Here’s Why Companies are Rushing to Pay Out Higher Dividends
Republicans and Democrats remain far apart in talks to avoid the all-encompassing tax hikes known as the “fiscal cliff,” set to kick in at the new-year. As the talks drag on closer and closer to January 1, an increasing number of companies have decided to pay out higher dividends.
The recent talks are centered around whether to extend the Bush-era tax cuts for all Americans, a view the Republicans like, or to extend the cuts only for those with an income less than $250,000, which the Democrats want.
Let’s take a look at some of the bigger-name companies that have increased their end-of-year dividend:
Disney (NYSE:DIS): Raised its annual dividend 25 percent up to 75 cents per share, payable on December 28.
Nike (NYSE:NKE): Raised its quarterly dividend 17 percent up to 21 cents per share, payable on December 26.
Sysco (NYSE:SYY): Raised its quarterly dividend 3.7 percent to 28 cents per share, payable on January 25.
PepsiCo (NYSE:PEP): Raised its quarterly dividend 4 percent to 53.75 cents per share, payable January 2.
Tyson Foods (NYSE:TSN): Raised its quarterly dividend 25 percent to 5 cents per share, payable December 26.
If the talks in Washington continue to stall, expect even more names to join these five.
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