As The Dividend Tax Rate Approaches Expiration, AEP's CEO Lobbies To Keep It Intact

Assuming that the current tax rate is allowed to expire, investors will soon pay nearly 40% on qualified dividends – up from the 15% rate they pay today.

reports that Michael G. Morris, CEO of American Electric Power Company

, is lobbying hard to keep the rate intact. He said that while he understands that the government is looking to raise additional funds, only 2% of Americans live off dividends. But the higher tax rate would a hit a broad base of Americans, including retirees. Meanwhile, AEP management will recommend that directors hike the payout on common stock 9.5%, to 46 cents a share from 42 cents. AEP isn't alone. Freeport-McMoRan Copper & Gold

, who resumed paying dividends last year (the company discontinued them in 2008 in response to the recession), most recently augmented its payout to 50 cents – a 67% increase. Last Monday, Rayonier, Inc.

raised its quarterly 8%. American Electric Power currently trades at $36.53; Freeport-McMoRan trades at $96.45; and Rayonier trades at $51.56.