Latest news with #specialdividends
Yahoo
5 days ago
- Business
- Yahoo
Summit Bancshares (SMAL) Surprises Investors with a Special Dividend in 2025
Summit Bancshares, Inc. (OTC:SMAL) is included among the 14 Stocks that Paid Special Dividends in 2025. A financial advisor in a suit, pen in hand, talking to a client in the bank. Summit Bancshares, Inc. (OTC:SMAL), operating through its subsidiary Summit Bank, delivers a range of commercial lending and banking services across California. Its offerings include checking and savings accounts, along with certificates of deposit. The company also extends various types of loans, such as those for commercial real estate, land development, construction, and both business and personal needs. In addition, it issues letters of credit. At its meeting on April 16, 2025, the Board of Directors of Summit Bancshares, Inc. (OTC:SMAL) announced a special cash dividend of $0.43 per share to mark the bank's 43rd anniversary. This special payout replaces the company's regular quarterly dividend. Summit Bancshares, Inc. (OTC:SMAL) has a strong track record of returning value to shareholders through special dividends, having issued several of them since 2016. While we acknowledge the potential of SMAL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None.
Globe and Mail
17-06-2025
- Business
- Globe and Mail
4 Stocks Raising Dividends Across Energy, Retail & More
Dividends are getting boosted across different sectors and industries in the market. This is important to see. Dividend increases across sectors allow for growing income opportunities while also allowing a way for yield-seeking investors to achieve diversification. Below are the details on four names across energy, consumer discretionary, industrials and financials that are increasing payouts. All data uses information as of the June 6 close unless otherwise indicated. EOG: +3% Energy Yielder With Huge Special Dividend Upside First up is a big player in the energy sector, EOG Resources (NYSE: EOG). EOG is an upstream oil, natural gas and natural gas liquids company. Along with announcing that it will acquire Encino Acquisition Partners, the company also boosted its dividend on May 30. Its quarterly dividend will increase to $1.02, a lift of 5%. The next dividend will be payable on Oct. 31 to stockholders of record as of Oct. 17. This indicates an annual dividend of $4.08. Overall, the firm now has a very strong regular dividend yield of just under 3.6%. This doesn't include the effect of potential special dividends, which the firm has been known to utilize. From 2021 to 2023, EOG announced eight special dividends. These special dividends totaled $11.30 per share, a very large figure compared to the stock's price of around $114. This doesn't mean that special dividends will come anytime soon, as the company hasn't announced one since November 2023. Still, the fact that EOG has used special dividends significantly in the past creates strong income upside potential. LOW: Dividend Up 4%, Payout Has Risen Briskly Since Fiscal 2021 Next up is home-improvement store operator Lowe's Companies (NYSE: LOW), which is in the consumer discretionary sector. Lowe's recently announced a 4% increase to its quarterly dividend to $1.20 per share. This dividend will be payable on Aug. 6 to shareholders of record as of July 23. The company's dividend has now increased for more than 25 years in a row. This gives the firm a solid dividend yield of 2.1%. This is a particularly strong yield compared to Lowe's sector. Notably, the Consumer Discretionary Select Sector SPDR Fund (NYSEARCA: XLY) has a dividend yield of just 0.7%. However, Lowe's still has a bit of catching up to do to reach the dividend yield of its much larger competitor, Home Depot (NYSE: HD). Home Depot's dividend yield stands at around 2.5%. Still, Lowe's has done well in increasing its dividend yield over the past several years. Compared to fiscal 2021, the company's indicated annual dividend per share has now more than doubled. DCI: Raises Dividend Double-Digits, Yield Exceeds S&P Industrials Donaldson (NYSE: DCI) is an approximately $8.2 billion industrials company that is also giving its dividend a shot in the arm. The company makes and sells liquid and air filtration systems across a variety of industries. It has achieved a solid, but still underperforming, return of around 39% over the past three years. The company recently increased its dividend by more than 11% to $0.30 per share. The dividend is payable on June 30 to shareholders of record on June 16. This marks the 29 years in a row that the company has increased its dividend. Donaldson now has a moderate dividend yield of 1.7%. Still, this is higher than the 1.3% yield of the Industrial Select Sector SPDR Fund (NYSEARCA: XLI). It is also greater than the 1.2% yield of the S&P 500 Index. CB: Solid Dividend Increase Plus Multi-Billion Dollar Buyback Authorization Last up is Chubb (NYSE: CB), a financial services stock in the insurance industry. Over the last three years, Chubb has had a solid total return of over 47%. Chubb recently approved a dividend increase of 6.6%, boosting its streak of annual dividend increases to 32 years. The next $0.97 quarterly dividend will be payable on July 3 to shareholders of record at the close of business on June 13. Chubb has an above-market dividend yield of 1.3%. The company also announced a $5 billion buyback program, equal to around 4.3% of its market cap. These four names are reiterating their commitments to return capital to shareholders by lifting their dividends. EOG and Lowe's stand out for their special dividend upside and strong dividend growth, respectively. Where Should You Invest $1,000 Right Now? Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
Forbes
01-06-2025
- Business
- Forbes
These 5 Special Dividends Are More Than Meets The Eye
