In this article, we will take a look at special dividend stocks.
A special dividend is a one-time cash payout that typically follows a significant cash windfall, such as the sale of part of a company or an exceptionally strong financial year. While these dividends are usually one-off events, some companies do issue them more regularly.
According to a report by Janus Henderson, global dividend payments hit a record $1.75 trillion in 2024, reflecting a 6.6% increase on an underlying basis. However, overall (headline) growth stood at 5.2%, partly due to fewer special dividends and the impact of a stronger US dollar. Special dividends dropped to $57.4 billion in 2024, down from $67.8 billion in 2023, which reduced headline growth by 0.7 percentage points. Because these one-time payouts are unpredictable, they are excluded from the underlying growth calculations.
Costco issued the largest special dividend of the year, totaling $6.6 billion. The US retailer typically distributes special dividends when excess cash builds up on its balance sheet. Similarly, Equinor, a Norwegian oil firm, has paid out substantial special dividends— often exceeding its regular dividends over the past three years— reflecting its cautious approach to setting expectations for ongoing dividend payments.
Given this, we will take a look at some of the best special dividend stocks.
Our Methodology
For this list, we selected US companies that have paid special dividends in 2025 so far. Some of these companies do not have regular dividend policies but have distributed special dividends to reward their shareholders this year. We measured hedge fund sentiment around each stock according to Insider Monkey’s database of 1,000 funds as of Q1 2025. The stocks are ranked in ascending order of the number of funds that have stakes in them as of Q1.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
14. Summit Bancshares, Inc. (OTC:SMAL)
Number of Hedge Fund Holders: N/A
Summit Bancshares, Inc. (OTC:SMAL), operating through its subsidiary Summit Bank, delivers a range of commercial lending and banking services across California. Its offerings include checking and savings accounts, along with certificates of deposit. The company also extends various types of loans, such as those for commercial real estate, land development, construction, and both business and personal needs. In addition, it issues letters of credit.
At its meeting on April 16, 2025, the Board of Directors of Summit Bancshares, Inc. (OTC:SMAL) announced a special cash dividend of $0.43 per share to mark the bank’s 43rd anniversary. This special payout replaces the company’s regular quarterly dividend.
Summit Bancshares, Inc. (OTC:SMAL) has a strong track record of returning value to shareholders through special dividends, having issued several of them since 2016.
13. Security Federal Corporation (OTC:SFDL)
Number of Hedge Fund Holders: N/A
Security Federal Corporation (OTC:SFDL) provides a comprehensive range of personal and business banking services, including online and mobile banking, online bill payment, and a wide selection of loan options for consumers, businesses, and mortgages.
In March, Security Federal Corporation (OTC:SFDL) declared a special dividend of $0.10 per share. Chief Executive Officer J. Chris Verenes expressed that the company was pleased to offer shareholders an additional payment due to sustained profitability. He noted that this was a special dividend and mentioned that any future dividends would depend on the Board’s evaluation of the company’s financial health, earnings, and capital needs.
Security Federal Corporation (OTC:SFDL) currently offers a quarterly dividend of $0.15 per share and has a dividend yield of 1.94%, as of July 23. The recent quarterly dividend was the company’s 138th straight quarterly dividend paid to shareholders since the Bank transitioned from a mutual to a stock-owned structure in October 1987.
12. Permianville Royalty Trust (NYSE:PVL)
Number of Hedge Fund Holders: 1
Permianville Royalty Trust (NYSE:PVL), established as a statutory trust in Delaware, holds a net profits interest that entitles it to receive 80% of the net profits from the sale of oil and natural gas. These earnings come mainly from non-operated assets, including conventional properties in Texas, Louisiana, and New Mexico, as well as unconventional sites located in the Permian and Haynesville basins.
Due to the ongoing net profits shortfall— which decreased from around $1.4 million last month to about $1.1 million this month— Permianville Royalty Trust (NYSE:PVL) did not issue a distribution in April 2025 to unitholders of record as of March 31, 2025, based on the monthly net profits interest calculation. However, the company has declared a special dividend of $0.0085 per share instead.
Permianville Royalty Trust (NYSE:PVL) has previously issued special dividends as part of its overall approach to dividend payments.
