The Board is pleased to announce a special dividend equal to the excess of basic earnings
over ordinary dividends, equivalent to 0.91 pence per share to be paid simultaneously with the final dividend.
Not exact matches
The group chairman, Jose Vinals, said in the same statement that the board «understands the importance of the
ordinary dividend to shareholders and intends to increase the full year
dividend per share
over time.»
Traditionally, a major advantage that buybacks had
over dividends was that they were taxed at the lower capital - gains tax rate, whereas
dividends are taxed at
ordinary income tax rates.
Preferreds have a tax advantage
over bonds, as many preferred
dividends are qualified to be taxed as capital gains as opposed to bond interest payments, which are taxed as
ordinary income.
Dividends from net investment income (including any excess of net short - term capital gain
over net long - term capital loss) are taxable to investors as
ordinary income, while distributions of
You also have the option of choosing to deduct only that amount of interest that offsets
dividend (and short - term capital gain) income that is taxed at
ordinary rates, pay tax at the LTCG rate on the capital gains, and carry
over rest of the interest for deduction in future years.
The Board intends to continue its approach of considering returning to shareholders any excess of earnings
over the sum of
ordinary dividends for the financial year and increased capital requirements, normally in the form of special
dividends.
The Board of Directors» view is that the
ordinary dividend should amount to 50 % of the net profit calculated
over a business cycle.