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James Li
James Li
Articles (895)  | Author's Website |

3 Stocks That Are About to Pay a Special Dividend

New GuruFocus Premium feature highlight

October 09, 2019 | About:

According to the Upcoming Special Dividends page, our newest feature for Premium members, three stocks that are about to pay a special dividend over the next few months are C&J Energy Services Inc. (NYSE:CJ), Credicorp Ltd. (NYSE:BAP) and WhiteHorse Finance Inc. (NASDAQ:WHF).

Investopedia defines a special dividend as a “nonrecurring distribution of company assets, usually in the form of cash, to shareholders.” Companies might announce a special dividend after exceptionally strong earnings results or some other windfall event like an asset sale or a spinoff.

C&J Energy Services

C&J Energy Services announced on Friday that its board of directors approved a $1 special dividend in connection with its merger announcement with Keane Group Inc. (NYSE:FRAC), a merger of equals the two companies entered a definitive agreement to on June 19. The dividend has a record date of Oct. 18.

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The Houston-based company provides oilfield and rig services to upstream exploration and production companies. GuruFocus ranks C&J’s financial strength 7 out of 10: Even though the company has a weak Piotroski F-score of 3, its cash-to-debt and debt-to-equity ratios outperform over 86% of global competitors.

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Gurus with holdings in C&J include Jim Simons' Renaissance Technologies and George Soros (Trades, Portfolio)’ Soros Fund Management.

Credicorp

Peru-based Credicorp announced on Sept. 25 that its board of directors approved a special cash dividend of 8 sols ($2.38) per share based on the company’s “significant solvency position” it has built over the past few years. The dividend is payable on Nov. 22 with a record date of Oct. 23.

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According to GuruFocus, Credicorp’s equity-to-asset ratio of 0.13 is near a 10-year high of 0.14 and outperforms 78.15% of global Latin American banks. Additionally, Credicorp’s return on equity and return on assets outperform 91% of competitors.

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GuruFocus lists a few positive investing signs for Credicorp, including a dividend yield near a 10-year high of 3.62%.

WhiteHorse Finance

Miami-based WhiteHorse Finance announced on Sept. 13 that its board of directors approved a dividend of 35.5 cents per share for the third quarter and an additional, special dividend of 19.5 cents payable on Dec. 10 to stockholders on record as of Oct. 31.

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GuruFocus warns that WhiteHorse Finance has poor financial strength and that its dividend payout ratio of 0.74 might be too high. WhileHorse’s cash-to-debt ratio of 0.07 underperforms 92.7% of global competitors, while its debt-to-equity ratio of 0.78 underperforms 74.22% of global asset management companies.

Disclosure: No positions.

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About the author:

James Li
I am an editorial researcher at GuruFocus. I have a Master's in Finance from SMU, and I enjoy writing reports on financial trends and investor portfolios. Follow me on Twitter at @JamesLiGuru!

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