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
- 3 Reasons Seadrill Ltd's Stock Could Fall
- This Is Where an $86 Billion Fortune Is Just Waiting to Be Made
- What You Didn't Know About the Unbelievable Amount Warren Buffett Put Into This Fast-Food Chain
- Seadrill Earnings: Is the Dividend Still Safe?
- 84 Reasons We Love Warren Buffett
- 3 Reasons NextEra Energy Inc Stock Could Fall