A special dividend is usually paid when a company has more cash on its balance sheet than it needs to conduct the normal course of business.
A regular dividend is usually paid once each quarter. Changes in the dividend rate are news; a board decision to omit a dividend (signified in Barron's with a large black O) attracts attention and can impact share value. Companies that pay steady dividends are highly regarded by some investors.
The terms special dividend or extra dividend signify that the payment is a one time event not expected to be a recurring payment.
Related Fool Articles
Related Community Blogs
Recent Mentions on Fool.com
- I Finally Took My Own Advice and Bought Shares of ExxonMobil
- 3 Energy Companies That Will Do Well Despite Low Oil Prices
- 3 Reasons Costco Wholesale Corporation's Dividend Is Likely to Keep Rising
- Undervalued Stocks: How to Build Wealth by Saying "You're Wrong" to Mr. Market
- Monthly Dividend Stocks for Any Investor
- Better Buy: Starbucks Corporation or Dunkin? Brands Group Inc.?