Why did Wendy's pay out such a huge dividend around August 2003?
Apparently their stock price went down by 2/3rds of its value overnight because they paid out a huge dividend? huh?
I've never heard of a company doing that. What reason could there be for this?
- Anonymous3 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."