Expedia Declares Special Dividend Ahead of Possible Tax Increase
Expedia Inc. (EXPE), an online travel services provider, will pay a special dividend of 52 cents a share, joining a growing list of companies planning payouts ahead of a possible increase in U.S. taxes in the coming year.
The dividend will be paid on Dec. 28 to shareholders of record on Dec. 17, Bellevue, Washington-based Expedia said today in a statement.
Expedia follows more than three dozen other companies that have announced plans to pay special dividends before a potential rise in taxes next year related to what’s known as the fiscal cliff. Oracle Corp., Costco Wholesale Corp., Las Vegas Sands Corp., and Brown-Forman Corp. -- the maker of Jack Daniel’s whiskey and Finlandia vodka -- have said recently that they’ll pay special or accelerated dividends.
Washington Post Co. (WPO) also announced plans today for an accelerated dividend. The Washington-based owner of the namesake newspaper will pay an accelerated dividend of $9.80 a share in lieu of the quarterly dividends it would have paid in 2013. The annual dividend will be unchanged from the rate in 2012, the company said in a statement.
Expedia plans to pay a regular quarterly cash dividend of 13 cents a share today for shareholders of record on Nov. 16.
Payouts this year are subject to a 15 percent U.S. levy that may rise to as high as 43.4 percent if lawmakers allow $600 billion of scheduled tax increases and spending cuts to take effect in 2013. Rates may also rise if Congress amends the tax code to avoid the cliff.
To contact the editor responsible for this story: Tom Giles at firstname.lastname@example.org