Seeking Alpha

Look for a deluge of special dividends over the next quarter, says Goldman Sachs, as...

Look for a deluge of special dividends over the next quarter, says Goldman Sachs, as corporations rush to return cash to shareholders before taxes go higher in 2013. Choice Hotels CEO Steve Joyce sums it up: "Tax rates on dividends are never going to be better ... I don't know how much worse they are going to get, but they are going to get worse."
Comments (12)
  • HackFab
    , contributor
    Comments (986) | Send Message
     
    "I don't know how much worse they are going to get, but they are going to get worse."

     

    Redistribution.

     

    21 Sep 2012, 01:29 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    GS believes in its own form of redistribution in this calculus.
    21 Sep 2012, 04:35 PM Reply Like
  • jeanewight
    , contributor
    Comments (340) | Send Message
     
    It truly sucks.
    21 Sep 2012, 04:39 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11071) | Send Message
     
    FSCI got a nice bump announcing a big special dividend and others will follow. I would caution those rushing to get them though. Often the business is no better than before the dividend. If that is so often it will regress back to the same price minus the dividend leaving you without real gains and a tax liability to boot.

     

    In general, special dividends are a hallmark that a business is either doing superb (which you would know before the announcement), or not doing very well and has little useful places to invest the cash to generate their required IRR, or simply is a bad stock and the dividend is a teaser to sucker dumb investors into the stock. Be very wary of this. More often than not it is one of the other two reasons.
    21 Sep 2012, 05:44 PM Reply Like
  • RS055
    , contributor
    Comments (2203) | Send Message
     
    All I want is to preerve some of the money earned by hard labor for my later years.
    No - cant do that. Not in cash or bank accts. Not inj treasury bills. Nope. negative real rates everywhere.
    - OK - so I have to take some well calibrated, thought out risks - investing in businesses. Here come the bandits;
    - your cash balances can be stolen ( eg. MF global) - and it appears to be OK with the laws of the land - no one has been charged with anything.
    - Armed with all manner of belts and suspenders from the govt - the wall street firms can jack assets of their choosing up and down - making it hard to get any kind of bearings on reality.
    - OK - I'll just live in my fully paid for house, grow veggies and read my old books . Nope - have to come up with large quantities of money for property taxes or you will be kicked out on the street. And - as for those veggies - I am sure there is a govt regulation against it - and THAT kind of regulation will be enforced.
    22 Sep 2012, 12:15 AM Reply Like
  • RS055
    , contributor
    Comments (2203) | Send Message
     
    - Your cash balances can be legally stolen
    - your dividends in risky investments may get taxed away
    - meanwhile the Fed will ensure there will be increasing inflation
    - healthcare costs - not rational - they charge whatever they want - some pay , some dont,
    - Is there any way to ever get to be financially self suficient at some point in your later life - without winning a lottery , or geting a wall street bonus? Nope.
    22 Sep 2012, 12:18 AM Reply Like
  • RS055
    , contributor
    Comments (2203) | Send Message
     
    Anaand - try leaving for some deset island with the remaining shreds of your so-called money - the govt will be all over you.
    So- why bother?
    22 Sep 2012, 12:21 AM Reply Like
  • anonymous#12
    , contributor
    Comments (552) | Send Message
     
    "Is there any way to ever get to be financially self suficient at some point in your later life - without winning a lottery , or geting a wall street bonus"....

     

    Yes, there are ways. The problem is that people like you want to make money without working for it. Just putting money in a bank account and voila do nothing and reap the rewards.

     

    The smart ones make a lot of money. Such is life, life isn't easy.
    22 Sep 2012, 02:07 PM Reply Like
  • Todd Johnson
    , contributor
    Comments (6952) | Send Message
     
    Simple Plan Silly,

     

    Let's move dividend taxes to 99%. Let's teach peace to the conquered. Endorse a never ending war on somebody. Print money. Tax the wealthy. Give money to poor for their votes.

     

    Easy solution. Put a flower in the rifle when teaching 'peace to the conquered'. It symbolizes love.

     

    TJ
    23 Sep 2012, 01:47 AM Reply Like
  • naya
    , contributor
    Comments (7) | Send Message
     
    If old guys like Warren Buffet, Soros, Carl Ichan, Slim Hilo can earn money why can't you. Do you homework and invest well is the simple answer. I am and doing well.
    CTG
    23 Sep 2012, 01:06 PM Reply Like
  • Todd Johnson
    , contributor
    Comments (6952) | Send Message
     
    Hi naya, the market is up 30% in 1-year. Who isn't making money? TJ
    24 Sep 2012, 07:35 PM Reply Like
  • EK1949
    , contributor
    Comments (1526) | Send Message
     
    All governments that don't practice downward redistribution practice upward redistribution, unless you think distribution is neutral. I certainly hope that isn't true, that a government carefully and scrupulously insures that no one benefits from spending. The best choice would be to create the most good with a bias to the less privileged.

     

    Some benefit is on the tax side, some on the spend. Tax the rich a little more, spend more for services the poorer use more than the rich. The rich don't ride buses, for example, but they do benefit from the better economy a bus-rich city affords. An investment in public transportation then should be seen as a kind of trickle up policy, only unlike trickle down the benefits are real.
    23 Sep 2012, 03:42 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|