Anonymous
Anonymous asked in Business & FinanceInvesting · 4 weeks ago

Why did Wendy's pay out such a huge dividend around August 2003?

Update:

Apparently their stock price went down by 2/3rds of its value overnight because they paid out a huge dividend? huh?

Update 2:

I've never heard of a company doing that.  What reason could there be for this?

2 Answers

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  • Anonymous
    3 weeks ago

    It is called a one time cash or stock dividend.  Companies do that when there is a merger or a spin off or the company is to be sold.  There is no value "lost".

  • 4 weeks ago

    From the Wendy's website: "Prior to the merger on September 29, 2008, the Company was named Triarc Companies, Inc. On September 4, 2003, Triarc distributed a special stock dividend of two shares of newly designated Class B Common Stock, Series 1 (NYSE: TRY.B), for each share of Class A Common Stock (NYSE: TRY) outstanding as of August 21, 2003.On April 4, 2008, Triarc distributed a special stock dividend of 0.106028 shares of common stock of Deerfield Capital Corp. (NYSE: DFR) for each share of Class A Common Stock and each share of Class B Common Stock outstanding as of March 29, 2008."

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