HUNT VALLEY, Md. (AP) -- Wireless communications company Tessco Technologies Inc. on Monday declared a special dividend of 75 cents, the latest in a slew of companies to do so this year.
The company said it will pay out about $6 million to shareholders. The dividend is payable Dec. 27 to shareholders of record on Dec. 13.
Many companies are moving up their quarterly dividends or making a special end-of-year payment to protect investors from potentially higher taxes on dividend income starting in January. 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.
If no compromise is reached, dividends will be taxed as ordinary income in 2013. 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.
Tessco's current quarterly dividend is 18 cents. Tessco paid its most recent dividend on Nov. 28.
The Hunt Valley, Md., company's shares added 28 cents, or 1.3 percent, to $22.05 in afternoon trading.