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Best Income Stocks for 2013 – Domtar Corporation (UFS)

Domtar Corporation (NYSE: UFS) engages in the design, manufacture, marketing, and distribution of fiber-based products in North America.  The forestry industry is coming through a painful period marked by low-cost competition from emerging markets and the collapse of the U.S. housing industry.  However, the industry is rebounding as more companies are back on the growth track. One income stock to watch is Domtar Corporation (NYSE: UFS) as it offers a great total return in 2013.

Domtar made the Goldman Sachs “Best Income Stocks” list for 2013.  In a recent note, Goldman Sachs Group Inc. pointed out a number of stocks that could provide some easy money for investors by virtue of what the Wall Street bank calls a “social contract” — a combination of earnings appreciation due to expected share buybacks along with dividend yields.  It could be easy money, provided shares remain stable or rise, for investors looking for as close to a guarantee as equities can offer.

Paper miller Domtar Corp. (UFS) is high on the total yield list with 15.6% due to a potential 13.5% earnings accretion from share buybacks and 2.1% from dividends.  Upside on the mid-$80 stock is roughly 3%.

Domtar has an equity summary score of 8.1 out of 10 for a Bullish outlook.  First Call Analyst consensus have a BUY recommendation with a 2.1 rating.

Under its stock repurchase program, Domtar repurchased, during the 3rd quarter, 578,328 shares of common stock at an average price of $75.42 per share.  Since the inception of the program, Domtar repurchased 8,135,157 shares of common stock at an average price of $80.53. At the end of the quarter, Domtar had$345 million remaining under this program.

Domtar has a current dividend yield of 2.16%.  The dividend was increased 28.6% in the past year with the most recent increase in Q2 2012.

Domtar Corporation  reported net earnings of $66 million ($1.84 per share) for the third quarter of 2012 compared to net earnings of $59 million ($1.61 per share) for the second quarter of 2012 and net earnings of $117 million ($2.95 per share) for the third quarter of 2011. Sales for the third quarter of 2012 amounted to $1.4 billion.

Excluding extraordinary items, the Company had earnings before items1 of $67 million ($1.87 per share) for the third quarter of 2012 compared to earnings before items1 of $59 million ($1.61 per share) for the second quarter of 2012 and earnings before items1 of $123 million ($3.10 per share) for the third quarter of 2011.

When compared to the second quarter of 2012, paper shipments increased 0.9% and pulp shipments increased 12.8%.

Domtar is projected to increase EPS by 12.8% to $7.38 in 2013 and 19% to $8.84 in 2014.  With a PE of 12, the 2013 price target is $88.56.

We believe Domtar’s focus will continue to be on improving its cost structure, rationalizing its assets to match supply with demand, maximizing its free cash flow generation, and seeking acquisitions that reduce earnings volatility.  Domtar has made solid progress on debt reduction, and we expect it to use its strong cash flows to accelerate share repurchases.

Company Profile:

Domtar is the largest integrated marketer of uncoated freesheet paper in North America with recognized brands such as Cougar®, Lynx® Opaque Ultra, Husky® Opaque Offset, First Choice® and Domtar EarthChoice®.  Domtar is a leading marketer and producer of a complete line of incontinence care products marketed primarily under the Attends® brand name.  Domtar owns and operates Ariva®, an extensive network of strategically located paper and printing supplies distribution facilities.

Look to this Insurance Company for Growth and Yield

Aegon NV (NYSE: AEG) is one of the world’s largest life insurance and pension companies. Its three major markets are the U.S., the Netherlands and the U.K.; the company also has numerous operations in various other countries.  Having completed its restructuring, AEG has a nice 4% dividend yield and significant growth prospects with a new long-term partnership with Banco Santander and a recent entry into the Ukraine by purchasing Fidem Life.

The Americas contributed about 72% of underlying pretax profits in 2011 (excluding holdings and other activities). The U.S. is the dominant part of the region, accounting for more than 97% of 2011 underlying pretax earnings, but the region also includes business in Canada and Latin America. The major product lines in the U.S. are traditional life policies (universal life, term life, accident and health), annuities (fixed and variable), life reinsurance and a pension segment which is active in 401(k) and similar products. Aegon is among the leading U.S. providers of universal life and term life policies, through its TransAmerica unit.

