Market Overview

Geo Group, Einstein Spike Higher on Special Dividends

Shares of Geo Group (NYSE: GEO) and Einstein Noah Restaurant (NASDAQ: BAGL) traded sharply higher after-hours on Thursday following the companies' announcements that they would pay special dividends.

Geo Group is paying a special dividend of $5.68, while Einstein Noah Restaurant will pay a dividend of $4.

Geo Group and Einstein are just two more companies in a long list that have opted to pay out special dividends ahead of the “fiscal cliff” -- a legally mandated package of spending cuts and tax hikes.

Other companies have included Las Vegas Sands (NYSE: LVS) and Strum, Ruger (NYSE: RGR). A few companies have taken an alternative route, instead accelerating their dividend payouts -- Walmart (NYSE: WMT) said it would pay its next dividend in December, rather than January.

While the resolution to the fiscal cliff is, as of yet unknown, it is widely assumed that taxes will increase on higher income earners. And of course, if congress fails to resolve the cliff, the taxes will go up anyway. Thus, many companies may be opting to payout capital to shareholders now when it will be taxed at a lesser rate.

Posted-In: News Dividends Politics After-Hours Center Movers Trading Ideas General Best of Benzinga

 

Related Articles (BAGL + GEO)

Around the Web, We're Loving...

Get Benzinga's Newsletters