Dividends are often paid if a company is unable to reinvest its cash at a higher
rate than shareholders
Not exact matches
Profits paid out from the corporation to
shareholders as dividends are taxed at a significantly lower
rate than personal income and income can be split with family members to further offset taxes.
Please see the
ratings disclosure page on www.moodys.com for information on (A) MCO's major
shareholders (above 5 %) and for (B) further information regarding certain affiliations that may exist between directors of MCO and
rated entities as well as (C) the names of entities that hold
ratings from MIS that have also publicly reported to the SEC an ownership interest in MCO of more
than 5 %.
Critics of the tax reform, which also cut corporate tax
rates in the U.S., suggested that companies would reward their
shareholders rather
than investing more money into the American economy with their newly - homebound cash.
As Campbell notes, the bill's «benefits go to corporate
shareholders, those with unearned rather
than earned income, and those with «pass - through» income from businesses that will now be taxed at the new lower corporate
rates rather
than at individual tax
rates.
Upon completion of the transaction, the combined company is expected to achieve run
rate cost synergies for the benefit of both Citrix and LogMeIn
shareholders of $ 65 million within the first year post-close, and run
rate cost synergies of more
than $ 100 million in year two.
Moreover, the corporate -
rate cut has been widely seen as better for firms and
shareholders than actual workers.
The negotiating strength of the next round investors is so much stronger
than the current
shareholders, that they would probably require the discount
rate to be reduced to 20 to 30 % before they invested their money.
While the proposal at the 2015 AGM received 67.4 %
shareholder approval, the 2016 AGM looks to continue the Company's preferred approach of sticking to old habits that die hard rather
than addressing underlying
shareholder concerns, as it has again chosen not to disclose the maximum discount
rate.
In a
rate environment we think of as normal (interest
rates slightly higher
than inflation), we believe these companies can earn 10 % on equity and if they don't have organic growth opportunities, can return all of it to
shareholders.
For Mr Clarke to obtain 100 per cent of the performance rights, TWE's relative total
shareholder return ranking against the peer group must be above the 75th percentile, and the compound annual growth
rate of earnings per share over the performance period must be more
than 15 per cent.
Assuming the company decides not to pay a dividend to the
shareholders (so the
shareholders can reinvest the money themselves), financial managers within Pfizer must identify new projects that offer a higher
rate of return
than what they could get if they simply invested the money in the financial market (this being the opportunity cost of capital).
Tax policy can also influence how companies choose to return cash to
shareholders — if dividends are taxed at a higher
rate than capital gains, this creates incentives to return cash via buybacks and debt reduction.
Shareholders must hold the stock for more
than 60 days during a specific period to obtain the lower tax
rate on distributions of qualifying dividends.
I want to know that management is committed to returning cash to
shareholders and there's no better way to measure this
than the 5 - year dividend growth
rate.
Because these institutions operate on a not - for - profit basis, the savings are passed on to the members in the form of low interest
rate loans and high - interest
rate savings accounts keeping more money in the local community, rather
than paying high salaries for bank executives or dividends for
shareholders.
Because taxation
rates for regular income are much higher
than dividend tax
rates, there can be big advantages in documenting the individual as a
shareholder in a corporation.
These arrangements concern us because they are intended to shield dividend income at a low or zero
rate of tax, rather
than «top - up» tax being paid at the individual
shareholder's marginal
rate, and the fund being entitled to a refund of franking credits.
The business owners (
shareholders) demand a higher
rate of return
than what is represented by the interest payments on the company debt.
Because taxation
rates for regular income are much higher
than dividend tax
rates, there can be big advantages in documenting the individual as a
shareholder in a corporation.