Aegon also has important operations in new markets, which include Hungary, Poland, France and Spain, and smaller operations in some other CEE countries as well as in Asia. New markets generated 12% of 2011 underlying pretax profit. The CEE activities were pensions-focused, but changes to legislation in Poland and nationalization of pension funds in Hungary mean that, outside of Poland, the emphasis is shifting to protection and non-life and non-pension savings. Spain is a bancassurance operation for Cajas.  France (35% owned) is a major life insurer that operates through affinity groups and brokers selling savings and protection products. Working with joint venture partners in Asia, the company provides life insurance in China and India and variable annuities in Japan.

We see AEG’s sales, measured by the present value of new business premiums, commencing a recovery in 2012 with 10% growth after four years of declines. We see stronger U.S. indexed universal life and variable annuities offsetting lower U.S. fixed annuity sales, which the group is de-emphasizing.

AEG has a target of 7-10% per annum “underlying profit” growth in the 2010-2015 period. We see this target being achieved through the gearing provided by the interest charge (lower fixed costs), advances in operating profit, and a paydown in debt over the period.

Aegon’s restructuring has been completed, providing what we think is a solid operating base alongside enhanced capital strength. The IGD ratio is around 222% as of the 2012 third quarter and should continue rising, we think, as the U.S. fixed annuity book runs off. The resumption of dividends with 2011 full-year reporting should, in our view, be followed by a modestly progressive dividend.  AEG has a current dividend yield of 3.96% which is paid on a semi-annual basis.

Aegon has a 12-month price target of $8.00.  AEG has an equity summary score of 7.5 out of 10 for a Bullish outlook.

Complete List of Special Dividends

More companies have unveiled a special dividend or accelerated dividend payout, as they have sought to avoid potentially higher taxes next year amid heated “fiscal cliff” deliberations inWashington.

In January, $500 billion in automatic tax increases and spending cuts–dubbed the “fiscal cliff”–will begin if Congress and the White House don’t intervene. Dozens of companies already have moved their quarterly dividend payouts to December instead of early 2013 to avoid possible higher taxes, while others have approved one-time special dividend payments for December.

Innovative Solutions & Support, Inc. (NASDAQ: ISSC) announced that its Board of Directors has declared a special cash dividend in the amount of $1.50 per share. The dividend will be payable on or about December 27, 2012 to shareholders of record as of the close of business on December 17, 2012. The dividend yield is 35.8%.

SEACOR Holdings Inc. (NYSE: CKH) announced that its Board of Directors declared a Special Dividend of $5.00 per common share. The Special Dividend is payable to shareholders of record on December 17, 2012, and is expected to be paid on or about December 26, 2012. The Company expects that its common stock will trade ex-dividend beginning on December 12, 2012. The dividend yield is 5.6%.

Interactive Brokers Group, Inc. (NASDAQ: IBKR) , an automated global electronic broker and market maker, announced that its Board of Directors has declared a special cash dividend of $1.00 per share on the Company’s outstanding shares of common stock. The dividend is payable on December 28, 2012 to shareholders of record as of December 21, 2012.  The dividend yield is 6.6%.

Kforce Inc. (NASDAQ: KFRC) , a provider of professional staffing services and solutions, announced that the Board of Directors has declared a special cash dividend on Kforce common stock of $1.00 per share, payable December 27, 2012, to shareholders of record as of the close of business onDecember 17, 2012. The dividend yield is 7.7%.

Hyster-Yale Materials Handling, Inc. (NYSE: HY) today announced that the Board of Directors declared a one-time special cash dividend of $2.00per share, and authorized a stock repurchase program for up to a total of $50 million of shares of the Company’s Class A Common Stock. The dividends are payable on both the Class A and Class B Common Stock, and will be paidDecember 27, 2012 to stockholders of record at the close of business on December 17, 2012.  The dividend yield is 4.5%.

Shoe Carnival, Inc. (NASDAQ: SCVL) a leading retailer of value-priced footwear and accessories, announced today that its Board of Directors has approved the payment of a quarterly cash dividend and a special cash dividend.  The quarterly cash dividend of $0.05 per share and the special cash dividend of $1.00 per share will be paid on December 28, 2012, to shareholders of record as of the close of business on December 17, 2012.  The dividend yield is 4.85%.

