Hoping to save shareholders money, Costco joined a growing list of companies issuing dividend payments this year, rather than waiting and seeing if tax rates rise as Congress wrangles over the "fiscal cliff."
The warehouse retailer said Wednesday that it would pay shareholders a special dividend of $7 a share before the end of the calendar year, "our latest effort in returning capital to our shareholders," said Chief Financial Officer Richard Galanti.
Dividends, which are profits made from investing in stocks and bonds, are currently taxed at a rate of 15% for the top four tax brackets, and 0% for the bottom bracket. If Congress does not act, rates will jump to as high as 39.6% for the top bracket.
Thursday, November 29, 2012
Costco joins firms issuing special dividend payments this year
A race to get ahead of higher taxes to feed the growing American welfare state.