Special dividend stocks for additional income
Dividends are often paid per share to reward investors. Many companies pay a regular dividend, usually quarterly. This helps to supplement the money that investors invest in stocks while waiting to make gains. Regular dividends are generally in the range of 1% to 5%. However, special dividend stocks are different.
Some companies operating in commodities and other established sectors regularly pay dividends. Conversely, special dividends are non-regular dividends paid as a result of a special event or a year of unusually high income. These payments are usually much larger than regular quarterly dividends.
In most cases, special dividends are a one-time payment, which means they might not be a reason for new investors to buy. However, some companies have paid special dividends year after year, and this list will look at some of those companies.
- Costco Wholesale Company (Nasdaq: COT)
- American Financial Group, Inc. (NYSE: AFG)
- Wingstop, Inc. (Nasdaq: AILE)
- International Society of the Former Republic (NYSE: ORI)
- Camping World Holdings, Inc. (NYSE: CWH)
Special dividend stocks to watch
Since each of these stocks has already paid special dividends, let’s see why each of them is a special dividend stock to watch.
No. 5 Costco Wholesale Corporation
Many people love Costco for its free samples or always cheap hot dogs, but investors also have something to love about Costco. Wholesaler also offers its investors and it has done so time and time again in the form of special dividends. In November 2020, the company announced a special cash dividend of $ 10 per share.
At the time, its share price was around $ 390 per share; it was around $ 375 per share at the time of the dividend, meaning the company paid around 2.6% in the form of a one-time dividend payment. It also paid a special dividend of $ 7 in 2017 and a special dividend of $ 5 in 2015. For context, the company normally pays $ 3.16 per year in quarterly dividends.
No. 4 American Financial Group, Inc.
American financial group is a financial services holding company based in Cincinnati, Ohio. She mainly deals with insurance and investments through companies such as Great American Insurance Group. It offers insurance products to individuals in the form of annuities, as well as a variety of insurance products for businesses.
AFG stock pays its investors a dividend, but lately its payments have been more frequent than they are for most companies. For example, it paid dividends eight times in 2021 and five times in 2020. In fact, it has paid dividends more than four times a year each year since 2017. In 2021, it paid a dividend of $ 14 in June , a $ 4. dividend in September, a dividend of $ 4 in November and a dividend of $ 2 in December. His typical payouts are more like $ 0.50, and his stock price is around $ 140. In other words, those four special dividends in 2021 are roughly 17% of its current share price.
No. 3 Wingstop, Inc.
Wing stop is a large fast food chain known for its wings. It has been around for over 20 years and today there are over 1,500 Wingstop locations around the world. The company is able to keep costs low with relatively lean operations and a low cost product, allowing it to grow rapidly. As a result, he paid it out as dividends to investors.
WING pays regular dividends to investors with a yield of 0.41%. However, the company also paid special dividends which bolstered its total dividend payouts. At the end of 2020 it paid a special dividend of $ 5.14 and in 2018 it paid a special dividend of $ 3.05. Although he has experienced volatile quarters, such as the fourth quarter of 2020 where he recorded losses, his income has steadily increased over the years.
Old Republic International Corporation No.2 Dividend Special Shares
Former International Republic is a Chicago, Illinois-based property, title and deed insurance company. According to its website, it is one of the 50 largest shareholder-owned insurance companies and is also part of the Fortune 500. Overall, it is the third largest insurance company in the country.
Old Republic (ORI) has also been consistent with its dividends, paying four times a year. Its current dividend yield is 3.57%. It typically pays a dividend of between $ 0.195 and $ 0.22 per share, but it has also issued several special dividends. In December 2021 he paid a special dividend of $ 1.50 per share and in January 2021 he paid $ 1 per share. It didn’t pay any special dividends in 2020, but it did in 2019 and 2018. These dividends are generous for a stock with a share price of around $ 25.
Special Dividend Shares No.1 Camping World Holdings, Inc.
Camping World Holdings is the world’s largest recreational vehicle retailer; it also sells camping equipment, boating equipment, fishing equipment and other related products. Between Camping World and Good Sam, which rents motorhomes, there are locations all over the United States. The company is based in Lincolnshire, Illinois.
The shares of the company, CWH, also pay a generous dividend. Indeed, its dividend yield is 5.23%
This is in part due to its relatively low share price; they are currently trading for less than $ 40. However, CWH shares typically pay a quarterly dividend of around $ 0.15, and they’ve paid a more generous dividend lately. For example, his last two dividend payments, in December and September 2021, were both $ 0.50 per share.
Its first two dividends in 2021, in March and June, were $ 0.23 and $ 0.25 respectively. And in December 2020, he paid $ 1 per share. In the fourth quarter of 2020, its year-over-year net profit increased 150%, allowing it to pay such a generous dividend.
About Bob Haegele
Bob Haegele is a personal finance writer who specializes in investing and retirement planning. His heavy student loan burden made him repay his loans, and now he’s helping others get their finances in order. When he’s not writing he enjoys travel and live music.