Abaxis, Inc. (NASDAQ: ABAX) , a medical products company manufacturing point-of-care blood analysis systems, today announced that its Board of Directors declared a special cash dividend of $1.00 per share on its outstanding common stock.  The dividend will be payable on December 28, 2012 to all shareholders of record at the close of business on December 17, 2012. The dividend yield is 2.7%.

Einstein Noah Restaurant Group Inc. (NASDAQ: BAGL) said it has completed its strategic review process by recapitalizing the company and issued a special dividend of $4 a share.  The special dividend is payable on Dec. 27 to shareholders of record as of Dec. 17 and will cost the company about $68 million.  The dividend yield is 25.33%.

Geo Group Inc.’s (NYSE: GEO) board has authorized a special per-share dividend of $5.68 will cost GEO about $350 million and will be paid onDec. 31 to shareholders of record on Dec. 12. Shareholders can choose to receive the payment in cash–the amount of which is subject to a lottery–or common stock.  The dividend yield is 19.3%.

P.A.M. Transportation Services, Inc. (NASDAQ: PTSI) today announced its Board of Directors has approved a special one-time dividend of$1.00 per share. The dividend is payable on December 28, 2012 to stockholders of record at the close of business on December 17, 2012.  The dividend yield is 10.98%.

HCA Holdings, Inc. (NYSE: HCA) today announced that its Board of Directors has approved a special cash dividend of $2.00 per share to be paid to shareholders of record as of December 17, 2012 with a payment date of December 21, 2012. The dividend yield is 6.02%.

McGraw-Hill Cos.’s (NYSE: MHP) board approved a special dividend of $2.50 a share, to be paid Dec. 27. The special dividend, which will cost the company about $ 694 million, supersedes its previously disclosed plans to repurchase up to $200 million of stock during the remainder of the year.  The dividend yield is 4.61%.

Tree.com, Inc., (NASDAQ: TREE) the parent company of wholly owned subsidiary LendingTree, LLC, today announced that its Board of Directors has approved a special cash dividend of $1.00 per share.  The $1.00 special cash dividend is payable on December 26, 2012 to shareholders of record on December 17, 2012.  The dividend yield is 6.1%.

The Marcus Corporation (NYSE: MCS) announced that its Board of Directors has declared a special cash dividend of $1.00 per common share and has accelerated the next two regular quarterly cash dividend payments totaling $0.17 per common share. The dividends are payable on December 28, 2012 to shareholders of record on December 17, 2012.  The dividend yield is 9.9%.

T. Rowe Price Group, Inc. (NASDAQ: TROW) announced that its Board of Directors has declared a special cash dividend of $1.00 per share payable December 28, 2012 to stockholders of record as of the close of business on December 17, 2012.  The dividend yield is 1.54%.

Heico Corp. (NYSE: HEI), an aircraft parts and repair company, boosted its previously unveiled special dividend by $1, to $2.14 a share–now costing the company about $114 million. The payment has been scheduled around Dec. 31.  The dividend yield is 5.2%.

Capitol Federal Financial, Inc. (NASDAQ: CFFN) announced that its Board of Directors has declared a True Blue® dividend of $0.52 per share on outstanding CFFN common stock.  The cash dividend will be paid on December 28, 2012 to holders of record on December 21, 2012.  With this dividend, the Company will have paid cash dividends of $1.00 per share in calendar year 2012.  The special dividend yield is 4.4%.

Harte-Hanks, Inc. (NYSE: HHS) today reported that its board of directors has declared a cash dividend of 8.5 cents per share payable on December 28, 2012, to the holders of record of shares of common stock of the company at the close of business on December 17, 2012. This dividend is a one-time acceleration of the regular quarterly dividend the company would have ordinarily declared and paid in the first quarter of 2013; the company does not anticipate paying a dividend in the first quarter of 2013.  The special dividend yield is 6.2%.

Diamond Hill Investment Group, Inc.  (NASDAQ: DHIL) announced that its board of directors has approved an $8.00 per share special cash dividend to shareholders of record on December 17, 2012 payable December 21, 2012.  The company will finalize tax characterization of the dividend in February 2013 and expects a portion will be return of capital.  The special dividend yield is 10.3%.

