This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

3 Companies That May Pay the Next Special Dividend

Stocks in this article: COST AAPL COP MSFT

NEW YORK ( TheStreet) -- It was the morning of November 27, a sleepy Tuesday in my neck of the woods. I looked at my "wish list" of stocks I might want to buy before the "Santa Claus rally" commenced.

Having just visited my local Costco (COST) the evening before, I decided to check the opening price. COST had opened the morning of the 27th at $96.30. Talking to myself as I sometimes do, I said, "if it pulls back to $95 I'm going to buy some shares". Famous last words!

Shares of COST never dipped below $95.77 that fateful day. By the time I checked my trading account the next morning, shares had opened at $100.44 and by the end of Wednesday's trading session the stock closed at $102.58, up $6.07 from Tuesday's closing price of $96.51.

I swallowed hard and resisted the urge to kick myself. After all how could I have known what was to be announced after I went to sleep Tuesday evening? The proclamation from on high was that COST was going to give its shareholders a special cash dividend of $7 per share. Those fortunate enough to own shares at $96 were suddenly getting a 7.29% unexpected holiday bonus.

Payment will be made to shareholders of record as of the close of business on December 10 and will cost the company approximately $3 billion. It will be in addition to the company's regular quarterly dividend of $0.275 per share, which gets paid out Nov. 30.

The CFO of COST told the financial world why they were being so generous. He characterized it as their "latest effort in returning capital to our shareholders while maintaining our conservative capital structure." Mr. Galanti went on to say that the company's "strong balance sheet," which includes total cash (most recent quarter) of $4.85 billion, allowed Costco to be so good to their shareholders.

Although I was happy for all those lucky folks who were not only getting this incredible bonus but were also going to receive the company's regular quarterly dividend of $0.275 per share, which will be paid on November 30, I started wondering which companies might be the next surprising benefactors.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs