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Under prior law, a dollar of dividends was taxed as ordinary income.
That is, a dollar of dividends generated the same individual income tax liability as did a dollar of wages.
If you get a fund at a 30% discount and it sends you a dollar of dividends, that dollar cost you only 70 cents.
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There are two characteristics of BP's Russian joint venture: it has generated many billions of dollars of dividends for the company; and it has been a total nightmare to manage, largely because of years of appalling relations between BP and its billionaire oligarch partners.
When President Obama visited here on Friday, he said he did not want to hear that BP was "nickel-and-diming fishermen or small businesses here in the gulf who are having a hard time," while spending billions of dollars on dividends and millions of dollars on advertising.
(For example, the portfolio may be weighted by the dollar amount of dividends distributed by each corporation, rather than the dollar amount of its market capitalization).
Second, while firms listed on the New York Stock Exchange account for about two-thirds of dividend payers, they account for over 95% of the dollar value of dividends paid.
The Internal Revenue Service has expressed concerns that swaps may have allowed investors to avoid paying billions of dollars on dividends.
Loews said goodbye to hundreds of millions of dollars of annual dividends after cutting loose its tobacco subsidiary Lorillard on Monday.
Its capital investment has fallen by two-thirds and it is investing heavily in something else: its own shares.Since 2008 it has spent 28 cents of every dollar of cashflow on dividends and a further 52 cents on share repurchases.
As for the dueling ads, in the case of GST Steel, a manufacturer based in Kansas City, Mo., that Bain bought in 1993, the company, according to a Reuters article this year, issued new debt that was used to pay tens of millions of dollars in dividends to its buyout owners.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com