Secret Dividend Boost: These 3 Stocks Pay Special Dividends

Dividends Forever
4 min readNov 27, 2023

Would you like to own a high-quality, market-beating business that pays you 4%, 7%, or 12% in annual dividends?

This is more common than you might think.

And today’s article covers three extremely successful companies that love to shower their shareholders in extra cash, via special dividend payments.

Best of all, these are not stodgy, “go nowhere” business.

Each of these companies enjoys steady growth.

And (almost) all of them have consistently beaten the S&P 500.

1. Old Republic International Corporation ($ORI)

Old Republic is an insurance company that’s been in business for 100 years.

The company routinely beats the market, delivering a 10-year average annual total return of 12.49% compared to the S&P 500’s 11.68%.

Despite this, Old Republic trades at a relatively inexpensive valuation. The company’s price to earnings ratio is a reasonable 10.63. And the stock’s 3.38% starting dividend yield makes this a good income investment.

In addition, Old Republic regularly issues annual special dividends.

This isn’t a guarantee — the company hasn’t paid one in 2023, and they didn’t pay one in 2020 either (though they did issue two special payouts in 2021) — but it is a nice bonus when it happens.

Old Republic spent most of 2022 trading below the $25 mark.

During that time, the company paid $0.92 in regular dividends and an additional $1.00 special dividend. An investor who bought Old Republic stock for $24 per share would have enjoyed an 8% dividend yield.

2. Investors Title Company ($ITIC)

Investors Title Company is the only stock on today’s list that hasn’t beaten the market.

And it’s the only company that pays a wildly unreliable special dividend.

But, I still think this is a business worth discussing.

Investors Title Company sells title insurance. A policy that U.S. homebuyers are required to have.

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