Not all dividends are created equal to we'll do a top-to-bottom analysis of a given company to understand the quality of its dividend and how that's changed over the past five years inthe company we're looking at today is American Capital Agency (NAS: AGNC) to yields 19.1% for the most real estate companies including in American Capital Agency are organized as real estate investment trusts, or REITs.
They do this so that they can get around the double taxation issue that most investors face in REITs do not pay taxes as long as they distribute at least 90% of their income as dividends to the investors holding shares of the REIT then have to pay taxes on those dividends as though they are income is a differs from most dividend are taxed at a lower rate.
The American Capital Agency's interest rate spread, declining is still very high and will likely remain so until interest rates begin rising again to the Federal Reserve has stated it won't raise rates until 2014 at the earliest, you have some time before this will happen.
They do this so that they can get around the double taxation issue that most investors face in REITs do not pay taxes as long as they distribute at least 90% of their income as dividends to the investors holding shares of the REIT then have to pay taxes on those dividends as though they are income is a differs from most dividend are taxed at a lower rate.
The American Capital Agency's interest rate spread, declining is still very high and will likely remain so until interest rates begin rising again to the Federal Reserve has stated it won't raise rates until 2014 at the earliest, you have some time before this will happen.
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