3 Stocks With Special Dividends: Big Payouts for Savvy Investors

Core Insights - Special dividends provide an additional benefit for shareholders, separate from regular dividends, and are typically larger and irregular [1] - Companies with a history of paying special dividends can be identified, offering insights into potential future payments [2] Costco - Costco has a regular dividend payment of $1.16 per share, with a current dividend yield of approximately 0.5% [2] - The company has paid special dividends in 2015 ($5), 2017 ($7), 2020 ($10), and early 2024 ($15), significantly boosting the overall yield [2] - Including the 2024 special dividend, Costco's yield increases to 2.1%, although it has been declining over time due to a nearly 500% increase in share price since 2017 [3] ConocoPhillips - ConocoPhillips has a dividend yield of 2.82% and has paid special dividends three times in 2024 using a variable return of cash (VROC) [4] - The company has integrated the VROC into its regular dividend, with Q3's regular dividend at $0.78 per share [5] - ConocoPhillips aims to grow its dividend faster than 75% of S&P 500 companies, indicating potential for larger special dividends in the future [6] Ford - Ford has a dividend yield of 5.40% based on a regular dividend of $0.60, which increases to nearly 7% when including a $0.18 special dividend [7] - The company has a history of special dividends, including a significant $0.65 payment in March 2023 [7] - Despite a strong dividend yield, Ford has experienced a total return of -30% over the past three years, underperforming compared to European automakers [8]