Aspecial dividend announcement in my inbox reminded me it’s that time of year: special dividends season.
For certain types of stocks and funds, special dividends point to a high probability of future dividend increases. That’s a big help in a year when falling share prices made us wonder about the stability of our investment choices.
Here are a few special dividends I’m looking at that you still have time to get in on…
The special dividend indicates that APLE will likely return to the $0.10 monthly dividend the REIT paid before the pandemic-triggered economic shutdown.
As a real estate exchange trust (REIT), Apple Hospitality must pay out at least 90% of its net income as dividends. If an REIT has not paid at least 90% as the end of the year approaches, it can pay a special dividend can be paid to meet the legal requirements.
REITs and business development companies (BDCs) operate under the 90% payout rule. If you see one of these companies announce a special dividend payment between now and the end of the year, take a look at the stock. There may be a regular dividend increase coming soon.
Year-end special dividends also show if a company performed better than expectations. If you see a special dividend on a stock that has dropped this year, the stock price is…
Continue reading at INVESTORSALLEY.com