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DSW moves up payment date of 4Q dividend

COLUMBUS, Ohio (AP) -- Shoe store chain DSW on Tuesday said that it would move up payment of its fourth-quarter dividend to December, at the same time it paid its third-quarter dividend — the latest company to move up a payment ahead of potential tax increases next year.

DSW has historically paid the fourth-quarter dividend in March.

If the White House and Republican congressional leaders can't strike a deal on taxes and spending cuts, tax rates on dividend income will rise. That's prompted many companies to review their policies on payouts for shareholders, setting special one-time payments in December or moving up payments originally slated for 2013 to this year.

Since 2003 investors have paid a maximum 15 percent on dividend income. But that historically low rate will expire in January unless lawmakers make a budget deal. As it stands, dividends will be taxed as ordinary income in 2013, the same as wages, so rates will go up depending on which income bracket a taxpayer is in. For the highest earners, the dividend rate would jump to 43.4 percent.

DSW will now pay its fiscal third- and fourth-quarter dividends, both of 18 cents, on Dec. 28.