Special dividends are one-time cash payouts to shareholders. Sometimes, when a company has extra cash on the books, rather than reinvest it back into the company, it will pay it out to shareholders on a one-off basis.
Special dividends are also known as one-time dividends. These payouts are made to shareholders and declared to be separate from regular dividends. They are typically one-off events and are thus not factored into a stock’s dividend yield.
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