Tis’ the Season for Giving – Cash Dividend Bonuses that is…

Tis’ the Season for Giving – Cash Dividend Bonuses that is…

So I’ve left the DDI Portfolio mostly on auto-pilot over the last few months while I’ve tended to a death in the family, but upon my return I’ve been greeted with some good news!

Just last week I received a Special Dividend from Wynn Resorts (ticker: WYNN) good for holiday stack cash dividend increase passive income daily dividend investor$7.50/share! And this week things continued to get better with news that Las Vegas Sands (ticker: LVS) is going to pay a $2.75/share special dividend *and* increase the annual dividend by 40%. WOW.

To top things off, Costco Wholesale (ticker: COST) adds another whopping $7.00 special dividend to the list.

What’s interesting about this special dividend is that even though Costco has approximately $4.6 billion in cash, more than enough to pay out the $3 billion plus dividend, they chose instead to take advantage of the low interest rates available, and have sold bonds to finance the one-time payout. While I would have preferred that they pay a smaller dividend and use the cash on the balance sheet – as a small investor I don’t get a whole lot of say in the matter.

Holiday Bonus

All together these extra payouts are adding up to a nice holiday bonus! You know what, I’ll take it.

holiday shopping more cash gifts wealth creation passive income ddi blogWhile extra dividend payments at the end of the year aren’t all that uncommon, there is a lot of talk about how the pending “Fiscal Cliff” and the possible tax increases that will go with it are encouraging more companies with extra cash on their balance sheets to throw off generous one-time or special dividends.

For those that follow the “Special Dividend” payers, this is the time of year when National Presto (ticker: NPK) has typcially announced their own special dividend, as I wrote about this time last year.

Time For Economic Improvement

With all this extra cash floating around, I’m looking forward to heading into December and the remainder of the holiday season, hopeful that the bonus payouts will continue to be generous. If the President and Congress can reach an agreement on how to manage the pending tax increases before  Christmas, it’s likely we’ll get several gifts in our stock portfolios stockings this year:

  • Increased Dividend Payouts
  • Special Dividends
  • Rising Share Prices

happy holidays daily dividend investor ddi blog income passiveI’ll remain optimistic that the coming months and the new year will bring continued economic improvement for all of us.

Here’s to continued continued success in passive dividend investing!

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Dividend Increases for Thursday July 14, 2011

Dividend Increases for Thursday July 14, 2011

upward pointing arrow daily dividend investor reports increase western gas partners lpFour companies announced dividend increases today including 2 Limited Partnerships, 1 Business Development Corporation (BDC) and a commonly held Large Cap.

The largest increases in dividends came from Pope Resources L.P. (ticker: pope) with a huge 40% increase, followed by the drugstore chain, Walgreen Company (ticker: wag) with an equally impressive increase of 28%, keeping it’s 35 year tradition of dividend increases alive.

Completing today’s line-up of dividend increases are Gladstone Investment Corporation (ticker: gain) and Genesys Energy L.P. (ticker: GEL) with increases of 11% and 1.8% respectively.

Week in review

This week over 10 separate companies have delivered dividend increases which offers up good evidence that not only the US economy, but those around the world are not only healing but are beginning to show signs of continued growth and expansion.

Investment Considerations

As always when evaluating investment opportunities it’s important to keep in mind not only the fundamentals of the stock itself, but also how the holding entity (Limited Partnership, Royalty Trust, Master Limited Partnership, Business Development Company, Preferred Stock) may affect the way you report income on your annual tax return as well as the amount or percentage of tax  you will be required to pay. Adding shares of any of these special entities to tax deferred / retirement accounts may also present additional issues that should be discussed with your CPA or tax planner / advisor before purchasing.

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Dividend Increases for Thursday July 7, 2011

Dividend Increases for Thursday July 7, 2011

Westeupward pointing arrow daily dividend investor reports increase western gas partners lprn Gas Partners, LP (ticker: WES)  increased their quarterly dividend today by $.025/share for an increase of 3.8%. Based on today’s closing price of $36.15/share Western Gas Partners pays out a 4.48% dividend yield.

Because WGP is a limited partnership, you will be issued a K-1 tax form each year and will be required to include US Federal Tax Form 1065 when completing your tax return. As I currently hold such small positions in the DDI portfolio I typically avoid adding shares of  limited partnership interests to my holdings in an attempt to keep tax reporting as simple as possible.

I would consider making an exception for limited partnership interests that generate monthly income – however, Western Gas Partners currently pays dividends quarterly in August, November, February and May, so for now I won’t be considering adding shares of WGP.

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Dividend Increases for Wednesday June 29, 2011

upward pointing arrowDividend Increases for Wednesday June 29, 2011

General Mills (ticker: GIS) raised their dividend today from $.28/quarter to $.305/quarter, which equates to an increase of almost 9%. The annual payout is $1.20/share – based on today’s closing price of $37.38 this brings General Mills’ dividend yield to 3.26%.

This is good news for the DDI porfolio which already holds a position of 20 shares. The next dividend payment date for General Mills will be on August 1. Because General Mills has shown a trend of increasing dividends and a yield above 3% it will be included for consideration as I redeploy the free cash flow from the portfolio as June comes to a close.

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