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Special Dividends Surge Fourfold as U.S. Tax Increase Looms

Companies from Wynn Resorts Ltd. to IDT Corp. are paying special dividends at four times the pace of last year, helping investors stay a step ahead of the taxman with rates poised to jump in 2013.

From the end of September to mid-November, 59 companies in the Russell 3000 stock index declared a one-time cash payment to shareholders, up from about 15 in the year-earlier period, according to data compiled by Bloomberg. More than a dozen said they acted because of a pending dividend-tax increase.