Special Dividends: Which 3 Companies Are Next?

The race is on: The 15% tax on dividends ends December 31. Unless Congress acts, dividends will be taxed as ordinary income starting in 2013. That leaves precious little time for cash-rich companies to reward their shareholders with special dividends. Back in January, I selected seven companies likely to give large special dividends this year. To get on the list, a company had to fill two key criteria: Insiders had to hold a high share percentage and the company had to have given a special dividend in 2010, the last time the dividend tax treatment was scheduled to end. The original list - Armstrong World (AWI), Buckle (BKE), Limited Brands (LTD), MTOX Scientific (MTOX), Stamps.com (STMP), Werner Enterprises (WERN), and Wynn Resorts (WYNN) - is quickly getting shorter. So far, Armstrong and Limited Brands have handed investors sizable special... Read more