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Fat "Special Dividends" For Insiders, Institutions, And You, The Individual Investor

 November 29, 2012 06:19 PM
 


(By Rich Bieglmeier) With the end of 2012 just a month away, the much hyped "fiscal cliff" is 31 days away from the edge. Another week or two and rhetorical rocks will tumble over the edge and free-fall into hysteria. Oh, won't the political posturing be so much fun?

This is what's coming, tax hikes on the "rich" in the form of higher income taxes, an Obamacare surcharge, higher capital gains and dividend taxes. Republicans are acting like puppies learning new tricks for a treat. C'mon, roll-over and get a Milk-Bone. Expect to see four paws up, tail wagging, sad, droopy eyes searching for a nod of approval and a pat on the head. Here is the dirty secret, taxes on the "rich" funds about 20 day of a government that spends $188 million an hour, 24/7. Yes, you read that right. And that's if the "rich" don't change their behavior to reduce their 2013 tax bills.

[Related -Costco Wholesale Corporation (NASDAQ:COST) Q1 Earnings Preview: Membership Fees Or Bust]

You can bet, money is on the move. For investors, you can see it with the number of companies declaring a special dividend. Companies sitting on mounds of money are returning it to shareholder in one-off events before the close of 2012. It's only prudent for publicly traded companies to dish out cash while it's taxed at 15% when the rate could be as high as 39.6% for some holders after calendar rolls over.

A few of the biggest names that have declared a special dividend and have payable and record dates that will allow investors to participate are AOL Inc. (AOL), Costco Wholesale Corporation (COST), Dillard's Inc. (DDS), and Las Vegas Sands Corp. (LVS) – see table below for record and payable dates.

[Related -Macy's, Inc. (NYSE:M): Cyber-Monday’S Biggest Winner?]

Special dividends are also a way for insiders to reward themselves with a fat check prior to their tax bills jumping. For example, AOL announced a special dividend of $5.15 per shares. According to the financial records iStock reviewed, CEO Timothy M. Armstrong is in line for a $4.5 million payday. COO Arthur Minson stands to collect $724,816.15.

Insiders aren't the only beneficiaries of the generous payouts. Institutional investors can expect a massive inflow of Benjamins, too.  Money manager Vanguard owns 5,074,627 AOL shares as of September 30, 2012. That equals a truly special dividend of $26.1 million. As we said, money is on the move.

We don't want to single out AOL insiders in these politically charged times for "rich" people. So, for fun, we put together tables (below) with the payouts for insiders at COST, DDS, and LVS to make it "fair."

COST Insider RosterShares OwnedDiv Payout
JAMES D SINEGAL 947,860$6,635,020
JEFFREY H BROTMAN 167,111$1,169,777
THOMAS KIRK WALKER 262,835$1,839,845
W CRAIG JELINEK 197,142$1,379,994
CHARLES T MUNGER 132,384$926,688
   
DDS Insider RosterShares OwnedDiv Payout
WILLIAM T DILLARD, II828,447$4,142,235
ALEX DILLARD 781,218$3,906,090
JAME I FREEMAN 494,590$2,472,950
MIKE DILLARD 488,696$2,443,480
DRUE MATHENY 298,335$1,491,675
LVS Insider RosterShares OwnedDiv Payout
MIRIAM ADELSON 87,501,092$240,628,003
SHELDON G ADELSON 534,539$1,469,982
GENERAL TRUST UNDER THE SHELDON G. ADELSON 2007 RE53,297,679$146,568,617
GENERAL TRUST UNDER THE SHELDON G. ADELSON 2007 FR53,297,678$146,568,615
ROBERT G GOLDSTEIN 500,000$1,375,000

iStock doesn't want insiders to have all the fun this holiday season. For your convenience, we put this table together of companies paying a special dividend of at least $1 per share and have record dates that allow you to still participate.

