Its the character of the dividend that matters. If they are paying out some portion of Fremont's retained earnings then it is a dividend which has nothing to do with growth of the dividend. That is what I suspect when they make reference for the reason for the payout.
Its a real dividend and I am looking forward to the extra coin but the question was whether the dividend should result in an increasing stock price to which the answer may be no if it is simply a payout of some of Fremont's prior retained earnings acquired by SFI.
Its not entirely clear how this happened. When a reit buys a nonreit something happens with regard to taxable income during a crossover period. Its been a long time since I have owned an investment that was a reit that bought a nonreit. We may have to wait to get our 1099DIV info to see what the character of this special dividend is for 2007. I assume this is 2007 dividend income because dividend payable to shareholders of record 12/31/07 even though it will be paid in 2008.