It does not necessarily make sense, but stocks almost always go up when a company announces they are going to pay a special dividend. Logically, if a company was worth 100 million one day and they pay out a $5 million special dividend, they should be worth 95 million But it does not work that way. I think that the market likes certainty. And if you know there is a special dividend, that removes the uncertainty that the company will do something foolish with that excess cash.
SAI (ironically, the company mentioned in my Barron's Bounce blog BBB) announced solid earnings last night (SAIC Beats on Q4 EPS, Declares Special Dividend) and a $1 special dividend in June. They were trading up about 3% in happy hour trading yesterday. We will see what happens during the more sober day time. I have owned SAI almost exactly a year. I bought (too early) at $13.50. I have averaged down with buys at $13.20 and 11.90, so my overall cost basis is $12.83. I had them on my buy list to add some more in event of a 5% drop, but they have been a steady eddie this year, up about 15%.
Not much else new as we edge towards today's opening. I did have CIM go x dividend this morning, so that is a very healthy dividend.
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