I really shouldn't have checked this stock before I went to bed. It's midnight and I can't sleep. Even though I need to wake up early tomorrow so I can play Army in the woods the next few days, I can't stop thinking about this.
The Board of Directors of Southside Bancshares, Inc., (Nasdaq:SBSI), parent
company of Southside Bank declared a special cash dividend for 2012 of $0.13 per
common share in addition to declaring a regular quarterly cash dividend of $0.20
per common share. In addition, due to the potential changes in the tax code the
Board approved a one time only additional cash dividend of $0.20 per share. The
Board believes that it might be more beneficial for the shareholder to receive
this one time cash dividend this year than in future years. This $0.20 one time
only additional cash dividend will not be repeated in the foreseeable
future. The combined cash dividend of $0.53 is payable to common stock
shareholders of record November 21, 2012. The cash dividend is scheduled for
payment on December 6, 2012.
Apparently paying a special dividend isn't enough for SBSI. They decided to pay TWO special dividends this year! HAHA this is awesome! Not only that, but they also declared share repurchases on top of it all.
Let's recap 2012 for SBSI:
Dividend Growth >15%: check
Stock Split: check
Special Dividend: check
2nd Special Dividend: check
Stock Buybacks: check
I literally cannot think of any other company this shareholder friendly. Why does SBSI have to be a bank? I really want to transplant the management into a different sector!
Ok maybe I'll be able to sleep now.
That is pretty awesome. Management seems to be very friendly to shareholders. If only it were not a bank... :)
ReplyDeleteSouthside treats shareholders like royalty. I own a slice of the business, shouldn't I be entitled to the profits? SBSI thinks so and I appreciate that.
DeleteI would like to see more companies paying special dividends with excess cash, I don't know why they don't. SBSI typically does pay a special dividend in Q4 so the 1st one wasn't a surprise. I feel like they really have my best interest in mind with the 2nd special payment. The reasons they provide tell me all I need to know.
I would make this a bigger holding, but I'm not a fan of banks.
Yeah, I seen this yesterday as SBSI had quite a pop. That continued today.
ReplyDeleteThis is a very shareholder friendly company. I wish I would have added before the pop, and it was on my shopping list too. I still think it's well undervalued, and worth upwards of $25 a share. Great company and great stock.
Best wishes!
I'm currently satisfied with my SBSI holding. As my portfolio grows I will eventually add more, but do not want it to be a large holding. For now I will continue dripping the stock. I turned it off Q3 because I felt the price was a bit too high. It's back on again and will include the specials too!
DeleteIt never cut or froze the dividend during the last recession. But they are located in Texas. I do like the management, but question whether it was location or sound decisions that carried them through the crisis. Either way they are a bank that survived and continued rewarding shareholders in a big, big way. Not many banks can claim that. No big banks that I know of at all.
now I see why you guys got in on this one over the big names ;)
ReplyDeleteI chose this one and a big boy from Canada. I've been pleased with both so far. Not planning for either to be large holdings, but would be more apt to increase my TD holding compared to SBSI. TD has pretty good growth prospects.
DeleteI bet if you check who are the major owners in the company it will be the execs, board, etc. Since they are effectively doing their own tax planning.
ReplyDeleteNot a bad thing, just an interesting topic to look at.
Good point Evan. I will have to check that out, never thought of it. I do know that executives buy shares periodically.
DeleteThanks for pointing out something new to think about!
Just checked and insiders do own a substantial portion of the corporation. Very astute obsevation there! Either way I like extra cash.
DeleteSome companies pay a special dividend once in a great while' but for the most part its not all that common.
ReplyDelete