Fundamental Glossary / Dividend Metrics
Special Dividend
A one-time dividend paid out of surplus cash, an asset sale, or an unusually strong year. It is not part of the regular rate.
Formula
Disclosed separately from the interim and final dividend. It raises the cash received that year and should not be annualised.
What it means
A special dividend returns cash the company does not need for its plan. It is an alternative to a buyback.
Because it is not a promise, the yield that includes it is a trailing fact, not a forward yield.
How to read it
Read the source. A special dividend funded by selling a division shrinks the business. One funded by surplus cash the business does not need is a cleaner return.
What to watch
Screens that rank stocks by trailing yield will push a special-dividend stock to the top for one year. Strip the special before you call it a high-yield investment.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.