According to the Upcoming Special Dividends Screener, a Premium feature of GuruFocus, three companies that are paying an extra cash dividend during the month of September include Camping World Holdings Inc. (CWH, Financial), Verso Corp. (VRS, Financial) and Apollo Investment Corp. (AINV, Financial).
Special dividend definition
As its name implies, a special dividend represents a cash payment to shareholders that usually occurs outside of the normal distribution schedule. Special dividends are often non-recurring and are tied to a specific event, which can either be an asset sale, a change to a company's financial structure, a spinoff or a windfall event that can also include exceptionally strong company earnings.
Camping World
On Aug. 21, Camping World declared a cash dividend of 17 cents per share, payable on Sept. 28 to shareholders on record at the close of business on Sept. 14. The dividend includes a regular dividend of 9 cents plus a special dividend of 8 cents, representing a portion of excess tax distributions from subsidiary CWGS Enterprises LLC.
GuruFocus ranks the Lincolnshire, Illinois-based recreational vehicle manufacturer's profitability 6 out of 10: Although the company's revenue per share increased 46% on average over the past three years, a rate that outperforms over 97% of global competitors, net profit margins and returns on assets are underperforming over 63% of global vehicles and parts companies.
Gurus with large holdings in Camping World include Jim Simons (Trades, Portfolio)' Renaissance Technologies and Seth Klarman (Trades, Portfolio) protégé David Abrams (Trades, Portfolio).
Verso
Verso declared on Aug. 6 a special dividend of $3, payable on Sept. 28 to stockholders on record as of Sept. 18.
The Miamisburg, Ohio-based company produces printing papers, specialty papers and pulp. CEO Adam St. John said in the company's second-quarter press release that Verso sold its Androscoggin and Stevens Point mills as part of the company's plan to position its business for long-term stockholder value given the adverse market conditions stemming from the coronavirus pandemic. Verso's special dividend seeks to return $100 million in proceeds from the sale of the two mills.
GuruFocus ranks Verso's financial strength 8 out of 10 on the back of interest coverage and debt ratios outperforming over 91% of global competitors.
Gurus with large holdings in Verso include Chuck Royce (Trades, Portfolio)'s Royce & Associates and Donald Smith (Trades, Portfolio) & Co.
Apollo Investment
Apollo Investment, a New York-based asset manager, declared on Aug. 6 a base divided of 31 cents per share plus a special divided of 5 cents per share payable on Oct. 7 to stockholders on record as of Sept. 21.
Apollo CEO Howard Widra said in the company's press release that it had reduced its net leverage ratio to 1.66 at the end of June, working toward a target range of 1.4 to 1.6 during the remainder of the year. Widra also said that given its plans to deleverage, Apollo adjusted its dividend distribution level to one that reflects prevailing market conditions and the company portfolio's long-term earnings power.
See also
According to the Upcoming Special Dividends page, other companies paying special dividends during the month of September include Capital Southwest Corp. (CSWC, Financial) and Owl Rock Capital Corp. (ORCC, Financial). However, the extra dividends of 10 cents and 8 cents have been paid on top of the company's regular dividends of 41 cents and 31 cents over the past few quarters according to the company's dividend history pages.
Disclosure: No positions.
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