More Big Special Dividends (CATO, DISH, HCA)

We have more of the special dividends and dividend payout accelerations ahead of the coming fiscal cliff. Companies are trying to maximize their tax efficiency ahead of the increase of tax rates on dividend payments.

The Cato Corp. (NYSE: CATO) has declared a special $1.00 dividend and moved all of 2013 payments into 2012. The yield is normally 3.4%, and that effectively doubles the rate for this year. This new special payout will be another 3.4%. At $29.06, this fashion retailer has a 52-week range of $23.46 to $32.32.

Dish Network Corp. (NASDAQ: DISH) has declared a special $1.00 dividend. As the satellite TV provider does not pay a normal dividend, this represents a 2.7% payout. With a $16 billion market cap and with over $6 billion in liquidity, this one-time dividend is going to be a disappointment to many investors.

HCA Holdings Inc. (NYSE: HCA) does not currently pay a dividend, but it has declared a $2.00 special one-time dividend. This represents a 6.3% payout rate based upon the $31.75 share price of this $14 billion hospital and medical facility owner and operator. HCA has traded in a range of $19.86 to $34.32 over the past 52-weeks.

If you go back to last week, we outlined the many companies that were accelerating dividend payouts into December from early in 2013 or the one-time declarations. The tally is now well over $20 billion.

JON C. OGG