| February 2013 | |
| Don’t Count Out Dividends: Are the threats of tax hikes overblown? |
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Taxes on dividends are increasing for higher-income earners, but we think fears that taxes will negatively impact dividend-paying stocks are overblown. There is scant evidence of a correlation between tax policy and equity market returns. We continue to favor dividend paying stocks, especially companies with the ability to grow their dividends. These stocks are generally trading at a substantial discount, and we believe they offer the most potential for long-term growth. |
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