Life Partners Holdings, Inc. (LPHI) declared a special cash dividend of $0.04 per share today. The payment is a distribution of proceeds from a life settlement trust investment, and is in addition to LPHI’s regular quarterly payout of $0.20 per share.
The company plans “to review accumulated payouts from the trust on a quarterly basis. When the payout accumulation reaches at least $750,000 at the end of a quarter, the board can then declare a special dividend, as it has done today.”
Shares of LPHI popped as high as $16.58 (+2.60%) immediately following the announcement, where they carry a 4.83% dividend yield based solely on quarterly payouts. At that level, the special dividend announced today yields 0.99%.
Adjusted for LPHI’s stock split earlier this week, the company has now declared $0.3088 per share in special dividends since 2007, and boosted its regular dividend rate by 525% over the same period.
The ex-dividend date for the special dividend announced today is January 27, 2011.