The Fiscal Cliff is having a real impact on firms that want to maximize shareholder returns right now. That's showing through in dividend payouts this month. Just on Wednesday, for instance, wholesale club Costco (COST_) announced a special $7 per share dividend payout for investors that prompted 6.3% rally in shares that day.
Clearly, investors are rewarding companies that opt to give them cash ahead of the looming possibility of a tax hike on dividend income. Costco isn't alone, even if its $3 billion special dividend is the biggest of the bunch -- a handful of firms have announced special dividend payouts to reward investors before the cliff.
Source: The Street
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