Dividend Stocks May Not Look So Good Next Year

Many investors have been touting dividend stocks as way to play it safe amid the rocky economic recovery. But dividends may not be such a safe bet heading into 2013. You can blame Uncle Sam for that. As a result of the slated tax hike for dividends, corporations will be forced to take a hard look at the way they spend extra cash.

They could start “potentially pulling back on dividend increases and increasing share buybacks,” says Howard Silverblatt, senior index analyst at S&P. “Taxes are the main concern for dividends,” he says. But 2013 is such a ways away. Until then, Silverblatt still expects to see dividend increases “across the board for all sectors.”

Source: Wall Street Journal

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