These Dividends Are Nothing Special

Now more than ever, investors are paying close attention to stocks that pay dividends. But when you evaluate a dividend announcement from a company, you have to remember that the only thing a dividend does is move money from the company to its shareholders. That's why the attention "special" dividend announcements get often makes little sense. Unlike regular dividends, the primary purpose of most special dividends is simply to soak up excess capital. Buying into companies that make such payouts at highly inflated prices is a short-sighted move that can cost you in the long run.... Read more