UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Next Thread
Author: DBrown7 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 8587  
Subject: Buckle Date: 11/7/2012 9:31 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
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. It was generally thought the dividend would be in the $2.00-$2.50 range.

Since the dividend was declared the day after the election, it's likely that the larger dividend was due to the increased possibility of the maximum dividend tax rate being raised in 2013. Insiders own a significant number of shares of BKE.

Don
Print the post Back To Top
Author: kelbon Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7619 of 8587
Subject: Re: Buckle Date: 11/8/2012 11:52 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 4
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).

kelbon

Print the post Back To Top
Author: TomFoolNC Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7620 of 8587
Subject: Re: Buckle Date: 11/8/2012 1:36 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
BAMM did something similar, insider controlled ownership, gave out big special dividend, shares have tanked since then

Print the post Back To Top
Author: RHinCT Big red star, 1000 posts Ticker Guide SC1 Red Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7622 of 8587
Subject: Re: Buckle Date: 11/11/2012 6:11 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
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.

How about when it continues what it started? When looking at Buckle's dividends it is worth noting that they started doing this in 2008, and the latest one will be the fifth in five years. (Actually they did it in 2006 also, but skipped 2007 from what I could see.)

Print the post Back To Top
Author: stillwater9999 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7632 of 8587
Subject: Re: Buckle Date: 11/17/2012 10:36 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
I have done very well with The Buckle, Atrion (ATRI) and Arden Group (ARDNA) over the years. All have high levels of insider ownership, dividends and all have paid large special dividends at times. My sense on these is that the significant insider ownership help to align managment and shareholder interests.

I am not familiar with the companies that kelbon mentioned. All of the ones I mentioned have long histories of very solid business performance and financials. I have been adding to ARDNA recently.

sw

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Next Thread
Advertisement