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Special Dividends Keep Coming as We Approach the New Year, Here are Some Potential Tech Considerations

” With the coming fiscal cliff taking the dividend and capital gains taxes higher, investors are hearing of more and more dividends coming sooner or as special dividends before the end of 2012. With dividend taxes at only 15% as of now, it is likely that these tax rates will never be lower. Companies are starting to accelerate and boost those after-tax returns to holders as a result.

24/7 Wall St. has gone through the universe of large technology companies which could further accelerate and declare one-time dividends payable to holders before year-end. There is of course a catch. Some companies do not pay regular dividends even though they should. Another catch is that many of these companies have substantial business offshore and much of that cash or short-term and long-term investment capital would get eaten up if and when it is repatriated from overseas back into U.S. banks.

Many companies were eliminated from this analysis because they were just under too much business pressure even though they have solid balance sheets. Dividends rarely require shareholder approval and these companies are generally strong enough and have low enough debt levels that debt covenants would likely not be a serious issue.

These are eight technology players which could substantially reward their common shareholders with large one-time payments before 2012 comes to an end:”

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