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SNL Report: Banks join tax-worried dividend parade E-mail

Post-election, special dividend declaration nearly triple

 

http://www.ababj.com/images/SNL/121412_snl_dividend.jpg

 

Not pennies from Heaven, but dollars from the boardroom: For an unusually large number of banks' shareholders, this is a time for a smile to be their umbrella.

 

 

By Jack Chen and Maria Tor, SNL Financial staff writers

 

In the wake of a flood of special dividends declared in advance of possible 2013 tax hikes, SNL Financial compiled a list of banks and thrifts that have declared special dividends since the re-election of President Barack Obama.

 

Fifty-seven banks and thrifts have declared special dividends from Nov. 1 through Dec. 5. This compares to just 19 banks and thrifts that declared dividends during the same time period in 2011.

 

 http://www.ababj.com/images/stories/92412_snllogo.jpg   This article originally appeared on SNL Financial’s website in slightly different form and appears on www.ababj.com as part of a cooperative venture. Each week a selected SNL article will be brought to our readers. Follow us on Twitter @ABABankingJourn—to learn when it has been posted. We welcome your feedback on this weekly feature. Email to This e-mail address is being protected from spam bots, you need JavaScript enabled to view it  

 

  http://www.ababj.com/images/SNL/121412banksandthriftsspecialdividendsbyyear.jpg
 
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The wave of special dividends crosses all industries in the U.S. Companies are accelerating payouts due to the possibility that dividend taxes may increase in 2013.

 

Notably, the increased dividends are limited to smaller banks that aren't subject to the Federal Reserve's stress tests under the regulator's Comprehensive Capital Analysis and Review. Banks subject to the CCAR need the Fed's permission to disburse capital to shareholders.

 

 

http://www.ababj.com/images/SNL/121412usbanksandthriftsspecialdividendsdeclared.jpg

For a large version, click on image or click here.

 

Since the Nov. 6 election, the SNL U.S. Bank and Thrift index has lost 3.09% through Dec. 5, compared to a loss of 1.04% in the S&P 500 over the same period. Year-to-date, however, the SNL U.S. Bank and Thrift Index has returned over 27%.

 

http://www.ababj.com/images/SNL/121412_banksandthriftstotalreturntodate.jpg

For a large version, click on image or click here.

 

[This article was posted on December 14, 2012, on the website of ABA Banking Journal, www.ababj.com, and is copyright 2012 by the American Bankers Association.] 
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