Are there any tax considerations for investors receiving the dividend on September 15, 2025?

Tax considerations

The $0.07 per‑share cash dividend that Newell Brands will pay on September 15 2025 is treated as ordinary dividend income for U.S. investors. For most shareholders it is tax‑able in the year the dividend is received (2025) and will be reported on Form 1040, line 3b (qualified dividends) or line 3a (non‑qualified) depending on the investor’s holding period and the nature of the payout. Because the dividend is modest and the stock is not a “qualified‑dividend” payer (it does not meet the 60‑day holding‑period test for qualified status), the amount will generally be taxed at the investor’s ordinary income tax rate.

If the investor is in a higher‑income bracket, the dividend could be subject to the 3.8 % Net Investment Income Tax (NIIT). Non‑U.S. residents may be subject to a 30 % withholding tax unless a tax treaty reduces the rate, and the dividend will be reported on Form 1042‑S. Tax‑advantaged accounts (e.g., Roth IRAs, 401(k)s) shelter the dividend from current‑year tax, so holding the shares in such accounts can improve the after‑tax yield.

Trading implications

The ex‑dividend date will fall a few days before the record‑date (likely around August 28‑29). Anticipate a modest price drop on the ex‑dividend day—typically roughly the dividend amount, though market dynamics can amplify the move. If you are a taxable investor, weigh the after‑tax return (≈ $0.07 × (1‑tax rate)) against the expected price adjustment and any short‑term capital‑gain considerations. For long‑term, fundamental‑focused investors, the dividend signals Newell’s cash‑flow health and may support the stock’s stability; however, the small payout suggests limited upside from dividend yield alone.

Actionable insight – If you need the dividend for cash‑flow or to meet a tax‑planning target, be sure to own the shares by the record date (close of business Aug 29) and hold through the ex‑dividend date to avoid a “dividend‑capture” trade that could trigger wash‑sale rules. Tax‑efficient investors should prioritize holding the position in a tax‑advantaged account or, if in a high‑tax bracket, consider the modest after‑tax return versus alternative yield‑generating assets.