According to the Upcoming Special Dividends page, a Premium feature of GuruFocus, three stocks that have upcoming lump sum cash payments during the second quarter are Momo Inc. (MOMO, Financial), Richmond Mutual Bancorp Inc. (RMBI, Financial) and Goldman Sachs BDC Inc. (GSBD, Financial).
A special dividend represents a cash payment to shareholders that occur outside of a company's regular distribution schedule. Such dividend payments are generally larger than the routinely-paid dividend and are often tied to specific windfall events.
Several reasons why a company's board of directors may wish to declare a special dividend include exceptionally strong company earnings, asset sales, spinoffs or changes to a company's financial structure.
GuruFocus' Upcoming Special Dividends page includes columns like the dividend amount, current share price, ex-dividend date, record date and declaration date.
Momo
Shares of Momo (MOMO, Financial) traded around $15.69 on Friday, showing that the stock is significantly undervalued based on a price-to-GF Value ratio of 0.48.
Momo provides mobile-based social networking services that enable users to expand social relationships based on location and interests. The Beijing-based company announced on March 25 that its board of directors declared a 64-cent special dividend per American depository receipt share, payable on April 30 to shareholders on record as of April 13 with an ex-dividend date of April 12.
GuruFocus ranks the company's profitability 7 out of 10 on the back of profit margins and returns outperforming over 72% of global competitors.
Gurus with holdings in Momo include Jim Simons (Trades, Portfolio)' Renaissance Technologies, Jeremy Grantham (Trades, Portfolio)'s GMO, Ray Dalio (Trades, Portfolio)'s Bridgewater Associates and Sarah Ketterer (Trades, Portfolio)'s Causeway Capital Management.
Richmond Mutual Bancorp
Richmond Mutual Bancorp (RMBI, Financial) attracts general public and brokered deposits and invests the funds primarily in loans secured by commercial and multifamily real estate. The Indiana-based company announced this week that its board of directors declared a 50-cent special dividend payable on May 5 to shareholders on record as of April 21, with an ex-dividend date of April 20.
CEO Garry Kleer said in a statement that the special dividend is "consistent with sound capital management strategies" while preserving the company's growth.
According to GuruFocus, Richmond's cash-to-debt and debt-to-equity ratios underperform over 65% of global competitors, suggesting moderately-high use of financial leverage. Despite this, the company has a high Piotroski F-score of 8 on the back of increasing returns on assets, net margins and asset turnover year over year.
Goldman Sachs BDC
Goldman Sachs BDC (GSBD, Financial) operates as a non-diversified, closed-end management investment company regulated as a business development company. The company is managed by Goldman Sachs Asset Management, a subsidiary of Goldman Sachs Group Inc. (GS).
On Nov. 5, 2020, Goldman Sachs BDC announced that its board of directors declared special dividends totaling 15 cents, payable in 5-cent increments over three quarters. The June 15 special dividend has an ex-dividend date of May 13 and a record date of May 14.
According to GuruFocus, Goldman Sachs BDC's debt ratios underperform over 55% of global competitors.
Disclosure: No positions.
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