Dick’s Sporting Goods Inc.’s (NYSE: DKS) board approved a special dividend of $2 a share for the company’s common stock and Class B shares, in addition to its previously announced regular quarterly dividend. Both payouts to shareholders are set for Dec. 28. The retailer’s special dividend is expected to cost a combined $245.3 million.  The special dividend yield is 3.9%.

The ProAssurance Corporation (NYSE: PRA) Board of Directors has authorized a 2-for-1 stock split. Following the split, shareholders will also receive a special dividend of $2.50 per common share and a regular dividend of $0.25 per common share.  The special and regular dividend yield is 2.96%.

ePlus inc. (NASDAQ: PLUS) , a leading provider of technology solutions, announced that on December 4, 2012, its Board of Directors declared a special cash dividend on ePlus common stock of $2.50 per share. The special dividend will be paid on or around December 26, 2012, to shareholders of record as of the close of business on December 17, 2012.  The special dividend yield is 6.3%.

RCM Technologies, Inc. (NASDAQ: RCMT) announced that its Board of Directors declared a one-time special cash dividend (the “Dividend”) of $1.00 per share, payable on December 27, 2012 to stockholders of record at the close of business on December 20, 2012.  The special dividend yield is 17.5%.

New Special Dividends from DDS, SLI and LVS

Dillard’s, Inc. (NYSE: DDS) announced that the Board of Directors declared a regular, quarterly cash dividend of$0.05 per share as well as a special, one-time cash dividend of $5.00 per share.  Both dividends are payable on the Class A and Class B Common Stock of the Company on December 21, 2012 to shareholders of record as of December 7, 2012.  The dividends combine for a yield of 5.9%.

DDS has an equity summary score of 7.6 out of 10 for a Bullish outlook.

SL INDUSTRIES, INC. (NYSE: SLI) announced that its board of directors declared a cash dividend of $2.00per share of Common Stock outstanding, payable in cash on December 17, 2012 to shareholders of record as of the close of business on December 6, 2012. The dividend yield is 11.6%.

SLI has an equity summary score of 9.3 out of 10 for a VERY Bullish outlook.

Las Vegas Sands Corp.’s (NYSE: LVS) board has approved a special dividend of $2.75 a share, as the casino operator looks to boost shareholder returns.  The dividend will be paid on Dec. 18 to shareholders of record as of Dec. 10 and will cost the company about $2.26 billion.

LVS has an equity summary score of 1.6 out of 10 for a Bearish outlook.

More Special Dividends on Tap from 2% to 18%

As the year comes to a close, there are more special dividend announcements.  Company’s continue to pay cash to shareholders before the decision to raise taxes in 2013.  Here is a list of special dividends from 2.0% to 18%:

Republic Bancorp, Inc. (NASDAQ:RBCAA), parent company of Republic Bank & Trust Company and Republic Bank, announced today that its Board of Directors has approved a one-time special cash dividend of$1.10 per share on Class A Common Stock and $1.00 per share on Class B Common Stock. The special cash dividend will be payable December 21, 2012 to shareholders of record as of November 30, 2012.  In addition, the Board also declared the Company’s regular quarterly cash dividend of $0.165per share on Class A Common Stock and $0.15 per share on Class B Common Stock. The regular quarterly dividend payment will be payable January 18, 2013 to shareholders of record as of December 21, 2012.

The combined dividend payments are a dividend yield of 5.81% on Class B shares.  Republic Bancorp has an equity summary score of 9.9 out of 10 for a VERY Bullish outlook.

The Board of Directors of Waddell & Reed Financial, Inc. (NYSE:WDR) approved a special cash dividend on its Class A common stock of$1.00 per share payable on December 6, 2012 to stockholders of record as of November 26, 2012.  In addition to the special cash dividend, the Board has approved an increase in the
quarterly dividend to $0.28 per share payable on February 1, 2013 to stockholders of record as of January 11, 2013. This new quarterly rate represents an increase of 12% over the previous$0.25 dividend per share rate.

The combined dividend payments are a dividend yield of 3.97%.  Waddell & Reed Financial has an equity summary score of 9.0 out of 10 for a Bullish outlook.

