Excluded Special Dividend

Excluded special dividend is an irregular or unpredictable special dividend omitted from the denominator of a stated dividend coverage calculation.

Why this matters to income investors

An irregular special payment can reward shareholders without establishing a recurring obligation. Including it in a regular coverage denominator can distort the trend.

How to use excluded special dividend in your research

Check the company’s dividend history and declaration language. Keep unpredictable special payments separate from the regular and regularly paid supplemental dividends used in coverage.

This material is general education and information, not individualized investment, tax, or legal advice.