Tag Archives: AWRE

Special Dividend Extravaganza This Coming Week.

Anura Guruge, laughing, picture November 16, 2011.


by Anura Guruge

This might only be of interest to active investors, and if you are as such you probably know much more about this than me. Given that I try to follow the market (though it does me no good) and keep abreast of financial news I have been hearing about ‘special dividends‘, more or less on a daily basis, for the last three weeks. I think it started with Winn Resorts special dividend before Thanksgiving. I missed that. What I am finding is that notification and reporting of special dividends is haphazard at best. That is really the motive for this post. I have been trying, since Thanksgiving, to keep track of what special dividends are in the offing, their ‘yield’ and most importantly the ‘ex-date’ by which you need to get in. I have been appalled by the lack of accuracy that I have seen on some of the financial sites, e.g., getting the ex-date mixed up with the payment date! So, yesterday afternoon, around 3:30pm I decided to compile a quick spreadsheet of what I think is coming up over the next couple of weeks.

As I was compiling the list, while checking the prospect of that stock against ‘Marketwatch‘, I was horrified to realize that AOL and SEM who were both giving out an attractive yield had an ex-date on December 3. That was Monday. Buying the stock on Monday would be too late. To get those specials you had to buy the stock on Friday — and there was only about 25 minutes left of the normal trading day. My first priority however was to call up my 20 year old son. Over the last 6 months he has decided that he wants to play the market. He has all the attributes to be very good at it unlike the father who is a proven dud. He plays chess at a very high level, and to me that skill set has to translate into also playing the market. [He is a junior at Wheaton College (MA) majoring in English in the hope of becoming a lawyer.] He has had mixed success so far given that the last six months have been brutish to say the least. He wasn’t there, so I had to leave him a v-mail. That didn’t leave me much time to do anything before the markets closed. C’est la vie. The joys of being a father.

Anyway, I put together this spreadsheet of the special dividends that I am aware of — and checkout ‘AWARE‘ at the bottom. As far as I can tell this should be accurate. I tried to check out the rates and ex-div dates from the original filings. My real value-add was that I computed realistic ‘yields’ for the specials, marking up the stock price to reflect what it might be by next week. I am not sure whether I will do anything in terms of buying any of these stocks for the dividend. Not sure what the ex-dividend consequences will be for the stock. In theory, special dividends are not backed into the price of the stock, as is the case with standard dividends. That said, I am expecting that most of these stocks will see some kind of price drop after the ex-div date — even if temporary. And then there is the looming ‘Fiscal Cliff’. I am amazed that the market has not had more convulsions. I had expected another 200 point drop last week; yet again demonstrating that I have no clue as to how the market woks. All that said, I will not be surprised if we see 600 point day, up or down, before January 1, 2013.

Anyway, here is my list. I would use ‘Marketwatch‘ to check out the stock. I have highlighted the ones that seem attractive to me, but given my luck and skill it might be best to avoid those and concentrate on the ones that I overlooked. GYRO looks too good to be trust. Costco is likely to do well, with or without the dividend, especially with the Joe Biden endorsement of yesterday. Movado might be a safe bet, as might Lancaster Colony.

December 2012 special dividend list with yields.