More Companies Look to Pay Special Dividends Ahead of Impending Tax Hike (GYRO) (TSN)
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As Gyrodyne Co. (Nasdaq: GYRO) so deftly demonstrated Monday night, companies are looking to beat the impending fiscal cliff. The company declared a massive $38.30 per share special dividend today, which yields about 35.5 percent at latest trading prices.
Other companies like Wynn Resorts (Nasdaq: WYNN), IDT (NYSE: IDT), Sturn Ruger (NYSE: RGR) are all making special payouts as taxes on dividends are expected to climb if no solution is reached by the end of the year.
Data compiled by Bloomberg from September to the middle of November has 59 companies in the Russell 3000 index making the one-time payout, up from 15 in the prior year.
Should no solution be reached, the cushy 15 percent dividend tax rate will be erased and move to the ordinary income rate of at 39.6 percent. With companies sitting on an aggregate $3 trillion in cash, giving some back now makes perfect sense.
Commerce Bancshares (Nasdaq: CBSH) CFO Charles Kim commented today that investors were actually thanking the bank after the announcement of a $1.50 per share special dividend. None were asking for it, Kim said, but they showed appreciation afterward.
Other notable names paying a special one-time dividend include Tyson Foods (NYSE: TSN) of 10 cents, Franklin Resources (NYSE: BEN) or $3 Westlake Chemical of $3.75, and Carnival Corp. (NYSE: CCL) of 50 cents. For a full list of recent announcements, click here.
Other companies like Wynn Resorts (Nasdaq: WYNN), IDT (NYSE: IDT), Sturn Ruger (NYSE: RGR) are all making special payouts as taxes on dividends are expected to climb if no solution is reached by the end of the year.
Data compiled by Bloomberg from September to the middle of November has 59 companies in the Russell 3000 index making the one-time payout, up from 15 in the prior year.
Should no solution be reached, the cushy 15 percent dividend tax rate will be erased and move to the ordinary income rate of at 39.6 percent. With companies sitting on an aggregate $3 trillion in cash, giving some back now makes perfect sense.
Commerce Bancshares (Nasdaq: CBSH) CFO Charles Kim commented today that investors were actually thanking the bank after the announcement of a $1.50 per share special dividend. None were asking for it, Kim said, but they showed appreciation afterward.
Other notable names paying a special one-time dividend include Tyson Foods (NYSE: TSN) of 10 cents, Franklin Resources (NYSE: BEN) or $3 Westlake Chemical of $3.75, and Carnival Corp. (NYSE: CCL) of 50 cents. For a full list of recent announcements, click here.
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