Realty Income Corporation announced its final calculation of the tax dividend status for 2015 preferred and common stock dividends. Part of the dividend for the common stock is considered non-taxable distribution. No capital gains are associated with the common stock distributions.
- (Total) Common Dividends Paid 2015: $2.2714167
- Dividend Ordinary Income Portion: (76.19 percent) $1.7307023
- (Return of Capital) Non-taxable Distribution: (23.81 percent) $0.5407144
- (Total) Preferred F Dividends 2015: $1.6562520
- Income Ordinary Portion of Dividend: (100 percent) $1.6562520
The company's shareholders are being encouraged to talk to their tax advisors regarding their tax treatment with respect to the Realty Income Corporation's dividends received.
A premier real estate net lease investment trust, Spirit Realty Capital, Inc., on the other hand, announced its calculation of 2015 common stock dividends' tax status. A company that invests in operationally essential, single-tenant real estate, the figures below is its 2015 U.S. federal income tax dividends:
- (Total) Dividend per Share 2015: $0.6800
- 2015 Ordinary Dividends: $0.415725
- 2015 Non-Dividend Distributions: $0.264275
- 2015 Return of Capital (%): 38.86
The $0.175 common stock dividend per share which payment was received on Jan. 15 is reportedly to be allocated to its 2016 tax. Shareholders, therefore, are being encouraged to talk to their tax advisors regarding their tax treatment with respect to the Spirit Realty Capital, Inc.'s dividends received.
Preferred stockholders, generally, have bigger claim to the earnings and assets of a company. During the good market times, this is great especially when the company has enough cash and decides to allocate the money to investors through dividends. With this event, preferred stockholders receive their portion of the distribution first, before the common stockholders.
The claim is deemed the most vital during insolvency times when the common stockholders are those that are last in the line to receive a company's assets. It only means that when a company finds it necessary to liquidate and pay all of its bondholders and creditors, the common stockholders will never receive anything up until all of the preferred shareholders have been paid out.
