. anyone know how ROC is advantageous investing strategy, since it lowers cost basis???

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