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America’s richest companies are preparing to issue special one-day payouts to investors.
These one-day payouts can be huge, compared with “normal dividends.”
We’re talking about staggering dividends of 17%, 19%, 33% and even 41%. And the payouts dwarf the average dividend of just 0.25% per quarter.
Go here to access my “Watch List” of America’s best dividend stocks for 2018.
Huge One-Day Dividends
In December, Republicans on Capitol Hill – working with President Trump – passed the biggest tax reform since the 1980s.
There’s no doubt that the reform is designed to line the pockets of wealthy Americans, corporations and shareholders in publicly traded stocks.
Most folks are focusing on the new tax rates, which affect how much money you take home in your paycheck. The same is true for corporations, which saw their federal tax rate slashed from 35% to 21%.
Far less noticed is the new tax being levied on cash and liquid assets that American corporations hold in offshore accounts. These funds were previously outside the reach of Uncle Sam’s long arms.
Yet with tax reform, all offshore cash will be taxed at 15.5%. The tax affects corporations regardless of whether they elect to “repatriate” that cash and bring it back into the U.S.
Discover how to collect America’s biggest one-day dividends (click here now).
The GOP Has 2 Goals
Why was this included in the tax reform bill? There are two simple reasons.
First, the government wants to collect taxes on these offshore profits that have never been taxed. Goldman Sachs estimates that the amount of cash held offshore by U.S. companies may total $3.1 trillion. So, a 15.5% tax could generate over $480 billion in tax revenue.
Second, President Trump wants to encourage companies to invest in the U.S. as part of his grand plan to “Make America Great Again.”
With hundreds of billions flowing back into bank accounts here in the U.S., Republicans expect a burst of activity . . . companies building new factories and creating high-paying manufacturing jobs.
In response, companies like Apple (NASDAQ: AAPL) are going on the public relations offensive.
Last week Apple reported that it would pay $38 billion in taxes. Plus, the company plans to spend $30 billion in the U.S. to create over 20,000 jobs.
Apple – with $252.3 billion in overseas cash – will still have approximately $184 in cash on the balance sheet after making the investment and paying taxes.
The company is likely to continue rewarding shareholders with growing dividends and an aggressive share repurchase program.
Apple could also pay a one-time dividend of at least 10%, if CEO Tim Cook were so inclined.
By doing so, Cook would be following in the footsteps of Bill Gates and Microsoft (NASDAQ: MSFT).
Back in 2004, the federal government created a tax repatriation holiday to encourage new investment in the U.S.
Microsoft responded with a $32 billion dividend and announced a $30 billion stock repurchase program. At the time, it was the largest-ever distribution of cash to corporate shareholders.
Get ready for huge payouts in 2018.
The new tax law signed by Donald Trump effectively approves these new huge dividends.
Big companies like Apple, Microsoft, Alphabet (NASDAQ: GOOG) and Cisco Systems (NASDAQ: CSCO) will likely make huge payouts.
Plus, dozens of small and midcap stocks could be issuing dividends of 11% to 41% in the coming weeks.
Go here to discover my #1 dividend trading strategy.
Inside my LIVE webinar, I’ll even give you the names of two top stocks on my “Watch List.”