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Posts Tagged ‘payment of a special dividend’

Companies Likely To Pay Special Dividends

Goldman Sachs has identified 15 companies as likely candidates to declare special dividends before tax hikes go into effect at the start of 2013.

The list includes MasterCard Inc. (MA), Wynn Resorts Ltd. (WYNN), and Stryker Corp. (SYK).

“A well capitalized corporate America, flush with cash, and a potential shift, regardless of party, in the tax rate higher in 2013 augur a wave of special dividend announcements, in our view,” said analysts at Goldman Sachs in a report.

Goldman noted that gross cash among non-financial firms has risen 55% since the end of 2007 and total cash to enterprise value has increased to 9% from 6% during the same period.

The scheduled expiration of tax cuts at the end of the year, part of the so-called fiscal cliff, means that dividends are likely to be taxed as ordinary income in 2013 at a rate of up to 43.4% versus 15% currently, according to the analysts.

“The 2001/2003 tax cuts were originally set to expire at the end of 2010, though, after months of political negotiations, the rates were extended in the final weeks of that year.  Indeed 2010, saw the highest number of one-time dividend announcements, more than double the run-rate of 2000-2011 period,” they said.

In the last 12 years, 75% of companies that declared a special dividend outperformed the S&P 500 in the two days following. “The average outperformance over the two days and the 3 months following the announcement was 330 basis points and 380 basis points, respectively,” said the analysts.

They also noted that historically, announcements for special dividends tend to be concentrated in the fourth quarter.

Companies flush with cash are also increasing their ordinary dividends. In the past week, 8 members of the S&P 500 have raised their dividends. In the S&P 500 as a whole, 403 companies are currently paying dividends, the highest number since November 1999, according to Howard Silverblatt, S&P senior index analyst.

The complete Goldman Sachs special dividends candidate list:

Federated Investors Inc. (FII)

Franklin Resources Inc. (BEN)

General Dynamics Corp. (GD)

Interval Leisure Group Inc. (IILG)

Las Vegas Sands Corp. (LVS)

Mastercard Inc. (MA)

Molex Inc. (MOLX)

Och-Ziff Capital Management Group (OZM)

Patterson Companies Inc. (PDCO)

Pzena Investment Management Inc. (PZN)

Stryker Corp. (SYK)

TransDigm Group Inc. (TDG)

Western Refining Inc. (WNR)

Williams-Sonoma Inc. (WSM)

Wynn Resorts Ltd. (WYNN)


Source: MarketWatch.

HollyFrontier Declares 4th Special Dividend in 2012

HollyFrontier Corporation (NYSE:  HFC) announced  that its Board of Directors declared an additional special cash dividend in the amount of $0.50 per share, payable on October 2, 2012 to holders of record of common stock on September 25, 2012.

Mike Jennings, CEO and President of HollyFrontier, said, “Our Board of Directors’ decision to issue a 2nd special dividend for the third quarter 2012, our 4th special dividend this year, and our 6th special dividend since the completion of the merger that formed HollyFrontier in July 2011, is a reflection of our continued commitment to return capital to shareholders. The Board of Directors has declared $3.00 of special and regular dividends in the last twelve months representing a 7.5% dividend yield on today’s closing price of $40.00 per share. In total, HollyFrontier has returned $952 million of capital to shareholders since July 2011, $741 million in special and regular dividends as well as $211 million in share repurchases of its common stock as of the second quarter results announcement.”

HollyFrontier said last month that its second-quarter profit more than doubled as the refiner saw strong revenue growth, helped by the merger. The company has benefited from increased oil production in the Bakken region of North Dakota and the Permian Basin in Texasand New Mexico, as a glut of crude oil in the midcontinental region has allowed HollyFrontier to boost refining margins.

HollyFrontier is trading at $40.00, 49% below its fair value of $59.77.  HollyFrontier pays a quarterly dividend of 1.50%.  HollyFrontier has an equity summary score of 9.4 out of 10 for a VERY Bullish outlook.

Subscribers to the Get Rich Monthly Income Plan have been investing in HollyFrontier since January 2012 with a total return of 134% year to date.

