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Dish Network declares special dividend of $1

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Entertainment,Travel

ENGLEWOOD, Colo. (AP) — Dish Network Corp. said Monday that it declared a special dividend of $1, lower than its end-of-year payout last year and in 2009.

The satellite TV provider doesn't pay a regular dividend. Its two previous special dividends were $2.

The Englewood, Colo., company said it took a variety of factors into account before deciding to go forward with the dividend, including tax implications and other possible methods to distribute capital.

Many companies are moving up their quarterly payouts or issuing a special end-of-year payment to protect investors from potentially higher taxes on dividend income starting in January.

The companies are reviewing their dividend policies now that it appears investors could soon pay higher taxes. Since 2003 investors have paid a maximum 15 percent on dividend income. But that historically low rate will expire in January unless Congress and President Barack Obama reach a compromise on taxes and government spending.

As it stands, dividends will be taxed as ordinary income in 2013, the same as wages, so rates will go up depending on which income bracket a taxpayer is in. For the highest earners, the dividend rate would jump to 43.4 percent.

Dish said it will pay its dividend on Dec. 28 to shareholders of record Dec. 14.

Shares dropped 35 cents to $36.69 in midday trading Monday.

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