--InterDigital, Dick's Sporting Goods unveil special
dividends
--Lincoln Electric, Valspar boost and accelerate quarterly
dividends
--Towers Watson unveils accelerated payouts in lieu of dividends
previously set for 2013
(Adds information about Occidental Petroleum dividend in
paragraph 10)
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-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 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 a
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.
Oil and gas exploration and production company Occidental
Petroleum Corp. (OXY) said it is changing the payment date for its
regular quarterly dividend of 54 cents a share to Dec. 27, from its
previously announced date of Jan. 15.
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.
--Nathalie Tadena contributed to this article.
Write to Tess Stynes at Tess.Stynes@dowjones.com or Kristin
Jones at Kristin.Jones@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires