One of the biggest problems when devising an investment strategy is dealing with uncertainty regarding taxes and regulation.
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New York, NY (PRWEB) December 05, 2012
In a recent Profit Confidential article, financial expert Sasha Cekerevac reports that, compared to last year, companies are issuing one-time dividend payments at four times the rate, due to the shift in next year’s tax policies. (Source: “Las Vegas Sands’ Adelson Earns $1.2 Billion From Dividend,” Bloomberg, November 27, 2012.) According to the Profit Confidential expert, as the year comes to a close, several more companies will be issuing special dividend payments as a tax-planning investment strategy.
“One of the biggest problems when devising an investment strategy is dealing with uncertainty regarding taxes and regulation,” states Cekerevac. “How can a person or company develop an investment strategy if [they] don’t know what the tax rates will be over the next few years?”
In the article “How to Take Advantage of Special Year-End Dividend Payments,” Cekerevac points out that when researching companies issuing special dividend payments as an investment strategy, one of the common characteristics he found was that many of them have a major shareholder with a controlling interest in the company. Cekerevac reasons that, because of this, they have a lot to gain personally by getting ahead of the tax hikes next year.
Cekerevac notes that Las Vegas Sands, which recently issued a one-time dividend payment, is run by Sheldon Adelson, who owns approximately 52% of the stock. (Source: Bloomberg, November 27, 2012.)
“This one-time payment will be worth approximately $1.2 billion for Adelson’s stake in the company. With the dividend tax rate set to rise substantially next year, it makes perfect sense,” says Cekerevac. (Source: Bloomberg, November 27, 2012.)
The Profit Confidential expert speculates that Oracle is another company that might issue a one-time dividend payment, as it has a lot of cash on hand and a shareholder with a large stake in the company, Larry Ellison.
Cekerevac concludes by advising investors to look for companies with major controlling shareholders when investigating and speculating on companies that may offer one-time dividend payments before the year’s end.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.