12-05-2012, 10:09 AM
Dont know if you guys have been watching but a huge mass of companies are moving and upping one time dividends to the end of December as opposed to some time in 1Q. This is due to fear of the fiscal cliff. The motivation is "for investors" but the real benefactors are the very large share holders who will make 100s of millions (even 1.2 billion in one case) on the one time payout. The move is to avoid paying taxes at a higher rate.
Some of the moves are pretty aggressive. Some have already passed. Im jumping into a couple to catch a short term little dividend pop, but also looking at some targeted puts on stocks that will get dumped right after the pay out.
Some of the moves are pretty aggressive. Some have already passed. Im jumping into a couple to catch a short term little dividend pop, but also looking at some targeted puts on stocks that will get dumped right after the pay out.
Maul, the Bashing Shamie
"If you want to change the world, be that change."
--Gandhi
"If you want to change the world, be that change."
--Gandhi
