Expect Another Special Dividend From Limited Brands

I've been looking for companies that reward their shareholders. Limited Brands (LTD) handed out two special dividends to shareholders in 2010, totaling $4 a share. That caught my eye. Up until 2010, LTD had sent the same 15 cents to investors for each of the last 24 quarters; they hadn't dropped a special dividend since 2004. Is this the start of a more "special" relationship with investors or merely a one-time largesse? For those unfamiliar with LTD, the company is composed of Victoria's Secret, Bath and Body Works, and La Scenza (currently a smaller portion of the business that sells overseas). LTD has the prerequisites needed to be mega shareholder friendly: a big insider position and bountiful cash generation. LTD has a whopping 17% insider holdings. I find companies with large insider positions tend to look for ways to reward shareholders. It makes sense: Management and shareholders' interests are aligned.... Read more

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