Extra-large dividends this year?

Anyone tracking or have any idea how many companies are paying out extra-large dividends in advance of the upcoming tax hikes?

I know Costco is paying out a very large dividend and Oracle has announced (or it is rumored they will announce) it will pay three quarters worth of dividends this quarter, for example.

I'm thinking more in terms of mutual funds, so are these outliers or is there a move that will actually meaningfully affect the qualified dividends distributions of various broad-based index funds for the December payouts?

Reply to
Rich Carreiro
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I haven't seen a tally, keep seeing announcements. Oracle was mentioned recently and given how big Larry Ellison's stake is, it seems an example of the kind of company with an incentive to do this. It'll be much more common with closely-held companies taxed as c-corps, but whenever there is a bunch of cash sitting in the business and founders/major stockholders who want that cash eventually, there's an incentive to pay some a lump before the tax hit gets bigger.

On the numbers I expect smaller companies to be the bigger source of large special dividends.

I read that Oracle's decision was not something Ellison voted on, though that doesn't necessarily mean his preferences weren't factored into the decision. Heck he'll be able to pay for that broken mast on his America's Cup boat with the tax savings! And a few more, which may come in handy.

-Tad

Reply to
Tad Borek

CNBC has been keeping a tally, and I think I saw about 7 so far. Their last newsbreak was to announce companies that had decided against the dividend! I guess more important than the number is the percent size of the payouts, and I didn't follow that.

More than ever this year, it can be worth it to tap brokerage web pages to give estimates of YTD dividends and cap gains in case you need to juice up tax prepayments. My less favorite brokerage will not total my YTD dividends, and sneaks in zero basis for pre

2011 stocks even when they are sold together with post 2011 ones.
Reply to
dumbstruck

Cnbc has totaled even the small company special div payouts as 132 companies and rising, with a total of 27 billion $ sent

Reply to
dumbstruck

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