Definition
A special dividend is a non-recurring distribution, often much larger than regular dividends, typically funded by excess cash, asset sales, or unusual profits. They're unpredictable and shouldn't be counted in yield calculations. Special dividends often cause stock price adjustments on ex-dividend date.
Example
Costco declares a $15 special dividend in addition to its regular $1 quarterly dividend, returning excess cash to shareholders.
FAQ
What is Special Dividend?
A one-time dividend payment outside the regular distribution schedule.
Why is Special Dividend important?
Special Dividend helps investors evaluate dividends and make more informed decisions.