Are big dividend payouts coming?

Fat corporate cash hoards and a potentially higher tax rate next year may add up to more one-time payments to investors in the fourth quarter.

By Kim Peterson Sep 21, 2012 3:49PM
Image: Woman counting money (Jose Luis Pelaez, Inc/Blend Images/Getty Images)Goldman Sachs (GS) analysts connect the dots and predict a bunch of one-time dividend payouts later this year.

There are three reasons why we could see a record number of special dividend payouts this year, say the analysts. First, corporate America has a ton of cash. Companies have been hiking prices and cutting expenses to the bone. They either need to spend the cash or return it to investors.

A bigger reason is that tax rates may be going up next year -- regardless of who wins the presidential election. Hundreds of billions of dollars in tax cuts are set to expire at the end of the year unless lawmakers intervene.

Long-term capital-gains rates are 15% for investors in the 25% income tax bracket or higher. That rate is set to revert to 20% at the end of the year, The Wall Street Journal reports.

A final reason we could see more payouts this year is because the fourth quarter traditionally sees more of these announcements, Goldman said, according to CNBC.

If history is any guide, the Goldman analysts could be correct. When the Bush tax cuts were first set to expire at the end of 2010, corporations doubled the special dividend payouts from the year before. The tax cuts ended up getting extended.

AOL (AOL) announced a $500 million one-time dividend in August. Other companies that have announced one-time dividends so far include DSW (DSW), American Eagle (AEO) and Basset Furniture (BSET).

But Goldman isn't going to leave you hanging. Analysts have even come up with their best guesses for who may announce payouts in the near future. Here's the list of potential dividend payees (thanks to MarketWatch for the info):

Federated Investors (FII


Franklin Resources (BEN


General Dynamics (GD)


Interval Leisure Group (IILG)


Las Vegas Sands (LVS)


Mastercard (MA)


Molex (MOLX)


Och-Ziff Capital Management Group (OZM)


Patterson Companies (PDCO)


Pzena Investment Management (PZN)


Stryker (SYK)


TransDigm Group (TDG)


Western Refining (WNR)


Williams-Sonoma (WSM)


Wynn Resorts (WYNN)


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31Comments
Sep 21, 2012 8:33PM
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I recommend - Bring home our troops and our money. We are NOT wanted in Middle-East and I wish no more American blood spilled on MID-East soil.The killing of our Embassador in Syria is the LAST STRAW. Prayers out to him and his staff and grieving family and friends. ENOUGH ALREADY - now they are killing our instructors who train them - with our machine guns - tooooo much for me to endure.

What does it take/how many more grieving families for U.S to realize we ARE NOT WANTED

Sep 21, 2012 7:21PM
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hmmm well obama apologizes to our enemies and disrespects our allies so why doesn't he apologize for the horrific economy, job weakness??? he doesn't mind offending Americans with his blatant lies and deceptions, and why did it take Univision to rip obama's 2 or 3 new Aholes?? even the Latin community in Florida knows he's a complete and total failure and fraud, oh that's right, he's ahead of Romney in that state yea, ok, sure, sorry, silly me, right, obama's ahead, right, sure yea, of course....right...sure...uhuh, yep, fine, my mistake, oh and the private sector is doing fine, but you already know that
Sep 22, 2012 6:31PM
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oh what's this Romney just released his taxes and look at this!!! he payed 13.6% tax rate a total of 2million dollars and all on the up and up, hey harry reid you decrepid old marxist fossil, how you feeling now??? that foot tastes real good in your ugly mouth now doesn't it, you pig!
Sep 22, 2012 7:13PM
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SRTdriver........ Actually Romney OVERPAID nearly $500,000 in taxes because he didn't claim all the deductions that he was entitled to.  Reid, of course, is now whining that he "manipulated" his return so he could show he paid a HIGHER tax rate.  Dumocrats are always complaining the "rich" should pay more, then when they do, it's still not enough.

 

Sep 23, 2012 2:42PM
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Please vote for the current president,  I'm really sweating that if he does'nt win, I'll have to pay my taxes.
Sep 22, 2012 1:03PM
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Great, but who will get the dividends in the IRA/ 401k accounts?  Most likely the investment company not the ones that invested the money.
Sep 22, 2012 9:39AM
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I worked for a company that had profit sharing....every year we got an annual check....It never got any bigger.....Instead the profits were all used to pay huge ceo salaries and bonuses and the rest was pumped back into capital improvements so no matter how much the company made our check always stayed the same.......No doubt the stock dividends are similarly handled this way......
Sep 24, 2012 7:59AM
Sep 25, 2012 2:56PM
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For the sake of our  children and their children do not vote Obama another term.

 

Invest your money in stock market,the banks pay nothing. Trillions of dollars in banks not making money,the money made in stocks could be spent to get the economey back on the road.

Sep 22, 2012 3:36PM
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Enough Capital gains...we need gains for Labor NOW.
Sep 24, 2012 8:25AM
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  Romney overpaid his taxes on one of the 2 years he fully shows. How impressive. George Romney, Mitts father said when running for president that any candidate who only showed 1 or 2 years that he knew were going to be made public could manipulate those returns to make himself look better than he was so he released 12 years. Willard released a summary and guess what? This year he overpaid and donated 30% to charity even though his average over 10 years was only 13%. That means nothing on this years return is even similar to any return he filed previously.

 

  Romney stated during the republican debates he paid around 13% average in taxes but when asked what he'd pay if capital gains rates were lowered to zero as he proposed he stated zero. I wonder if Romney fans will finally feel he's not over taxed if he wins and lowers his taxes to zero? 

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