Company and SymbolAmountPayable DateRecord Date
Town Sports International Holdings, Inc. (NASDAQ: CLUB) $3.00 12/11/1211/30/12
Omega Flex, Inc. (NASDAQ: OFLX)$1.00 12/14/1211/30/12
RLI Corp. (NYSE: RLI)$5.00 12/20/1211/30/12
NACCO Industries Inc. (NYSE: NC)$3.50 12/14/1211/30/12
Allegiant Travel Company (NASDAQ: ALGT)$2.00 12/14/1211/30/12
Gyrodyne Co of America, Inc. (NASDAQ: GYRO)$38.30 12/14/1212/1/12
Contango Oil & Gas Co. (NYSE: MCF)$2.00 12/17/1212/3/12
Aware, Inc. (NASDAQ: AWRE)$1.80 12/17/1212/3/12
Arden Group, Inc. (NASDAQ: ARDNA)$20 12/18/1212/3/12
AOL Inc. (NYSE: AOL)$5.15 12/14/1212/5/12
KapStone Paper and Packaging (NYSE: KS)$2.00 12/10/1212/6/12
SL Industries (AMEX: SLI)$2.00 12/17/1212/6/12
Franklin Resources, Inc. (NYSE: BEN)$3.00 12/20/1212/6/12
Dillards, Inc. (NYSE: DDS)$5.00 12/21/1212/7/12
Insperity (NYSE: NSP)$1.00 12/21/1212/7/12
Sturm Ruger & Co. (NYSE: RGR)$4.50 12/21/1212/7/12
Erie Indemnity Co (NASDAQ: ERIE)$2.00 12/21/1212/7/12
Heartland Express, Inc. (NASDAQ: HTLD)$1.00 12/17/1212/7/12
KBW, Inc. (NYSE: KBW)$2.00 12/17/1212/10/12
Stein Mart, Inc. (NASDAQ: SMRT)$1.00 12/24/1212/10/12
Costco Wholesale Corp (NASDAQ: COST)$7.00 12/18/1212/10/12
Heico Corp., (NYSE: HEI)$1.14 12/21/1212/10/12
Las Vegas Sands (NYSE: LVS)$2.75 12/18/1212/10/12
Drew Industries, Inc. (NYSE: DW)$2.00 12/20/1212/10/12
Lancaster Colony Corp (NASDAQ: LANC)$5.00 12/28/1212/10/12
Village Super Market (NASDAQ: VLGEA)$1.00 12/27/1212/12/12
Guess?, Inc. (NYSE: GES)$1.20 12/28/1212/12/12
Supertex, Inc. (NASDAQ: SUPX)$1.00 12/27/1212/12/12
Brown-Forman Corp. (NYSE: BF-B)$4.00 12/27/1212/12/12
Brown-Forman Corp. (NYSE: BF-A)$4.00 12/27/1212/12/12

iStock expects the trend of special dividends to continue throughout the first half of December. We compiled a list of S&P 500 companies that have Cash + Marketable Securities/ Shares of at least $5 per share. We apologize if some have reported a special dividend already, but believe the list will produce dividends.

