Fact Check: Are bx dividends qualified?

Are BX Dividends Qualified?

Introduction

The claim in question pertains to whether dividends paid by Blackstone Inc. (BX) are classified as "qualified dividends." This classification is significant for tax purposes, as qualified dividends are typically taxed at a lower capital gains tax rate compared to ordinary income tax rates. Understanding the nature of these dividends is crucial for investors and shareholders, particularly when preparing tax returns.

What We Know

1. Definition of Qualified Dividends: According to the IRS, qualified dividends are those received on shares of stock held for a specific period, generally more than 60 days during a 121-day period surrounding the ex-dividend date 1. This means that the timing of share ownership is critical to determine if dividends are qualified.

2. Blackstone's Dividend History: Blackstone has a history of paying dividends, with recent reports indicating a quarterly dividend payment of $0.93 per share as of May 2025 7. The company has been consistent in its dividend payouts, which are an important aspect of its appeal to investors.

3. Tax Information from Blackstone: Blackstone provides tax information on its website, indicating that some dividends may be classified as qualified. However, the specifics can depend on individual circumstances, such as the holding period of the shares 2.

4. Dividend Classification: Various financial sources indicate that Blackstone's dividends are classified as qualified. For instance, Dividend.com explicitly states that the dividends from Blackstone are qualified 3. This classification is supported by other financial analysis platforms as well 45.

Analysis

While there is a consensus among several financial sources that Blackstone's dividends are classified as qualified, it is essential to critically evaluate the reliability of these sources:

• IRS Guidelines: The IRS is the authoritative source for tax-related classifications, and its guidelines on qualified dividends are well-established. However, the application of these guidelines can vary based on individual circumstances, which may not be fully covered in general statements from financial websites.

• Blackstone's Own Information: The information provided by Blackstone regarding its dividends is a primary source but may carry a potential bias. Companies often present their financial data in a favorable light, which could lead to an optimistic interpretation of their dividends' tax status 2.

• Financial Analysis Websites: Websites like Dividend.com and MarketBeat provide useful summaries and classifications of dividends. However, these platforms may not always provide the full context or methodology behind their classifications. For instance, they may not detail the specific holding periods or other criteria that could affect the qualification status of dividends 37.

• Potential Conflicts of Interest: Some sources may have a vested interest in promoting Blackstone's stock, which could influence their reporting on dividend classifications. This potential bias should be taken into account when interpreting their claims.

• Lack of Specificity: While many sources state that Blackstone's dividends are qualified, they often do not provide specific details about the holding periods or any exceptions that might apply. This lack of detail could lead to misunderstandings for investors who may not meet the necessary criteria for qualification.

What Additional Information Would Be Helpful?

To fully assess the claim regarding the qualification of Blackstone's dividends, additional information would be beneficial, including:

• Detailed examples of individual shareholder scenarios that illustrate how the holding period affects dividend qualification.
• Clarification from Blackstone on the specific criteria used to determine the qualification status of its dividends.
• Independent verification from tax professionals or financial analysts who can provide an unbiased assessment of Blackstone's dividend classifications.

Conclusion

Verdict: True

The evidence indicates that dividends paid by Blackstone Inc. (BX) are classified as qualified dividends, as supported by multiple financial sources and the company's own disclosures. The IRS guidelines on qualified dividends align with the information provided by Blackstone and other financial analysis platforms, suggesting that these dividends generally meet the necessary criteria for qualification.

However, it is important to note that the classification of dividends as qualified can depend on individual circumstances, particularly the holding period of the shares. This nuance means that while the general classification is true, individual investors must ensure they meet the specific requirements to benefit from the lower tax rates associated with qualified dividends.

There are limitations in the available evidence, particularly regarding the lack of detailed scenarios that illustrate how different holding periods might affect qualification status. Additionally, potential biases in the sources reporting on this classification should be considered.

Readers are encouraged to critically evaluate information themselves and consult with tax professionals to understand how these classifications may apply to their specific situations.

Sources

1. Instructions for Form 1099-DIV (01/2024) - IRS
2. Tax Info / Dividends - Blackstone - Blackstone
3. BX: Dividend Date & History for Blackstone Inc. - Dividend.com
4. Blackstone (BX) Dividend History, Dates & Yield - Stock Analysis
5. Blackstone Inc - Class A Shares BX - DividendMax - DividendMax
6. Tax Info / Dividends - Blackstone Mortgage Trust
7. Blackstone (BX) Dividend Yield 2025, Date & History - MarketBeat
8. Dividends - BXSL
9. Blackstone Inc (NYSE:BX) Dividend History - DividendInvestor.com
10. Blackstone (BX) Dividend History - FinanceCharts