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Special Dividend Candidates

As the fiscal cliff approaches, it seems many companies are looking at the possibility of paying special dividends. In just the last few days Costco (NASDAQ:COST), National Beverage (NASDAQ:FIZZ), Las Vegas Sands (NYSE:LVS) and AOL (NYSE:AOL) just to name a few have announced special dividends. Speculation is ripe that Apple (NASDAQ:AAPL), Oracle (NYSE:ORCL), Microsoft (NASDAQ:MSFT) and Wynn (NASDAQ:WYNN) could also be considering such a move.

Looking beyond the headlines, there are many companies where we could see some action. So who are some likely candidates that are outside the beaten path? This scan looks for companies with high insider ownership (they will have special incentive to take gains this year), companies that can afford to make a payment (quick ratio >1 and plenty of cash on hand), they are at least $500 million in market capitalization and they currently pay a dividend (so adding a special payout would be procedurally rather easy). That brings up this list:

Ticker

Company

Industry

Recent Price

Cash / Share

Cash % of Price

(NYSE:AVX)

AVX Corp

Diversified Electronics

$10.02

$5.25

52%

(NASDAQ:CALM)

Cal-Maine Foods

Food - Major Diversified

$45.19

$8.75

19%

(NASDAQ:GRMN)

Garmin

Scientific & Technical Instruments

$38.74

$7.02

18%

(NASDAQ:IPAR)

Inter Parfums

Personal Products

$19.78

$0.85

4%

(NASDAQ:MOLX)

Molex

Diversified Electronics

$26.37

$3.96

15%

(NYSE:NPK)

National Presto

Appliances

$76.65

$16.45

22%

(NYSE:SCCO)

Southern Copper

Copper

$36.16

$1.82

5%

(NYSE:SMG)

Scotts Miracle Grow

Agricultural chemicals

$40.88

$2.15

5%

(NYSE:TNH)

Terra Nitrogen Company

Agricultural chemicals

$215.52

$8.57

4%

(NYSE:TR)

Tootsie Roll

Confectioners

$26.94

$0.88

3%

(NYSE:TRK)

Speedway Motorsports

Sporting Activities

$15.79

$2.32

15%

Please use this list as a starting point for your own research.

Additional disclosure: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research. Investing includes risks, including loss of principal.

Source: Special Dividend Candidates From Beyond The Headlines