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Somewhere in the Midwest
Join Date: Oct 2001
Location: In the barn!
Posts: 12,499
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Explain cash distributions (K-1) vs cash dividends (1099)
Trying to understand the complexity (to a noob) of MLP and General Partnership...
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06-14-2011, 09:59 AM
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Somewhere in the Midwest
Join Date: Oct 2001
Location: In the barn!
Posts: 12,499
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Example (I think this is a good example). Company A owns Company B (MLP) Assuming same ratio of dividends (of cash vs stock) of 8:1 (B:A), and A is worth 1/2 of B, is it wise to sell shares in A to buy shares in B for the increased dividends? Considerations are growth and tax implications. Maybe I have it all wrong.
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06-14-2011, 10:19 AM
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