Newspaper Page Text
PAGE 4A
I FORSYTH COUNTY NEWS Sunday, April 11,2004
Dividend stocks are now more attractive
Dividend-paying stocks
have long been popular with
relatively conservative equity
investors interested in current
income.
High-quality mature com
panies have often been able to
increase their dividends, help
ing to preserve the purchasing
power of shareholders’
income against inflation.
In the past, dividend
income was taxed at the hold
er’s rate for ordinary income,
which would be as high as 35
percent today. But qualified
stock dividends are now taxed
at only 15 percent for many
taxpayers making divi
dend-paying stocks more
attractive.
This improvement in the
tax treatment of qualified div
idends comes at a favorable
moment in the economic
cycle.
Corporate profitability has
recovered dramatically in the
last two years.
Historically, dividends
have tended to lag increases
in profitability, but eventually
catch up.
With economic recovery
firmly in place, our
Investment Strategy Group
sees an opportunity for
investors, as they believe the
S&P’s annual dividend
growth rate is likely to be
between seven percent and 15
percent for the next few years
possibly producing an
overall dividend increase of
50 percent over the next four
years. ,
For income investors who
can tolerate the greater short
term volatility inherent in a
stock portfolio, we believe
that a diversified portfolio of
high-quality dividend-paying
stocks is well worth consider
ing as an alternative to cash
and bonds.
It is important to note that
the rules on what dividend
I 40th Anniversary Sale I -? \
Zb
£- J One Day
Saturday, April 17
Sale Prices on Hours
Selected Items uFQZIBI® 10AM ' ’ IPM
103 Atlanta Highway, Cumming, GA
Hamburgers 55 C Small Shakes 55 C
Hot Dogs 55 < Small Sundaes 55 <
Chili Dogs 55 C Small Cones 55 C
Slaw Dogs 55C Small Drink 55C
Fries 55 C
Sale items sold plain or dressed
Mustard and ketchup
All other products are at regular price
L.;.> , .... >,, j ■ ' '7" 11 1 /'X" ''. ' 1 ' ." — l - t ’' ■
BUSINESS & INDUSTRY
market in brief stocks of local interest
At the close of Sign Stock Last Change
April 9, 2004 ATG AGL Resources 29.12 -0.08
BLS BellSouth Corp. 26.54 -0.22
DOW -38.12 DELL Dell Computer 35.64 +0.82
DAL Delta Air Lines 8.12 -0.04
F Ford Motor Company 13.59 -0.08
Volume: GP Georgia Pacific 33.94 -0.06
«MMj| 10.442.03 GM General Motors 46.52 -0.18
HD Home Depot 36.20 -0.29
INTC Intel Corp. 27.33 -0.35
KO Coca-Cola Company 51.24 +0.16
MCD McDonalds Corp. 28.67 -0.23
MSFT Microsoft 25.44 -0.15
S&PSOO -7.63 PEP PepsiCo Inc. 54.74 -0.10
RF Regions Financial 35.88 -0.05
SFA Scientific Atlanta 34.15 +0.41
Volume: SGMS Scientific Games 20.88 -0.59
1,140.53 SO Southern Company 29.77 -0.32
T AT&T 19.23 -0.29
JBMBK TSN Tyson Foods 18.39 -0.02
UPS United Parcel Service 70.47 +0.15
WB Wachovia Corp. 46.27 -0.08
WMT Wal-Mart Stores Inc. 56.69 -1.29
NASDAQ +2.60
t Volume: John M. Weaver
2.052.90 Senior Vice President, Investment Officer
210 Dahlonega St, WACHOVIA
Gumming, GA
(678)455-0016 SECURITIES
payments qualify for the 15
percent rate are complex. For
example, many preferred
stocks that are actually debt
instruments generating inter
est do no benefit from the 15
percent dividend rate.
Wachovia Securities is not a
tax or legal advisor.
For more information, see
our 2004 Tax Center Page on
this subject at wach
oviasec.com/tax/2004tax03.s
html.
Please consult your tax
advisor before taking any
action that may have tax con
sequences.
Investors can take advan
tage of the reduced taxation
of dividends through individ
ual stocks, and through
money managers, mutual
funds and exchange traded
funds that concentrate on div
idend-paying stocks. For
information on choices for
your portfolio, talk with your
financial advisor.
Shareholders must satisfy
a holding period to qualify
for the reduced dividend tax
rate.
Stocks offer growth poten
tial but are subject to market
fluctuations. Bonds, if held to
maturity, offer a fixed rate of
return and fixed principal
income.
Dividends are not guaran
teed, companies can reduce
or eliminate their dividend at
any time.
Certain payments connect
ed with dividend-paying
stocks may technically be
substitute payments in lieu of
dividends.
These payments do not
qualify for the 15 percent div
idend rate.
Mutual-fund companies
will have to determine what
portion of their distributions
is attributable to qualifying
dividends, versus distribu
tions of interest or short-term
capital gains earned by the
fund.
Investment return and
principal value of the fund
will fluctuate so that an
investor's shares, when
redeemed, may be worth
more or less than their origi
nal cost.
This column is produced
by the Financial Planning
Association, the membership
organization for the financial
planning community, and is
provided by John M. Weaver,
Sr Vice President-Investment
Officer, Murphy Office
Center, 210 Dahlonega St.,
Suite 103-A, Cumming, GA,
with Wachovia Securities,
LLC, member NYSE and
SIPC, and a broker/dealer
member in good standing of
the FPA. Call John Weaver at
678-455-0016.
Wachovia Securities does
not provide tax or legal
advice. Please consult with
your own tax and legal advi
sors before taking any action
that would have tax conse
quences. Insurance products
are available through insur
ance subsidiaries of
Wachovia Corporation and
other underwriters. Not
available in all states.
Business notes
lasis Health and
Christian Bookstore
... owned by Frank and
Suzy Treece, is now open on
Freedom Parkway in
Cumming.
The store has a wide variety
of merchandise from health
food to Christian books. The
health food selection includes
gluten free products and Atkins
Low Carb Solutions. Shoppers
can find Bibles and music from
all Christian denominations
including Catholic resources
and gifts.
The store operating days
and hours are Monday-
Thursday from 10 a.m. to 7
p.m. and Friday and Saturday
from 10 a.m. to 8 p.m. For
more information call (770)
886-9633.
Johns Creek Business
Association
... has scheduled its next
meeting for April 20 at 5:30
p.m. at Johns Creek Physical
Therapy, 3571 Peachtree
Parkway. The event will fea
ture a buffet and refreshments.
The group also is welcom
ing its newest members, About
Magazines and Call Charlie
Inc. Communications.
Meetings are monthly on
the third Tuesday at 5:30 p.m.
at a location in the Johns Creek
area.
Officers include president,
Greg Martin of ERA Sunrise
Realty; president-elect, Kathy
Bracewell. EBC Office
Centers; and treasurer, Dagan
Sharpe, Wachovia Bank.
Georgia Fann Bureau
... is reminding hay produc
ers preparing to graze or har
vest winter grasses, such as
fescue, that they should
remember farm Service
Agency regulations stipulate
producers must report acres to
be harvested for crops covered
See NOTES, Page 5A