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That was good timing. Monday, I predicted the apparel retailer, The Buckle (NYSE:BKE), would announce a large special dividend at its November board meeting.

Buckle didn't let me down. The company just announced a $4.50 special dividend in addition to its usual $0.20 regular dividend to be paid to shareholders of record at the close of business December 7. This special dividend is Buckle's fifth in a row.

This is a whopping one-time dividend. None of its past special dividends comes close in size. Together with its $0.20 regular dividend, Buckle is paying out a 10% dividend. There are two implications:

1. Buckle likely had an unusually good quarter. Consider: Buckle had $197 million in cash and short-term investments on its balance sheet when it last reported in August. That's $4.10 a share. The company is expected to earn another $40 million, or $0.83 a share, for the upcoming quarter. It appears that those estimates are probably too low - otherwise, Buckle wouldn't have the dough for a special dividend this size. The Buckle probably will beat earnings estimates handily when it reports later this month.

2. The Buckle is one of the most heavily shorted stocks - nearly 34% of the float is held short. Expect a large short squeeze, something I suggested in the past, as the shorts rush to become shareholders. I doubt they'll want to pay the $4.70 or stay short in the face of what will likely be a great quarterly report.

This remarkable company continues to reward its loyal shareholders and deserves favorable investor attention.

The Buckle has taken advantage of this year's 15% dividend tax treatment by issuing a very generous special dividend. That leaves only two companies on my original list - Werner Enterprises (NASDAQ:WERN) and Stamps.com (NASDAQ:STMP) - yet to announce special dividends. It's a good bet they, too, will squeeze in a large special dividend before year's end to take advantage of what may be the last favorable dividend tax treatment. Werner and Stamps.com shareholders may be getting November surprises.

Source: What Does Buckle's Special Dividend Say About The Upcoming Quarter?

Additional disclosure: Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.