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The prospect of a special dividend is not only confined to mega-cap names. Smaller companies, which cringe at the prospect of a weaker economy or higher taxes, may find the best capital-allocation decision is to give cash back to shareholders. Look at retailer Stein Mart (SMRT), which has a history of paying out special dividends. The stock trades for less than $8, it is debt-free and it sits on more than $2 a share in cash. In addition, insiders own nearly 40% of the shares.
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