TAX-FREE DIVIDENDS?

Physician's Money Digest, February28 2003, Volume 10, Issue 4

Caution:

What should your investmentstrategy be if President Bush's planto eliminate taxes on dividendsbecomes law? The easy answer is tostuff your portfolio with high-yieldingstocks, but cooler heads advisethat company fundamentals shouldalso play some part in your decision-making. Big companies in matureindustries may be more attractivethan small ones, and if youalready own high-dividend stocks,you may want to switch them to ataxable account. Some stocks withhigh dividend yields include: PitneyBowes, PPG Industries, Sara Lee,and Amsouth. Don't makeany moves until the dividend tax cutis actually signed into law.