Diary of a Dividend Diva: Taxing Issues

No matter how the fiscal cliff negotiations work out, the odds are near 100% that dividends will return to being taxed at the ordinary rate. Subscribers are asking me how much less attractive this makes dividend stocks and how this change may affect my beloved dividend-capture strategy.

The short answers are: 1.) Yes, the stock prices are adjusting such that the after-tax yields are reflecting the tax impact, and 2.) Ironically, dividend capture becomes even more attractive in a more highly taxed world!...252 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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