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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives
SPY 660.19-0.8%4:00 PM EST

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To: Brian Sullivan who wrote (40799)11/27/2012 7:28:48 AM
From: Keith Feral1 Recommendation  Read Replies (1) of 218927
 
These moves will be horrible for the shareholders. $5 special dividends will simply reduce the value of the stock by $5 a share by year end as they reduce the value of the company by the same amount.

I'd be more impressed to see the company increase the long term value of the dividend by a manageable level. DDS pays such a low dividend, most investors would never think to invest in the company. But, I can understand why the owners of these companies would seek to do the most amount of damage to their balance sheets to pull out as much capital as possible at favorable tax rates.
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