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Investment Analysis Clubs / Dividend Growth Investing
|Subject: Re: Buckle||Date: 11/8/2012 11:52 AM|
|Author: kelbon||Number: 7619 of 10032|
The Buckle declared a $4.50 special dividend today. That's over a 9% yield at today's closing price and much larger than the 2011 special dividend. […]Insiders own a significant number of shares of BKE.
When a company with significant insider ownership starts distributing generous regular dividends topped off with outsized special dividends, watch out. I'm not suggesting that this is always something to run screaming from, but sometimes it is.
Dividends and substantial insider ownership are often considered desirable, but when management starts to pay itself big bonuses in cash (which, essentially, is what dividends are) its often doesn't bode well for the future stock price, or, for that matter the future of the company.
Two examples that come to mind are Bernie Ebbers (WorldCom) and Leonard Riggio (Barnes & Noble).
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