To Pay Or Not To Pay Accelerated Or Special Dividends? A Taxing Question Indeed.

Late Friday two more high profile companies announced a special or accelerated dividend. Expedia, Inc. (EXPE), the online travel portal, announced a $.52 per share special dividend. The Washington Post Company (WPO) announced that it will accelerate its entire 2013 dividend, paying it in one $9.80 installment on December 27, 2012. And with Costco taking on debt to pay its shareholders a special $3 billion dividend just before Christmas (December 18 to shareholders of record on December 10) the rest of the Holiday nee Fiscal Cliff Season will make for interesting dividend announcement anticipation. The rationale behind these dividend decisions were not stated but it's a pretty safe bet the decisions were influenced by the likelihood of the present favorable tax treatment of dividend income changing. Ever since the Bush tax cuts of 2003 dividend recipients have paid a maximum 15 percent on their dividend payments. Unless... Read more