NEW YORK, NY--(Marketwire - Nov 28, 2012) - A dividend tax increase has been a major concern for investors as the upcoming fiscal cliff approaches. Major companies such as Las Vegas Sands and Wal-Mart have declared special dividends or have moved up quarterly dividend payments in attempts to avoid the looming tax increase. Five Star Equities examines the outlook for dividend yielding companies and provides equity research on Frontier Communications Corp. (
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U.S. investors are set to face a dividend tax increase in the New Year. The current top tax rate on dividends of 15%, which was set in the Bush-era, will expire in January. If lawmakers fail to take action dividends will be taxed at the same level as wages and salaries in 2013. President Obama's plan would see the top tax rate on dividends rise to 39.6 percent for high-income earners, which doesn't include the new 3.8 percent tax on investment income added by Obama's health-care law.
"The prevailing fear is that if taxes for dividends increase, dividend yielding companies could grow less attractive and could see a multiple de-rating," said Savita Subramanian, a strategist at Bank of America Merrill Lynch.
Five Star Equities releases regular market updates on dividend yielding companies so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.FiveStarEquities.com and get exclusive access to our numerous stock reports and industry newsletters.
Frontier Communications is the largest provider of communications services focused on rural America. The company currently offers investors an annual dividend of $0.40 per share for a yield of roughly 8.7 percent. For the third quarter of 2012 Frontier reported revenues of $1,252.5 million, compared to revenues of $1,258.8 million in the second quarter of 2012.
Windstream is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. Windstream has more than $6 billion in annual revenues and is listed on the S&P 500 index. The company currently offers investors an annual dividend of $1.00 per share for a yield of roughly 12.0 percent.
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