Extraordinary dividends as the key to investment stability
A company has emerged in the US retail sector that has caught our attention not only for its stability but also for its unusual approach to shareholder compensation. Although the regular quarterly dividend is only USD 0.25 per share, what makes it really attractive is the extraordinary special dividends. These one-time dividend payouts, which have been occurring since 2021, reach even significant amounts, such as the current record special dividend of $25 per share.
The reason for such generous special dividends is primarily due to the company's stable financial position, which is supported by its asset structure. Its ownership of most of its stores and key properties allows it to maintain low operating costs, which reflects positively on its ability to generate surplus funds. This, coupled with effective capital management and low debt, means that the company can not only pay regular dividends but also pay out exceptional amounts without jeopardising its long-term stability. This…