Dividend Investing Tax Rates

Fortunately, the existing dividend tax rate of 15 percent was preserved for most Americans under that $400,000/$450,000 threshold (single/married respectively).  It makes dividend investing one of the cheapest financial instruments to pay taxes for and more profitable than most simple savings instruments.  Pick a non-volatile dividend stock paying at least 3 percent and you're set at a flat 15 percent versus whatever savings you might have that would be taxed at your normal marginal income tax rates.  This is a sweet spot for those middle income players that don't qualify for all the federal government tax kickbacks and for those who are under the $400,000/$450,000 threshold.  In fact that new high end group is still just 20 percent versus their now increased marginal income tax rate.  And corporations are now flush with cash from hoarding it the past few years so a lot of good companies will either invest it growing your stock or just hoarding cash and still increasing their dividend payout.  Enjoy the good times!