Utility operator Atlantic Power announced yesterday its monthly October dividend of $0.03333 Canadian per share, the same rate it's paid for the past seven months after having slashed the payout 65% in February, from $0.0958 Canadian per share.
The board of directors said the quarterly dividend is payable on Nov. 29 to the holders of record at the close of business on Oct. 31. The dividend is designated as an "eligible dividend" for Canadian income tax purposes. For U.S. investors, they may be eligible for the reduced tax rate currently applicable to "qualified dividends," provided they meet the holding period and any other requirements.
Atlantic Power's common stock dividend is subject to a 25% withholding tax rate for holders who are not residents of Canada, which may be reduced pursuant to an applicable tax treaty. For example, the withholding tax rate for U.S. residents is 15% if they qualify for the benefits under the Canada-U.S. Income Tax Convention.
The regular dividend payment equates to a $0.40-per-share Canadian annual dividend, yielding 8.4% based on the closing price of Atlantic Power's stock yesterday.
The article Atlantic Power Sets October Dividend originally appeared on Fool.com.Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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