DPZ ex-dividend on 5/7 (40%, special)
Domino’s Pizza will pay a special dividend of $13.50 on May 4 to holders as of Monday, May 7. That’s 40% of the share price of $34. This is part of a $1.85 billion refinancing that also includes a $200 million share buyback program. Never a good idea to take on debt to pay dividends though, especially with less-than-stellar growth and financing cash flow already eating most of its operating CF. For US federal income tax purposes, approximately 80-90% of the special dividend will be taxed as a return of capital, with the remaining 10-20% as earning dividend.
April 19th, 2007 at 5:28 am
does anyone have an accurate inciation of the Return on Capital / taxable dividend split of this Dividend,
April 19th, 2007 at 2:28 pm
Payable on May 4, 2007 to shareholders of record at the close of business on April 27, 2007, with an ex-dividend date of May 7,2007. Shareholders who sell their shares prior to the May 7, 2007 ex-dividend date will also be selling their right to receive the special dividend. You can also refer to Wikipedia “special dividend”. Or PR Newswire News: Domino’s…
April 19th, 2007 at 11:20 pm
You’ll likely receive a mail early 2008 with the exact split
April 20th, 2007 at 2:20 pm
AVCI
Avici Systems Inc. Declares Special Cash Dividend
April 18, 2007 Avici Systems Inc. announced that it has declared a special cash dividend of $2.00 per share, or approximately $28 million. The dividend will be paid on June 22, 2007 to shareholders of record as of June 11, 2007.
April 23rd, 2007 at 1:46 am
I’m not so sure about some of the comments relating to the debt being a bad thing due to DPZ’ poor earnings \ CF.
JP Morgan have welcomed the move, stating they do not think it will harm the business but will actually ‘enhance’ it.
It will be interesting to see how this stock plays out post div.
April 23rd, 2007 at 11:29 pm
Nothing wrong in taking on debt to invest in the business. Paying a cash dividend is not investing in the business in my book.