Sycamore Networks (SCNR) has declared a $10 special dividend payable to shareholders on record 1 October. With a price just around $15 that is a 67% yield just for the special dividend. Even with the dividend it will be in great cash position, while reporting sharp increases in revenue.
This is a great first sign of what could be a record-setting special dividend season. As I stated in this article,a number of factors are liable to encourage corporate boards to reward investors by paying out some of the massive cash hoards they are sitting on.
I'm buying Sycamore as we speak and hope to land some more special situation the next few months.
Disclosure: I am long SCMR.
Additional disclosure: I have purchased SCMR in the last 24 hours