Special Dividend

外汇网2021-06-19 14:23:39 147

A non-recurring distribution of company assets, usually in the form of cash, to shareholders. A special pidend is larger compared to normal pidends paid out by the company. Also referred to as an "extra pidend".

Taobiz explains Special Dividend

Generally, special pidends are declared after exceptionally strong company earnings results as a way to distribute the profits directly to shareholders. Special pidends can also occur when a company wishes to make changes to its financial structure or to spin off a subsidiary company to its shareholders. For example, GenTek Inc. issued a special cash pidend of $31 per share on Mar 16, 2005, in order to restructure toward a more debt-based financing mix.

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