The planned transformation of Corrections Corporation of America (NYSE: CXW ) has produced an early reward for shareholders. The company has announced that it will hand out a special dividend of $6.63 per share of its common stock. It expects the disbursement to be made on May 20 to shareholders of record as of April 19.
The dividend is being paid as a precursor to CCA's transformation into a real estate investment trust or REIT, which requires the company to distribute its undistributed earnings and profits before this year.
The special dividend yields 17.5% at CCA's current stock price of $37.97