Special Dividend

Special Dividend is a non-recurring distribution connected with company assets, usually in the form of cash, to shareholders. A special dividend is larger in comparison with normal dividends settled by the business. Also referred to as an “extra dividend”. Typically, special dividends are generally declared after very strong company earnings results in an effort to distribute the profits right to shareholders. Special dividend can also occur when a corporation wishes to produce changes to it’s financial structure as well as to spin off a subsidiary company in order to its shareholders.