According to the Upcoming Special Dividends page, a Premium feature of GuruFocus, four stocks that are set to pay a bonus dividend in the next two months are Diamond Hill Investment Group (DHIL, Financial), Wingstop Inc. (WING, Financial), Cohen & Steers Inc. (CNS, Financial) and PFB Corp. (TSX:PFB, Financial).
A special dividend represents a nonrecurring cash payment to shareholders that occurs outside of a company's normal distribution schedule. Bonus dividends are usually tied to specific events, including asset sales, changes to financial structure, exceptionally strong earnings results or other windfall events.
GuruFocus' Upcoming Special Dividends page tracks the companies that are expected to pay a bonus dividend over the next several months.
Diamond Hill Investment Group
Diamond Hill Investment Group provides investment advisory and related services to domestic and international clients. The Columbus, Ohio-based asset manager announced on Oct. 27 that its board of directors approved a special cash dividend of $12 per share payable on Dec. 4 to shareholders on record as of Nov. 25. The board of directors further approved a regular divided of $1 per share beginning in the first quarter of 2021 given the company's history of producing strong cash flows according to CEO Heather Brilliant.
GuruFocus ranks Diamond Hill's financial strength 10 out of 10 on several positive investing signs, which include no long-term debt, a high Piotroski F-score of 7 and a strong Altman Z-score of 6.82.
Gurus with holdings in Diamond Hill include Jim Simons (Trades, Portfolio)' Renaissance Technologies, Chuck Royce (Trades, Portfolio)'s Royce Investment Partners and Jeremy Grantham (Trades, Portfolio)'s GMO.
Wingstop
Dallas-based Wingstop franchises and operates restaurants that specialize in cooked-to-order chicken wings. The company announced on Nov. 2 that its board of directors approved a $5 special dividend in conjunction with the company's $480 million recapitalization.
GuruFocus ranks the company's profitability 8 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7 and operating margins that are outperforming over 95% of global competitors despite declining over the past five years.
Gurus with holdings in Wingstop include Renaissance Technologies, Paul Tudor Jones (Trades, Portfolio)' Tudor Investments and Ron Baron (Trades, Portfolio)'s Baron Funds.
Cohen & Steers
Cohen & Steers invests primarily in the equity shares of real estate investment trusts. The New York-based asset manager declared on Nov. 5 a special dividend of $1 in addition to its quarterly dividend of 39 cents payable on Dec. 1 to shareholders on record as of Nov. 16.
GuruFocus ranks the company's profitability 8 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7 and returns that outperform over 97% of global competitors. Despite this, gross margins have declined approximately 1.7% per year on average over the past five years.
PFB
PFB delivers products and solutions in the areas of manufacturing insulated building products made from expanded polystyrene materials. The Calgary, Alberta-based company declared a 1 Canadian dollar (76 cent) special dividend payable during the fourth quarter of 2020 to shareholders on record as of Nov. 16.
GuruFocus ranks the company's financial strength 8 out of 10 on several positive investing signs, which include high Piotroski F-score of 8, a strong Altman Z-score of 4.92 and a debt-to-equity ratio that outperforms over 66% of global competitors.
Disclosure: The author does not have any holdings in the stocks mentioned as of this writing but may initiate positions over the next few days. The discussion of stocks in this article does not constitute an investment recommendation. Investors must do their own research before investing in the stocks mentioned.
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