You Still Have Time To Get In On This Special Dividend Payer…
Longtime readers know that I’m a big fan of special dividends. I look for them monthly as part of my regular screen for dividend increases over at my premium newsletter, High-Yield Investing.
I scan the market for potential dividend hikes in each issue of my premium newsletter. Ideally, I’m looking for hikes that could happen over the next four to six weeks. I also highlight noteworthy special distributions on the horizon.
I flag these stocks first for my premium readers so that they can research them and get a head start. Then, I share them with the public.
We don’t do this just for fun. In a perfect scenario, we find great ideas for consideration in our premium portfolio… Companies posting outsized double-digit increases and reliable dividend-payers that have been steadily growing payouts for a decade or more.
Along with that, we occasionally find a stock that is set to reward investors with a special one-time bonus.
If you’re looking for a special dividend payer to potentially add to your income portfolio, then those are a great place to start. But today, I want to share yet another favorite special dividend payer with you…
You Still Have Time To Get In On This One…
Another special dividend favorite is Buckle Inc. (NYSE: BKE), a clothing retailer operating 441 locations across the country, known for its denim fashions and trendy footwear.
As you might imagine, the Covid pandemic presented a lot of challenges for clothing retailers. But BKE managed to navigate the pandemic better than many of its peers. The company managed to grow its e-commerce operations substantially while delivering operating margins of around 25%.
Since the pandemic, it’s done nothing but continue to deliver. In November, the company reported earnings per share of $1.24 for the third quarter, beating estimates by $0.05. Revenue climbed a steady 4% year-over-year to $332.34 million. And post-pandemic online sales have continued to rise, posting an 8.8% increase in Q3 to $55 million.
In a time when most retailers have been plagued by inventory gluts and markdowns, BKE has held firm. It’s no wonder then that the stock has risen by about 6% year-to-date, beating the broader market — and far outpacing its larger retail brethren.
But that’s par for the course for BKE. In fact, it’s up 228% over the past five years compared to the S&P’s 42%.
During the height of the pandemic, BKE handed out a special distribution of $2 per share. Then it turned around and handed out a whopping $5.65 per share the next year. And that’s on top of an increase in the quarterly dividend from $0.33 to $0.35. That’s pretty remarkable. It speaks to the efficiency with which this company is run, given the craziness and uncertainty surrounding the pandemic.
And to top it off, this year, management has just approved a special payment of $2.65 per share.
According to the company’s announcement, the payment will be made to shareholders of record at the close of business on January 13, 2023. So there’s still time if you’re interested.
And who wouldn’t be? The special dividend comes out to roughly 6% of the stock’s recent price around $43. The stock has popped considerably since the announcement, and I’d expect to see a bit of a drop after the ex-dividend date.
BKE is hardly the only attractive name that pays special dividends. (Remember, I’ve already told you about a few.) But it’s still worth looking into for those who are interested.
I may check back in after Christmas and tell you about another special dividend favorite. But in the meantime, if you want to know about my absolute favorite high-yield picks, you need to check out my latest report…
In it, you’ll find 5 “Bulletproof Buys” that have weathered every dip and crash over the last 20 years and STILL handed out massive gains. And each one of them carries high yields, with dividends that rise each and every year. Go here to check it out now.