U.S. Markets closed

Upcoming Special Dividends for October

Spirit MTA REIT

On Oct. 24, Spirit MTA REIT (NYSE:SMTA) will distribute a special dividend to shareholders at the amount of $8 per common share.

This cash liquidating distribution comes after the company's Sept. 27 sale of the Academy Sports distribution center in Katy, Texas. Spirit is a net lease real estate investment trust with a portfolio of 781 properties, and its profits are primarily generated through acquisitions and the disposition of non-essential properties.

Harvest Oil & Gas Corp

On Oct. 29, Harvest Oil & Gas Corp. (HRST) will distribute a special dividend to shareholders at the amount of $7 per common share.

Harvest is an oil and gas company that operates onshore properties in the U.S. This one-time special dividend was approved as a non-taxable return of capital to reduce shareholders' tax basis in the company. As shown in the chart below, the cyclical company has generated a negative net income for the past couple of years, and it does not expect to post earnings or profits for 2019 either.

df5a3ddd5d4c81f01828e8bcd21f202b.png

This special dividend will result in a $7 reduction in the warrant exercise price, effective Oct. 21. Harvest has issued similar special dividends in the past when it was not turning a profit.

Disclaimer: Author does not hold positions in any of the stocks mentioned.

Read more here:



Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

This article first appeared on GuruFocus.