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Neil J. Hennessy, the founder of Hennessy Funds, said at a year-end investing event last week that if politicians allow the rates to rise as much as the White House has proposed, dividends will become much less attractive and there could have a "disastrous effect" on the willingness of investors to put money into stocks.
An Exclusive Dividends Party We supplement this article with an online listing of the cash taxes paid by most S&P 500 companies, as well as a collection of our print and electronic features on the proposed dividends tax cuts.
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For preferred shareholders the proposed dividend will be €2.32, up from €1.32 in 2010.
Its shares have climbed 9p to £10.56 as it said it had made a strong start to the year and lifted its proposed dividend.
Another is that Fed officials may have thought their proposed dividend increase too high, or that regulators were not comfortable with their capital planning process.
Jobs will be lost, shareholders have seen the value of their investment plummet - 176,000 were given free shares when Northern Rock abandoned its mutual status in 1997 - and the proposed dividend payment has been pulled.
The company more than doubled its proposed dividend payment to 0.45 euro a share — its largest payout to shareholders since significant delays to the Airbus A380 superjumbo plane in 2006 touched off an industrial crisis and management shake-up.
If the board does not implement his proposed dividend recapitalization, Mr. Icahn then indicated that Dell should commit to hold its annual meeting at the same time shareholders vote on the deal.
The White House this year proposed allowing dividends to be taxed again at ordinary income rates, a plan that would increase tax rates on dividends to as high as 44.7 percent, from 15 percent, according to a new report by the accounting firm Ernst & Young.
President Bush has proposed making dividends tax-free to individuals, provided they are paid by corporations that paid taxes.
More than half a century ago, when President Dwight D. Eisenhower proposed taxing dividends at lower rates than wages, Representative John W. McCormack, a Massachusetts Democrat who later was to become speaker of the House, was outraged.
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