In this article, we discuss 10 stocks that paid special dividends in 2023. You can skip our detailed analysis of special dividend stocks and the history of special dividends, and go directly to read 5 Stocks that Paid Special Dividends in 2023.
Special dividends are one-time cash payments made by a company to its shareholders, in addition to the regular dividends they may receive. Special dividends are mainly paid when companies generate extra cash from occasional events, such as the sale of assets or a significant increase in profits. Rather than retaining the cash for future investments or acquisitions, the company decides to distribute it to shareholders.
The practice of issuing special dividends has been observed throughout history and is not a recent phenomenon. According to a report by the Journal of Financial Economics, special dividends were once commonly paid by only NYSE companies. During the 1940s, 61.7% of the companies that paid dividends on the NYSE gave out special dividends, compared with 45.8% in the 1950s. Another report by New York University highlighted that in the last quarter of 2012, non-fund companies listed on various stock exchanges announced a significant number of special dividends. Specifically, in October, there were 54 special dividends, compared with 228 and 483 in November and December, respectively.
Among these special dividends paid in the past, the most popular one was in 2004, when Microsoft Corporation (NASDAQ:MSFT) announced a special dividend of $3 per share, a stark contrast to its regular dividend of $0.04 per share. This special dividend resulted in a massive payout totaling around $32 billion. The decision was attributed to the significant cash reserves the company had accumulated over the years. Similarly, in 2017, Red Bull had a fantastic year in terms of sales, selling over 6 billion cans of its popular energy drink. As a result, the company decided to share its success with shareholders by distributing 500 million euros ($617.3 million) in a special dividend.
Many companies in the US also paid special dividends last year, particularly upstream oil corporations such as Pioneer Natural Resources Company (NYSE:PXD) and ConocoPhillips (NYSE:COP). The energy sector paid record dividends in 2022, especially through special payments and capital return payments, as reported by S&P Global. Canadian companies also distributed a combined $14.55 per share in special dividends last year, up 18% from 2021. The trend is likely to continue this year as well as global dividends reached their record high of $326.7 billion in the first quarter of 2023, mainly driven by special payments. Janus Henderson‘s report highlighted that global special dividends amounted to over $28.8 billion, of which $9.8 billion came from US companies.
In times of financial instability, investors often turn to dividend stocks to generate regular income. To learn more about popular dividend stocks among billionaires, have a look at 10 Reliable Dividend Stocks Billionaires Are Loading Up On.
In view of this, we will discuss some special dividend stocks paid in 2023 so far.
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Our Methodology:
For this list, we selected US companies that paid special dividends in 2023. Some of these companies do not have regular dividend policies but paid special dividends to reward their shareholders. We measured hedge fund sentiment around each stock according to Insider Monkey’s database of 943 funds as of Q1 2023. The stocks are ranked in ascending order of the number of funds that have stakes in them as of Q1.
10 Stocks that Paid Special Dividends in 2023
10. Cricut, Inc. (NASDAQ:CRCT)
Number of Hedge Fund Holders: 4
Cricut, Inc. (NASDAQ:CRCT) is a Utah-based company that specializes in computer-controlled cutting machines, mainly designed for home crafters. The company paid its first-ever dividend of $0.35 per share in December 2022. In May this year, it announced a special dividend of $1.00 per share. The aggregate amount payable of this special dividend will be approximately $234 million.
Cricut, Inc. (NASDAQ:CRCT) can be added to portfolios alongside some popular dividend stocks like Microsoft Corporation (NASDAQ:MSFT), Pioneer Natural Resources Company (NYSE:PXD), and ConocoPhillips (NYSE:COP).
In the first quarter of 2023, Cricut, Inc. (NASDAQ:CRCT) reported a 19% year-over-year growth in its total users to over 8.2 million. The company’s paid subscribers also increased to over 2.7 million, up 17% from the same period last year. This was the company’s 17th consecutive quarter of profitability with a net income of $9.1 million. In addition to this, it generated $95.2 million in operating cash flow during the quarter.
According to Insider Monkey’s database of Q1 2023, 4 hedge funds owned stakes in Cricut, Inc. (NASDAQ:CRCT), down from 6 a quarter earlier. These stakes have a collective value of over $152.4 million. Abdiel Capital Advisors was the company’s largest stakeholder with roughly 15 million shares.