NetEase (NASDAQ:NTES) makes the lion’s share of its revenue from online games.  The company said Tuesday it is paying a special dividend of $1 per American depositary share, and launching a share buyback program of $100 million, as it seeks to boost shareholder returns. The dividend will cost the company around $131 million.

The special dividend payment is a dividend yield of 2.0%.  NetEase has an equity summary score of 5.7 out of 10 for a Neutral outlook.

Primus Telecommunications Group, Incorporated (NASDAQ:PTGI) , a global facilities-based integrated provider of advanced telecommunications products and services, announced that its Board of Directors has approved a special cash dividend of$2.50 per share on all issued and outstanding PTGI common stock. The special cash dividend will be paid on December 11, 2012 to holders of record of PTGI common stock as of November 27, 2012.

The special dividend payment is a dividend yield of 18.0%.  Primus Telecommunications Group has an equity summary score of 2.0 out of 10 for a Bearish outlook.

RLI Corp. (NYSE:RLI) announced today its board of directors has declared an extraordinary cash dividend of $5.00 per share of common stock, which is expected to total approximately $105 million, and a regular quarterly cash dividend of $0.32 per share. Both dividends are payable on December 20, 2012, to shareholders of record as of November 30, 2012.

The combined dividend payments are a dividend yield of 7.97%.  RLI Corp. has an equity summary score of 3.7 out of 10 for a Neutral outlook.

Get a Special Dividend with a 71% Yield

China Digital TV Holding Co., Ltd. (STV) , the leading provider of conditional access systems to China’s expanding digital television market, today declared a special cash dividend of US$2.30 per share on the Company’s ordinary shares, par value US$0.0005 per share. Each of the Company’s American depositary shares represents one ordinary share.

Shareholders of record as of the close of business on November 26, 2012 will be eligible to receive the dividend. This cash dividend is currently expected to be paid in two installments of US$1.00 and US$1.30 on or around December 3, 2012 and February 4, 2013, respectively.

STV is trading at $3.24 so the special dividend will yield 71%.  China Digital TV has an equity summary score of 8.1 out of 10 for a Bullish outlook.

Get a 9.6% Special Dividend from this Retailer

The Buckle, Inc. (NYSE: BKE) announced that at a meeting of the Board of Directors, held on November 5, 2012, the Board authorized a $4.50 per share special cash dividend to be paid to shareholders of record at the close of business on December 7, 2012.

The Board also authorized a $0.20 per share quarterly dividend to be paid to shareholders of record at the close of business on December 7, 2012. The $0.20 per share quarterly dividend accelerates and replaces the regular quarterly dividend that has historically been paid in January.

Both the special cash dividend and the regular quarterly dividend are payable on December 21, 2012 and will be paid together.

The combined special and regular dividends are a dividend yield of 9.6%.

Buckle Inc. is a retailer of moderate to better-priced casual apparel, footwear and accessories for fashion-conscious men and women between the ages of 15 and 30, with the “sweet spot” being college students and recent college graduates.  About 40% of the company’s merchandise mix is men’s and the remaining 60% women’s.

BKE is known as a denim destination; the company carries more than 1,000 denim styles from over 20 leading brand names, including Buffalo, 7 For All Mankind, Diesel, GStar RAW and Buffalo, as well as its own private label brands such as BKE, ReClaim, Buckle Black and Daytrip.

The company operated 439 stores in 43 states as of August 30, 2012. Stores average about 5,000 square feet, with individual store inventories tailored to reflect climate and seasonal differences, as well as historical sales data. In FY 12 (Jan.), average sales per store were $2.3 million and average sales per square foot were $462, up 8.5% and 7.9% from FY 11, respectively.

The Buckle has an equity summary score of 7.3 out of 10 for a Bullish outlook.  The Buckle has a 12-month price target of 52.

REIT Conversion with 18% Special Dividend Yield

Ryman Hospitality Properties Inc. (NYSE: RHP) declared a special dividend of $6.84 a share, marking another step towards the hospitality-and-entertainment company’s conversion into a real estate investment trust.  The dividend is payable to stockholders of record as of Nov. 13. The company plans to pay the dividend on Dec. 21.

The special dividend equates to a dividend yield of 18.14%.