Young businessman working on laptop at home. Most mainstream financial websites are not 'smart enough' to include special dividends. The yields they display reflect plain ol' quarterly or monthly payouts. For most stocks this does not matter. But for a select few 'special payers' this is a costly oversight. One that we can capitalize on as thoughtful contrarians. In a moment we'll discuss five special dividends. The vanilla screens say they pay as little as 3.2% but in reality they dish up to 13.8%! What exactly is a special dividend payment? It is a one-time cash payout, often the result of a massive cash influx from, say, selling off part of the company or having an unusually profitable year. Usually it is a one-shot deal. But it can be a regular thing. Let's consider chicken producer Pilgrim's Pride (PPC), which recently paid a $6.30 per share special dividend. This is a tremendous 12.7% yield. That's amazing for people who held PPC at the time, but given the company's dividend history, it's likely this is it: PPC Dividend PPC is a classic example of a one-time payer. We are looking for exceptions—the one-time payment that happens every year! These are 'regular' special dividends, sometimes called 'supplemental dividends,' that the company pairs with a regular dividend they know they can afford. Example: ABC Inc. pays 25 cents per share quarterly, but at the end of the year, it pays out 50% of its free cash flow as a supplemental dividend. That dividend still might vary—say, $1 in 2023, $1.50 in 2024, and $1.25 in 2025—but it's extra yield on top of what it can afford to pay on the regular. In some cases, these special dividend payers can be quite generous. Let's take these 3.2%-11.3% yielders that actually pay out 9.0%-13.8% once we include their special distributions: Buckle (BKE)Stated Dividend Yield: 3.2%Actual Dividend Yield (With Specials): 9.0% Buckle (BKE) is a mid- to high-end fashion retailer that's primarily known for its jeans, but it also sells all sorts of apparel, activewear, swimwear and accessories. Fashion stocks have always been fickle, but post-COVID, they've been downright counterintuitive. Numerous 'mall retail' stocks found themselves slowly declining in the years preceding the pandemic, only to find new life despite COVID broadly knocking brick-and-mortar retail on its tail. That includes the Buckle, whose top and bottom lines have dipped from their post-COVID highs but are still far better than what the store delivered for years prior to the pandemic. Looking at its regular dividend over the past decade or so, the difference is hard to notice—a couple of small raises in 2021, but that's it. However, that's because Buckle's dividend has long been unlike its fashion retail brethren. The company prefers to pay a modest regular quarterly dividend, then top it up each year with sometimes spectacular special dividends that boost BKE's yield by double, triple, sometimes even more. Naturally, the rub is that, by virtue of offering massive special dividends, the amount of income we collect from Buckle has the potential to shift enormously from one year to the next—even if the specials have been fairly consistent of late, and even if operational results are largely expected to remain steady over the next couple of years. Even the potential for income volatility isn't great for retirement planners, but for more adventurous investors, it's a secret store of upside that most people will typically overlook. Amerisafe (AMSF)Stated Dividend Yield: 3.3%Actual Dividend Yield (With Specials): 9.7% Amerisafe (AMSF) is a relatively unusual insurer that deals in workers' compensation. The company operates in 27 states and deals in 'high-hazard' industries such as construction, trucking and agriculture. Anyone who wants to invest in an industry with consistent profits should sprint away from the insurance space. AMSF is actually relatively stable compared to, say, P&C insurance, where even good operators may occasionally suffer annual losses. But even then, Amerisafe's bottom line is a moving target. Which makes a regular-and-specials program an extremely responsible way to manage the dividend. AMSF pays a modest (but growing!) quarterly dividend that typically yields around 3%. Then every year, usually in December, it will pay a special dividend with whatever profits it can spare. Like with Buckle, this payout usually doubles or triples the amount of income its shareholders collect in a given year. Again, retirees can't plan their budgets around dividends like Amerisafe's. But consider this: AMSF's 2024 special dividend was the company's lowest in roughly a decade, and it still boosted the stock's total yield to nearly 10%. With that level of dividend, we don't need much positive price action to have a great annual return. I'd keep an eye on that bottom line, though. AMSF's profits, which have already slid for a couple years now, are projected to thin this year and next, too. One area of the market that's rife with 'regular' special dividends is the business development company (BDC) community. These companies share a lot in common with real estate investment trusts (REITs): they were both created by Congress, they both exist to allow regular investors to invest in an otherwise difficult-to-reach asset, and they both are required to pay out at least 90% of their taxable income in the form of dividends. But BDCs invest in dozens if not hundreds of small businesses: not exactly a hotbed of stability and reliability. So in the BDC space, we'll frequently see fairly generous regular dividends complemented with specials that take already good yields and make them downright great. Gladstone Investment Corp. (GAIN)Stated Dividend Yield: 6.4%Actual Dividend Yield (With Specials): 14.3% Gladstone Investment Corp. (GAIN) is part of my favorite Wall Street family: the Gladstones! This group of businesses also includes another publicly traded BDC, Gladstone Capital Corp. (GLAD), as well as a pair of publicly traded REITs: Gladstone