[Rickson9]

This:
http://finance.yahoo.com/news/The-Buckle-Inc-Announces-a-iw-3165997906.html?x=0&.v=1

is a horrible idea, IMO.

This increases the shareholder's tax burden, gives cash (which is definately not wanted), and sends a message that the company cannot find decent ways to invest the capital (ie if we can't generate decent returns for shareholders, we're going to pay it out).

The buckle has historically earned huge rates of return on shareholder equity (north of 15%), there is absoutely 0 chance that I will be able to produce a similar return with this special dividend.

These kind of surprises I don't need. Annoying.

PS: Disbursement-free compounding is the best way to accumulate wealth IMO. Payouts/buyouts are a problem. The Buckle did this crap last year:
http://www.buckle.com/corporate/corporate.jsp?CONTENT<>cnt_id=10134198673991510&FOLDER<>folder_id=9852723696502374&assortId=1408474395181084&contentId=10134198674173584 and I poured every stupid penny they paid out, right back into the company (after paying tax on it). What was the point of that??

 

[tojo]

This:
http://finance.yahoo.com/news/The-Buckle-Inc-Announces-a-iw-3165997906.html?x=0&.v=1

is a horrible idea, IMO.

This increases the shareholder's tax burden, gives cash (which is definately not wanted), and sends a message that the company cannot find decent ways to invest the capital (ie if we can't generate decent returns for shareholders, we're going to pay it out).

The buckle has historically earned huge rates of return on shareholder equity (north of 15%), there is absoutely 0 chance that I will be able to produce a similar return with this special dividend.

These kind of surprises I don't need. Annoying.

PS: Quiet compounding is the best way to accumulate wealth IMO. Disbursements are a problem. The Buckle did this crap last year:
http://www.buckle.com/corporate/corporate.jsp?CONTENT<>cnt_id=10134198673991510&FOLDER<>folder_id=9852723696502374&assortId=1408474395181084&contentId=10134198674173584 and I poured every stupid penny they paid out, right back into the company (after paying tax on it). What was the point of that??

It appears that the buckle is growing into a mature company...
In reviewing their S&P report, I can see that over the last ten years, their earnings have been steadily growing, and so has it's cash flow, dividend and return on equity. With no debt, it's flushed with cash and has decided to reward it's shareholders with a special dividend. I see it as a good sign of a prosperous company that is sharing it's good fortune. Many investors, particularly those who invest for income, would actually appreciate this ! It could also mean, like you mentioned, that it has more cash then it knows what to do with. I don't see this as necessarily a bad thing, but perhaps it is reaching a different stage in it's growth story - I can't say for sure because I don't know enough about the company. What I can say is that each one of us has a different set of criteria for investing, and that the companies we put our money into must fit within those objectives. Therefore, if the Buckle's growth strategy is evolving into something other than your expectations and objectives, perhaps it's time to re-evaluate to consider if your money should be re-deployed elsewhere?

 

[Rickson9]

Therefore, if the Buckle's growth strategy is evolving into something other than your expectations and objectives, perhaps it's time to re-evaluate to consider if your money should be re-deployed elsewhere?

The Buckle has a lot of moving parts. The company is fundamentally very sound and still tiny (<$2B market cap). The only part I don't like is the special-dividend part. To me, this is not a fundamental problem with its business, just a decision that doesn't benefit me whatsoever; like a stock-split.

With regards to re-deploying capital (special-dividend or otherwise), it would have been a great opportunity to invest somewhere else other than The Buckle if the stock market didn't tank at the end of 2008 and take The Buckle from $40 p sh to $15 p sh and practically double their earnings yield (Credit markets tight? It doesn't matter, we don't use debt).

I also don't sell, so those shares will likely be with me for decades to come; unless some CEO comes along and destroys the income statement or balance sheet.