The dangers associated with special dividends

We look at the stocks handing out the cash and the key points to consider when looking at attractive headline yields
Thursday 11 Jan 2018 Author: Daniel Coatsworth
Special dividends can put a smile on the faces of investors. They are typically generous cash gifts which are sometimes greater in value than normal dividends paid by a company. We calculate that 120 companies currently in the FTSE 350 index have paid one or more special dividends over the past 25 years, with a noticeable increase in companies making payments over the past five years. Unfortunately the growing...

Important information:

These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell Youinvest.

Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.

Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.

The Shares team
Disclaimer

Advertising feature

The value of your investments can go down as well as up and you may get back less than you originally invested. We don't offer advice, so it's important you understand the risks, if you're unsure please consult a suitably qualified financial adviser. Tax treatment depends on your individual circumstances and rules may change. Past performance is not a guide to future performance and some investments need to be held for the long term.