Ryman, formerly known as Gaylord Entertainment, owns four massive conference resorts and had previously disclosed plans to offer a special dividend as part of its conversion to a REIT. In May, Gaylord Entertainment agreed to sell its brand and management operations to Marriott International Inc. (MAR) for $210 million, following a strategic review of its business.

Shareholders will have the option to receive the dividend in the form of cash or shares of common stock, with the total amount of cash payable to shareholders limited to about $61.9 million.

“The special dividend brings us one step closer to completing our conversion to a REIT effective January 1, 2013,” said Colin Reed, chairman, CEO and president of Ryman Hospitality Properties.  “We believe the REIT structure will support our strategic direction and the tax efficiency of the REIT structure will provide a benefit to our shareholders.”

List of 8 Special Dividend Offers Before Year End Tax Changes

Given the potential significant increases in tax rates on dividends beginning next year, and their strong levels of capital, it is an opportune time for many companies to provide special dividend distributions to their shareholders before the end of the year.  While most companies are sitting on higher levels of cash than in years past, it is becoming the common thing to pass more dividends to their shareholders before yearend.  Here is a list of notable special dividends being offered to shareholders over the past week.

On October 30, 2012, Select Medical (NYSE: SEM)‘s board of directors declared a special cash dividend of $1.50 per share, totaling approximately $210.8 million.  This special cash dividend will be paid on or about December 12, 2012 to all stockholders of record at the close of business on December 5, 2012. The special dividend has a current yield of 13%.

“The dividend allows us to return capital to stockholders without diminishing our ability to pursue investment and acquisition opportunities,” stated Robert A. Ortenzio, Select Medical’s Chief Executive Officer. The dividend is expected to be funded with cash on hand and borrowings under Select Medical’s existing revolving credit facility.  Select Medical (SEM) anticipates using approximately $100.0 million of available cash on hand toward the funding of the dividend.  Select Medical’s leverage ratio (total debt to Adjusted EBITDA) at September 30, 2012 was 3.35, compared to 3.62 at December 31, 2011.

Select Medical has an equity summary score of 9.6 out of 10 for a VERY BULLISH outlook.

Sinclair Broadcast Group, Inc. (NASDAQ: SBGI) says its board has declared a special cash dividend of $1.00 per share and a quarterly cash dividend of $0.15 per share on the company’s Class A and Class B common stock. The dividends are payable on December 14, 2012, to the holders of record at the close of business on November 30, 2012.

 

The combined dividend is a yield of 9.25%. Sinclair Broadcast has an equity summary score of 9.9 out of 10 for a VERY BULLISH outlook.

 

Commerce Bancshares, Inc. (NASDAQ: CBSH) announced that its Board of Directors approved a 5% stock dividend payable on December 17, 2012 to shareholders of record at the close of business on November 30, 2012. Commerce Bancshares closed at $38.38.  This makes the 5% stock dividend worth $1.92 in current stock value.

For beginners, Commerce Bancshares is offering .05 shares of stock for each 1 share owned by the investor (this excludes fractional shares).  For example, an investor holding 100 shares of CBSH will receive an additional 5 shares for their 5% stock dividend.

Also the Board of Directors approved a regular quarterly dividend of $0.23 per share on the company’s common stock and also authorized a special cash dividend of $1.50 per share.  This is a combined cash yield of 4.51% for the special and regular dividends.

Both dividend payments will be payable December 17 to stockholders of record at the close of business on November 30, 2012. The dividend will not be payable on any shares to be issued pursuant to the 5% stock dividend also declared on this date.

Commerce Bancshares has an equity summary score of 7.6 out of 10 for a BULLISH outlook.

HollyFrontier Corp.’s (NYSE: HFC) Board of Directors approved a 33% increase in its regular quarterly cash dividend to $0.20 per share from the current rate of $0.15 per share. The regular dividend will be paid on December 21, 2012 to holders of record of common stock on December 10, 2012.

The company also announced today a special cash dividend in the amount of $0.50 per share. The special dividend will be paid on November 30, 2012 to holders of record of common stock on November 15, 2012.

HFC is trading at $37.72 making the combined dividend payout with a yield of 1.86%.  HollyFrontier Corp has an equity summary score of 9.7 out of 10 for a VERY BULLISH outlook.

Masimo (NASDAQ: MASI)  announced that its Board of Directors has declared a special cash dividend of $1.00 per share, payable onDecember 11, 2012 to stockholders of record as of the close of business on November 27, 2012.  The special dividend is a yield of 4.5%.