Land Corp. (LAND) and Gladstone Commercial Corp. (GOOD). GAIN's target portfolio company will generate $4 million to $15 million in annual EBITDA, have a proven business model, stable cash flows and minimal market or technology risk. As far as BDCs go, GAIN has a narrower portfolio than most, at just 25 companies—mostly manufacturing, business services and consumer services firms, but a few consumer product specialists, too. What sticks out most about Gladstone Investment Corp., however, is its willingness to deal in equity. Most BDCs will typically only have 5% to 10% exposure to equity, but GAIN's target mix is 25% equity/75% debt. This is essential to GAIN's 'buyout' strategy. Gladstone Investment typically provides most (if not all) of the debt capital along with a majority of the equity capital. Its debt investments allow it to pay out a still-high regular dividend, but then it also pays out (extremely variable) supplemental payouts when they realize gains on equity investments. To wit, GAIN's regular monthly dividend accounts for 6% worth of yield, but a 54-cent special dividend to be paid in June and a 70-cent distribution last October work out to an additional 8.3% in yield! That said, Gladstone's specials are all over the place. The company paid three in 2022 and five in 2023, but just one in 2024 and (so far) just one in 2025. Nuveen Churchill Direct Lending Corp. (NCDL)Stated Dividend Yield: 11.3%Actual Dividend Yield (With Specials): 13.8% Nuveen Churchill Direct Lending Corp. (NCDL) is among a handful of other BDCs, such as Goldman Sachs BDC (GSBD) and Carlyle Secured Lending (CGBD), that's connected from a big-name asset manager with a sterling reputation. In this case, NCDL is tied to both fund manager Nuveen, as well as its parent TIAA. The fund's external manager—Churchill, a Nuveen affiliate—invests the BDC in senior secured loans to private equity-owned middle market companies in the U.S. The $2.1 billion portfolio is 210 companies strong right now. The vast majority of holdings (91%) are first lien loans, though Nuveen Churchill Direct Lending also deals in second lien debt, subordinated loans and equity co-investment. This is a relatively young BDC that has only been in existence since 2018, and it just went public in 2024. I wrote plenty about the company in a September column, but here, I want to focus on the payout. Nuveen Churchill Direct Lending has come out of the gate with a regular-and-specials format. The regular quarterly dividend has been set at 45 cents per share, and it has so far paid an additional 10-cent special in every quarter since its IPO. That's a strong double-digit yield base with, at least for now, a meaningful 2.5 percentage points in special sweeteners. The special distributions were declared in connection with the IPO, and April's 10-cent payout was the final dividend in that tranche. Indeed, NCDL's streak might stop this summer—based on its previous activity, any special dividends to be paid in July likely would have been announced in April. If nothing else, investors should keep their eye on NCDL over the next few quarters to see whether these specials were a one-off event or something the BDC will come back to following strong financial results. Also, NCDL is young, so it's difficult to tell where its 'normal' valuation range will lie, but for now, the BDC is trading at an 11% discount to NAV. Barings BDC (BBDC)Stated Dividend Yield: 11.3%Actual Dividend Yield (With Specials): 12.9% Barings BDC (BBDC) is the cheapest of these three BDCs, trading at an 18% discount to NAV right now. The Barings name might not mean much to some readers, but longtime BDC investors will surely remember the name 'Triangle Capital.' That's what the company was known as until August 2018, when the company rebranded following years of writing off bad investments and hacking away at its dividend. But it wasn't just a rebrand—it was a new lease on life. Global financial services firm Barings became an external advisor and overhauled BBDC's portfolio. Today, Barings primarily invests in senior secured private debt investments in 'well-established' middle-market companies across numerous industries. Target companies for its sponsor-backed investments (issuers owned by private equity firms), the largest part of its business at 75%-85% exposure generally, generate between $15 million and $75 million in EBITDA annually. It also has smaller exposure to non-PE-owned businesses, as well as a pair of middle market first lien loan originators, Eclipse Business Capital and Rocade Capital. Meanwhile, about 70% of its investments are first lien loans, though it also has exposure to second lien, mezzanine, equity, structured, and joint venture investments. We've booked gains in BBDC twice through our Dividend Swing Trader service, so I frequently have my eye on this one for short- and long-term opportunities alike. So I was pleased to see when Barings made a splash in Q1. After a few years of dividend growth, the company's quarterly dividend had been stuck at 26 cents per share since mid-2023. However, in February, Barings announced it would pay 5-cent special dividends across the first three quarters of 2025 'based on these strong results, our confidence in our portfolio, and the momentum we have seen so far in 2025.' While I'd prefer growth in the 'stickier' regular dividend, this is a welcome development. The company hasn't made 'top-up' specials since 2014 and 2015. If BBDC makes this a lasting habit, its already stellar dividend will become even tastier. I'll be keeping a close eye on the stock over the next couple of quarters to see if it extends this line of specials into the end of 2025 and into 2026. Brett Owens is Chief Investment Strategist for Contrarian Outlook. For more great income ideas, get your free copy his latest special report: How to Live off Huge Monthly Dividends (up to 8.7%) — Practically Forever. Disclosure: none
