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 (COST), National Beverage (FIZZ), Las Vegas Sands (LVS) and AOL (AOL) just to name a few have announced special dividends. Speculation is ripe that Apple (AAPL), Oracle (ORCL), Microsoft (MSFT) and Wynn (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 |
(AVX) | AVX Corp | Diversified Electronics | $10.02 | $5.25 | 52% |
(CALM) | Cal-Maine Foods | Food - Major Diversified | $45.19 | $8.75 | 19% |
(GRMN) | Garmin | Scientific & Technical Instruments | $38.74 | $7.02 | 18% |
(IPAR) | Inter Parfums | Personal Products | $19.78 | $0.85 | 4% |
(MOLX) | Molex | Diversified Electronics | $26.37 | $3.96 | 15% |
(NPK) | National Presto | Appliances | $76.65 | $16.45 | 22% |
(SCCO) | Southern Copper | Copper | $36.16 | $1.82 | 5% |
(SMG) | Scotts Miracle Grow | Agricultural chemicals | $40.88 | $2.15 | 5% |
(TNH) | Terra Nitrogen Company | Agricultural chemicals | $215.52 | $8.57 | 4% |
(TR) | Tootsie Roll | Confectioners | $26.94 | $0.88 | 3% |
(TRK) | Speedway Motorsports | Sporting Activities | $15.79 | $2.32 | 15% |
Please use this list as a starting point for your own research.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in ORCL over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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.