CompanyTickercsh+mkt sc/ Shares Out
Google Inc-Cl AGOOG$135.81
Washington PostWPO$100.96
Wellpoint IncWLP$62.08
Humana Inc NewHUM$56.40
Priceline.ComPCLN$53.41
Mastercard IncMA$39.83
Apple IncAAPL$31.07
Amgen IncAMGN$26.78
Intuitive SurgISRG$25.78
Amazon.Com IncAMZN$21.18
Cf Indus HldgsCF$19.25
Motorola SolutnMSI$17.78
Devon EnergyDVN$17.45
Time Warner CabTWC$17.16
Lam ResearchLRCX$16.14
Deere & CoDE$15.63
Kla-Tencor CorpKLAC$15.22
Boeing CoBA$14.99
Netapp IncNTAP$14.86
Waters CorpWAT$14.61
Chipotle MexicnCMG$14.40
Netflix IncNFLX$14.37
Whirlpool CorpWHR$14.30
Apollo GroupAPOL$14.25
Wynn Resrts LtdWYNN$13.77
Fluor Corp-NewFLR$13.52
Mckesson CorpMCK$13.34
Gilead SciencesGILD$13.09
Ralph Lauren CpRL$12.98
Western DigitalWDC$12.97
Coventry HlthcrCVH$12.66
Genl ElectricGE$12.58
Lorillard CoLO$12.51
Boston PptysBXP$12.36
Harman Intl IndHAR$12.22
Northrop GrummnNOC$12.14
Raytheon CoRTN$12.05
IntercontinentlICE$12.04
Analog DevicesADI$12.02
Sandisk CorpSNDK$11.79
Johnson & JohnsJNJ$11.70
Unitedhealth GpUNH$11.63
Goodyear TireGT$11.33
Lockheed MartinLMT$11.05
Becton DickinsoBDX$10.93
Joy Global IncJOY$10.90
Altera CorpALTR$10.74
Intl Bus MachIBM$10.43
Chevron CorpCVX$10.23
Expedia IncEXPE$10.06
Bmc SoftwareBMC$9.93
Ppg Inds IncPPG$9.71
Ford Motor CoF$9.38
Nordstrom IncJWN$9.34
Cummins IncCMI$9.25
Cisco SystemsCSCO$9.19
Forest Labs AFRX$9.13
Intl PaperIP$9.13
Marathon PetrolMPC$9.10
Fedex CorpFDX$9.05
Stryker CorpSYK$8.98
Mosaic CoMOS$8.95
Visa Inc-AV$8.94
Diamond OffshorDO$8.89
Rockwell AutomtROK$8.88
Bard C R IncBCR$8.87
Accenture PlcACN$8.85
Verisign IncVRSN$8.61
Dell IncDELL$8.54
Paccar IncPCAR$8.53
Allergan IncAGN$8.41
Harley-DavidsonHOG$8.38
Nike Inc-BNKE$8.34
Natl Oilwell VrNOV$8.29
Noble EnergyNBL$8.18
Cognizant TechCTSH$8.10
AbercrombieANF$8.09
Nucor CorpNUE$8.07
Broadcom Corp-ABRCM$8.03
Carefusion CorpCFN$7.98
Jacobs Engin GrJEC$7.96
L-3 Comm HldgsLLL$7.91
First Solar IncFSLR$7.72
Bed Bath&BeyondBBBY$7.68
Microchip TechMCHP$7.53
Microsoft CorpMSFT$7.52
Genl DynamicsGD$7.51
Block H & RHRB$7.35
Xilinx IncXLNX$7.31
Qualcomm IncQCOM$7.26
Nrg Energy IncNRG$7.26
Archer DanielsADM$7.18
Whole Foods MktWFM$7.16
Biogen Idec IncBIIB$7.15
Comp ScienceCSC$7.03
Macys IncM$7.02
Zimmer HoldingsZMH$7.01
Lennar Corp -ALEN$7.00
Express ScriptsESRX$6.95
Penney (Jc) IncJCP$6.88
Varian MedicalVAR$6.81
Omnicom GrpOMC$6.80
Molson Coors-BTAP$6.79
Agilent TechA$6.75
Juniper NetwrksJNPR$6.74
F5 Networks IncFFIV$6.73
Monsanto Co-NewMON$6.71
Cardinal HealthCAH$6.68
Dover CorpDOV$6.60
Flowserve CorpFLS$6.60
Utd Techs CorpUTX$6.54
Perrigo CompanyPRGO$6.44
Tesoro CorpTSO$6.44
Avalonbay CmmtyAVB$6.37
Oracle CorpORCL$6.37
Ecolab IncECL$6.30
Autodesk IncADSK$6.22
Metropcs CommunPCS$6.17
Expeditors IntlEXPD$6.15
Celgene CorpCELG$6.14
Lilly Eli & CoLLY$5.94
Jabil CircuitJBL$5.92
Adobe SystemsADBE$5.88
Electr Arts IncEA$5.81
Hewlett PackardHPQ$5.75
Ca IncCA$5.71
Seagate TechSTX$5.64
Parker HannifinPH$5.62
Salesforce.ComCRM$5.60
Eqt CorpEQT$5.56
Sigma AldrichSIAL$5.51
D R Horton IncDHI$5.45
Anadarko PetrolAPC$5.40
Stanley B&D IncSWK$5.39
Cameron IntlCAM$5.37
3M CoMMM$5.32
Baxter IntlBAX$5.31
Gamestop CorpGME$5.31
Interpublic GrpIPG$5.30
ConocophillipsCOP$5.24
Bristol-MyersBMY$5.20
Patterson CosPDCO$5.20
Abbott LabsABT$5.16
Kohls CorpKSS$5.14
Linear Tec CorpLLTC$5.11
Scripps NetwrksSNI$5.10
Eastman Chem CoEMN$5.08
Freept Mc Cop-BFCX$5.08
Nvidia CorpNVDA$5.05
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