Shareholders of scores of public companies can expect to get some holiday bonuses this year, as many of these firms rush to issue special dividends before a potential 2013 tax hike linked to the fiscal cliff kicks in. The 15% tax rate on dividends will expire with the rest of the “Bush tax cuts” at the end of the year if a deal on the fiscal cliff is not reached, and perhaps even if one is. Rates on dividends may go as high as 39.6% in 2013. It seems that many companies would rather return money to shareholders than the Feds as some — Costco for one — actually are borrowing money to pay out special dividends.
The ex-dividend date represents the date the market discounts the price of the dividend on the stock. To qualify for dividends investors usually must own the stock prior to the ex-dividend date to be considered owners of record on the official closing date. Typically the stock will open lower on the ex-dividend date based on the per-share size of the dividend.
The following 15 companies are doling out the highest total dividends, according to Markit data reported by the Wall Street Journal. There are 128 companies offering special dividends worth an approximate $14.6 billion, according to the WSJ, and their ranks continue to grow. Others, such as CME Group, have decided to move up other special dividends that normally would not have been disbursed until next year. The list is drawn from companies in the Russell 3000 but does not include companies that are moving up the date of regularly scheduled dividends.
15) Dish Network Corp.
Total dividend amount: $213 million
Dividend amount per share: $1.00
Ex-dividend date: Dec. 12, 2012
Dish will pay its dividend to shareholders on Dec. 28, marking the fifth time that it has issued a dividend in the past 13 years, according to Zacks.
14) The Buckle Inc.
Total dividend amount: $215.74
Dividend amount per share: $4.50
Ex-dividend date: Dec. 5, 2012
Several weeks after announcing its special dividend, the clothing and accessories retailer reported that net sales for the four-week fiscal month ending Nov. 24 increased to $96.7 million, a 1.9% rise over the same period last year.
13) Dillard’s Inc.
Total dividend amount: $216.18 million
Dividend amount per share: $5.00
Ex-dividend date: Dec. 5, 2012
Shareholders of the department store chain can expect an extra stocking stuffer when the company pays out its special cash dividend on Dec. 21. According to CEO William Dillard II, the dividend “reflects [the company’s] strong financial position and underscores our confidence in Dillard’s.”
12) Westlake Chemical Corp.
Total dividend amount: $250.12
Dividend amount per share: $3.75
Ex-dividend date: Nov. 27, 2012
The chemical manufacturer and supplier announced a regular quarterly dividend of just more than 18¢ per share, along with its special dividend payable on Dec. 12. The company, which has declared 33 consecutive quarterly dividends since its August 2004 initial public offering, said that strong financial performance enabled the special dividend payout.
11) Paccar Inc.
Total dividend amount: $282.42 million
Dividend amount per share: 80¢
Ex-dividend date: Dec. 12, 2012
Mark Pigott, chairman and CEO of the heavy-duty truck manufacturer attributed the special cash dividend to “good truck production worldwide, a robust aftermarket business and strong Paccar Financial services profits.” He also cited the success of several new truck models, including the Kenworth T680 and Peterbilt Model 579.
10) Carnival Corp.
Total dividend amount: $297.24 million
Dividend amount per share: 50¢
Ex-dividend date: Dec. 5, 2012
Global cruise company Carnival will pay out its special dividend in addition to a quarterly cash dividend of 25¢ per share. The company, which attracted some negative publicity following the sinking of the Costa Concordia, reported in September that booking volumes and pricing trends have strengthened since June of this year.
9) Ryman Hospitality Properties Inc.
Total dividend amount: $309.85 million
Dividend amount per share: $6.84
Ex-dividend date: Nov. 8, 2012
Ryman, which owns and operates properties including the Grand Ole Opry in Nashville, Tenn., is issuing its special dividend as part of an ongoing plan to qualify as a real estate investment trust (REIT) for income tax purposes before the start of 2013.
8) Tellabs Inc.
Total dividend amount: $367.53 million
Dividend amount per share: $1.00
Ex-dividend date: Dec. 12, 2012
The telecommunications company announced a special cash dividend on Nov. 29, the same day its board appointed Daniel P. Kelly CEO and president. Its shares rose the most since their initial 1983 public offering on the day of the news, Bloomberg reported.
7) Whole Foods Market Inc.
Total dividend amount: $371.05 million
Dividend amount per share: $2.00
Ex-dividend date: Dec. 6, 2012
The organic and natural foods retailer will pay out its dividend on Dec. 21. The company’s co-founder and co-CEO John Mackey said in a statement that “[Whole Foods] believes we will continue to generate strong cash flows and are confident in our ability to maintain a healthy cash reserve…”
6) Brown-Forman Corp.
Total dividend amount: $515.42
Dividend amount per share: $4.00
Ex-dividend date: Dec. 10, 2012
Brown-Forman, the maker of alcohol brands including Jack Daniel’s, Korbel and Southern Comfort, announced both a special cash dividend and a 9.3% increase in its regular cash dividend. Earlier this month, the company reported that net sales were flat in the quarter and increased 6% on an underlying basis.
5) Loral Space & Communications
Total dividend amount: $616.19
Dividend amount per share: $29
Ex-dividend date: Dec. 5, 2012
The satellite communications company saw shares rise 5.4% following its dividend announcement. The cash will reportedly come from the sale of Loral’s subsidiary, Space Systems/Loral.
4) Alexanders Inc.
Total dividend amount: $622.93 million
Dividend amount per share: $122
Ex-dividend date: Dec. 21, 2012
The real estate trust’s Board of Directors announced its special long-term capital gain dividend on Nov. 30, the same day that it completed the $751 million sale of the King’s Plaza Mall in Brooklyn.
3) Franklin Resources Inc.
Total dividend amount: $636.88 million
Dividend amount per share: $3.00
Ex-dividend date: Dec. 4, 2012
Franklin Resources Inc., as known as Franklin Templeton Investments, is offering its special cash dividend to stockholders of record at the close of business on Dec. 6. But that isn’t the only good news for investors: The company is also upping its quarterly dividend by 7%, marking the 31st consecutive year that it has raised its dividend.
2) Las Vegas Sands Corp.
Total dividend amount: $2,264.48 million
Dividend amount per share: $2.75
Ex-dividend date: Dec. 6, 2012
The resort company, which owns the popular Palazzo and Venetian hotels in Las Vegas, announced that it will pay out its special dividend — its first such distribution — on Dec. 18. Las Vegas Sands Chairman Sheldon Adelson, who stands to gain $1.2 billion from the dividend payout, said that the company plans to increase its annual dividend to $1.40 per share starting in 2013.
1) Costco Wholesale Corp.
Total dividend amount: $3,026.97 million
Dividend amount per share: $7.00
Ex-dividend date: Dec. 6, 2012
On Nov. 28, the big box retailer announced that it would pay shareholders roughly $3 billion in dividends, with the money reportedly coming from a $3.5 billion debt offering. The company also reported November net sales of $8.15 billion, an increase of 9% over the same period last year.
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