SHELTON, Conn. (AP) -- Electrical products maker Hubbell Inc. said Tuesday it is raising its quarterly dividend to 45 cents from 41 cents, and will pay its next dividend in December instead of January.
The company said the dividend is payable Dec. 26 to shareholders of record on Dec. 14.
Hubbell is the latest company to move its dividend payment up to late 2012 from early 2013 to protect investors from potentially having to pay higher taxes on dividend income. Other companies are declaring one-time special dividends.
Since 2003, investors have paid a maximum 15 percent on dividend income. But that historically low rate will expire in January unless Congress and President Barack Obama reach a compromise on taxes and government spending. As it stands, dividends will be taxed at the same rate as ordinary income like wages. That means 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.