Soufun Holdings Announces a 7.5% Cash Dividend

SouFun Holdings Limited (NYSE: SFUN), the leading real estate and home furnishing Internet portal in China, today announced that its board declared a cash dividend of US $1.00 per share on the Company’s ordinary shares, which will be paid by September 28, 2012 to shareholders of record as of the close of business on September 6, 2012. Based on the current stock price, the special dividend will be a 7.5% dividend yield.

SouFun reported Q2 EPS of $0.48, topping the analyst estimate of $0.41.  Revenue for the quarter came in at $97 million, topping the $91.62 million analysts had forecast.  Net income attributable to shareholders recorded a year-over-year increase of 63.5% to US$46.9 million, or US$0.58 per fully diluted share.  SouFun raised its revenue guidance for fiscal year of 2012 from between US$380.0 million and US$400.0 million to betweenUS$390.0 million and US$410.0 million, representing a year-on-year increase of 13.4% to 19.2%.

AOL Offers a 15% Special Dividend

AOL Inc. (NYSE: AOL) authorized a special, one-time, cash dividend of $5.15 per share, payable on December 14, 2012 to shareholders of record at the close of business on December 5, 2012.  AOL does not currently pay a regular dividend.  Based on the current AOL stock price, the $5.15 special dividend will result in a dividend yield of 15%.

AOL has agreed to repurchase $600 million worth of common stock under the ASR Agreement, utilizing the share repurchase authorization previously approved and an incremental $10 million authorized by the Company on August 26. AOL will pay the $600 million at the beginning of the ASR Agreement and expects to receive shares throughout the remainder of the year and a substantial majority of the shares underlying the transaction before year-end, including approximately 4 million shares that Barclays will deliver to AOL onAugust 30.

The moves underscore AOL’s desire to establish a new image — a shareholder-friendly reputation — following years of presenting haphazard strategies and poorly received initiatives.

AOL has an equity summary score of 7.7 out of 10 for a Bullish outlook.

HEES Offers a 39% Special Dividend

H&E Equipment Services, Inc. (NASDAQ: HEES) announced that its Board of Directors declared a one-time special cash dividend (the “Dividend”) of $7.00 per share, payable on September 19, 2012 to stockholders of record at the close of business on September 5, 2012. The aggregate amount of the payment to be made in connection with the Dividend will be approximately $246 million. The Dividend will be funded by the proceeds of the Company’s offering of $530 million aggregate principal amount of 7% senior notes due 2022, which closed on August 20, 2012.

At $7 per share, the Dividend represents approximately 39% of the Company’s stock price.  HEES has a market cap of $633 million.

On August 2, H&E Equipment Services reported Q2 earnings of $0.30 per share, versus the Capital IQ consensus of $0.24. Revenues were $209 million, versus the analyst estimate of $206.59 million.  In the same period last year, the company reported EPS of $0.08 on revenues of $184.34 million.

H&E Equipment Services, Inc. operates as an integrated equipment services company. The company rents, sells, and provides parts and service support for hi-lift or aerial work platform equipment, crane, earthmoving equipment, and industrial lift truck categories.

HollyFrontier Corporation Announces Special and Regular Dividends

HollyFrontier Corporation (HFC) announced today that its Board of Directors declared a special cash dividend in the amount of $0.50 per share, payable on September 4, 2012 to holders of record of common stock on August 27, 2012.

The Board of Directors also approved a regular quarterly dividend of $0.15 per share. This dividend will be paid on October 2, 2012 to all holders of record of common stock on September 10, 2012.

Mike Jennings, CEO and President of HollyFrontier  said, “After last week’s outstanding second quarter results, our Board of Directors authorized another special dividend, the fifth since our July 2011 merger. Over the last twelve months we have returned$2.42 per share in cash to shareholders through regular and special dividends, which equates to a more than 6% yield on today’s closing price of $39.59 per share.”

Subscribers to the Get Rich Monthly Income Plan have an YTD return on HFC of 96% (excluding recent special dividend) from investing in a perpetual covered call position.  MIP investors also collected a $0.50 special dividend from HFC in June 2012.

