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...

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