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Rising Corporate Tax Rates? These 3 High-Yield Stocks Are Unaffected

Oct. 04, 2021 5:17 AM ETCSWC, DOC, EPD, MAIN13 Comments


  • Congress is currently debating and negotiating a bill that would raise corporate tax rates from 21% to 26.5% (or 25% if certain moderate senators have their way).
  • This would hurt most companies by incrementally raising their effective tax rates.
  • However, there are classes of stocks that do not have to pay any corporate tax rates. Instead, shareholders pay taxes at their personal income tax rates on dividends.
  • I highlight three of these pass-through stocks: a BDC, a REIT, and an MLP.
  • Looking for a helping hand in the market? Members of High Yield Landlord get exclusive ideas and guidance to navigate any climate. Learn More »

Business concept of planning 2021. Male hand flips wooden cubes and changes the inscription "Taxes 2020" to "Taxes 2021". Beautiful orange background, copy space.

Dzmitry Dzemidovich/iStock via Getty Images

The Looming Threat of Higher Corporate Tax Rates

Last month, the House of Representatives' Ways and Means Committee released its proposed "tax and spend" bill that Congressional Democrats hope to pass through the reconciliation process, which would require only

CSWC Portfolio by industry

CSWC portfolio interest rate sensitivity

Physicians Realty Trust

DOC June Presentation

Enterprise Products Partners

EPD August Presentation

EPD distribution growth and coverage over time

EPD August Presentation

EPD stock Insider Buying

SEC Form 4

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This article was written by

Austin Rogers profile picture
Become a “Passive Landlord” with our 8% Yielding Real Estate Portfolio.

I write about high-quality dividend growth stocks with the goal of generating the safest, largest, and fastest growing passive income stream possible. My style might be called "Quality at a Reasonable Price" (QARP) in service to the larger strategy of low-risk, low-maintenance, low-turnover dividend growth investing. Since my ideal holding period is "lifelong," my focus is on portfolio income growth rather than total returns.

My background and previous work experience is in commercial real estate, which is why I tend to heavily focus on real estate investment trusts ("REITs"). Currently, I write for the investing group, High Yield Landlord.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of CSWC, MAIN, DOC, EPD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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