Wednesday, March 28, 2012

Dividend Tax Hike?

I've read that the dividend tax rate of 15% may be shot down. I tend to think that this is rhetoric so some shady, back room deals can be made to grease the palms of the politicians supporters. With this looming, however, I wonder if it's smart to enter into new transactions on dividend stalwarts or take a wait and see approach. On the other hand if I'm right and the tax cuts are extended then this is an opportunity to take advantage of investor fear and pull in higher option premium. What's your take on the dividend tax?

Note: I read that the hike wouldn't take effect until 2013 so we've got some time.

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