9. Natural Resource Partners L.P. (NYSE:NRP)
Number of Hedge Fund Holders: 6
Natural Resource Partners L.P. (NYSE:NRP) is next on our list of special dividend stocks. The company owns and manages a diversified portfolio of properties in the US. In the first quarter of 2023, it posted revenue of $99.2 million, which showed a 10.6% growth from the same period last year. The company’s cash position remained stable as it generated roughly $73 million in operating cash flow and its free cash flow for the quarter amounted to over $73.4 million.
Natural Resource Partners L.P. (NYSE:NRP), one of the special dividend stocks, has a 20-year run of paying regular dividends to shareholders. It currently pays a quarterly dividend of $0.75 per share and has a dividend yield of 6.09%, as of June 21. On March 2, the company declared a special dividend of $2.43 per share.
As of the close of Q1 2023, 6 hedge funds tracked by Insider Monkey reported having stakes in Natural Resource Partners L.P. (NYSE:NRP), up from 5 in the previous quarter. These stakes are collectively valued at over $30.7 million. GoldenTree Asset Management owned the largest stake in the company worth over $28.2 million.
8. Weibo Corporation (NASDAQ:WB)
Number of Hedge Fund Holders: 17
Weibo Corporation (NASDAQ:WB) is a China-based social network company that mainly specializes in microblogging sites. In the first quarter of 2023, the company’s advertising and marketing revenues came in at $355.5 million and it generated consolidated revenue of $413.8 million. At the end of March 31, the company had over $2.4 billion available in cash and cash equivalents.
On May 25, Weibo Corporation (NASDAQ:WB) declared a special dividend of $0.85 per share. The aggregate amount of this dividend will be approximately $200 million. The company does not hold any prior history of paying dividends to shareholders.
At the end of Q1 2023, 17 hedge funds tracked by Insider Monkey owned stakes in Weibo Corporation (NASDAQ:WB), up from 13 in the previous quarter. These stakes have a collective value of over $164.4 million. With over 2.8 million shares, Maple Rock Capital was the company’s leading stakeholder in Q1.
7. Clear Secure, Inc. (NYSE:YOU)
Number of Hedge Fund Holders: 17
Clear Secure, Inc. (NYSE:YOU) is an American technology company that specializes in biometric travel document verification systems at some major airports and stadiums. The company reported strong earnings in the first quarter of 2023 with revenue of $132.3 million, up 46.2% from the same period last year. Its total bookings also showed a 39% year-over-year growth at roughly $150 million.
Clear Secure, Inc. (NYSE:YOU) generated over $60.8 million in operating cash flow in Q1 2023. The company’s free cash flow came in at $51.3 million.
Clear Secure, Inc. (NYSE:YOU) is a special dividend stock on our list as it announced a per-share special payout of $0.20 on May 9. The company also paid a special dividend of $0.25 per share in November last year. It does not pay regular dividends to shareholders.
At the end of Q1 2023, 17 hedge funds in Insider Monkey’s database reported having stakes in Clear Secure, Inc. (NYSE:YOU), the same as in the previous quarter. These stakes are collectively valued at over $502 million. With over 11.4 million shares, Durable Capital Partners was the company’s leading stakeholder in Q1.
6. ON24, Inc. (NYSE:ONTF)
Number of Hedge Fund Holders: 20
ON24, Inc. (NYSE:ONTF) is a California-based technology company that markets products and services related to webcasting and virtual events. On May 9, the company announced a special dividend of $1.09 per share to expand its capital return program to $125 million. The company does not pay regular dividends to shareholders unlike Microsoft Corporation (NASDAQ:MSFT), Pioneer Natural Resources Company (NYSE:PXD), and ConocoPhillips (NYSE:COP) which have regular dividend policies. It is among the best special dividend stocks on our list.
In the first quarter of 2023, ON24, Inc. (NYSE:ONTF) reported revenue of $43.1 million, which fell by 11.1% from the same period last year. The company generated an operating cash flow of $4.2 million during the quarter and had over $315.7 million in cash and cash equivalents available.
As of the close of Q1 2023, 20 hedge funds in Insider Monkey’s database owned stakes in ON24, Inc. (NYSE:ONTF), worth collectively over $160 million. Cynthia Paul, Derek C. Schrier, and Joe Milano were some of the company’s leading stakeholders in Q1.
Click to continue reading and see 5 Stocks that Paid Special Dividends in 2023.
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Disclosure. None. 10 Stocks that Paid Special Dividends in 2023 is originally published on Insider Monkey.