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It is less expensive if things go badly, because a shareholder whose dividend is not paid cannot force a bank into bankruptcy.
Such a cut was potentially devastating to some members of the extended Chandler family, whose dividend income was about $42.5 million a year.
Rule out any company whose dividend is 80% or more of projected funds from operations.
Another favorite is American Water Works awk, whose dividend has grown from 6% to10% a year; it pays 3.5%.
Shell's A shares, whose dividend income have a Dutch source, were up 0.6%, or 12 pence 25 centss), at £20.68 ($42.43), while its B shares, whose dividend source is British, were up 0.9%, or 18 pence 377 cents), at £20.64 ($42.34), on Thursday afternoon in London.
The only high dividend-paying stocks worth considering are those whose dividend payout ratio is no more that two-thirds of earnings, thereby giving you some margin of safety if operating earnings turn south.
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It is held up artificially by companies whose dividends are either unsupported by earnings, likely to be cut, have been cut, or even have been suspended.
If there is space left in your sheltered accounts, you would use it for high-turnover stock mutual funds that throw off short-term capital gains, real estate investment trusts whose dividends are also taxed at ordinary rates and individual stocks you plan to trade a lot.
The changes, included in the legislative language last week when the bill was introduced by Senator Don Nickles, Republican of Oklahoma, mean that a number of companies whose dividends would have been taxable under the president's original proposal would now be tax exempt.
Now here comes the beauty part: The Canadian trusts are treated as corporations whose dividends are eligible for the favored 15% dividend tax rate in the U.S.
For example, a successful anti-property-tax initiative in California 22 years ago laid the groundwork for the Reagan tax cuts, whose dividends we still reap today.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com