As we all face the looming fiscal cliff coming at the end of the year, one of the proposed tax increases in some scenarios that could occur is an increase on taxes of dividend revenues. Currently the rate is 15%, but it conceivably could increase to income rates, which for the highest earners could be as steep as 43%. This has driven several companies toward giving special dividends before the end of the year, and it should have you as an investor thinking about what plays are going to be best for you and your portfolio if this tax hike goes through. In this video, Motley Fool energy analyst Joel South takes a look at Kinder Morgan (NYSE: KMI) and its subsidiary Kinder Morgan Management (NYSE: KMR), and talks about why, in light of the fiscal cliff, this energy company's approach to dividends could help cushion the blow.
Joel South has no positions in the stocks mentioned above. Taylor Muckerman has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Exelon. 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.