Neutral Tandem (IQNT) Announces Special Dividend

Neutral Tandem, Inc. (IQNT), doing business as Inteliquent, provides interconnection and interoperability solutions worldwide.  It offers voice, IP transit, and Ethernet telecommunications services primarily on a wholesale basis.  The company announced its intention to declare and pay a special one-time cash dividend in an amount between $4.80 and $5.65 per share, or between approximately $155 – $180 million in aggregate, during the fall of 2012, subject to market and other conditions.  IQNT is currently trading at $12 per share making the special dividend yield of 40% or more.

The company earnings were well below estimates on slowing sales to telecom service provider customers.  However, Thomas White/Global Capital upgraded NEUTRAL TANDEM INC to FAVORABLE on August 13, 2012.  IQNT has an equity summary score of 6.3 out of 10 for a Neutral outlook.

Bottom line: This is a stock to watch going forward as the special dividend is huge (40%) but the company must get its earnings turned around before Fall.  The company had $165 million in current assets as of 6/30.

Get a Special Dividend of $10.41 for a 25% Dividend Yield.

Choice Hotels International, Inc. (CHH) announced that the Company’s Board of Directors has declared a special cash dividend in the amount of $10.41 per share, resulting in an aggregate payment amount of approximately $600 million. The record date for the special cash dividend is August 20, 2012 and the special cash dividend will be paid on August 23, 2012.  The Company has been informed by the New York Stock Exchange that, in accordance with its rules, the ex-dividend date is expected to be August 24, 2012.  Accordingly, stockholders who sell their shares on or before the payment date will not be entitled to receive the special cash dividend.

CHH is trading at $41.07 so the special dividend is a 25% dividend yield.  In addition, CHH pays a quarterly dividend with a dividend yield of 1.80%.

Choice Hotels International, Inc. franchises more than 6,100 hotels, representing more than 495,000 rooms, in the United States and more than 30 other countries and territories. As of March 31, 2012, more than 350 hotels were under construction, awaiting conversion or approved for development in the United States, representing more than 30,000 rooms, and approximately 80 hotels, representing approximately 7,000 rooms, were under construction, awaiting conversion or approved for development in approximately 20 other countries and territories.

4 Special Dividend Stocks – One Stock with a 18.7% Special Dividend Yield

Aware, Inc. (AWRE), a leading supplier of biometrics software and DSL service assurance products, today announced that its Board of Directors has declared a special cash dividend of $1.15 per share, or approximately $24 million in total. The special dividend will be paid on May 25, 2012 to shareholders of record as of May 11, 2012.

AWRE closed at $6.15 for a one-time special dividend yield of 18.7%.

Anixter International Inc. (AXE), a leading global distributor of communication and security products, electrical and electronic wire & cable, fasteners and other small parts, today announced that its Board of Directors declared the payment of a special dividend to shareholders of $4.50 per common share, or a total cash outlay of approximately $150 million. The special dividend is payable on May 31, 2012 to shareholders of record on May 16, 2012.

AXE closed at $69.43 for a special one-time special dividend yield of 6.5%.

LPL Financial (LPLA) just widened the gulf between itself and other competitors after announcing a $2 special dividend payout to shareholders slated for May, and plans to initiate smaller quarterly payments thereafter, industry observers said.  After May, investors holding LPL Financial’s common stock can expect regular quarterly dividend payments, initially of up to $0.12 per share, according to the company.  The dividend is payable on May 25, 2012 to all common stockholders of record as of the close of business as of May 15, 2012.

LPLA closed at $36.98 for a total one-time special dividend yield of 5.47%.

Diamond Offshore Drilling, Inc. (DO) announced today that the Company has declared a special quarterly cash dividend of $0.75 per share of common stock and a regular quarterly cash dividend of $0.125 per share of common stock.  Both dividends are payable on June 1, 2012 to shareholders of record on May 1, 2012.

DO closed at $68.00 for a total one-time special dividend (special plus regular dividend) yield of 1.29%.


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