What Are Dividends?

The shareholders have the power to vote on dividends. Shares of stock or other property can be used to pay out dividends instead of cash. Many mutual funds and exchange-traded funds (ETFs) also distribute their profits to shareholders. In return for their investment in the company’s stock, shareholders get dividends, which are normally derived from …

What Are Dividends? Read More »

What Are ESOP Dividends?

There are a number of tax incentives for corporations to consider an ESOP. We’ll go through how an employer might use tax-deductible monies to pay down ESOP debt and how tax-deductible cash distributions are advantageous. The capacity of the employer to use tax-deductible monies to pay ESOP debt and the potential of deductible cash dividends …

What Are ESOP Dividends? Read More »

What Are Exempt Dividends?

A tax-free distribution from a mutual fund is known as an exempt-interest dividend. Mutual funds that invest in municipal bonds are generally connected with exempt-interest dividends. However, exempt-interest dividends may still be taxable to state income tax or the alternative minimum tax, even if they are not subject to federal income tax (AMT). Mutual funds …

What Are Exempt Dividends? Read More »