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CNH paying out the mother of all dividends

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    CNH paying out the mother of all dividends

    You have until Dec.19th to purchase the shares to get the 10 dollar us dividend. After which the share price should drop by 10 bucks. hmmm any money to be gained here? Nice dividend for the shareholders though.

    BURR RIDGE, IL -- (Marketwire) -- 12/07/12 -- The Board of Directors of CNH Global N.V. (NYSE: CNH) announced that it has approved a record date of December 20, 2012 with respect to CNH's previously announced extraordinary dividend to Company shareholders in the amount of US$ 10/share. Payment of the dividend is conditioned upon the approval of CNH's shareholders at the previously announced Extraordinary General Meeting of Shareholders on December 17, 2012. Upon the approval of the extraordinary dividend by CNH's shareholders, CNH shares will trade ex-dividend on and after December 18, 2012 (two business days prior to the December 20, 2012 record date), and CNH will use its reasonable best efforts for the dividend to be paid prior to December 31, 2012, or as promptly thereafter as practicable.

    CNH Global N.V. is a world leader in the agricultural and construction equipment businesses. Supported by approximately 11,300 dealers in approximately 170 countries, CNH brings together the knowledge and heritage of its Case and New Holland brand families with the strength and resources of its worldwide commercial, industrial, product support and finance organizations. CNH Global N.V., whose stock is listed on the New York Stock Exchange (NYSE: CNH), is a majority-owned subsidiary of Fiat Industrial S.p.A. (FI.MI). More information about CNH and its Case and New Holland products can be found online at www.cnh.com.

    This document does not constitute an offer to exchange or sell or an offer to exchange or buy any securities. An offer of securities in the United States pursuant to a business combination transaction will only be made through a prospectus which is part of an effective registration statement filed with the US Securities and Exchange Commission. CNH Global N.V. ("CNH") shareholders who are US persons or are located in the United States are advised to read the registration statement when and if it is declared effective by the US Securities and Exchange Commission because it will contain important information relating to the proposed transaction. You will be able to inspect and copy the registration statement relating to the proposed transaction and documents incorporated by reference at the SEC'sPublic Reference Room at 100 F Street, N.E., Room 1580, Washington, D.C. 20549. CNH's SEC filings are also available to the public at the SEC's web site at http://www.sec.gov. In addition, Fiat Industrial will make the effective registration statement available for free to shareholders of CNH and Fiat Industrial in the United States.

    #2
    Its a sign that these big companies are believing the fiical cliff cannot be averted, after Dec 31 the taxes on dividends in the states quite loikely could change. Heres a good article talking about it.

    Last week, my colleague Chris Preston wrote about all the special dividends companies are offering before the fiscal cliff hits. Since then, even more special dividends have popped up.

    The logic behind all these special dividends is simple, really: the fiscal cliff promises to raise taxes on income earned through dividends, so many companies are issuing “special” dividend payments to shareholders before the tax hike takes effect.

    January 1 is the day when the Budget Control Act – more commonly known as the “fiscal cliff” – is set to become law. Congress is working on a compromise to avoid the cliff … and we know how long those “compromises” can take.

    So in the meantime, publicly traded companies continue to roll out hefty dividends to keep more of the payouts in their investors’ pockets.

    Some of these dividends are just earlier-than-usual payouts – companies bumping up their regularly scheduled January or February dividend payment to November or December to avoid the fiscal cliff. Wal-Mart (WMT) is one high-profile company that just did it.

    Many other companies, however, are issuing one-time “special” dividends that are essentially acting as a bonus to their regular dividend payouts.

    Some of the special dividend payers are small- and micro-cap companies you’ve never heard of and probably wouldn’t invest in anyway. So …

    Here are four more recognizable companies whose large one-time payments caught our attention:
    • Costco (COST): The membership warehouse chain will pay a special $7 dividend on December 18 to anyone who owns shares as of December 10. Since making the announcement last Wednesday, Costco’s stock has shot up 8% to reach a new 52-week high of $104.50 a share.
    • Las Vegas Sands (LVS): This large-cap casino operator’s special dividend parallels Costco’s in both issue date (Dec. 18) and shareholder deadline (Dec. 10). At $2.75, the dividend may not rival Costco’s, but it almost triples the company’s regular annual payout of $1.00 per share. Like Costco, LVS shares have climbed roughly 8% since the company announced the special dividend last Monday.
    • DISH Network (DISH): The digital cable operator announced yesterday that it will pay a special dividend of $1 per share on December 28, payable to shareholders of record as of December 14. This one is unique given that DISH doesn’t offer a regular dividend. However, this isn’t the first special dividend DISH has offered; in fact, its two previous special dividends were double this offering, at $2 per share. So, by comparison, DISH’s latest offering isn’t that special – and investors know it. DISH shares dropped more than 1% on Monday.
    • Wynn Resorts (WYNN): Here’s another Las Vegas-based company taking a gamble by issuing a huge special dividend. Wynn announced last week that it will pay a special cash dividend of a whopping $8 per share. That amount includes the company’s regular 50-cent quarterly dividend. But the company also announced that it plans to double its regular dividend to $1 per share every quarter, starting next year. WYNN shares have vaulted up 5.7% since the company’s generous dividends were announced.

    The month is still young. You can count on Congress dragging its feet right up until the December 31 deadline before it gets a deal done. (Or do you not remember the 2011 debt ceiling fiasco?) The longer the fiscal cliff looms, expect more companies to jump onto the special dividend bandwagon.

    So keep an eye out for special dividend payers. The next one could be issued by a company you already own.

    If so, consider it an early holiday gift – and savor it. Those dividend gifts might not come so cheap starting next year.

    Positions held in companies mentioned above: none

    Comment


      #3
      Not so sure about the fiscal cliff reasoning. My thinking is a lot of these companies share prices are grossly undervalued. CNH's special dividend is about 21 percent of today's share price or 28 percent of year ago share price. Could have something to do with the CNH Global and Fiat Industrial planned merger.

      Comment


        #4
        Now Birshire willing to buy own shares for 120 percent of book value.

        Comment


          #5
          Trading was temporarily suspended for birkshire, they are currently trading at 120 percent of book, trading has now resumed. Not that I am going to jump out and buy any.

          Comment

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