Digital Realty Shares Key Details on 2024 Dividend Taxation

Understanding Digital Realty's 2024 Dividend Tax Treatment

Digital Realty (NYSE: DLR), a prominent global provider of cloud and carrier-neutral data center solutions, has shared essential information regarding the tax implications of its dividends for the year 2024. This encompasses the taxable treatment for both common and preferred stock, enabling shareholders to navigate their financial expectations effectively.

Taxable Dividend Insights for Common Stock

The 2024 taxable dividend for Digital Realty's common stock stands at $4.495471 per share. Notably, this portion consists of a blend of distributions spread across the fiscal year. Of this total, approximately 68% represents a quarterly distribution declared in the previous year and paid in January. This financial structure reflects a balanced approach to annual shareholder returns.

Breakdown of Taxable Dividends

For better clarity, the distribution will be reflected in the taxpayers’ Form 1099-DIV as follows: $3.450878 per share (77%) will be classified as ordinary income while $1.044593 per share (23%) qualifies as a capital gain distribution. This classification is vital for shareholders as they prepare for their tax filing obligations.

Details for Preferred Stock Dividends

Looking at the Series J Cumulative Redeemable Preferred Stock, the declared dividend for 2024 is $1.312500 per share. For tax reporting, $1.007520 per share (77%) will be reported on Form 1099-DIV as ordinary income, whereas $0.304980 per share (23%) is identified as a capital gain distribution. Understanding this division helps investors make informed decisions regarding their portfolio.

Breakdown of Series J Preferred Stock

Breaking it down, the quarterly payment dates and respective amounts provide shareholders with a transparent overview of what to expect in terms of their returns. This segmentation not only assists in personal financial planning but enhances engagement with the company's performance.

Comprehensive Analysis of Dividend Records

The dividend records encompass various payment dates, cash distributions, and the corresponding taxable amounts. Understanding these records allows shareholders to track their returns over the year effectively. The tables detail each specific distribution, enhancing record-keeping for investors managing multiple stock holdings.

Special Tax Considerations

Investors should note that the tax implications of dividends can vary significantly between federal and state regulations. It is recommended that each shareholder seeks the counsel of a tax advisor to clarify how these distributions impact their individual tax situations. This proactive approach provides a safeguard against unforeseen tax liabilities.

About Digital Realty

Digital Realty serves as a conduit for companies wishing to combine their data resources efficiently. From data centers to colocation services, their offerings are designed to address the intricacies of digital data management. With a robust global footprint, Digital Realty supports over 300 facilities across more than 25 countries, ensuring that enterprises have the necessary tools for data-driven success.

Frequently Asked Questions

What is the total taxable dividend for Digital Realty's common stock in 2024?

The total taxable dividend for Digital Realty's common stock in 2024 is $4.495471 per share.

How much of the dividend is treated as ordinary income?

Out of the total dividend, $3.450878 per share (or 77%) will be reported as ordinary income.

When should shareholders consult a tax advisor?

Shareholders should consult a tax advisor to understand how the dividends impact their specific tax obligations, given the variances in federal and state tax regulations.

What dividend amount is reported for Series J preferred stock?

The Series J Cumulative Redeemable Preferred Stock has a taxable dividend amount of $1.312500 per share for 2024.

Why is understanding these details important for investors?

Knowing the implications of dividends helps investors effectively plan their finances and prepare for their tax liabilities.

About The Author

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