Here's why I love dividends.... the market is off a bit --- so what?!?!
I check the Schwab account used for examples here.... and bada bing bada boom... I'm a happy guy today!
03/01/2012 KFN KKR FINANCIAL HLDGS LLC REIT
type: ORD DIV - CASH
$2,700.00
03/01/2012 JPM+I JPMORGAN CHASE 8.625%PFDDEP SHS REPSTG 1/400 NON
type: QUALIFIED DIV
$4,042.97
03/01/2012 CHKR CHESAPEAKE GRANITE WASH
type: QUALIFIED DIV
$7,277.00
NOTE THE DIFFERENCE IN DIVIDENDS --- KFN -- "ORD DIV" (Ordinary Dividend) that's normal income tax rates! The other two are QUALIFIED DIV -- QUALIFIED DIVIDENDS are taxed at 15% !! Make sure you know the difference in these and check BEFORE YOU BUY -- if the names are held in an ordinary account.
SOME REITS (Real Estate Investment Trusts) are considered a "return of capital" so aren't taxed until they've returned all of your capital -- and after that the "dividend" would then be income... So my point here is -- you need to know these differences BEFORE you end up with an income event you didn't plan for.