The payout for the special $1.00 per share cash dividend announced today is expected to be about $57.2 million, based on the current shares outstanding, and will be reflected in the company’s fourth quarter and full year 2012 financial statements.  The special dividend payout represents only a portion of the company’s cash reserves, which the Board believes is sufficient to cover operational needs, and fund continued research and development investments and strategic initiatives.

Masimo has an equity summary score of 6.9 out of 10 for a NEUTRAL outlook.

Astec Industries, Inc. (NASDAQ: ASTE) announced that the Board of Directors declared a special one-time dividend of $1.00 per share to be paid on December 12, 2012 to shareholders of record as of November 20, 2012. The special dividend is a yield of 11.1%. Astec Industries has an equity summary score of 2.6 out of 10 for a BEARISH outlook.

Commenting on the declaration of the Astec dividend, Dr. Brock said, “We have maintained a strong balance sheet for several years but have not found the right acquisitions in which to invest our excess cash.  While acquisitions are still a high priority for us, the Board of Directors decided to declare a special one-time dividend as a tangible return of value to our shareholders while the tax rates are still advantageous.”

On November 1, 2012 the board of directors at Universal American Corp (NYSE: UAM) approved a dividend of 1.00 per share. The dividend is payable on November 19, 2012 to shareholders of record on November 12, 2012.  The special dividend is a yield of 11.1%. Universal American has an equity summary score of 2.6 out of 10 for a BEARISH outlook.

The Board of Directors of RGC Resources, Inc. (NASDAQ: RGCO) declared a special dividend of$1.00 per share on the Company’s common stock. The dividend will be paid on December 17, 2012 to shareholders of record on November 30, 2012.  The special dividend is a yield of 5.5%. RGC Resources has an equity summary score of 1.9 out of 10 for a BEARISH outlook.

Company Shares Blowout Earnings with a Special Dividend

Television broadcasting company Sinclair Broadcast Group, Inc. (NASDAQ: SBGI) sees revenues increase 49% in quarter, 36% in 9 months and net income increase of 59% over 9 months 2012.  Sinclair rewarded shareholders with a special dividend added to the regular quarterly dividend.

The Company announced that its Board of Directors has declared a special cash dividend of $1.00 per share and a quarterly cash dividend of $0.15 per share on the Company’s Class A and Class B common stock.  The dividends are payable on December 14, 2012, to the holders of record at the close of business on November 30, 2012.  Sinclair is currently trading at $13.21 so the combined dividend yield is 8.71%.

Net broadcast revenues from continuing operations were $226.4 million for the three months ended September 30, 2012, an increase of 49.0% versus the prior year period result of $151.9 million.  The Company had operating income of $78.6 million in the three-month period, as compared to operating income of $52.4 million in the prior year period.  Net income attributable to the Company was $26.2 million in the three-month period, versus net income of $19.2 million in the prior year period.

The Company reported diluted earnings per common share of $0.32 for the three-month period ended September 30, 2012 versus diluted earnings per common share of $0.24 in the prior year period. Excluding $3.4 million in one-time expenses related to the Company’s amendment of its bank credit facility, net of taxes, diluted earnings per share would have been$0.36 in the third quarter 2012.

Net broadcast revenues from continuing operations were $637.6 million for the nine months ended September 30, 2012, an increase of 36.5% versus the prior year period result of $467.2 million.  The Company had operating income of $210.2 million in the nine-month period, as compared to operating income of $162.1 million in the prior year period.  Net income attributable to the Company was $85.7 million in the nine-month period, versus net income of$53.1 million in the prior year period.

The Company reported diluted earnings per common share of $1.05 in the nine-month period ended September 30, 2012 versus diluted earnings per common share of $0.66 in the prior year period.

Sinclair Broadcast Group has an equity summary score of 9.9 out of 10 for a VERY Bullish outlook.  The stock has a 12-month price target of $15.

Sinclair Broadcast Group, the largest and one of the most diversified television broadcasting companies, owns and operates, programs or provides sales services to 74 television stations in 45 markets.  Sinclair’s television group reaches approximately 26.3% of U.S. television households and is affiliated with all major networks.

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