This has been a bigger-than-average year for special dividends. These one-time payouts have jumped a whopping 49% year to date through September (Q3), to 559 from 375, according to the latest available data from S&P Dow Jones Indexes.
Paid separately from a company's regular recurring (if any) dividend, special dividends are typically larger than normal dividend payouts. They are generally declared after an exceptionally robust quarter or strong year and/or when a company has a large cash reserve.
Indeed, the recent uptick in special dividends is due in part to the some $2 trillion in cash S&P 500 companies are collectively sitting on. Strong profits have also spurred an increase in extra payouts this year.
Last week brought half a dozen special dividend declarations. That's on top of some 30 announced over the last four weeks.
Following are the six special dividends announced during the week ending Dec. 12.
Buckle Inc. (NYSE: BKE) declared a special $2.77-per-share dividend payable Jan. 27 to shareholders of record Jan. 15. That's more than double the $1.20 the retailer of medium- to high-priced apparel, accessories, and footwear for young men and women shelled out in 2013. The 66-year-old, Nebraska-headquartered company, which operates 463 stores in 44 states, also hiked its quarterly dividend for the second consecutive year. The new quarterly payout increased a penny to $0.23 per share for a near 2% yield.
CME Group Inc. (Nasdaq: CME) announced a special $2-per-share dividend payable Jan. 13 to shareholders of record Dec. 29. The Chicago, Ill.-based options and futures exchange adopted an annual variable (extra) dividend structure in 2012. The move was implemented with the intention of determining how much excess cash was available to return to shareholders. This year's special dividend totals more than $673 million that will be rewarded to investors. Including this special dividend, CME will have paid more than $4 billion in quarterly and special dividends since 2012.
Enzon Pharmaceuticals Inc. (Nasdaq: ENZN) declared a special $0.10-per-share dividend payable Jan. 28 to shareholders of record Jan. 12. This Piscataway, N.J.-based penny stock, founded in 1981, licenses drugs for the treatment of hepatitis C, melanoma, age-related macular degeneration, Crohn's disease, and more.
Omega Flex Inc. (Nasdaq: OFLX) announced a special $0.49-per-share dividend payable Jan. 5 to shareholders of record Dec. 22. The Exton, Pa.-based company makes flexible metal hoses used to transport natural gases and liquids within residential and commercial buildings. With this special dividend, Omega Flex has restated its dividend policy of reviewing the company's cash requirements and possible extra payouts.
PACCAR Inc. (Nasdaq: PCAR) declared a special $1-per-share dividend payable Jan. 6 to shareholders of record Dec. 19. The extra dividend is thanks to strong truck sales in the United States and Canada, robust sales for its parts, and a growing need for its global financial services. "PACCAR's excellent profits and strong cash flow have enabled the company to invest in new innovative quality vehicles, expand its aftermarket distribution centers, and enhance its production facilities," said Chairman Mark Pigott. Chief Executive Officer Ron Armstrong added, "PACCAR's North American customers are benefiting from good economic growth, record freight tonnage, lower fuel prices, and the excellent operating efficiency of our industry-leading Kenworth and Peterbilt trucks." Kenworth and Peterbilt U.S. and Canada Class 8 truck orders through November jumped 46% year over year.
W.R. Berkley Corp. (NYSE: WRB) announced a special $1-per-share dividend payable Dec. 30 to shareholders of record Dec. 18. The extra dividend came on the heels of strong Q3 results, which showed a healthy 37% increase in net income to $189 million. Founded in 1967, W.R. Berkley is an insurance holding company that stands among the largest commercial lines writers in the United States. It operates in three segments of the property casualty insurance business: Insurance-Domestic, Insurance-International, and Reinsurance-Global.
More on Dividend Investing: In addition to special dividends, 40 companies boosted their regular dividend payouts last week. Here are 25 of the most notable recent hikes...
