In recent weeks, companies have been unloading tons of cash on their investors in droves in the form of surprise dividends. They're doing this because if we go over the fiscal cliff, Bush-era tax cuts will expire sending the dividend income tax from 15% to as much as 43%. Big names offering these special dividends include Costco and Wynn Resorts. Walmart and Oracle are among the companies accelerating dividend payments to beat the potential tax hike. So, which companies will announce next?
Deutsche Bank's David Bianco developed a screening process to see which companies are likely to surprise their investors: We screen S&P 500 non-financial dividend paying stocks on three primary criteria – insider ownership >1%, cash on balance sheet >5%, and domestic sales >50%. Since repatriation taxes need to be paid on foreign profits, only companies with high domestic cash balances are likely to use it to pay a special dividend. We also use two secondary criteria – low net debt to equity, and strong 12 month relative performance vs. the sector. We use all the five criteria to come up with a multifactor score. The screen shows the companies that rank in the top half of the S&P 500 based on the multifactor score. Of the 46 companies that make our special dividend screen five announced a special dividend in 2012.
Source: Business Insider
Related Articles:
- 4 of my 5 Largest Dividend Stock Positions Have Double-Digit Lifetime Returns
- The Best Dividend Stocks In The World Are Found Here
- A Roadmap To Build Wealth With Dividend Stocks
- The Good, The Bad and The Ugly of Dividend Stocks
- 12 Blue Chip Dividend Stocks For When the Chips Are Down
Stocks That Could Pay A Huge Cash Dividend
Posted by D4L | Wednesday, December 12, 2012 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
BDCs can be excellent investment options for those seeking high returns, particularly when acquired at favorable valuations and supported by...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.