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Strategies & Market Trends : Value Investing

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From: Paul Senior12/12/2012 4:27:34 PM
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NICK. Here's an interesting one. Instead of moving up the next quarterly dividend into 2012 (i.e. instead of paying out that 2013 1Q dividend in 1Q 2013) like many companies are doing now, how about just moving all the future dividends into 2012?

"Shares of Nicholas Financial Inc. rose on Wednesday after the consumer finance company declared a special dividend of $2 per share to be paid late this month ahead of a potential January increase in dividend tax rates. Nicholas Financial said it "may elect to forego future dividends" as a result of issuing the special dividend, which is far larger than its current quarterly payout."

finance.yahoo.com

(Not sure if the stock price properly reflects the announcement or that I understand the implications of the announcement. I took a few of my higher-cost shares off the table though on assumption I'll be able to buy the shares back at lower price. finance.yahoo.com

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