Comparing Dividend Stocks: REITs, RICs, POCs And UTEs

More and more attention is being focused on dividend stocks as low fixed income interest rates keep setting new records and investors search desperately for alternatives. In analyzing dividend stocks, it is important to be aware of certain tax and regulatory considerations that affect the performance of various equities. As to the tax issue, the author is not a tax accountant or tax attorney and the article is not intended to provide advice to any reader concerning the preparation or filing of a tax return or concerning tax planning. With respect to the detailed tax issues arising from investments, readers are advised to consult with a tax professional. Probably the most important distinction with respect to different types of dividend stocks involves special provisions of the Internal Revenue Code. Under these provisions, real estate investment trusts (REITs) and regulated investment companies (RICs) are provided with special tax rules not generally... Read more