These 5 Special Dividends Are More Than Meets The Eye

Core Insights - Special dividends are one-time cash payouts that can significantly enhance yield for investors, often overlooked by mainstream financial websites [1][2] - Companies like Pilgrim's Pride and Amerisafe exemplify special dividend payers, with yields that can double or triple the regular dividend [2][11] - Business Development Companies (BDCs) are notable for their regular special dividends, providing attractive yields [13] Group 1: Special Dividend Overview - Special dividends can yield significantly higher returns than stated yields, with some stocks showing yields as high as 13.8% when including special distributions [1][3] - A special dividend is often a result of extraordinary profits or cash influxes, such as asset sales [1][2] Group 2: Company Examples - Pilgrim's Pride (PPC) recently paid a special dividend of $6.30 per share, resulting in a yield of 12.7% [2] - Buckle (BKE) has a stated dividend yield of 3.2%, but the actual yield with specials is 9.0%, showcasing its strategy of modest regular dividends supplemented by larger special dividends [4][6] - Amerisafe (AMSF) has a stated yield of 3.3%, but with special dividends, the yield rises to 9.7%, reflecting its approach to managing dividends amid profit fluctuations [9][11] Group 3: Business Development Companies (BDCs) - Gladstone Investment Corp. (GAIN) has a stated yield of 6.4%, but with specials, the yield increases to 14.3%, highlighting its unique investment strategy [14][18] - Nuveen Churchill Direct Lending Corp. (NCDL) offers a stated yield of 11.3%, which rises to 13.8% with special dividends, indicating strong financial backing and investment strategy [19][21] - Barings BDC (BBDC) has a stated yield of 11.3% and an actual yield of 12.9% with specials, reflecting its recovery and strategic investment approach [24][28]