--InterDigital, Dick's Sporting Goods unveil special
dividends
--Lincoln Electric, Valspar boost and accelerate quarterly
dividends
--Towers Watson unveils accelerated payout in lieu of dividends
previously set for dates in 2013
(Adds information about Dick's Sporting Goods, Valspar, Towers
Watson and other companies, and updates share movement in
paragraphs six through 14.)
By Tess Stynes and Kristin Jones
Consumer-electronics retailer Best Buy Co. Inc. (BBY),
wireless-technology company InterDigital Inc. (IDCC) and
welding-products maker Lincoln Electric Holdings Inc. (LECO) on
Wednesday unveiled plans to make payouts to shareholders before
year's end, the latest companies to do so in anticipation of a
potential "fiscal cliff" that would result in higher taxes in
2013.
The companies join a growing list of companies making quarterly
dividend payments earlier than usual or unveiling special dividends
ahead of the combination of higher taxes and spending cuts that
would take effect in January if the government can't reach a
deficit-reduction compromise. Lacking an accord, dividend-tax rates
could increase from 15% to as much as 40%.
Eligible InterDigital shareholders will receive a special
dividend of $1.50 a share as well as a regular quarterly dividend
of 10 cents a share on Dec. 28. The company said it typically pays
its quarterly dividend in late January. The special dividend is
expected to cost the company an estimated $61.4 million.
Lincoln Electric's board approved a nearly 18% increase in the
company's quarterly dividend to 20 cents a share from 17 cents a
share and moved the payout date up to Dec. 28 from January of 2013,
also citing the uncertainty about potential tax increases on
dividends for next year. The increased payout to stockholders is
estimated to cost the company an additional $2.5 million per
quarter.
Best Buy is moving the payment of its quarterly dividend of 17
cents a share ahead by two days to Dec. 31 from Jan. 2. The biggest
stake in Best Buy is held by founder and former chairman Richard
Schulze. According to FactSet, he has about 71 million shares and
as such would bring in about $12.1 million from the quarterly
dividend.
Dick's Sporting Goods Inc.'s (DKS) board approved a special
dividend of $2 a share for the company's common stock and Class B
shares, in addition to its previously announced regular quarterly
dividend. Both payouts to shareholders are set for Dec. 28. The
retailer's special dividend is expected to cost a combined $245.3
million.
Valspar Corp.'s (VAL) board raised its quarterly dividend by 15%
to 23 cents a share, an increase of three cents a share, and moved
the payout date ahead to Dec. 28 from January. The paint maker's
board also authorized the repurchase of 15 million of the company's
shares. As of Dec. 4, the company had roughly 90 million shares
outstanding.
Towers Watson & Co. (TW) moved the payment of its quarterly
dividend, initially declared last month, to Dec. 26 from Jan. 15.
The employee-benefits consultancy also will pay an accelerated
dividend for its current fiscal year of 34.5 cents a share--also on
Dec. 26--which would have been spread across payments in April,
July and October of next year.
Aerospace and defense company General Dynamics Corp. (GD) is
paying its $1 regular quarterly dividend early, on Dec. 26.
Risk management company ProAssurance Corp.'s (PRA) board has
authorized a two-for-one stock split, which will take the form of a
100% stock dividend. After the split, shareholders will receive a
special dividend of $2.50 a share, along with a regular dividend of
25 cents a share. The regular quarterly dividend--which would
normally be paid in January--will be paid instead on Dec. 27, the
same time as the special dividend.
Best Buy shares were up three cents at $12.11 after hours, while
InterDigital rose 57 cents to $44.37 after hours, and Lincoln
Electric was up 46 cents at $47.84.
ProAssurance closed at $90.22, and Valspar closed at $61.93;
both were up fractionally in after-hours trading.
Towers Watson was down slightly at $53.27 after hours. General
Dynamics was at $66.88, unchanged in after-hours trading.
Dick's Sporting Goods was up 2.4% in after-hours trading to
$52.21.
Write to Tess Stynes at Tess.Stynes@dowjones.com or Kristin
Jones at Kristin.Jones@dowjones.com
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