You Could See Big Dividends Before 2012 Ends

Now that the election is over, investors are more afraid than ever about the potential for higher tax rates to take effect at the beginning of next year. With less than two months to resolve the problem, many investors don't think Congress and the President will be able to reach any sort of compromise on the issue, leaving investors scrambling to do what they can to minimize the tax hit they'll take.

Dividends stand to take the biggest hit, with preferential tax rates slated to completely disappear in 2013. That will cause rates for top-bracket taxpayers to nearly triple. But increasingly, companies are taking steps to help their shareholders by getting dividend income out this year -- by issuing special dividends.

Source: Motley Fool

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