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. (CJ, Financial), Credicorp Ltd. (BAP, Financial) and WhiteHorse Finance Inc. (WHF, Financial).
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. (FRAC, Financial), a merger of equals the two companies entered a definitive agreement to on June 19. The dividend has a record date of Oct. 18.
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.
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.
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.
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.
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.
Read more here:
- New Feature: Upcoming Special Dividends
- 5 European Health Care Companies With High Business Quality
- 3 Energy Companies With High Dividend Yields
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