This Dividend Stock Could Yield 5.2% In 2016

If you want to double — or even triple — your dividend income overnight, there’s an easy way to do it: seek out companies that regularly pay special dividends. Management usually announces these one-time payouts (which are always larger than regular quarterly dividends) after reporting a blowout quarter, or if they suddenly find themselves sitting on a ballooning cash pile. And with S&P 500 firms holding onto a combined $2.1-trillion stash, special dividends are becoming a lot more common these days.

Microsoft (MSFT) famously paid out a $3.00 special dividend in November 2004 that amounted to $32 billion from its long-term money pile. It signaled the company’s shift from a growth stock to a dividend and income investment. More recently, Costco (COST) shoveled a $5 special dividend out the door in February 2015. That was in addition to its regular quarterly payout of 35.5 cents a share (which it has since boosted to $0.40). But there’s another far more consistent special-dividend payer I’m adding to my watch list now, and you should, too: heavy-duty truck maker PACCAR (PCAR). On December 8, the company said it would pay a special dividend of $1.40 a share on January 8, 2016. When you add that to its regular payout of 24 cents per share per quarter, you get a much higher 5.2% yield.

Source: InvestorPlace

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