Benefits of the Bush Dividend Tax Cut
One of America's largest publicly owned corporations recently announced the biggest stock dividend payment in history: some $37 billion. Tens of thousands of workers and retirees will benefit from Microsoft's decision to distribute some of its profits to shareholders, as well as millions of 401(k) participants whose mutual funds invest in high-tech stocks. In the past year, other companies have paid dividends for the first time, including Target, Bank of America and Proctor & Gamble. Previously, these companies reinvested profits themselves, and shareholders only realized a gain when they sold their stocks.