What are the potential tax implications for shareholders receiving the quarterly dividend?

Tax considerations for the $0.25 per‑share cash dividend

• U.S. individual investors – The $0.25 dividend is treated as ordinary dividend income (i.e., a qualified dividend) because it is paid on common stock of a U.S. corporation. For most taxpayers it will be taxed at the qualified‑dividend rates of 0%, 15% or 20% (depending on the marginal tax bracket) on the federal return, plus any applicable state and local income tax. The dividend is not subject to capital‑gains tax; it is taxed in the year it is received (October 3, 2025) regardless of the holding period.

• Holding‑period rule – To be eligible for the lower qualified‑dividend rates, the shareholder must have held the shares for the required “qualified‑dividend” period: more than 60 days during the 121‑day period that begins 60 days before the ex‑dividend date (Sept 15, 2025). Most investors who own the stock on the record date will meet this requirement, so the dividend should qualify for the reduced rates.

• Foreign investors – Non‑U.S. shareholders are subject to a 30% withholding tax on U.S. dividends unless a tax treaty reduces the rate. The dividend will be reported on Form 1042‑S, and the investor may be able to claim a foreign‑tax credit in the home jurisdiction.

• Preferred‑stock dividend – The announcement only covers the common‑stock dividend. If a preferred‑stock dividend is paid later, the same tax treatment applies, but the timing and ex‑date may differ, so investors should monitor any separate filings.

Actionable take‑aways

1. Plan for the tax hit – Anticipate the federal qualified‑dividend rate plus state tax when calculating after‑tax returns. If you are in a high‑income bracket, the 20% rate may materially reduce the net yield of the 4.2% quarterly payout.
2. Check the qualified‑dividend holding period – Ensure you owned the shares before the ex‑date (Sept 15) and held them at least 60 days through the 121‑day window to secure the lower tax rate.
3. Consider tax‑efficient positioning – If you are a foreign investor, evaluate whether the 30% withholding outweighs the dividend’s cash benefit; you may prefer to hold the stock for capital‑gain potential rather than the dividend.
4. Incorporate the dividend into your valuation – The increase to $0.25 per share raises the current yield to roughly 4.2% (assuming a $6‑$7 share price). Factor the after‑tax yield into any price‑target or risk‑adjusted return models, especially if you are using dividend‑discount or yield‑based strategies.