Tis’ the Season for Giving – Cash Dividend Bonuses that is…

Tis’ the Season for Giving – Cash Dividend Bonuses that is…

So I’ve left the DDI Portfolio mostly on auto-pilot over the last few months while I’ve tended to a death in the family, but upon my return I’ve been greeted with some good news!

Just last week I received a Special Dividend from Wynn Resorts (ticker: WYNN) good for holiday stack cash dividend increase passive income daily dividend investor$7.50/share! And this week things continued to get better with news that Las Vegas Sands (ticker: LVS) is going to pay a $2.75/share special dividend *and* increase the annual dividend by 40%. WOW.

To top things off, Costco Wholesale (ticker: COST) adds another whopping $7.00 special dividend to the list.

What’s interesting about this special dividend is that even though Costco has approximately $4.6 billion in cash, more than enough to pay out the $3 billion plus dividend, they chose instead to take advantage of the low interest rates available, and have sold bonds to finance the one-time payout. While I would have preferred that they pay a smaller dividend and use the cash on the balance sheet – as a small investor I don’t get a whole lot of say in the matter.

Holiday Bonus

All together these extra payouts are adding up to a nice holiday bonus! You know what, I’ll take it.

holiday shopping more cash gifts wealth creation passive income ddi blogWhile extra dividend payments at the end of the year aren’t all that uncommon, there is a lot of talk about how the pending “Fiscal Cliff” and the possible tax increases that will go with it are encouraging more companies with extra cash on their balance sheets to throw off generous one-time or special dividends.

For those that follow the “Special Dividend” payers, this is the time of year when National Presto (ticker: NPK) has typcially announced their own special dividend, as I wrote about this time last year.

Time For Economic Improvement

With all this extra cash floating around, I’m looking forward to heading into December and the remainder of the holiday season, hopeful that the bonus payouts will continue to be generous. If the President and Congress can reach an agreement on how to manage the pending tax increases before  Christmas, it’s likely we’ll get several gifts in our stock portfolios stockings this year:

  • Increased Dividend Payouts
  • Special Dividends
  • Rising Share Prices

happy holidays daily dividend investor ddi blog income passiveI’ll remain optimistic that the coming months and the new year will bring continued economic improvement for all of us.

Here’s to continued continued success in passive dividend investing!

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5 Responses to “Tis’ the Season for Giving – Cash Dividend Bonuses that is…”

  1. Alice says:

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  2. Ada says:

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    • Adhel says:

      Hi, congrats on your ddieivnd growth. What is your take on the ddieivnd investing vs. Indexing Investing? I have a ETF portfolio which the yield on cost is around 4% as well. Is the time to search for individual stocks worth it? Obviously, ETF has MER associated with it. But when the time comes to withdraw from your portfolio, one who has many different stocks in his/her portfolio has to pay large commission cost to maintain the target allocation,right? Do you have any plan to minimize that?

  3. Brittany says:

    Admiring the time and energy you put into your blog and deeliatd information you present. It’s nice to come across a blog every once in a while that isn’t the same old rehashed material. Excellent read! I’ve bookmarked your site and I’m adding your RSS feeds to my Google account.

  4. Neil says:

    Thanks for your comments Adhel.
    Thereś nothing wrong with using ETFś as your investment vehicle – the costs are low and you can leave the stocking picking to someone else.

    One of my objectives with this portfolio was to be able to hand pick the stocks I wanted to own based on a mix of:
    - dividend growth
    - high yield
    - stable long term payers

    As for commissions – I´m using a WellsTrade account with Wells Fargo which gives me 100 commission free trades each year which is more than enough to cover my yearly transactions.

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