Cash Distributions
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Cash Distributions What does it mean when a company gives you a cash distribution instead of a dividend. Hi Karen, One important thing that means is that they may have different tax consequences than a dividend would have. For example, a "distribution" from a REIT may have to be split into as many as 5 different types of income, each with it's own tax consequences. "Distributions" from partnerships can get even more complicated, that's why they can't be handled in bivio.That is a very good question. All dividends are distributions but not all distributions are dividends. Laurie Frederiksen
Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Follow Us on Google+ Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe On Fri, Jun 20, 2014 at 10:50 AM, Karen Wilson wrote: What does it mean when a company gives you a cash British Petroleum (BP). Last year (2013) on our brokers statement it listed them as Dividends. This year they are listed as Cash Distributions. Our broker (Scottrade) couldn't explain it and I can't find any explanation for it on BP's web site. I also wrote you about KKR and we have sold that one but now I am worried about this company. On Friday, June 20, 2014 10:01 AM, Laurie
Frederiksen <laurie@bivio.biz> wrote: Hi Karen, One important thing that means is that they may have different tax consequences than a dividend would have. For example, a "distribution" from a REIT may have to be split into as many as 5 different types of income, each with it's own tax consequences. "Distributions" from partnerships can get even more complicated, that's why they can't be handled in bivio.That is a very good question. All dividends are distributions but not all distributions are dividends. Laurie Frederiksen
Invest with your friends! http://www.bivio.com/ Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Follow Us on Google+ Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe On Fri, Jun 20, 2014 at 10:50 AM, Karen Wilson wrote: What does it mean when a company gives you a cash Hi Karen, Since you are taking them in cash, that is probably why they are labeled a "Cash distribution" (as opposed to a Scrip or share distribution).It is good you are questioning this because it is a little out of the ordinary. But the good news is that it should not be a problem for you. BP is a foreign company and apparently, as a BP Shareholder, you have the option to receive your dividends as cash or as additional shares. It is described here on the company website: http://www.bp.com/en/global/corporate/investors/shareholder-information/dividends/scrip-dividend.html Laurie Frederiksen
Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Follow Us on Google+ Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe On Fri, Jun 20, 2014 at 11:59 AM, Karen Wilson <> wrote:
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